project on consumer behaviour towards spice telecom

88
AMITY BUSINESS SCHOOL 1.1 INDIAN TELECOM INDUSTRY History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan 1 | Page

Upload: shatanu21

Post on 15-Nov-2014

26 views

Category:

Documents


3 download

DESCRIPTION

“ANALYSIS AND IDENTIFICATION OF SMALL MEDIUM BUSINESS (SMB) CUSTOMERS WITH AIRTEL” The company Bharti-Airtel has 3 basic SBUs- the fixed line, the mobile telephony and the data business units. Every SBU has got its own operations, sales and marketing teams. When a customer who is using all the three types of services of Airtel has any kind of problem with his devices/ networks then he needs to address the particular issue to the respective SBU contact person, he has a problem with. Our project aims at convergence of all the three SBUs in order to give its customers better services and even greater quality assured service to all its corporate customers. Our project aimed at achieving the same target. We actually did a feasibility analysis on the convergence issue. Airtel in all wanted to map the existing active key SMBEs (Small and Medium Business Enterprises) accounts with it which holds a business potential.I collected the data through various questionnaires given to me by the company and analysed the same.

TRANSCRIPT

Page 1: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

11 INDIAN TELECOM INDUSTRY

History of Indian Telecommunications started in 1851 when the first operational land

lines were laid by the government near Calcutta (seat of British power) Telephone

services were introduced in India in 1881 In 1883 telephone services were merged with

the postal system Indian Radio Telegraph Company (IRT) was formed in 1923 After

independence in 1947 all the foreign telecommunication companies were nationalized to

form the Posts Telephone and Telegraph (PTT) a monopoly run by the governments

Ministry of Communications Telecom sector was considered as a strategic service and

the government considered it best to bring under states control

The first wind of reforms in telecommunications sector began to flow in 1980s when the

private sector was allowed in telecommunications equipment manufacturing In 1985

Department of Telecommunications (DOT) was established It was an exclusive provider

of domestic and long-distance service that would be its own regulator (separate from the

postal system) In 1986 two wholly government-owned companies were created the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas

In 1990s telecommunications sector benefited from the general opening up of the

economy Also examples of telecom revolution in many other countries which resulted

in better quality of service and lower tariffs led Indian policy makers to initiate a change

process finally resulting in opening up of telecom services sector for the private sector

National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive

roadmap for the Indian telecommunications sector In 1997 Telecom Regulatory

Authority of India (TRAI) was created TRAI was formed to act as a regulator to

facilitate the growth of the telecom sector New National Telecom Policy was adopted in

1999 and cellular services were also launched in the same year

Telecommunication sector in India can be divided into two segments Fixed Service

1 | P a g e

AMITY BUSINESS SCHOOL

Provider (FSPs) and Cellular Services Fixed line services consist of basic services

national or domestic long distance and international long distance services The state

operators (BSNL and MTNL) account for almost 90 per cent of revenues from basic

services Private sector services are presently available in selective urban areas and

collectively account for less than 5 per cent of subscriptions However private services

focus on the businesscorporate sector and offer reliable high- end services such as

leased lines ISDN closed user group and videoconferencing

Cellular services can be further divided into two categories Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA) The GSM sector

is dominated by Airtel Vodafone-Hutch and Idea Cellular while the CDMA sector is

dominated by Reliance and Tata Indicom Opening up of international and domestic long

distance telephony services are the major growth drivers for cellular industry Cellular

operators get substantial revenue from these services and compensate them for reduction

in tariffs on airtime which along with rental was the main source of revenue The

reduction in tariffs for airtime national long distance international long distance and

handset prices has driven demand

The telecom sector is also afflicted by a number of restraints These include

Sluggish pace of reform process

Lack of infrastructure in semi-rural and rural areas which makes it difficult to

make inroads into this market segment as service providers have to incur a huge

initial fixed cost

Limited spectrum availability

But notwithstanding these constraints telecom sector has undergone a revolution in the

past decade and has played a major part in bridging the rural-urban divide

The telecom industry is one of the fastest growing industries in India India has nearly

200 million telephone lines making it the third largest network in the world after China

and USA With a growth rate of 45 Indian telecom industry has the highest growth rate

in the world

2 | P a g e

AMITY BUSINESS SCHOOL

The telecom network in India is the fifth largest network in the world meeting up with

global standards Presently the Indian telecom industry is currently slated to an estimated

contribution of nearly 1 to Indiarsquos GDP

The Indian Telecommunications network with 11001 million connections is the fifth

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

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

for US companies in the stagnant global scenario The total subscriber base which has

grown by 40 in 2005 is expected to reach 250 million in 2007 According to

Broadband Policy 2004 Government of India aims at 9 million broadband connections

and 18 million internet connections by 2007 The wireless subscriber base has jumped

from 3369 million in 2004 to 6257 million in FY2004-

2005 In the last 3 years two out of every three new telephone subscribers were wireless

subscribers Consequently wireless now accounts for 546 of the total telephone

subscriber base as compared to only 40 in 2003 Wireless subscriber growth is

expected to bypass 25 million new subscribers per month by 2007 The wireless

technologies currently in use are Global System for Mobile Communications (GSM) and

Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA

operators providing mobile services in 19 telecom circles and 4 metro cities covering

2000 towns across the country

Evolution of the industry-Important Milestones

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near Calcutta (seat

of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication

3 | P a g e

AMITY BUSINESS SCHOOL

Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts Telephone and Telegraph (PTT) a monopoly run by the

governments Ministry of Communications

1985 Department of Telecommunications (DOT) established an exclusive

provider of domestic and long-distance service that would be its own regulator

(separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas

1997 Telecom Regulatory Authority of India created

1999 Cellular Services are launched in India New National Telecom Policy is

adopted

2000 DoT becomes a corporation BSNL

Major Players

There are three types of players in telecom services

bull -State owned companies (BSNL and MTNL)

bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)

bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures

Escotel Idea Cellular BPL Mobile Spice Communications)

BSNL

On October 1 2000 the Department of Telecom Operations Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL

is now Indiarsquos leading telecommunications company and the largest public sector

undertaking It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections The state-controlled BSNL operates basic cellular (GSM

and CDMA) mobile Internet and long distance services throughout India (except Delhi

and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year

Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March

4 | P a g e

AMITY BUSINESS SCHOOL

2007 BSNL which became the third operator of GSM mobile services in most circles is

now planning to overtake Bharti to become the largest GSM operator in the country

BSNL is also the largest operator in the Internet market with a share of 21 per cent of the

entire subscriber base

BHARTI

Established in 1985 Bharti has been a pioneering force in the telecom sector with many

firsts and innovations to its credit ranging from being the first mobile service in Delhi

first private basic telephone service provider in the country first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch National Long Distance Services in India Bharti Tele-

Ventures Limited was incorporated on July 7 1995 for promoting investments in

telecommunications services Its subsidiaries operate telecom services across India

Bhartirsquos operations are broadly handled by two companies the Mobility group which

handles the mobile services in 16 circles out of a total 23 circles across the country and

the Infotel group which handles the NLD ILD fixed line broadband data and satellite-

based services Together they have so far deployed around 23000 km of optical fiber

cables across the country coupled with approximately 1500 nodes and presence in

around 200 locations The group has a total customer base of 645 million of which 586

million are mobile and 588000 fixed line customers as of January 31 2004 In mobile

Bhartirsquos footprint extends

across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth

opportunities the company believes are available in the Indian telecommunications

market and

consolidate its position to be the leading integrated telecommunications services provider

in key markets in India with a focus on providing mobile servicesrdquo

5 | P a g e

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 2: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Provider (FSPs) and Cellular Services Fixed line services consist of basic services

national or domestic long distance and international long distance services The state

operators (BSNL and MTNL) account for almost 90 per cent of revenues from basic

services Private sector services are presently available in selective urban areas and

collectively account for less than 5 per cent of subscriptions However private services

focus on the businesscorporate sector and offer reliable high- end services such as

leased lines ISDN closed user group and videoconferencing

Cellular services can be further divided into two categories Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA) The GSM sector

is dominated by Airtel Vodafone-Hutch and Idea Cellular while the CDMA sector is

dominated by Reliance and Tata Indicom Opening up of international and domestic long

distance telephony services are the major growth drivers for cellular industry Cellular

operators get substantial revenue from these services and compensate them for reduction

in tariffs on airtime which along with rental was the main source of revenue The

reduction in tariffs for airtime national long distance international long distance and

handset prices has driven demand

The telecom sector is also afflicted by a number of restraints These include

Sluggish pace of reform process

Lack of infrastructure in semi-rural and rural areas which makes it difficult to

make inroads into this market segment as service providers have to incur a huge

initial fixed cost

Limited spectrum availability

But notwithstanding these constraints telecom sector has undergone a revolution in the

past decade and has played a major part in bridging the rural-urban divide

The telecom industry is one of the fastest growing industries in India India has nearly

200 million telephone lines making it the third largest network in the world after China

and USA With a growth rate of 45 Indian telecom industry has the highest growth rate

in the world

2 | P a g e

AMITY BUSINESS SCHOOL

The telecom network in India is the fifth largest network in the world meeting up with

global standards Presently the Indian telecom industry is currently slated to an estimated

contribution of nearly 1 to Indiarsquos GDP

The Indian Telecommunications network with 11001 million connections is the fifth

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

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

for US companies in the stagnant global scenario The total subscriber base which has

grown by 40 in 2005 is expected to reach 250 million in 2007 According to

Broadband Policy 2004 Government of India aims at 9 million broadband connections

and 18 million internet connections by 2007 The wireless subscriber base has jumped

from 3369 million in 2004 to 6257 million in FY2004-

2005 In the last 3 years two out of every three new telephone subscribers were wireless

subscribers Consequently wireless now accounts for 546 of the total telephone

subscriber base as compared to only 40 in 2003 Wireless subscriber growth is

expected to bypass 25 million new subscribers per month by 2007 The wireless

technologies currently in use are Global System for Mobile Communications (GSM) and

Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA

operators providing mobile services in 19 telecom circles and 4 metro cities covering

2000 towns across the country

Evolution of the industry-Important Milestones

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near Calcutta (seat

of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication

3 | P a g e

AMITY BUSINESS SCHOOL

Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts Telephone and Telegraph (PTT) a monopoly run by the

governments Ministry of Communications

1985 Department of Telecommunications (DOT) established an exclusive

provider of domestic and long-distance service that would be its own regulator

(separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas

1997 Telecom Regulatory Authority of India created

1999 Cellular Services are launched in India New National Telecom Policy is

adopted

2000 DoT becomes a corporation BSNL

Major Players

There are three types of players in telecom services

bull -State owned companies (BSNL and MTNL)

bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)

bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures

Escotel Idea Cellular BPL Mobile Spice Communications)

BSNL

On October 1 2000 the Department of Telecom Operations Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL

is now Indiarsquos leading telecommunications company and the largest public sector

undertaking It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections The state-controlled BSNL operates basic cellular (GSM

and CDMA) mobile Internet and long distance services throughout India (except Delhi

and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year

Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March

4 | P a g e

AMITY BUSINESS SCHOOL

2007 BSNL which became the third operator of GSM mobile services in most circles is

now planning to overtake Bharti to become the largest GSM operator in the country

BSNL is also the largest operator in the Internet market with a share of 21 per cent of the

entire subscriber base

BHARTI

Established in 1985 Bharti has been a pioneering force in the telecom sector with many

firsts and innovations to its credit ranging from being the first mobile service in Delhi

first private basic telephone service provider in the country first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch National Long Distance Services in India Bharti Tele-

Ventures Limited was incorporated on July 7 1995 for promoting investments in

telecommunications services Its subsidiaries operate telecom services across India

Bhartirsquos operations are broadly handled by two companies the Mobility group which

handles the mobile services in 16 circles out of a total 23 circles across the country and

the Infotel group which handles the NLD ILD fixed line broadband data and satellite-

based services Together they have so far deployed around 23000 km of optical fiber

cables across the country coupled with approximately 1500 nodes and presence in

around 200 locations The group has a total customer base of 645 million of which 586

million are mobile and 588000 fixed line customers as of January 31 2004 In mobile

Bhartirsquos footprint extends

across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth

opportunities the company believes are available in the Indian telecommunications

market and

consolidate its position to be the leading integrated telecommunications services provider

in key markets in India with a focus on providing mobile servicesrdquo

5 | P a g e

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 3: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

The telecom network in India is the fifth largest network in the world meeting up with

global standards Presently the Indian telecom industry is currently slated to an estimated

contribution of nearly 1 to Indiarsquos GDP

The Indian Telecommunications network with 11001 million connections is the fifth

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

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

for US companies in the stagnant global scenario The total subscriber base which has

grown by 40 in 2005 is expected to reach 250 million in 2007 According to

Broadband Policy 2004 Government of India aims at 9 million broadband connections

and 18 million internet connections by 2007 The wireless subscriber base has jumped

from 3369 million in 2004 to 6257 million in FY2004-

2005 In the last 3 years two out of every three new telephone subscribers were wireless

subscribers Consequently wireless now accounts for 546 of the total telephone

subscriber base as compared to only 40 in 2003 Wireless subscriber growth is

expected to bypass 25 million new subscribers per month by 2007 The wireless

technologies currently in use are Global System for Mobile Communications (GSM) and

Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA

operators providing mobile services in 19 telecom circles and 4 metro cities covering

2000 towns across the country

Evolution of the industry-Important Milestones

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near Calcutta (seat

of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication

3 | P a g e

AMITY BUSINESS SCHOOL

Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts Telephone and Telegraph (PTT) a monopoly run by the

governments Ministry of Communications

1985 Department of Telecommunications (DOT) established an exclusive

provider of domestic and long-distance service that would be its own regulator

(separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas

1997 Telecom Regulatory Authority of India created

1999 Cellular Services are launched in India New National Telecom Policy is

adopted

2000 DoT becomes a corporation BSNL

Major Players

There are three types of players in telecom services

bull -State owned companies (BSNL and MTNL)

bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)

bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures

Escotel Idea Cellular BPL Mobile Spice Communications)

BSNL

On October 1 2000 the Department of Telecom Operations Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL

is now Indiarsquos leading telecommunications company and the largest public sector

undertaking It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections The state-controlled BSNL operates basic cellular (GSM

and CDMA) mobile Internet and long distance services throughout India (except Delhi

and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year

Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March

4 | P a g e

AMITY BUSINESS SCHOOL

2007 BSNL which became the third operator of GSM mobile services in most circles is

now planning to overtake Bharti to become the largest GSM operator in the country

BSNL is also the largest operator in the Internet market with a share of 21 per cent of the

entire subscriber base

BHARTI

Established in 1985 Bharti has been a pioneering force in the telecom sector with many

firsts and innovations to its credit ranging from being the first mobile service in Delhi

first private basic telephone service provider in the country first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch National Long Distance Services in India Bharti Tele-

Ventures Limited was incorporated on July 7 1995 for promoting investments in

telecommunications services Its subsidiaries operate telecom services across India

Bhartirsquos operations are broadly handled by two companies the Mobility group which

handles the mobile services in 16 circles out of a total 23 circles across the country and

the Infotel group which handles the NLD ILD fixed line broadband data and satellite-

based services Together they have so far deployed around 23000 km of optical fiber

cables across the country coupled with approximately 1500 nodes and presence in

around 200 locations The group has a total customer base of 645 million of which 586

million are mobile and 588000 fixed line customers as of January 31 2004 In mobile

Bhartirsquos footprint extends

across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth

opportunities the company believes are available in the Indian telecommunications

market and

consolidate its position to be the leading integrated telecommunications services provider

in key markets in India with a focus on providing mobile servicesrdquo

5 | P a g e

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 4: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts Telephone and Telegraph (PTT) a monopoly run by the

governments Ministry of Communications

1985 Department of Telecommunications (DOT) established an exclusive

provider of domestic and long-distance service that would be its own regulator

(separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas

1997 Telecom Regulatory Authority of India created

1999 Cellular Services are launched in India New National Telecom Policy is

adopted

2000 DoT becomes a corporation BSNL

Major Players

There are three types of players in telecom services

bull -State owned companies (BSNL and MTNL)

bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)

bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures

Escotel Idea Cellular BPL Mobile Spice Communications)

BSNL

On October 1 2000 the Department of Telecom Operations Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL

is now Indiarsquos leading telecommunications company and the largest public sector

undertaking It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections The state-controlled BSNL operates basic cellular (GSM

and CDMA) mobile Internet and long distance services throughout India (except Delhi

and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year

Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March

4 | P a g e

AMITY BUSINESS SCHOOL

2007 BSNL which became the third operator of GSM mobile services in most circles is

now planning to overtake Bharti to become the largest GSM operator in the country

BSNL is also the largest operator in the Internet market with a share of 21 per cent of the

entire subscriber base

BHARTI

Established in 1985 Bharti has been a pioneering force in the telecom sector with many

firsts and innovations to its credit ranging from being the first mobile service in Delhi

first private basic telephone service provider in the country first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch National Long Distance Services in India Bharti Tele-

Ventures Limited was incorporated on July 7 1995 for promoting investments in

telecommunications services Its subsidiaries operate telecom services across India

Bhartirsquos operations are broadly handled by two companies the Mobility group which

handles the mobile services in 16 circles out of a total 23 circles across the country and

the Infotel group which handles the NLD ILD fixed line broadband data and satellite-

based services Together they have so far deployed around 23000 km of optical fiber

cables across the country coupled with approximately 1500 nodes and presence in

around 200 locations The group has a total customer base of 645 million of which 586

million are mobile and 588000 fixed line customers as of January 31 2004 In mobile

Bhartirsquos footprint extends

across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth

opportunities the company believes are available in the Indian telecommunications

market and

consolidate its position to be the leading integrated telecommunications services provider

in key markets in India with a focus on providing mobile servicesrdquo

5 | P a g e

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 5: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

2007 BSNL which became the third operator of GSM mobile services in most circles is

now planning to overtake Bharti to become the largest GSM operator in the country

BSNL is also the largest operator in the Internet market with a share of 21 per cent of the

entire subscriber base

BHARTI

Established in 1985 Bharti has been a pioneering force in the telecom sector with many

firsts and innovations to its credit ranging from being the first mobile service in Delhi

first private basic telephone service provider in the country first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch National Long Distance Services in India Bharti Tele-

Ventures Limited was incorporated on July 7 1995 for promoting investments in

telecommunications services Its subsidiaries operate telecom services across India

Bhartirsquos operations are broadly handled by two companies the Mobility group which

handles the mobile services in 16 circles out of a total 23 circles across the country and

the Infotel group which handles the NLD ILD fixed line broadband data and satellite-

based services Together they have so far deployed around 23000 km of optical fiber

cables across the country coupled with approximately 1500 nodes and presence in

around 200 locations The group has a total customer base of 645 million of which 586

million are mobile and 588000 fixed line customers as of January 31 2004 In mobile

Bhartirsquos footprint extends

across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth

opportunities the company believes are available in the Indian telecommunications

market and

consolidate its position to be the leading integrated telecommunications services provider

in key markets in India with a focus on providing mobile servicesrdquo

5 | P a g e

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 6: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services expand the telecom network and introduce new services and to raise

revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political

capital and Mumbai the business capital In the past 17 years the company has taken

rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating

companies The company has also been in the forefront of technology induction by

converting 100 of its telephone exchange network into the state-of-the-art digital mode

The Govt of India currently holds 5625 stake in the company In the year 2003-04 the

companys focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India entering into national long

distance operation widening the cellular and CDMA-based WLL customer base setting

up internet and allied services on an all India basis MTNL has over 5 million subscribers

and 329374 mobile subscribers While the market for fixed wire line phones is

stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison

and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs

602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous

yearrsquos annual turnover of Rs 6392 billion

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated

telecom service provider with licenses for mobile fixed domestic long distance and

international services Reliance Infocomm offers a complete range of telecom services

covering mobile and fixed line telephony including broadband national and international

long distance services data services and a wide range of value added services and

applications Reliance India Mobile the first of Infocomm initiatives was launched on

6 | P a g e

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 7: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

December 28 2002 This marked the beginning of Reliances vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for Indias farmers

businesses hospitals government and public sector organizations Until recently

Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic

services license However it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the countryrsquos

largest mobile operator It now wants to increase its market share and has recently

launched pre-paid services Having captured the voice market it intends to attack the

broadband market

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over

200000 employees and more than 23 million shareholders Tata Teleservices provides

basic (fixed line services) using CDMA technology in six circles Maharashtra

(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka

It has over 800000 subscribers It has now migrated to unified access licenses by paying

a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as

well The company is also expanding its footprint and has paid Rs 417 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime

The new licenses coupled with the six circles in which it already operates virtually gives

the CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm The company hopes to start off services in these 11 new circles by

August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata

Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal

7 | P a g e

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 8: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

VSNL

On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS The company operates a network of

earth stations switches submarine cable systems and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of

about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi

Kolkata and Chennai The international telecommunication circuits are derived via

Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-

ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock

Exchange and its shares are listed on major Stock Exchanges in India The Indian

Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as

investing vehicle of Tata Group owns 45 per cent equity and the overseas holding

(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public The company provides international and

Internet services as well as a host of value-added services Its revenues have declined

from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in

2002-03 with voice revenues being the mainstay To reverse the falling revenue trend

VSNL has also started offering domestic long distance services and is launching

broadband services For this the company is investing in Tata Telservices and is likely to

acquire Tata Broadband

HUTCH

Hutchrsquos presence in India dates back to late 1992 when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai Commercial operations began in November 1995 Between 2000 and March

2004 Hutch acquired further operator equity interests or operating licences With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now

8 | P a g e

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 9: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

provides mobile services in 16 of the 23 defined license areas across the country Hutch

India has benefited from rapid and profitable growth in recent years it had over 175

million customers by the end of June 2006

IDEA

Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand

designs to become a national player but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or

regions in Western India and has received additional GSM licenses to expand its

network into three circles in Eastern India -- the first phase of a major expansion plan that

it intends to fund through an IPO according to parent company Aditya Birla Group

COMPANY MARKET SHARES

Company Million Subs

(Nov 2007)

share

BSNL 403 588

Reliance 61 89

Bharti 57 83

MTNL 49 72

Hutchison 29 42

Idea Cellular 21 30

BPL 14 21

Tata Teleservices 13 19

Spice 10 14

Escotel 08 11

Fascel 08 11

Aircel 09 14

Hexacom 02 03

9 | P a g e

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 10: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Shyam Telelink 01 02

Telecom Policy Environment

Indian telecommunications today benefits from among the most enlightened regulation in

the region and arguably in the world The sector sometimes considered the ldquoposter-boy

for economic reformsrdquo has been among the chief beneficiaries of the post-1991

liberalization Unlike electricity for example where reforms have been stalled

telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus

less subject to electoral calculations Market oriented reforms have also been facilitated

by lobbying from Indiarsquos booming technology sector whose continued success of course

depends on the quality of

communications infrastructure Despite several hiccups along the way the Telecom

Regulatory Authority of India (TRAI) the independent regulator has earned a reputation

for transparency and competence With the recent resolution of a major dispute between

cellular and fixed operators (see below) Indian telecommunications already among the

most competitive markets in the world appears set to continue growing rapidly While

telecom liberalization is usually associated with the post-1991 era the seeds of reform

were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of

ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications

(DOT) out of the Department of Posts and Telegraph For a time he also even considered

corporatizing the DOT before succumbing to union pressure In a compromise Gandhi

created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)

to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate

international telecom services He also introduced private capital into the manufacturing

of telecommunications equipment which had previously been a DOT monopoly These

and other reforms were limited by the unstable coalition politics of the late 1980s It was

not until the early 1990s when the political situation stabilized and with the general

momentum for economic reforms that telecommunications liberalization really took off

In 1994 the government released its National Telecommunications Policy (NTP-94)

which allowed private fixed operators to take part in the Indian market for the first time

10 | P a g e

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 11: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

(cellular operators had been allowed into the four largest metropolitan centers in 1992)

Under the governmentrsquos new policy

India was divided into 20 circles roughly corresponding to state boundaries each of

which would contain two fixed operators (including the incumbent) and two mobile

operators As ground-breaking as NTP-94 was its implementation was unfortunately

marred by regulatory uncertainty and over-bidding A number of operators were unable

to live up to their profligate bids and confronted with far less lucrative networks than

they had supposed pulled out of the country As a result competition in Indiarsquos telecom

sector did not really become a reality until 1999 At that time the governmentrsquos New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15 This figure has subsequently been lowered (to

10-12) and is expected to be reduced even further over the coming years Still

India continues to derive substantial revenue from license fees ($800 million in 2001-

2002) leading some critics to suggest that the government has abrogated its

responsibilities as a regulator to those as a seller Another perhaps even more significant

problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory

clarity Private operators complained that the licensor ndash the DOT ndash was also the

incumbent operator The many stringent conditions attached to licenses were thus seen by

many as the DOTrsquos attempt to limit competition It was in response to such concerns that

the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the

nationrsquos first independent telecom regulator Over the years TRAI has earned a growing

reputation for independence transparency and an increasing level of competence Early

on however the regulator was beleaguered on all fronts It had to contend with political

interference the incumbentrsquos many challenges to its authority and accusations of

ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily

whittled away in a number of cases when the courts repeatedly held that regulatory

power lay with the central government It was not until 2000 with the passing of the

TRAI

Amendment Act that the regulatory body really came into its own Coming just a year

after NTP-99 the act marks something of a watershed moment in the history of India

11 | P a g e

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 12: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

telecom liberalization It set the stage for several key events that have enabled the

vigorous competition witnessed today Some of these events include

bull The corporatization of the DOT and the creation of a new state-owned telecom

company Bharat Sanchar Nigam Ltd (BSNL) in 2000

bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent

drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise

bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial

privatization of the company that same year with the Tata group assuming a 25 stake

and management control

bull The gradual easing of the original duopoly licensing policy allowing a greater number

of operators in each circle

bull The legalization in 2002 of IP telephony (a move that many believe was held up due to

lobbying by VSNL which feared the consequences on its international monopoly) The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite

considerable opposition (including litigation) by fixed operators

bull And more generally the commencement of more stringent interconnection regulation

by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach

All of these events have created an impressive forward-momentum in Indian

telecommunications resulting in a vigorously competitive and fast-growing sector India

has also suffered from its fair share of regulatory hiccups Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the

telecom sector to 49 (a move made in the name of national security) limits capital

availability and thus network rollout In addition ISPs who were allowed into the market

under a liberal licensing regime in 1998 continue to hemorrhage money and have been

pleading with the government for various forms of relief including the provision of

unmetered phone numbers for Internet access Despite initially impressive results the

growth of Internet in the country has recently stalled with only 8 million users

Broadband penetration too remains tiny

12 | P a g e

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 13: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Unified Licensing

But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has

been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in

1999 when MTNL sought permission from TRAI to provide CDMA-based WLL

services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing

that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed

operators had paid lower license and spectrum fees than cellular ones were not required

to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and

amidst accusations of cross-subsidization were charging

considerably lower rates than the cellular operators The resulting conflict dragged on in

the courts and in the political arena for years Fixed operators including new entrants

Reliance and Tata Teleservices claimed that they were being prevented from providing a

cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo

cellular players bitterly opposed what they perceived as unequal regulatory treatment for

two kinds of operators who

were in fact offering the same service The real victim of course was the Indian

telecommunications market which suffered from investor perceptions of regulatory

confusion and operator in-fighting In late 2002 for example thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies (MTNL later attributed the incident to a

ldquotechnical snagrdquo)

It was not until late 2003 that the issue was finally resolved under considerable

government pressure when cellular operators agreed to withdraw their many cases

against the fixed-line operators Fixed operators would in effect be allowed to enter the

mobile business in return the government granted cellular players several concessions

including lower revenue-share arrangements estimated to total over $210 million

Perhaps most notably the government announced its intention to adopt a ldquounified access

licensingrdquo regime which would in the future provide a single technology-neutral license

for fixed and cellular operators The hope is that this

13 | P a g e

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 14: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

new license category will prevent a repeat of the recent controversy and allow new

technologies to enter the Indian market without requiring a wholesale rewrite of licensing

laws

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC

internet broadband (both wireless and fixed) and cable handset features talking SMS

IPTV soft switches and managed services to the local manufacturing and supply chain

This report discusses key trends in the Indian telecom industry their drivers and the

major impacts of such trends affecting mobile operators infrastructure and handset

vendors

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself) They prefer

wireless services compared to wire-line services which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the

wire-line subscriber base growth rate is negligible during the same period In fact many

customers are returning their wire-line phones to their service providers as mobile

provides a more attractive and competitive solution The main drivers for this trend are

quick service delivery for mobile connections affordable pricing plans in the form of pre-

paid cards and increased purchasing power among the 18 to 40 years age group as well as

sizeable middle class ndash a prime market for this service Some of the positive impacts of

this trend are as follows According to a study 18 percent of mobile users are willing to

change their handsets every year to newer models with more features which is good

news for the handset vendors The other impact is that while the operators have only

limited options to generate additional revenues through value-added services from wire-

line services the mobile operators have numerous options to generate non-voice revenues

from their customers Some examples of value-added services are ring tones download

colored ring back tones talking SMS mobisodes (a brief video programme episode

14 | P a g e

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 15: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

designed for mobile phone viewing) etc Moreover there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming

location based services etc On the negative side there is an increased threat of virus ndash

spread through mobile data connections and Bluetooth technology ndash in mobile phones

making them unusable at times This is good news for anti-virus solution providers who

will gain from this trend

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services However it must also be noted that this may very well never

happen on account of low telecom penetration

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created

Constraints

1048698 Slow pace of the reform process

1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the

lack of infrastructure The service providers have to incur a huge initial fixed cost to

make inroads into this market Achieving break-even under these circumstances may

prove to be difficult

1048698 The sector requires players with huge financial resources due to the above mentioned

constraint Upfront entry fees and bank guarantees represent a sizeable share of initial

investments While the criteria are important it tends to support the existing big and older

15 | P a g e

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 16: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

players Financing these requirements require a little more liberal approach from the

policy side

1048698 Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators

12 CURRENT SCENARIO

Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom

markets in the world The mobile sector has grown from around 10 million

subscribers in 2002 to reach 350 million by early 2009 registering an average growth

of over 90 The two major reasons that have fuelled this growth are low tariffs coupled

with falling handset prices Surprisingly CDMA market has increased it market share up

to 30 thanks to Reliance Communication However across the globe CDMA has been

loosing out numbers to popular GSM technology contrary to the scenario in India The

other reason that has tremendously helped the telecom Industry is t he regulatory changes

and reforms that have been pushed for last 10 years by successive Indian governments

According to Telecom Regulatory Authority of India (TRAI) the rate of market

expansion would increase with further regulatory and structural reforms

Even though the fixed line market share has been dropping consistently the overall

(fixed and mobile) subscribers have risen to more than 200 million by first quarter

of 2007 The telecom reforms have allowed the foreign telecommunication companies to

enter Indian market which has still got huge potential International telecom companies

like Vodafone have made entry into Indian market in a big way

Currently the Indian Telecommunication market is valued at around $100 billion (Rupees

400000 crore) Two telecom players dominate this market - Bharti Airtel with 27

market share and Reliance Communication with 20 along with other players like BSNL

(Bharat Sanchar Nigam Limited) and ATampT

One segment of the market that has been puzzling is broadband Internet Despite the

manner in which the countries Internet market has been booming Indiarsquos move into high-

speed broadband Internet access has been distinctly slow And while there appears to be

considerable enthusiasm amongst the population for the Internet itself this has not been

16 | P a g e

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 17: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

reflected in broadband subscription numbers In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200 to just over 2 million by years end Despite this surge broadband penetration in

India still remains around only 02 broadband services still account for only 25 of

the total Internet subscriber base still in itself comparatively low

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is

set to occur in rural India Indiarsquos rural telephone density has been languishing at around

19

so if 70 of total population is rural the scope for growth in this Industry is

unprecedented

GSM and CDMA subscription numbers

YearGSM Subscribers (millions)

GSM Annual growth

CDMA Subscribers (millions)

CDMA Annual growth

200031 94 - -

2001505 76 - -

2002105 91 08 -

2003220 110 64 700

2004374 70 109 70

2005585 57 191 75

20061054 80 442 131

20071800 71 850 92

17 | P a g e

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 18: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

13 MARKET-SIZE PLAYERS AND TRENDS

Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7

According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues

46

19

2

18 123

Wireline

GSM

CDMA

Domestic Long Distance

Iinternational Long Distance

Data

18 | P a g e

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 19: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD

Two major factors responsible for the growth of telecommunications industry are use of

modern technology and market competition One of the products of modern technologies

is optical fibers which are being used as a medium of data transmission instead of using

coaxial or twisted pair cables Optical fibers can carry a high volume of data and are

easier to maintain and install Use of communication satellites makes this

telecommunications industry a booming industry

The use of mobile network has a crucial role behind the growth of an improved

telecommunications industry Leading companies are showing their interest to invest in

this telecommunications industry Telecommunications industry is going to be a

digitized one Use of ISDN (Inter Services Digital Network) makes this

telecommunication industry a total digitalized system and eventually enhanced the speed

and quality of digital communication

The introduction of these advanced technologies makes the telecommunications industry

a competitive one where a number of multinational companies have shown their interest

to invest in this industry and consequently the prices are reduced the quality is also

improved During the period of 1990 the telecommunication industry showed a speedy

growth in terms of investment and eventually increased the competition The competition

between the companies led to the decline of revenues

World telecom industry is an uprising industry proceeding towards a goal of achieving

two third of the worlds telecom connections Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry Substantial economic growth

and mounting population enable the rapid growth of this industry

19 | P a g e

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 20: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Research works associated with world telecommunication industry

A number of research works are being carried out all over the world to improve the

quality and speed of transmission Research works are also done on the basis of the users

needs The objective of the research work is to provide quality and affordable service to

the consumers

Market potentiality of world telecommunication industry

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010 The leading telecom companies like ATampT

Vodafone Verizon SBC Communications Bell South and Qwest Communications are

trying to take the advantage of this growth These companies are working on

telecommunication fields like broadband technologies EDGE(Enhanced Data rates for

Global Evolution) technologies LAN-WAN inter networking optical networking voice

over Internet protocol wireless data service etc

Economical aspect of telecommunication industry

World telecom industry is taking a crucial part of world economy The total revenue

earned from this industry is 3 percent of the gross world products and is aiming at

attaining more revenues One statistical report reveals that approximately 169 of the

world population has access to the Internet

Present market scenario of world telecom industry

Over the last couple of years world telecommunication industry has been consolidating

by allowing private organizations the opportunities to run their businesses with this

industry The Government monopolies are now being privatized and consequently

competition is developing Among all the domestic and small business markets are the

hardest

20 | P a g e

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 21: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Statistical report

Phoenix Center research revealed that in the coming years there will be a healthy

competition among the providers of telecommunication services At the same time the

price will be lower and quality will be higher The new telecommunications technologies

will replace the traditional telecom services Statistical data also reveals that the

telecommunications industry is going to be a dynamic and booming industry in the near

future The telecom industry comprises of complex network of services like telephones

mobile phones and internet services

Telecom industry trends

Throughout the world telecom industries are being controlled by private companies

instead of government monopolies Traditional telecom technologies are also being

replaced by modern wireless technologies specifically in case of mobile services One of

the major objectives of telecom industry is to enhance the quality and speed of Internet

technology

These days telecom industry is more concerned with texts and images (Internet

technologies) rather than voice (telephone service) Most of the research works are going

on Internet accessibility specifically on data applications and broadband services The

other major division of telecom industry is mobile network sector where lots of

innovative research works are going on Previously the traditional telephone calls used to

earn the maximum revenues but these days mobile service is going to replace traditional

telephone services

Telecom industry analysis from the expertrsquos point of view

Telecom industry is a vast and diversified industry and needs a huge capital to invest

That is why the competitors of this industry should be such that they can meet that

demand From the investors point of view it can be said that they should be well aware

of cash flow in this industry

21 | P a g e

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 22: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

15 COMPANY PROFILE

About Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises The Bharti

Group has a diverse business portfolio and has created global brands in the

telecommunication sector Bharti has recently forayed into retail business as Bharti Retail

Pvt Ltd under a MoU with Wal-Mart for the cash amp carry business It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA world leader in financial protection and

wealth management

Airtel comes to you from Bharti Airtel Limited Indiarsquos largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles Bharti

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

course of the telecom sector in the country with its world class products and services The

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

units (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The

mobile business provides mobile amp fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband amp

telephone services in 94 cities The Enterprise services provide end-to-end telecom

solutions to corporate customers and national amp international long distance services to

carriers All these services are provided under the Airtel brand

Bharti Group

Turnover Rs 6000 Crore

Employees 8000 +

Market Capitalization Rs 673 billion Approx

Mobility Voice amp Data Services across all India footprint covering all 23

telecom circles of the country

22 | P a g e

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 23: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

National Long Distance Fiber Optic Backbone across India

Fixed-line Telephony across 5 states in Phase I

International Bandwidth Connectivity

- 7 Ku Band Satellite Earth Stations

- I2i Undersea Fiber from Singapore to Chennai

Bharti Airtel is one of Indias leading private sector providers of telecommunications

services based on an aggregate of 64268047 customers as on March 31 2008 consisting

of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers

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

business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services

The mobile services group provides GSM mobile services across India in 23 telecom

circles while the ATS business group provides broadband amp telephone services in 94

cities The enterprise services group has two sub-units - carriers (long distance services)

and services to corporates All these services are provided under the Airtel brand

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

Stock Exchange of India Limited (NSE)

Partners

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

one of the largest investments made in the world outside Singapore in the company

The companyrsquos mobile network equipment partners include Ericsson and Nokia In the

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

equipment suppliers include Siemens Nortel Corning among others The Company also

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

technology requirements and with

Nortel for call center technology requirements The call center operations for the mobile

services have been outsourced to IBM Daksh Hinduja TMT Teletech amp Mphasis

23 | P a g e

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 24: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Company Background

Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of

telecommunications services The businesses at Bharti Airtel have been structured into

three individual strategic business units (SBUrsquos) ndash mobile services broadband amp

telephone services (BampT) amp enterprise services The mobile services group provides

GSM mobile services across India in 23 telecom circles while the BampT business group

provides broadband amp telephone services in 94 cities The Enterprise services group has

two sub-units ndash carriers (long distance services) and services to corporate All these

services are provided under the Airtel brand

Sunil Bharti Mittal or SBM as he is called has at the age of 43 created a

Telecom Giant in India It has risen from humble beginnings in 1970rsquos as bicycle parts

manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together

with other foreign companies he has raised $ 15 billion of which $ 800 million is still in

the bank

Bharti happens to be Indiarsquos premier telecom company in the field of telecom

terminals and technology tie ups with world leaders like ldquo Siemens Goldstar

Tatacom and Casio It is the first company in India to export telephones to USA

and has finalized plans to manufacture GSM terminals in India

Bharti Enterprises controls about 20 of the Total Telecom market in India As he puts

it it was a mixture of vision good luck and hard work by a team of about 10 ndash 12 senior

people The early beginnings in 1985 were in manufacturing telephone handsets They

did not have the expertise to do telephone exchanges jelly- filled cables had become a

commodity and their capital investment was high

Bharti Tele-Ventures Limited was incorporated on July 7 1995 for promoting

investments in telecommunications services Its subsidiaries operate telecom services

across India Bharti Tele-Ventures is Indiarsquos leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 1150 million total customers which constitute approximately 1066

million mobile and approximately 836000 fixed line customers as of January 31 2005

24 | P a g e

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 25: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Milestones

Telecom Services

Largest Private Telecom Service Provider in India- more than 15000000

subscribers

AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network

with over 14000000 users in India

First amp Largest Pvt Company to launch Fixed line Service in 15 states in India

starting Madhya Pradesh ndash Over 2000000 subs

First amp only Indian company to operate Telecom Services outside India ndash

Seychelles

First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7

Ku Band Gateway for Internet bandwidth

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand

name Airtel Mobile Services (using GSM Technology) Broadband amp Telephone

Services (Fixed line Internet Connectivity(DSL) and Leased Line) Long Distance

Services and Enterprise Services (Telecommunications Consulting for corporate) It has

presence in all 23 circles of the country and has the covers 71 of the current population

till FY07

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers In July 2007 Bharti Airtel signed a MoU with Nokia-Siemens for a 900

25 | P a g e

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 26: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

million dollar expansion of its mobile and fixed network In August 2007 the company

announced it will be launching a customized version of Google search engine that will

provide an array of services to its broadband customers

In March 2008 Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel This is because Singapore-based Asian telecom major SingTel

which owns a little over 30 in Bharti Airtel is a major player in the 3G space as it has

already third generation networks in several markets across Asia

Touchtel

Until September 18 2004 Bharti provided fixed-line telephony and broadband services

under the Touchtel brand Bharti now provides all telecom services including fixed-line

services under a common brand Airtel

Apples iPhone 3G

Apple has announced launch of its new iPhone in US and other 25 countries on July 11th

2008 it is soon to be launched in India as well with Bharti

BlackBerry

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

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

Research In Motion (RIM)

In the news

On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16

billion and purchased a controlling stake in rival Hutchison Essar

In its monthly press release following statistics have been presented for end of April

2007

Bharti Airtel added the highest ever net addition of 53 million customers in a single

quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers

in 2006-07

26 | P a g e

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 27: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

The company will invest up to $35 billion this fiscal (07-08) in network expansion It has

an installed base of 40000 cellsites and 59 population coverage After the proposed

network expansion an additional 30000 towers will result in the company achieving

70 population coverage Bharti has over 39 million users as on March 31 2007 It has

set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of

Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to

Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel

Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the

previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes

The company Has completed 100 verification of its subscribers and in the process

disconnected three lakh subscribers

Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe

David announced the building of 15000 km 384 Terabit OFC sub-marine cable system

connecting Europe [London] to India via the Middle East The project is known as

Europe India gateway [EIG] and is expected to cost $700 million which is to be

completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project

Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du

Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA

Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business

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

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

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

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

overseas acquisition ever by an Indian firm However both sides emphasize the tentative

nature of the talks while The Economist magazine noted If anything Bharti would be

marrying up as MTN has more subscribers higher revenues more subscribers and

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

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

27 | P a g e

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 28: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Airtelrsquos Network

Transport System

Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability

Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC

Network

Ring Topology for Full redundancy

State of the art Network Management System(Nortel) for SDH equipment

Vision amp Promise

By 2010 Airtel will be the most admired brand in India

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel We deliver what we promise and go out of our

way to delight the customer with a little bit more

28 | P a g e

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 29: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

VARIOUS SERVICES PROVIDED BY AIRTEL

For individuals

Various Services Provided by Airtel are

MOBILE

Experience total cost control no rentals and easy billing with our postpaid and prepaid

services Explore the world with our roaming services and get absolutely cool offers with

airtel live

HOME PHONES

Airtel welcomes you to the world of telephony services for your home experience a

world-class service and cutting edge technology with Airtel landline and our feature rich

Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services

and entertainment on Airtel

BROADBAND INTERNET

Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines

your Internet experience It is fast fun convenient and cost effective

BLACKBERRY

Blackberry from Airtel is and always connected wireless solution providing easy and

secure access to your email and data

EMAIL ON THE GO

Want to access information on your mobile Airtel brings you Email on the go You can

choose from Blackberry and Windows Mobile 50 depending upon the usage patterns

requirement and suitability

29 | P a g e

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 30: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

CALLING CARDS

Our calling card services connect you to the world from India and allow a better way to

call back India

WIRELESS INTERNET

With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime

anywhere across India It enables Internet Email and Office applications with real-time

secure VPN access to corporate applications whilst on the move

FOR CORPORATES

MOBILE

We offer you mobile solutions targeted for your business needs We create price plans

that work for your business along with a range of features

VOICE

Our voice services give you the right tools to suit the needs of small medium and large

enterprises and to stay ahead

PRI for COMPANY NAMEGroup

1) PRI (PRIMARY RATE INTERFACE)

2) 30 Channels of 64 kbps on 2 pair of wires

OFFICE SOLUTION

Manage your business more efficiently and effectively with Airtelrsquos Office Solutions

Easy Mail and Data Card

DATA amp INTERNET

We bring you a comprehensive suite of data technologies for all your strategic

connectivity needs

30 | P a g e

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 31: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

1) Analog Phone Line

2) ISDN BRI

3) ISDN PRI DIDDOD Service

4) Host of Value Add Services

5) Voice Mail Service

6) CENTREX Facility

E-BUSINESS SERVICES

We offer you a range of services that help to keep your business running 24x7

SATELLITE SERVICES

We provide you connectivity where ever you take your business Our Satellite Services

bring you the benefits of access in remote locations

CARRIER SERVICES

Indiarsquos first private long distance communications service provider with world-class

Voice and Data communication services

INTERNATIONAL SERVICES

Get the communication solutions your business needs to stay connected worldwide with

our International Services

31 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 32: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Enterprise

32 | P a g e

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 33: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Organizational Structure Of Bharti Airtel Enterprise

2 RESEARCH METHODOLOGY

33 | P a g e

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 34: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo

22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs

23 ndashGAP -

To know about the potential hidden business opportunities

The know hidden business strength of the key accounts

Customer reactions about this exercise

34 | P a g e

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 35: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

31 ndash Primary Data collection

In primary data collection you collect the data yourself using methods such as interviews

and questionnaires The key point here is that the data you collect is unique to you and

your research and until you publish no one else has access to it

Advantages-

Can be used as a method in its own right or as a basis for interviewing or a

telephone survey

Can be posted e-mailed or faxed

Can cover a large number of people or organizations

Wide geographic coverage

Relatively cheap

No prior arrangements are needed

Avoids embarrassment on the part of the respondent

Respondent can consider responses

Possible anonymity of respondent

No interviewer bias

Disadvantages-

Design problems

Questions have to be relatively simple

Historically low response rate (although inducements may help)

Time delay whilst waiting for responses to be returned

35 | P a g e

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 36: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Require a return deadline

Several reminders may be required

Assumes no literacy problems

No control over who completes it

Not possible to give assistance if required

Problems with incomplete questionnaires

Replies not spontaneous and independent of each other

Respondent can read all questions beforehand and then decide whether to

complete or not For example perhaps because it is too long too complex

uninteresting or too personal

Methods of collecting primary data used

Questionnaire - In this we have taken a sample size 150 respondents Our main

objective is to know the potential business points from where business can be

derived for Airtel

Face to face- This method involves direct interaction or personal interaction with

the focused group to get more and relevant information on the topic which I had

taken

32 ndash Secondary Data collection

All methods of data collection can supply quantitative data (numbers statistics or

financial) or qualitative data (usually words or text) Quantitative data may often be

presented in tabular or graphical form Secondary data is data that has already been

collected by someone else for a different purpose to yours For example this could mean

using

data collected by a hotel on its customers through its guest history system

36 | P a g e

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 37: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

data supplied by a marketing organization

annual company reports

Government statistics

Secondary data can be used in different ways

You can simply report the data in its original format If so then it is most likely

that the place for this data will be in your main introduction or literature review as

support or evidence for your argument

You can do something with the data If you use it (analyze it or re-interpret it) for

a different purpose to the original then the most likely place would be in the

lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage

was the work on suicide carried out by Durkheim He took the official suicide

statistics of different countries (recorded by coroners or their equivalent) and

analyzed them to see if he could identify variables that would mean that some

people are more likely to commit suicide than others He found for example that

Catholics were less likely to commit suicide than Protestants In this way he took

data that had been collected for quite a different purpose and used it in his own

study ndash but he had to do a lot of comparisons and statistical correlations himself in

order to analyse the data (Most research requires the collection of primary data

(data that you collect at first hand) and this is what students concentrate on

Unfortunately many dissertations do not include secondary data in their findings

section although it is perfectly acceptable to do so providing you have analyzed

it It is always a good idea to use data collected by someone else if it exists ndash it

may be on a much larger scale than you could hope to collect and could contribute

to your findings considerably

As secondary data has been collected for a different purpose to yours you should treat it

with care The basic questions you should ask are

Where has the data come from

37 | P a g e

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 38: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Does it cover the correct geographical location

Is it current (not too out of date)

If you are going to combine with other data are the data the same (for example

units time etc)

If you are going to compare with other data are you comparing like with like

Thus you should make a detailed examination of the following

Title (for example the time period that the data refers to and the geographical

coverage)

Units of the data

Source (some secondary data is already secondary data)

Column and row headings if presented in tabular form

Definitions and abbreviations for example what does SIC stand for For

example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on

the number of rooms value of sales number of employees profit turnover

square metres of space etc and do different sources use the word lsquosmallrsquo in

different ways Even if the same unit of measurement is used there still could be

problems For example in Norway firms with 200-499 employees are defined as

lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as

lsquosmallrsquo

There are many sources of data and most people tend to underestimate the number of

sources and the amount of data within each of these sources

Sources can be classified as

paper-based sources ndash books journals periodicals abstracts indexes

directories research reports conference papers market reports annual reports

internal records of organizations newspapers and magazines

38 | P a g e

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 39: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Electronic sourcesndash CD-ROMs on-line databases Internet videos and

broadcasts

The main sources of qualitative and quantitative secondary data include the follwing

Official or government sources

The arrangement is alphabetical by organization with details of titles produced and

contacts for further information It lists references to the following types of sources

trade associations

trade and other journals

private research publishers-

stock-broking firms

large company market reports

local authorities

professional bodies

Academic institutions

European Union (Community) sources

International sources

Organization for Economic Co-operation and Development (OECD)

United Nations and related organizations

Sources for the last two categories are many and varied If your dissertation requires

these sources you need to conduct a more thorough search of your library and perhaps

seek the assistance of the librarian

Methods I have used

39 | P a g e

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 40: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Internet Portals - The relevant data related to euro norms and consumer reactions

to various euro norms was searched from internet portals These portals act as a

intermediate between the user and the required information as it an intermediate

and used as a communication tool like Internet sites

Magazines- we had collected data from various magazines journals and also

referred to various newspapers for getting more information on euro norms

33 - SAMPLE SIZE AND AREA

Size ndash 150

Area ndash Delhi and NCR specially the following-

Hauz-Khas

Green Park

Lado Sarai

Vasant Kunj

Vasant Vihar

Chanakyapuri

Nehru Place

34- SAMPLING TECHNIQUES

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern especially

for the purposes of statistical inference Each observation measures one or more

properties (weight location etc) of an observable entity enumerated to distinguish

objects or individuals Results from probability theory and statistical theory are employed

to guide practice

40 | P a g e

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 41: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Nominal -Nominal scale is a simple system of assigning number symbols to

events in order to label them The usual example of this is assignment of numbers

of basketball players in order to identify them Such numbers cannot be

considered associated with an ordered scale of their order is of no consequence

the numbers are just convenient labels for the particular class of events and as

such have no quantitative value Neither can one usefully compare the numbers

assigned to one group with the numbers assigned to another

Interval - In case of intervals scale the interval are adjusted in terms of some rule

that has been established as a basis of making equal units The units are equal

only if one accepts the assumptions on which the rule is based Interval scales can

have an arbitrary zero but it is not possible to determine for them what may be

41 | P a g e

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 42: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

called an arbitrary zero or the unique origin One can say that there is same

increase in temperature from 30-40 degrees as in case of 60-70 degrees

Paired Comparison - this involve divided the questions on the basis of consumer

approval techniques like Yes and No questions

Summated Technique- This is also known as ldquolikert-type scalesrdquo which are

developed by utilizing the item analysis approach wherein a particular item is

evaluated on the basis of how well it discriminates between those persons whose

total score is high and whose total score is low Thus summated scales consists of

a number of statements which express either a favorable or an unfavorable

attitude towards the given object to which the respondent is asked to react

With simple random sampling each item in a population has an equal chance of inclusion

in the sample For example each name in a telephone book could be numbered

sequentially If the sample size was to include 2000 people then 2000 numbers could be

randomly generated by computer or numbers could be picked out of a hat These numbers

could then be matched to names in the telephone book thereby providing a list of 2000

people

Methods I have chosen

Random- In random sampling all items have some chance of selection that can be

calculated Random sampling technique ensures that bias is not introduced regarding

whom is included in the survey Five common random sampling techniques are

SIMPLE RANDOM SAMPLING

42 | P a g e

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 43: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

With simple random sampling each item in a population has an equal chance of inclusion in

the sample For example each name in a telephone book could be numbered sequentially If

the sample size was to include 2000 people then 2000 numbers could be randomly generated

by computer or numbers could be picked out of a hat These numbers could then be matched

to names in the telephone book thereby providing a list of 2000 people

A Tattslotto draw is a good example of simple random sampling A sample of 6

numbers is randomly generated from a population of 45 with each number having an

equal chance of being selected

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The advantage of simple random sampling is that it is simple and easy to apply when small

populations are involved However because every person or item in a population has to be

listed before the corresponding random numbers can be read this method is very cumbersome

to use for large populations

The sampling process consists of seven simple stages

Defining the population of concern

Specifying a sampling frame a set of items or events

possible to measure

Specifying a sampling method for selecting items or

events from the frame

Determining the sample size

Implementing the sampling plan

43 | P a g e

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 44: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Sampling and data collecting

Reviewing the sampling process

SYSTEMATIC SAMPLING

Systematic sampling sometimes called interval sampling means that there is a gap or

interval between each selection This method is often used in industry where an item is

selected for testing from a production line (say every fifteen minutes) to ensure that machines

and equipment are working to specification

Alternatively the manufacturer might decide to select every 20th item on a production line to

test for defects and quality This technique requires the first item to be selected at random as a

starting point for testing and thereafter every 20th item is chosen

This technique could also be used when questioning people in a sample survey A market

researcher might select every 10th person who enters a particular store after selecting a

person at random as a starting point or interview occupants of every 5th house in a street

after selecting a house at random as a starting point

It may be that a researcher wants to select a fixed size sample In this case it is first necessary

to know the whole population size from which the sample is being selected The appropriate

sampling interval I is then calculated by dividing population size N by required sample size

n as follows

I = Nn

44 | P a g e

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 45: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

If a systematic sample of 500 students were to be carried out in a university with an enrolled

population of 10000 the sampling interval would be

I = Nn = 10000500 =20

Note if I is not a whole number then it is rounded to the nearest whole number

All students would be assigned sequential numbers The starting point would be chosen by

selecting a random number between 1 and 20 If this number was 9 then the 9th student on

the list of students would be selected along with every following 20th student The sample of

students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and

9989

The advantage of systematic sampling is that it is simpler to select one random number and

then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as

sample size It also gives a good spread right across the population A disadvantage is that you

may need a list to start with if you wish to know your sample size and calculate your

sampling interval

STRATIFIED SAMPLING

A general problem with random sampling is that you could by chance miss out a particular

group in the sample However if you form the population into groups and sample from each

group you can make sure the sample is representative

45 | P a g e

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 46: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

In stratified sampling the population is divided into groups called strata A sample is then

drawn from within these strata Some examples of strata commonly used by the ABS are

States Age and Sex Other strata may be religion academic ability or marital status

The committee of a school of 1000 students wishes to assess any

reaction to the re-introduction of Pastoral Care into the school

timetable To ensure a representative sample of students from all year

levels the committee uses the stratified sampling technique

In this case the strata are the year levels Within each strata the

committee selects a sample So in a sample of 100 students all year

levels would be included The students in the sample would be selected

using simple random sampling or systematic sampling within each

strata

Stratification is most useful when the stratifying variables are simple to work with easy to

observe and closely related to the topic of the survey

An important aspect of stratification is that it can be used to select more of one group than

another You may do this if you feel that responses are more likely to vary in one group than

another So if you know everyone in one group has much the same value you only need a

small sample to get information for that group whereas in another group the values may

differ widely and a bigger sample is needed

If you want to combine group level information to get an answer for the whole population

you have to take account of what proportion you selected from each group

46 | P a g e

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 47: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

CLUSTER SAMPLING

It is sometimes expensive to spread your sample across the population as a whole For

example travel can become expensive if you are using interviewers to travel between people

spread all over the country To reduce costs you may choose a cluster sampling technique

Cluster sampling divides the population into groups or clusters A number of clusters are

selected randomly to represent the population and then all units within selected clusters are

included in the sample No units from non-selected clusters are included in the sample They

are represented by those from selected clusters This differs from stratified sampling where

some units are selected from each group

Examples of clusters may be factories schools and geographic areas such as electoral sub-

divisions The selected clusters are then used to represent the population

Suppose an organisation wishes to find out which sports Year 11

students are participating in across Australia It would be too costly and

take too long to survey every student or even some students from every

school Instead 100 schools are randomly selected from all over

AustraliaThese schools are considered to be clusters Then every Year

11 student in these 100 schools is surveyed In effect students in the

sample of 100 schools represent all Year 11 students in Australia

Cluster sampling has several advantages reduced costs simplified field work and

administration is more convenient Instead of having a sample scattered over the entire

coverage area the sample is more localised in relatively few centres (clusters)

47 | P a g e

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 48: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher

sampling error than for simple random sampling with the same sample size In the above

example you might expect to get more accurate estimates from randomly selecting students

across all schools than from randomly selecting 100 schools and taking every student in those

chosen

MULTI-STAGE SAMPLING

Multi-stage sampling is like cluster sampling but involves selecting a sample within each

chosen cluster rather than including all units in the cluster Thus multi-stage sampling

involves selecting a sample in at least two stages In the first stage large groups or clusters are

selected These clusters are designed to contain more population units than are required for the

final sample

In the second stage population units are chosen from selected clusters to derive a final

sample If more than two stages are used the process of choosing population units within

clusters continues until the final sample is achieved

An example of multi-stage sampling is where firstly electoral sub-divisions

(clusters) are sampled from a city or state Secondly blocks of houses are

selected from within the electoral sub-divisions and thirdly individual

houses are selected from within the selected blocks of houses

The advantages of multi-stage sampling are convenience economy and efficiency Multi-

stage sampling does not require a complete list of members in the target population which

greatly reduces sample preparation cost The list of members is required only for those

clusters used in the final stage The main disadvantage of multi-stage sampling is the same as

48 | P a g e

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 49: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

for cluster sampling lower accuracy due to higher sampling error

Convenient - In this we carry out our survey based on nearness and approachability of the

respondent based o our convenience Here the area or the group of respondents which are

really easy to approach and interaction is possible within a less span of time are selected for

carrying out the survey and data collection

35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES

Scaling

Scaling is the branch of measurement that involves the construction of an instrument that

associates qualitative constructs with quantitative metric units Scaling evolved out of efforts

in psychology and education to measure immeasurable constructs like authoritarianism and

self esteem In many ways scaling remains one of the most arcane and misunderstood aspects

of social research measurement And it attempts to do one of the most difficult of research

tasks -- measure abstract concepts

Most people dont even understand what scaling is The basic idea of scaling is described in

General Issues in Scaling including the important distinction between a scale and a response

format Scales are generally divided into two broad categories one-dimensional and

multidimensional The one-dimensional scaling methods were developed in the first half of the

twentieth century and are generally named after their inventor Well look at three types of one-

dimensional scaling methods here

Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling

In the late 1950s and early 1960s measurement theorists developed more advanced techniques

for creating multidimensional scales Although these techniques are not considered here you

may want to look at the method of concept mapping that relies on that approach to see the

power of these multivariate methods

49 | P a g e

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 50: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

4 ANALYSIS

TABLE I

The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]

50 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 51: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS

Operators

Values AIRTEL MTNL BSNL RCOM TATA INDICOM

27 45 17

11

Out of the total 150 customers surveyed the table above shows the percentage of

SMBeS using fixed line connections [telephone lines] of different companies Despite of

the fact that Airtel gives the best service both in terms of quality and customer service it

the state owned public sector company leads the pack in this segment It has the first

mover advantage with it Moreover most of the public sector companies gave undue

preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with

45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11

shares respectively

CHART I

51 | P a g e

PERCENTAGE VALUES

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 52: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

AIRTEL27

MTNLBSNL45

RCOM17

TATA INDICOM11

Chart showing age of fixed telephone lines by different SMBeS

The above chart shows graphically which of the operators have largest share in fixed line

telephony market State owned companies MTNL BSNL lead with 45 share while

Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and

reliance Infocomm has 11 and 17 shares respectively The market share of RCOM

and TATA INDICOM are improving slowly

TABLE II

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES

52 | P a g e

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 53: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans

Operators

ValuesAirtel Vodafone Rcom Idea Others

562 111 197 88 42

Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as

company paid mobile connections are concerned just because of the excellent services it

provided Although Airtel did not provide the cheapest services still it is market leader

in this segment Here Airtel leads with 562 market share followed by Rcom with

197 share Vodafone with 111 and Idea with 88 share

GRAPH II

GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES

53 | P a g e

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 54: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

0

10

20

30

40

50

60

562

111197

88

42

Airtel

Vodaphone

Reliance

Idea

Other

This Bar-graph shows that in present scenario Airtel has the largest market share in the

company paid mobile sector Airtel should continue providing better services and

schemes to maintain this position in company paid mobile connections segment

TABLE III

54 | P a g e

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 55: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES

The following table shows the percentage of different telecom operators used by corporate in Broadband segment

Operators

Values AIRTEL MTNL SPECTRANET HATHWAY

306 226 123 345

The table above shows the percentage of different telecom operators used by the

corporates in broadband segment Here Hathway leads the pack with 345 market

share followed by Airtel with 306 share followed by Mtnl with 226 share and

finally Spectranet with 123 market share

55 | P a g e

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 56: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

GRAPH III

GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT

05

101520253035

Airtel

MTNL

Spec-trane

t

Hathway

306 123

226

345

AirtelMTNLSpectranetHathway

The graph above shows the percentage of different telecom operators in broadband

segment Here Hathway leads the pack with 345 share followed by Airtel with

306 share followed by Mtnl with 226 share and finally Spectranet with 123

market share

56 | P a g e

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 57: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

CHART IV

PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL

88

10

2

SatisfiedNot SatisfiedCant Say

The above pie-chart shows that most of the existing customers with Airtel are satisfied

with the kind of services the company has been providing to them About 88 of the

customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied

and 2 customers say that they canrsquot comment about it

57 | P a g e

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 58: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

BENEFITS OF AIRTEL INTERNET SERVICE

High Speed Access

Get the advantage of the quickest and easiest access to the Internet On the state of

the art Airtel network you can transfer data up to 155 Mbps

Service Level Guarantee

We guarantee service availability and network latency or extend your service for

free as per Service Level Guarantee

Scalability

Free yourself from the constraints of limited bandwidth by choosing from our

wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs

247 Network Monitoring and Technical Support

Our 247 network monitoring ensures your network runs smoothly A 247

technical support team is dedicated to you round the clock to resolve any

technical problems you may encounter and ensures that service is delivered as per

Airtel Service Level Guarantee

Integrated Solution Approach

Our Enterprise Services is an end-to-end communications solutions provider

giving customer centric integrated service We have the expertise and the

experience in the field of providing flawless Internet connectivity

Network

We have a completely managed IP network that builds a converged platform to

run all enterprise solutions The entire backbone is built on trusted names like

Cisco and Juniper to provide data capacity in terabytes and high routingswitching

speed Muti tier network architecture is designed to avoid single point of failure

and offer highest network availability Scalability in no time is the highlighting

point of our network

All the Internet core routers in the ISP backbone are connected in a

Star topology and are using OSPF routing protocol To communicate with

external world the EBGP-4 protocol is used at the international gateway egress

routers

58 | P a g e

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 59: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

RECOMMENDATIONS AND SUGGESTIONS

Develop plans targeting the specific user groups like youth students and wemen

Develop ultra economy plans for poor people to whom maintaining a connection

is still a luxury

Educate customer on the benefits of Value-added services

Company should make more promotional campaign in commercial areas

Strategic Partnerships with leading Global Telecom Service Providers amp

Investors

Know areas of strength and areas of improvement

Design Individual Development Plans so as to convert areas of improvement to

areas of strength

Identify the competencies required at different levels

Identification and development of employees for future roles and responsibilities

Customer care services provided to the active customers should be more efficient

towards the problem solution

59 | P a g e

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling
Page 60: project on consumer behaviour towards spice telecom

AMITY BUSINESS SCHOOL

BIBLIOGRAPHY

BOOKS

Philip Kotler ndash Marketing Management

Naresh K Malhotra ndash Marketing Research

INTERNET SITES

wwwairtelin

wwwbhartiairtelin

wwwgooglecom

wwweconomicstimesarchivecom

wwwmarketresearchcomproductdisplayasp

wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -

26k -

hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash

wwwoppaperscomtopicsforces-analysis-telecom-sector

wwwieoorgtel_polhtml - 13k

wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-

2008-2012html

60 | P a g e

  • Scaling