Airtel - Profile

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TABLE OF CONTENT:

1. EXECUTIVE SUMMARY

1.0 Industry – Overview


1.1. Introduction – Bharti Airtel communication

2. SWOT ANALYSIS

2.1 Strengths
2.2 Weakness
2.3 Opportunities
2.4 Threats

3. PEST ANALYSIS

3.1. Political Factors


3.2. Economical Factors
3.3. Social Cultural Factors
3.4. Technological Factors
3.5. Demographics Factors
3.6. Legal Factors
3.7. Competitors Factors
3.8. Government regulations Factors

4. MARKETING MIX

4.1. Product
4.2. Price
4.3. Place
4.4. Promotion

5. RECOMMENDATION

6. BIBLIOGRAPHY

7. REFERENCE

8. CONCLUSION

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EXECUTIVE SUMMARY:

1.0 Industry Overview:

Telecommunications industry distributes the actions and assistance of


transmitting communication through electronic systems of cables, telephones
radio or television.

The growths of telecommunications industry are,

• New technology
• Competitors.

In the past data’s are transmitted using coaxial or twisted pair cables. Now
technology has shown tremendous growth for using optical fibers. Using
communication satellites the telecommunication industries came as flourishing
industry. Cellular phone network became a vital role after the increase of
improved telecommunications engineering. Top enterprises became to share
their investment in this telecommunications industry.
Telecommunication industry is becoming a numeral one. Inter Services
Digital Network (ISDN) make the industry as a numeral system and enhanced the
speed and quality of the ‘Wireless communication’. Wireless communication is
the distances occupied to be short or very lengthy. When the situation is obvious
it’s abbreviated as "wireless". Generally wireless communications is considered
be a division of telecommunications.

(Source:http://www.economywatch.com/world-industries/telecommunications/)

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1.1 Introduction-Bharti Airtel Limited:

Bharti AirTel Company that Formulated on 7th July, 1995.Its a public


limited company. Internationally, Bharti AirTel owns 3rd biggest mobile operator
in Asia. It’s a leading integrated telecom services giving by Bharti AirTel limited.
Bharti AirTel Limited has grown successfully in partnership with various leading
companies of the world -, Vodafone, Singapore Telecom, Warburg Pincus, and
British Telecom.

Business Divisions:
Four Business Divisions are there

1. GSM technology in India & Srilanka. 1. Provide broadband services, data


2. Total customers 11, 05, 11,416 in and telephone services in 95 cities.
India.
3.13,62,464 outlets. 2. That arrounds.29, 28,254 customers.
4. Network in 4, 34,795 towns and
villages – 83% coverage. .
5.1million customers within six months
of launch in Srilanka.

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1. Long distance wholesale voice and 1.1.3 million customers
data services

Partners:

Equity Partner {Strategic}


Network Equipment

Partners of Telemedia services and Wipro, Tellabs, Cisco, Nokia, Siemens,


Long Distance Services Alcatel Lucent, ECI.

Partners of Information expertise IBM

IBM Daksh, Firstsource & Aegis,


Customer services operation Hinduja TMT ,Teleperformance,
Mphasis,

Impartiality Partner SingTel

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Vision/Mission of Bharti AirTel:

"To provide global telecom services and delight customers”


• Loved by more customers
• Targeted by top talent
• Benchmarked by more businesses

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

• Error- free service delivery


• Innovative products and services
• Cost efficiency

Bharti Group of Companies:

• Bharti AirTel Limited


• Bharti Teletech Limited
• Bharti Del Monte India Pvt. Ltd
• Bharti Foundation
• Bharti AXA General Life Insurance Company
• Bharti Infratel

Corporate responsibility:

Bharti Airtel limited promotes the employees to take judgment and devise
the industry - relationship process between the public and surroundings.
Corporate Social Responsibility in Bharti Airtel limited covers more public contact
programs. This program is connecting the business of Bharti Airtel

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The spirit of Bharti’s dedication to CSR is surrounded in the ‘company Values’,
which curtail its warm seized idea. The ethics are:

• Respond to the needs of customers


• Expectation and Good result From employees
• Progress the services – resourcefully
• Visible and insightful in dealings with the shareholders
• morals, equality and life form will be proper
• conference and going away from submissive and lawful necessities
• Esteem greetings given towards shareholders and the public.
• Developing the atmosphere

CSR way of life and pledge all through a three-split approach:

• Engage with shareholders


• Guarantee the policies and performs to the Shareholders
• Conducting programs for employees, and for the public.
In Bharti Airtel Limited, each employee is aware to Corporate Social
Responsibility issues and thus procedures are prejudiced.

2. SWOT ANALYSIS:

Environmental Analysis and information’s of the organizations are


separate into internal (strengths and weaknesses) and external issues
(opportunities and threats). Once these issues concluded, SWOT investigation
concludes what may support the firm to complete its objectives, and what
difficulty should be overcome to complete the desired consequences.

Source: (http://answers.com/topic/swot-analysis(Investment dictionary)

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2.1 STRENGTHS:

• Price gain
• Present influential in superiority service
• Biggest sharing network
• Capability to continuously improvement
• Extremely skilled workers
• Commercial enthusiasm
• Airtel’s improved fair play and advertise top.

2.2 WEAKNESSES:

• Evidence integrity
• Price anxiety
• Call for Government sustain
• Responsiveness
• Vending and advertising

2.3 OPPORTUNITIES:

• Maintain enthusiasm and dedication


• Airtel’s marketplace growing at other service contributor
• Accomplish superior worth service
• Mutual trade needs to be survey
• Little dispersion level in urban.

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2.4 THREATS:
• Overseas deal
• Global movement
• Need inclusive equality in telecom tariff
• Other rivalry

3. PEST ANALYSIS:

3.1 POLITICAL FACTORS:


In 1985 DOT (Department of telecommunication) was trustworthy to grow
telecommunication Industries. Due to high taxes the tariff rate are more over high
earlier. At the moment it becomes little bit low due to permit fees with income
sharing plan and extended the permit period from 10 years to 20 years. US$23
billion contract among South Africa's MTN and India's Bharti Airtel Limited which
take place after the difficult scheme concerned much interference beginning from
supporting leaders and unions.

3.2 ECONOMICAL FACTORS:

Earlier Inflation rates were higher. Singapore Telecommunications


(SingTel) purchased additional 1.52% shares in India’s leading private telecom
Bharti Airtel limited and will pay up to INR 3008.4 crore in three part payment
collection more than 18 months. SingTel supposed, it has penetrated into a
unconfirmed share pay for agreement with Bharti Group body to procure an
further 7,30 thousands of issue shares in Bharti Telecom, a supporter company
of Bharti AirTel. Bharti AirTel Limited holds approximately 45.3% of the share
capital of Bharti telecom. As a result of the acquisition, SingTel’s efficient
curiosity in Bharti Telecom will increase market share in growing mobile market

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and has more than 110 million customers. Bharti Airtel Limited has standard
economic growth and development of India’s economy registered a growth of
21%. (IANS) the price war in the telecom sector firm has in use of duty pay on
Bharti Airtel Limited, which place a net turnover of INR.2, 209.8 crore
(INR.22.098 crore/$479 lakh) for the section ended December 31, a modest 2.4
% rise from the year-ago period.

3.3 SOCIAL FACTORS:


Bharti Airtel Limited binds up with twitter in this year. Bharti Airtel
Limited, the leading mobile carter in India, said it has attained a pact with
Apple (AAPL) to vend the iPhone in the upcoming months, Bharti Airtel said it
has put forward a bid to participate in the country’s 3G bandwidth public sale;
winning bidders would be permitted to offer 3G services. Bharti Airtel selects
long-term and contrarians’ funds are believed to be collecting shares of telecom
firm. Bharti Airtel, which registered 2.5 million downloads of mobile applications
contained by 30 days to begin of its application stores, it’s possibly the first
pointer that operators, and not handset makers, will drive this space in emerging
markets. Fifty-year-old Mittal took over the charge from Harsh Pati Singhania
after the conclusion of FICCI’s 82nd Annual General Meeting (AGM) which was
attended by Finance Minister Pranab Mukherjee.
1. Educate and Inspire
2. Support Talent to Bloom – Scholarships and Mentorship
3. Public Health
4. Rural Empowerment
5. Disaster Relief
6. Cultural Connect - Be one with India's diversity
Source: (http://www.economictimes.indiatimes.com-news/by/industry-telecom-
Mobile-applications-business-to-keep-telcos).
(The Wall Street Journal reports)

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3.4 TECHNOLOGICALFACTORS:

Bharti AirTel Limited provides roaming services and other value added
services first time in India telecomm industry. Customer care services are
efficient. Gateway of e-commerce, Bharti AirTel Limited Introduced the
broadband services, extensive distance services, and internet services. Nokia
Siemens will be expanding and upgrading the operator's 2.5G network to
increase network capacity by 50 percent in eight service areas. Bharti Airtel
Limited has started its Internet Protocol Television (IPTV) services, this service
play a vital role in the country. Bharti AirTel Limited invest Rs 500 crore in
network improvement and another Rs 100 crore in connected activities in the
current economic in the North East region.

3.5 DEMOGRAPHICS FACTORS:


Free market democracy. Product development and back office processing
are one of the benefits. Steady profitable position, elongated improvement
Bharti Airtel having enormous market prospective in the largest consumer
markets.

3.6 LEGAL FACTORS:


Bharti AirTel is connected with Mobile Virtual Network Operator (MVNO)
.MVNOs having complete power over the SIM tag, brand name, advertising,
invoice, and customer care functions. OSS and BSS to maintain the MVNO,
Bharti AirTel Limited nearly keep own OSS/BSS processes and procedures to
separate those of the MVNOs. The government of India is marketing three to four
slots of spectrum across the nation. It has fixed Rs 3,500 crore as the reserve
price for pan-India spectrum Bharti AirTel takes this opportunity to reserve the
place in spectrum.

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Leading Indian mobile service provider Bharti Airtel plans to expand its service in
other SAARC (South Asian Association for Regional Cooperation) countries
including Bangladesh. Government of India going to Launch Mobile Number
Portability (MNP).The mobile number portability (MNP) would allow the users to
switch service providers without changing phone numbers. However, the service
got delayed due to it delay in security clearance from the government. At present
its introduced by Bharti AirTel Limited in Chennai and Bangalore.

Source :(http://www.india-server.com/news/government-to-launch-mobile-
number-21513.html)

3.7 COMPETITORS FACTORS:

Bharti Airtel is such a unique outstanding private Limited, its having many
competitors, there are

Telephone Line Operators Cellular Phone Operators

BSNL Vodafone Essar

MTNL Aircel

Reliance Communications Reliance (GSM & CDMA services)

Tata Teleservices Tata Indcom

MTS Uninor-Telenor

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Idea, acquired 40.8% stake off spice communication at Rs 77.30a share for Rs
2,716 cores. There was a share swap in which spice share holder got 49 idea
shares for every 100 spice shares held.
Telenor unitech deal, Telenor is in the process of acquiring controlling the stake
of 67.25% in unitech wireless via equity infusion.
TTSL-DOCOMO Deal, 26 % shareholder in Tata Tele Services (TTSL),
Japanese carrier NTT DOCOMO acquired.

3.8 GOVERMENTS REGULATIONS FACTORS:


Bharti Airtel Limited is awaiting 2G Spectrum in 10 circles. Under
government telecom policy, all telecommunication Industries band to pay their
License fees of 6 % to 10 % and another 2 % to 6 % of their annual revenues as
spectrum charge. These mechanisms are not valid to internet service providers.
Bharti AirTel announced that it wills set-up a new terrestrial cable network in
the Himalayan Kingdom of Bhutan. The company signed a MoU to this effect with
the Royal Government of Bhutan.

4 MARKETING MIX:

4.1 Products:
There are four different kinds of product in Airtel. There are

MOBILE BROADBAND DIGITAL TV FIXED LINE


Our seamless Speed upto16 mbps the magic digital telephone
mobile network on Airtel TV and a future connection at your
across 23 Broadband. entertainment. home.
circles.

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Mobile includes some different product like

1. Pre-paid

2. Post-paid

3. Blackberry

4. Wireless

5. Hand held.

Value Added Services (VAS):

VAS plays a vital role in AirTel Mobile Services.

• The different value added services provided by Airtel are

• Instantaneous sense of balance Enquiry

• (24X7) boost ups facilities

• Identification Caller line

• Hello Tunes & Ring Tones

• GPRS (General Packet Radio Service)

• Easy Postpaid invoice collection

• Company Solutions

4.2 Price:
The Call rates in the minds of the consumers are one of the highest for
Reliance compared to other service providers. Further, the consumer seems to
be spoilt with promotional offers, with almost all the players offering various

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promotional schemes. Reliance, Hutch, Airtel, Idea, and Tata have nearly the
same perception about Promotional schemes among the consumers. From the
survey it was found that the selection of a service provider was very much
dependent upon both Price of the connection and call rates as well as the
Promotional schemes that the company launches.
• Customer base cost strategy

• Elastic price methods

• Restricted by Telecom Regulatory Authority of India

AirTel Prepaid Plans

Tariff plan
Showing 6 Plans
AirTel Regular Prepaid
ONE TIME CHARGES
P - Rate 60 seconds
Price Pack (INR) INR.49
Free Charge Airtime Pack (INR) Nil
Free while in abode
Incoming Calls (INR)
network
MONTHLY CHARGES (OPTIONAL)
Airtel Other GSM
Local Rates INR 1.00 INR 1.00
Subscriber Trunk Dialing INR 1.50 / minutes INR 1.50 / minutes
International Subscriber dialing
America and European (Fixed Line),
Hong Kong, Malaysia(Asian),
INR 6.40
Australia, Indonesia, New Zealand,
Thailand, Singapore(Asian).
Gulf countries, Africa, Europe, and
INR 9.20
SAARC .
Sao Tome & Principe, Guinea Bissau, INR 40.00
Diego Garcia, Cuba, Nauru, Solomon
Islands, Sakhalin ,Vanuatu, Tuvalu,

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Cook Islands, Norfolk Island
SMS
Home text INR 1.00
Country Wide text INR 1.5
World Wide text INR 5.00
OTHER DETAILS
**The SMS charges as applicable is
per 160 characters

AirTel Wireless Broadband Tariff Plans:


The following are the tariff plans available for AirTel Data Card:

Post-paid Regular Unlimited


Sketch 1 Sketch 2
Plan usage
Data Card Rental INR.49 INR. 350 INR. 599 INR. 999
Free Usage - 500 MB 1 GB Unlimited
Usage
Additional Data Usage (/ INR.0.10p/10 INR. 5/- INR. 3/- -
MB) KB
Free SMS/ Month - - 100 100

Bharti AirTel has also launched five new plans: Surf, Swift, Turbo, Freedom and
Velocity. All these plans are affordable plans from AirTel and the tariffs have
been considerably reduced to new plans.

Free digital TV connection:


Just pay for 12 month subscription - Rs4350/-

4.3 Place:
AIRTEL offers its mobile GSM services in 95 cities.
1. Distributors like wholesalers and retailers.

2. Channel distributions.

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3. Store outlets

4. Marketing through sales assistants

5. Street vendors

4.4 Promotion:

Bharti AirTel Limited provides Global System for Mobile Communications


mobile services across India in 24 telecom circles. Bharti AirTel Limited group
offers broadband & telephone services in 94 cities The Enterprise services
group into two subunits –

• Carriers

• Services

Both these services are provided under the Airtel brand. “AirTel Mobile
Campus” –major power to connect with anytime anywhere access to associates
and community. Huge size publishes banners and video advertising are the
promotional activity to promote the sales. Big celebrities like Bollywood actor

and actress and sports men’s like Sachin are roped in to approve the product.
Bharti AirTel got its naming tune from A.R. Rehman, he is the Oscar won person
who delightful the music; this naming tune is the most downloaded tune in India.
Extraordinary discounts in calling cards & sms services.

AirTel -Annual results in brief:

March March March


2009 2008 2007

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Sales 34,014.29 25,703.51 17,794.43

Operating 12,991.06 10,501.03 7,116.95


Profit

Interest 1,763.98 483.71 255.84

Gross 11,367.82 10,253.18 6,954.67


profit

EPS(INR) 20.40 16.45 10.64

5. RECOMMENDATIONS;

Pricing: In this market situation/ competitors of telecom providers go well with


local conditions, then there should be flexible pricing mechanism (either at
central or local level.)

Improvement in technology: Bharti Airtel shift into third invention switches by


replacing its c-dot switches. It will develop the quality of service to desired level
and offer an instantaneous integration with the nationally network. Transmission
towers wants be improve to avoid “no signal pockets”.

Increased Focus: To increase focus on low end consumers.

• It should expand its rural network coverage to widen its customer base.

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• Flexible pricing mechanism
• The majority of perspective customers are teenagers, so AirTel ads should
be more focused around them.
• Internet charges should be reasonable to the customers.
• Mms facility is also too costly
• Majority information technology corporate company use internet so they
might require a high speed process
• AirTel need to make its on strong network to the Competitors.
• Need more customer attractions.
• Conduct extra curricular activities for the public to attract the social
awareness.

6.BIBLIOGRAPHY:
GPRS - General Packet Radio Services
GSM - Global System for Mobile
CDMA - Code division multiple access
TRAI - Telephone Regulatory authority Of India
BSNL - Bharat Sanchar Nigam Limited
MTNL - Mahan agar Telephone Nigam Limited
TTSL - Tata Tele Services
MNP - mobile number portability
DOT - Department of telecommunication
IPTV - Internet Protocol Television
OSS - Operational support systems
MVNO - Mobile Virtual Network Operator
ISDN - Inter Services Digital Network

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7. REFRENCES:
www.airtel.in
www.airtel-broadband.com
www.airtel-vodafone.je/
www.app.airtel.in/pcsecure/
www.trai.gov.in
www.hindustantimes.com
www.news.bbc.co.uk/2/hi/8515904.stm
http://www.economywatch.com/world-industries/telecommunications
http://www.india-server.com/news/government-to-launch-mobile-number

http://economictimes.indiatimes.com
http://www.thaindian.com/newsportal/business/bharti-sees-modest-rise-in-net-
profit-lead

http://www.answers.com/topic/swot-analysis(Investment dictionary)

8. CONCLUSION:

Bharti Airtel Limited (Airtel) is most successful brand in India with


largest market distributors. Apart from other competitors, Bharti Airtel
limited moving number one in the world.

Success is based on three pillars-

1. Connectivity

2. Affordability and

3. Innovation

The heart is connectivity, i.e. the network

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Pre paid traffic plan services are more luxurious than post paid plan service.
Bharti Airtel Limited begins extensive and prominent division to go with that
of the challengers. The supply group shall build the creation detectable
along with presented to well-located positions.

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