Professional Documents
Culture Documents
Airtel Vs Jio Project
Airtel Vs Jio Project
Airtel Vs Jio Project
SUBMITTED BY:
INDERJOT SINGH
M.com (semester ll )
The success of any task undertaken is not the result of efforts and enthusiastic hard work of
one person but the collaborative efforts of many others who helped at each phase for the
effective fulfilment of the project undertaken, and this project is no exception.
Acknowledging their efforts and help is equally important. I would like to pay my sincere
gratitude to all the persons who helped me during this research project with their able
guidance and invaluable advice. It gives me immense pleasure in acknowledging the
invaluable assistance extended to me by various people in the successful completion of this
research project.
I express my heartfelt gratitude to our Head of Department, Doc. Surinder Kaur and
M.com coordinator, Doc. Mukesh chauhan, without whose able guidance the project would
not have been a success. Also, I am most grateful to my teacher cum guide, Mrs. Arvinder
Kaur, who never hesitated to answer thequeries and provided me with necessary help with
calm and composed disposition.
I would also like to extend my sincere appreciation to my family and respondentunits of the
study.
CONTENTS
1
❖ Executive Summary
Chapter 1
➢ Introduction
➢ Companies profile
Chapter 2
➢ Objectives
➢ Scope of study
➢ Use and importance of study
Chapter 3
➢ Research methodology
➢ Analysis of data
➢ Finding
Chapter 4
➢ Conclusion
➢ Recommendation
➢ SWOT analysis of Reliance Jio & Airtel
➢ Limitation
Chapter 5
➢ Bibliograph
2
EXECUTIVE SUMMARY
Market Size
3
According to a study by GSMA, smartphones are
expected to account for two out of every three mobile connections globally by
2020 making India the fourth largest smartphone market. India is expected to
lead in the growth of smartphone adoption globally with an estimated net
addition of 350 million by year 2020.## Total number of smartphone
shipments in India stood at 25.8 million units in the quarter ending December
2016, and smartphone shipments during 2016 stood at 109.1 million units, up
by 5.2 per cent year-on-year. Broadband services user-base in India is
expected to grow to 250 million connections by 2017.
Investment
✓ Private equity giant KKR & Co LP and pension giant Canada Pension
Plan Investment Board (CPPIB) are in talks to acquire a significant
stake in Bharti Infratel, which is expected at around US$ 4 billion.
Government Initiatives
5
✓ The Ministry of Skill Development and Entrepreneurship (MSDE)
signed a Memorandum of Understanding (MOU) with DoT to develop
and implement National Action Plan for Skill Development in Telecom
Sector, with an objective of fulfilling skilled manpower requirement and
providing employment and entrepreneurship opportunities in the sector.
Road Ahead
6
CHAPTER-1
INTRODUCTION
This research is conducted on the basis of growing competition in
mobile Sector. The biggest competitor of mobile sector in Roorkee are
“Reliance Jio &Airtel”. This Research is conducted to analyze who is
better and why?
7
forecasters predict that there will be more than 100 million cellular subscribers
worldwide.
GSM
COMPANIES PROFILE
Reliance Jio
Reliance Jio Infocomm
Limited, doing business as Jio, is a LTE mobile network operator in India. It is
a wholly owned subsidiary of Reliance Industries headquartered in Navi
Mumbai, Maharashtra that provides wireless 4G LTE service network (without
8
2G/3G based services) and is the only 'VoLTE-only' (Voice over LTE) operator
in the country which lacks legacy network support of 2G and 3G, with
coverage across all 22 telecom circles in India.
In June 2015, Jio announced that it will start its operations all over
the country by the end of 2015.[8] However, four months later in October 2015,
the company's spokesmen sent out a press release stating that the launch
was postponed to the first quarter of the financial year 2016-2017.
crore (US$25 million) which was arbitrary and unreasonable, and contributed
to a loss of ₹2,284.2 crore (US$340 million) to the exchequer.
COMPANY PROFILE
Subsidiaries: LYF
Website: www.jio.com
Network
Radio frequency summary
Partnerships
Ahead of its digital services launch, Mukesh Ambani-led
Reliance Jio entered into a spectrum sharing deal with younger brother Anil
Ambani-backed Reliance Communications. The sharing deal is for 800 MHz
band across seven circles other than the 10 circles for which Jio already
owns. In September 2016, Jio signed a pact with BSNL for intra-circle
roaming which would enable users of the operators to use each other's 4G
and 2G spectrum in national roaming mode.
The company has launched its 4G broadband services throughout India in the
first quarter of 2016 financial year. It was slated to release in December 2015
after some reports said that the company was waiting to receive final permits
from the government. Mukesh Ambani, owner of Reliance Industries Limited
(RIL) whose Reliance Jio is the telecom subsidiary, had unveiled details of
11
Jio's fourth-generation (4G) services on 12 June 2015 at RIL's 41st annual
general meeting. It will offer data and voice services with peripheral services
like instant messaging, live TV, movies on demand, news, streaming music,
and a digital payments platform.
The company has a network of more than 250,000 km of fiber optic cables in
the country, over which it will be partnering with local cable operators to get
broader connectivity for its broadband services. With its multi-service operator
(MSO) licence, Jio will also serve as a TV channel distributor and will offer
television-on-demand on its network.
Pan-India Spectrum
Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and 6 circles,
respectively, of the total 22 circles in the country, and also owns pan-India
licensed 2,300 MHz spectrum. The spectrum is valid till 2035.Ahead of its
digital services launch, Mukesh Ambani-led Reliance Jio entered into a
spectrum sharing deal with younger brother Anil Ambani-backed Reliance
Communications. The sharing deal is for 800 MHz band across seven circles
other than the 10 circles for which Jio already owns.
Reliance Jio’s vision for India is that broadband and digital services will no
longer be a luxury item ,Rather convert it into a basic necessity that can be
consumed in abundance by consumers and small businesses .The initiatives
are truly aligned with the Government of India's ‘Digital India’ vision for our
nation.
• Digital Healthcare
• Affordable Devices
• Jio Drive
• Digital Education
• Digital Currency
• Digital Entertainment and social connectivity
12
LYF SMARTPHONES
In June 2015, Jio tied up with domestic handset maker Intex to supply 4G
handsets enabled with voice over LTE (VoLTE) feature. Through this, it plans
to offer 4G voice calling besides rolling out high-speed Internet services using
a fiber network, in addition to the 4G wireless network. [ However, in October
2015, Jio announced that it would be launching its own mobile handset brand
named
LYF.
FLAME 6
13
Technical Specifications
LYF FLAME 6
MODEL
Qualcomm® Snapdragon 210 MSM8905
CHIPSET
GENERAL Operating System: Android Lollipop 5.1
FEATURES SIM Slot: Dual SIM (4G+2G)*
Processor (CPU): Quad-Core 1.5GHz ,Screen Size: 4
Inch
Flash
3G: yes
4G: yes (LTE)
CONNECTIVITY
True 4G (LTE Support): VoLTE (Video & HD Voice
Call.
FLAME 1
Technical Specifications
14
MODEL FLAME 1
WIND 1
15
Technical specifications
LYF WIND 1
MODEL
Qualcomm®SnapdragonTM 410 MSM8916
CHIPSET
Operating System: Android 5.1 Lollipop
SIM Slot: Dual SIM (4G+2G)
GENERAL
Processor (CPU): Quad-core 1.2 GHz
FEATURES
WIND 5
16
Technical specifications
MODEL WIND 5
WATER 1
Technical specifications 17
MODEL WATER 1
Jionet WiFi
Prior to its pan-India launch of 4G data and telephony services, Jio has
started providing free Wi-Fi hotspot services in cities throughout India
including Ahmedabad and Surat in Gujarat, Indore, Jabalpur, Dewas and
Ujjain in Madhya Pradesh, select locations of Mumbai in Maharashtra, Kolkata
in West Bengal, Lucknow in Uttar Pradesh, Bhubaneswar in Odisha,
Mussoorie in Uttarakhand, Collectorate's Office in Meerut, and at MG Road in
Vijayawada among others. Title=Reliance Jio rolls out Wi-Fi service at IP sigra
Mall in Varanasi among others.
Jio apps
19
JIO PREVIEW OFFER FOR HP LAPTOPS:
20
✓ 3 Months free unlimited 4G Internet in LYF smartphones and others all
4G smartphones (Samsung, Micromax, Karbon, Lava, HTC, and Gioni
etc.)
Students to get 25 percent extra data on the tariffs if they show a valid
ID when signing up for Jio.
Jio Tagline
21
“Karlo duniya mutthi mein” and “Jio Jee Bhar Ke”
Airtel
Airtel India is the largest provider of mobile
telephony and second largest provider of fixed telephony in India, and is also
a provider of broadband and subscription television services. The brand is
operated by several subsidiaries of Bharti Airtel, with Bharti Hexacom and
Bharti Telemedia providing broadband fixed line services and Bharti Infratel
providing telecom passive infrastructure service such as telecom equipment
and telecom towers. Bharti Airtel Limited is part of Bharti Enterprises and is
headed by Sunil Bharti Mittal.
22
As of March 2016, Airtel provides 4G coverage in 350 cities in 15 circles. Airtel
extended its 4G network to 15 km off India's coastline, following a request by
the Indian Navy.
COMPANY PROFILE
Type: Public
Industry: Telecommunications
Website: www.airtel.in
23
Network
Partnerships
We partner with world's finest companies like Vodafone, Singtel (Singapore
Telecom), Ericsson, Nokia, IBM and many more to bring the best of products
& service to you.
Telemedia Services
The group offers high-speed broadband with the best in class network. With
fixed line services in 87 cities, we help you stay in touch with your friends &
family and keep you updated round the clock.
Airtel Business
24
Businesses are constantly working on
optimising cost by reducing technology spend, managing service levels and
demonstrating the business value of information and communication
technology. Airtel solutions have skillfully optimized costs by streamlining
workflows and business processes across enterprises.
Digital TV services
solutions and increased coverage. Our MPLS, VSAT, IPLC, Ethernet, Internet,
and NLD help your enterprise reliably adopt technology for business growth
25
Airtel Collaboration Solutions brings you an exciting world of conferencing that
enables speedy decision taking – saving colossal amounts of effort and
makes ample room for growth opportunities by promoting teamwork between
employees, partners and customers
Increase your revenue, decrease all operating expenses and enhance your
business dexterity with airtel Cloud and Managed Solutions. Its seamless
integration helps transform your business processes and unlocks the true
potential of your organization and employees, allowing you to tap into new
revenue sources.
Whether you are looking to expand your existing business or start a new one,
we offer you a complete suite of office connectivity solutions. From fixed line
to office internet to mobile data on dongles and Wi-Fi dongles, we have got it
all covered. Airtel's recently launched MyPlan for business has further
empowered enterprises with absolute mobile plan flexibility.
Simply fill the form on the right and know how you can improve connectivity in
your office.
Media centre
Bharti Airtel completes secondary sale of 10.3% stake in Bharti Infratel to a
consortium of KKR & Canada Pension Plan Investment Board (CPPIB)
26
Marketing & Branding
Chettri has effortlessly taken on the 'Airtel Girl' tag, earlier held by Rakul Preet
Singh who appeared in the memorable Airtel night plan campaign last year. A
graduate in advertising from Xavier's Institute of Communications (XIC)
Mumbai, Chettri was a trainee copywriter.
For Postpaid users: Free 3 GB data per month with all MyPlan Infinity
Plans
For instance, the Rs 549 Infinity plan will now offer unlimited free calling plus
27
6 GB data (3GB regular data + 3GB free data) per month along with other
pack benefits to customers under this offer. The Rs 799 Infinity plan will offer
unlimited free calling plus 8 GB data (5 GB regular data + 3GB free data) per
month along with other pack benefits to customers under this offer.
CHAPTER-2
OBJECTIVES
❖ To know the level of Customer Loyalty regarding his service provider &
28
he is a switcher who switches over time to time due to various reasons.
SCOPE OF STUDY
❖ It would help us to know about how many customers are loyal to their
brands
29
CHAPTER-3
RESEARCH METHODOLOGY
➢ Research
➢ Research Design
➢ Sampling Design
➢ Data Collection
30
➢ Survey area
➢ Sampling Size
RESEARCH
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information
on a specific topic: The meaning of research is "a careful investigation or
inquiry specially through search for new facts in any branch of knowledge"
According to Clifford Woody – research comprises defining and redefining
problems formulating hypothesis or suggested solutions; collecting, organizing
and evaluating , data; making deductions and reaching conclusions; and at
last carefully testing the conclusions to determines whether they fit the
formulating hypothesis.
Objectives of Research
31
RESEARCH DESIGN
A research design is purely and simply the frame work of plan for a study that
guides. The collection and analysis of the data. Application and specification
These designs are used for some definite purpose. A number of marketing
research studies are based on such designs. It is focused on the accurate
description of the variables present in the problem.
32
(2) Statistical Method
SAMPLING DESIGN
Sampling only remains the only choice when a test involves the
destruction of the item under study
Probability sampling
Non-probability Sampling
Secondary Data
Primary Data
The primary data are those which are collected a fresh and for the first time
and thus happens to be original in character. The primary data is collected in
the process of questionnaire and interview of the outlets.
Secondary Data
The secondary data are those which have already been collected by someone
else and which have been already been passed through the statistical
process. In my research the secondary data collected from the company
sales, production and other records. The other data was collected from
research report.
The data was collected through questionnaire method and personal interview.
Again the research is descriptive type. The analysis is done through the
tabular and graphical representation.
SURVEY AREA
The research is done in the different areas of Roorkee which are given
below:
SAMPLE SIZE
34
The total sample size I had cover is 100. These size are generally outlets.
SAMPLE UNIT
JIO VS AIRTEL
The competitive intensity in the telecom industry in India is one of the highest
in the world and has lead to sustained fall in realisation for the service
providers. Intense competitive pressure and cut throat pricing has resulted in
declining ARPUs. With increasing number of new entrants in the telecom
space the competitive intensity is likely to continue, putting further downward
pressures on the telecom tariffs. Thus, the telecom companies might have to
grapple with further decline in ARPUs, going forward.
Further, with the telecom companies moving their focus to the rural areas for
driving the future subscriber growth they might not witness a commensurate
increase in revenues. In fact, the risk of steep decline in ARPUs will increase
going forward as the telecom companies penetrate rural markets that are
characterized by higher concentration of low-income, low-usage customers. A
higher-than-expected decline in ARPU poses a risk of reduction in margins of
35
service providers. Alternatively, telecom operators are turning their focus to
steadily increasing the minutes of usage (MoU) to counter the sustained fall in
ARPUs. Likewise, the growth of the VAS is also crucial for some improvement
in the ARPUs of operators.
A rural teledensity of merely 15% point towards the fact that a majority of
Indian population still do not have access to telecom services. The rural India
seems to have remained untouched by the telecom revolution witnessed in
the last few years. A huge 'digital divide', which is reflected by the enormous
difference of 74% between the urban and rural teledensity, reiterates this fact.
However, with the urban markets reaching a saturation point, the telecom
service providers are penetrating rural areas for driving future growth. Thus,
the service providers entering new rural markets might witness substantial
increase in subscriber base. The expansion in the rural areas, however, has
increased the risk of further decline in the ARPUs. Nonetheless the revenue
growth from these regions is unlikely to match the surge in the subscriber
base.
36
Excessive Competition
Another major concern that has come to the forefront in the recent past has
been heightened competitive intensity in the industry that has correspondingly
fuelled the price war between industry players. The Indian wireless market is
one of the world’s most competitive markets, with 12 operators across 23
wireless ‘circles’ and 6 to 8 competing operators in each circle. The auction of
new 4G licences and the introduction of mobile number portability (MNP) are
likely to heat up competition in the industry, going forward.
Spectrum is the most important resource that is required for providing mobile
services. Given that spectrum is a finite resource, the availability of the same
would be inversely proportional to the number of operators. Thus, larger the
number of service providers smaller will be the amount of spectrum available
to each of them.
Spectrum Allocation
4G Spectrum availability is one of the major concerns for the industry. Lack of
adequate spectrum which is the most integral part of the mobile telephony
sector could hamper its growth severely. However, the spectrum allotment has
been the most controversial issues in the Indian telecom sector.
38
The deployment of 4G services is likely to help the emergence of new VAS.
Mass acceptance will be crucial for the success of 4G services in India.
Comparatively higher cost of handsets required for accessing 4G services is
likely to be one of the major roadblocks in mass 4G adoption in India.
Airtel Networking
"In a service industry like telecom, people live a brand 24X7. It's all about
experience; and for Airtel 'brand=customer experience," says Rajan Mittal,
joint managing director, Bharti Tele-Ventures Ltd.
That's now, but when mobile telephony began in India a decade ago, the
brand was all about aspiration. That's understandable: a handset cost about
Rs 45,000 - the price of a second-hand Fiat - and call charges hovered
around Rs 16 a minute.
Airtel was on a power trip: the logo was black, uppercase bold lettering; and
the baseline was "the power to keep in touch". "From day one, it was decided
that the brand should always connote leadership - be it in network,
innovations, offerings or services," says Diwan Arun Nanda, CMD,
Rediffusion-DY&R, the agency that has created all Airtel ads over the past
decade. The taglines emphasized that stance: "Airtel celebrates the spirit of
leadership" and "The first choice of the corporate leaders".
This was also a time when customers needed to be educated; interest levels
were high, but customers' exposure to the cellular world was limited. Airtel
39
took out full and half-page ads in newspapers, answering queries like "what is
roaming?", "what is coverage area?" and "how to make international calls".
In 1999, the rules of the game changed. The New Telecom Policy came into
effect, replacing licence fees with a revenue-sharing scheme and extending
the license period from 10 to 20 years. Now, cellular service operators could
drop their prices and target new customer segments. As SEC B became part
of the catchments area, Airtel's communication changed from "power" to
"touch tomorrow".
The focus now was on the endless possibilities of technology to make life
good and advertising became two-pronged: a product-driven communication
that showcased new offerings like the Magic prepaid card, and an emotional
communication that showed younger people.
In 2002, Airtel signed on music composer A R Rahman and changed its tune
to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the
most downloaded ring tone in India. But that was just part of the ongoing
communication.
The following year Airtel adopted the "Express yourself" positioning, which is
also its current tagline. Now, the emotional angle was predominant - and
stark, black and white imagery to stand out in what was becoming a highly
commodities, crowded market.
The latest campaign continues that thought. Only, mobile telephony is now
extending to even low-income mass categories. So the first TVCs in Hindi and
regional languages are now on air, as are low-priced products, like the Rs 200
recharge coupon.
Communication was just part of the battle: customer service would prove
more critical. "We were very clear that Airtel will be a service-led brand," says
Mittal.
Accordingly, Airtel was the first cellular service provider to start customer
centers (called Airtel connects), where customers could pay their bills, apply
40
for new connections and touch and feel new handset models.
The way to the future, though, seems to be through product innovations such
as easy charge (recharging prepaid connection through SMS), hello tunes,
the Blackberry option, stock tickers and M-cheques (mobile credit cards).
Jio has membership plans and given benefits after join membership.
But Airtel has no membership plans.
Receiving missed calls alerts for when the phone was switched off is
free whereas it costs each time.
Jio provides a free restricted GPRS service for free whereas Airtel offer
a WAP version called Planet. Jio users for Rs. 99 membership plans.
Jio has a full blown one with unlimited usage for Rs. 149 or 303 per
month.
Jio given freed voice calling std/local but Airtel Also provide voice
calling but condition is that Airtel given 1200 minute one week. That
means 300 minuts per day.
41
Jio provide 28GB ultd. Data is 28 day (1GB per day). But Airtel given a
condition for Airtel users they use 500 MB ultd. Data and 500 MB (2pm
to 5pm).
I did spare a moment’s thought in thinking if Airtel offered any benefits that
Jio did not, but couldn’t come up with any. If any of my readers know of one,
then they’re welcome to inform me via the comments.
GINI
I want to take a new connection of Jio prepaid & want to know the price
structure & I want a connection in which there min prices for Sms & want a
long validity card. I know that there is lifetime validity card and its call rates is
very Low & does Airtel has condition for the users.
DATA ANALYSIS
AND
INTERPRETATION
43
(Sources: Questionnaire-personal detail)
25
20
18-20
15 21-25
26-30
31-35
10
36-40
41& above
5
0
Airtel Jio Vodafone BSNL Telenor
45
6
5. Who is decision maker for purchasing telecom in your family?
50 46
46
42
42
40
30
20 No. of respondent s
Percentage (%)
10
10 10
2
0 Percentage (%)
2
Father No. of respondents
Self
Mother
Others
46
% Respondent
50 46
45
40 34
35
30 %
25 20
20
15
10
5
0
Official use Home use Status symbol
47
7. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM
Available 30 24 18 16 12 100
Infrastructure 12 10 20 30 48 100
66
Attributes Excellent Very Good Average Poor Total
Good
Festival Offer 43 21 12 14 10 100
Exchange 15 31 29 12 13 100
Offer
Special Gift 20 14 30 20 16 100
Cash 11 21 19 34 15 100
Discount
Anniversary 11 13 10 20 46 100
Offer
Total 100 100 100 100 100 500
FINDINGS
During the project we meet various people & trying to find their perception
regarding various mobile services in the Roorkee. While studying we find that
the main customer or the users of mobile services are the self-employed
persons who have their own business & other major users are the college
going students.
Jio is the leading mobile service provider in the Roorkee region & it is far
67
ahead from their competitors in terms of customers. Which have come just
now in the city have capture a good market. Jio is capturing a lot of market
because of its good services in rural area. In starting it is well accepted by the
people by its low call rate & some and good connectivity. Jio management is
not able to make their services available to the general customer.
But the Airtel is also creating an image on the high-class customers by its
good network and good quality of voice in the long distance. The Airtel is the
choice of the high class and the people who worked in the higher position
CHAPTER-4
CONCLUSION
Airtel is the more popular then the Jio. Airtel is preferred by the every class
and it established itself as a better quality and better service provider then its
competitors.
But Jio is no fear of it because the young customers are more attracted by it,
now the Jio takes over Airtel and now they give the new schemes in the
market and for the customers.
Last but not the least, we can say that the both the Airtel and the Jio are going
equally to the customer and they choose and at the time of purchasing. The
result is that the Jio is better then the Airtel in the Roorkee region. The
customers in Roorkee thinks that the connectivity and network of Airtel is good
But Jio services are better then the Airtel.
68
SWOT Analysis on Jio
Strength
1. Low tariff: - Company has launched its 4G service with highly competitive or
rather very low tariff. Company has strong financial capacity to withstand initial
losses
2. Very wide network:-Company has created wide national network with a huge
investment of around $20 billon. The company has used latest technology and
Weakness
1. Late entry into telecommunication sector: - The telecom sector had grown
exponencially in its initial phases which started around two decades earlier.
Presently market has seen only modest growth and it has become highly
number has become identity of a person and hence it is difficult for anyone to
change his mobile number.MNP takes many days for its implementation and it is
69
hard to manage this transition period. MNP is crucial for Jio as a large number of
3. Highly dependent upon data consumption: - As per the current trend around
60 to 70 percent of revenue comes from voice calling and hence there is a huge
potential loss for making voice calling free. This loss can be offset only when
Opportunity
2. Increasing rate of data consumption: In its earlier phase almost entire revenue
of the mobile service provider was from voice calling. However since last two
years the proportion of revenue from data users is increasing exponentially which
has resulted in almost 30-40% of the total revenue. Lower data tariff may further
increase data consumption and thus contribute more to the revenue of company.
Threat
1. Saturated market: - The initial phase of rapid increase in subscriber is now over.
A new entrant like Jio needs a large customer base to cross breakeven point.
2. Highly competitive market:- After the entry of big players like Vodafone, Idea
70
3. Changing Government Policy: The changing government policy like cancelling
for call drop etc. has created uncertainty in the market causing adverse impact
on the investment sentiment.
Strengths
Bharti Airtel has more than 254 million customers (July 2016). It is the largest
cellular provider in India, and also supplies broadband and telephone services -
as well as many other telecommunications services to both domestic and
corporate customers.
Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel,
with whom they hold a strategic alliance. This means that the business has
access to knowledge and technology from other parts of the telecommunications
world.
The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base
71
Weaknesses
An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 30 years ago, the business has little knowledge and experience
of how a cellular telephone system actually worked. So the start-up business had
to outsource to industry experts in the field.
Until recently Airtel did not own its own towers, which was a particular strength of
some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.
The fact that the Airtel has not pulled off a deal with South Africa's MTN could
signal the lack of any real emerging market investment opportunity for the
business once the Indian market has become mature.
Opportunities
Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to
question industry approaches and practices - for example replacing the
72
Revenue-Per-Customer model with a Revenue-Per-Minute model which is better
suited to India, as the company moved into small and remote villages and towns.
Bharti Airtel is embarking on another joint venture with Jio Essar and Reliance
GSM Cellular to create a new independent tower company called Indus Towers.
This new business will control more than 60% of India's network towers. IPTV is
another potential new service that could underpin the company's long-term
strategy.
Threats
Jio & Airtel seem to be having an on/off relationship. Jio which owned a 13.5%
stake in the Airtel business sold it back to Airtel, and instead invested in its rival
Hutchison Essar. Knowledge and technology previously available to Airtel now
moves into the hands of one of its competitors.
The quickly changing pace of the global telecommunications industry could tempt
Airtel to go along the acquisition trail which may make it vulnerable if the world
goes into recession. Perhaps this was an impact upon the decision not to
proceed with talks about the potential purchase of South Africa's MTN in May
2016. This opened the door for talks between Reliance Communication's Anil
Ambani and MTN, allowing a competing Indian industrialist to invest in the new
emerging African telecommunications market.
73
Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.
Airtel comes to you from Bharti Airtel Limited, India's 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 (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise
Services
LIMITATIONS
74
BIBLIOGRAPHY
TEXT BOOK
Philip Kotler (2004) Marketing management
C.R. Kothari (2004) Research Methodology
G.C.Berry (2002) Marketing Research
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