Project Report On AIRTEL
Project Report On AIRTEL
Project Report On AIRTEL
The Project could not have materialized, if it were not for the Guidance
from my Seniors, Peers, my honorable Teaching Staff, Faculty members of
IIPM, New Delhi, little bit of my own Research work, mind-work and above all
the people at BHARTI AIRTEL LTD.
The inception of this project has been a great learning experience, and
also has put in place all fragmented ideas in various areas within me to more
logical and meaningful results.
1.2 ABSTRACT
1. Bharti Airtel 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 that enhance productivity of enterprises and individuals.
2. Bharti tele-ventures the brand name which later known as Bharti Airtel, the
first of Infocomm’s initiatives was launched on July 7, 1995. And the founder
of this group is Mr. Sunil Bharti Mittal.
This is not all about Bharti Airtel it has a long success journey which itself leads a
great story of success that continues with the launching of its new product “IPTV” by
the end of this year.
OBJECTIVE –
Analytically find out the activities that contribute the most to attract the users
towards AIRTEL services.
To study in detail about the various aspects of the most profitable activity.
The project helped in understanding the factors that need to be considered before
investing in any activity and the reasons for its implementation.
Also the project proves to be in complete agreement with the “4P” Principle given by
Philip Kotler, namely
1) PRODUCT
2) PRICE
3) PROMOTION
4) PLACE
And proved that these are the best tools available for decision making before carrying
out any marketing activity.
Its all about the AIRTEL (the company growth and extension of new product for the
beneficial of its customers the enhancement of technology) AIRTEL is going to strike
out the market by introducing its new range of product after striking the market and
ruling the stratified market with the satisfaction of customers and by giving them
better facilities at the most reasonable rates. BHARTI AIRTEL announces its new
product IPTV after a huge success of its GSM mobile services, landline and
broadband services it is now going to target the customers with the new face of future
technology. It is going to step in the market of TV subscribers with its new product
IPTV (internet protocol tele vision)
This technology brings a new revolutionary change in the present market scenario and
gives the customer the new face of TRAI services on one connection (voice calls,
internet connection and TV cable connection). This project is all about the success
story of company and all about IPTV its technology and its services.
He has the knack to strike at the right place at the right time. His contribution in
shaping the modern telecom industry in India earned him the sixth place in the Forbes
list of ‘India’s 40 Richest’.
However, during a trip to Taiwan he came across electronic push button phones. He
sensed an opportunity, as only bulky rotary phones were available to Indian users that
time. In 1982, he introduced the push button phones to India. This was the first
experience of Indian consumers with modern age telecom.
He formed Bharti Teletech Ltd and started manufacturing push button phones in
technical tie-up with Siemens AG of Germany. His company is now one of the largest
manufacturers of telephones in the world.
The real opportunity for Sunil came in 1992, when the Indian government awarded
licenses for GSM mobile phone services first ever in the country. Armed with
considerable experience in telecom manufacturing, he secured the license for offering
mobile phone services in Delhi. His company Bharti Cellular Ltd started mobile
phone operations in 1995 under the brand name Airtel.
Sunil Bharti Mittal has been awarded the Padma Bhushan, one of India’s
highest Civilian Honours. The award is recognition of his pioneering efforts to
put the nation on the global telecom map.
ASIA MONEY AWARD :- SUNIL BHARTI MITTAL was chosen as the top
executive at the 2006 Asia money award.
Avaya Best Customer Service Award :- BHARTI AIRTEL has won the
‘Avaya global connect customer responsiveness award,2006’ for best
customer service in the telecom sector for the second year running.
Professional Profile:
Future Investments
and 20 million by 2010 for speedy proliferation of broadband; India would require an
investment of about USD 900 million by 2007 and over 1.5 billion by 2010. This is
well supported by estimations made by CII in its study Broadband Vision 2010
prepared in 2004.
Growth Potential
The increasing purchasing power of the Indian middle class (The proportion of
households in the low income group has declined from 58.8% in 1990, to 49%
in 1996, At the same time, the middle & higher income-group has increased
from 14% to 20%, in the same period), Making them more willing to pay an
With more than 35 million cable TV users, the cable broadband presents an
(GPON) on devices like the mobile handset and the television. These are
alternate technologies & are ideally suited for rural areas where 70% of India’s
population resides
Many companies are betting big on Wi-fi they plan to cover hotels, restaurants,
important to note that TV shows and live web casts are possible through
Broadband penetration
Health care remains one area that could potentially benefit from the
GDP in 2002, and this figure could reach $ 47 billion or 6.2-7.5 per cent of
GDP by 2012 with an annual growth rate of 13% a year. Thus revenue growth
For the consumers all this means more choice not just for operator but also a
choice of technology and the device they want to access broadband on. With
more operators slugging it out to take a larger share of the pie, consumers can
Despite 80% fall in prices, high installation charges made the broadband
subscriber base fall short of customer target; Dial-up still reigns supreme with
Industry Study
1994, a large number of Indian companies entered the segment with varying force,
different strategies, and assorted aspirations. There were ten key strategic
dimensions along which these new entrants positioned themselves in this sector.
In the telecom sector, there are a number of ways by which a new entrant can
develop its business portfolio. The key issue is whether the firm wants to be an
integrated player or focused player, i.e. to foray in both the wireless and wire line
2. Scope? Geographical
The number of geographical sectors the new entrants wants to be present is also a
key decision. The range of choices available can include local, regional, and
national.
3. Value Propositions
There are essentially three generic strategies, viz. differentiation, cost leadership
and niche. This basic concept is applicable in the telecom sector too, though
pursuing the niche strategy may not be viable, given the fact that the boundaries
within and across various segments are increasingly getting blurred, possibility of
substitute competition is high and opportunities for cross subsidizing any niche
operations and offering customized and innovative products and services will be
Configuration of value chain depends on the generic strategy being pursued and
objective then the key propositions around which the differentiation will be
achieved and capabilities needed to deliver those, will determine which activities
5. Technology Platform
Other associated but important issues are problems of lock-ins & switching costs
rejection of legacy system. One way to manage the risks associated is to delay the
process of freezing the technology till such time technological and regulatory
issues become more certain and clear.
Companies enter into such alliances to improve upon their chances of success in
the unfolding industry. The choice of alliance partner can be very critical for
future success.
7. Legal Structure
This consists of figuring out whether the firm will exist as a separate entry in all
independent company for running the backend infrastructure and a separate outfit
8. Mode of Entry
Different telecom operators followed different routes for entry into the market
them.
goods industry that early movers have the advantage over the late entrants and
such advantages are difficult to overcome once these accrue to the first movers.
It is well known that longer the execution time more will be the overall cost of
the project and it will imply loss of opportunity to use the investments being
made.
As soon as the telecom industry opened to private sector investment beginning 1994,
a large number of Indian companies entered the segment with varying force, different
strategies, and assorted aspirations; Bharti Airtel was one of the first comers, which in
times to come was going to be the Numero Uno storywriter of The Great Indian
Telecom story.
Bharti launched its first cellular telephony service “Airtel” in Delhi in September
1995, which was Delhi’s first & India’s second after Modi Telestra. 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 company has an eventful history .Each year of its existence was marked by a
number of major events that have helped shape the company as it is today.
1995
Delhi’s first & country’s second mobile phone service launched by Bharti in
form of its mobile services brand- “Airtel”
Bharti signs agreement with Siemens to form Siemens Telecom Ltd. On 27th
March
1996
Bharti became the first telecom company in the private sector to sign an
agreement with DOT , Govt. Of India, to provide basic telephone services
in state of M.P on 28th February
1998
1999
Bharti gets a National ISP license from DoT in May to provide Internet
services
2000
Bharti launches services into South India with an aim to Integrate India
into one, aided by its Nationwide private infrastructure
2001
India One- India’s first private sector International National Long Distance
service launched on 17th December ,2001
28th September, 2001 was a memorable day for Bharti, licenses for 8 new
circles (Maharashtra, Gujarat, Tamil Nadu, Kerala, UP West, Madhya
Pradesh, Haryana & Mumbai) were procured, catapulting the company to
the status of largest cellular operator in the country.
2002
Bharti goes public with its issue of shares of face value of Rs 45 for its
IPO
3,200 km i2i cable between India & Singapore laid at a cost of US$ 250
million
2003
With the launch of its MMS service, Airtel becomes India’s largest GPRS
Network
2004
In March 2004, Bharti & IBM India made a historic agreement, wherein
IBM was to Consolidate, Transform & Manage Bharti’s comprehensive IT
infrastructure & applications
Bharti & ELRo Holdings India Ltd. , announced the launch of FieldFresh
Foods Pvt Ltd., with a mission to link India’s fields to the world
2005
Sunil Mittal, CMD, Bharti Airtel, represented India at the Ernst & Young
Entrepreneur of the year award ceremony in Monte Carlo, Monaco as the
Ernst & Young Entrepreneur of the Year 2004
2006
Airtel became the first telecom entity to offer Microsoft latest Windows
mobile 5.0 technology in India .
2007
Bharti had over 3.9 crore customers, as on March 31, 2007, an increase in the total
customer base of 86%, over the last year and maintained its leadership position
through an improved market share of all India wireless subscribers at 22.9% as on
March 31, 2007, up from 20.4% last year.
Commenting on the results and performance, Mr. Sunil Bharti Mittal, Chairman &
Managing Director, Bharti Airtel Limited, said, “The Indian telecom sector has
witnessed an unprecedented growth this year led by the mobile segment. At Bharti
Airtel, this has been a year of accelerated growth and market leadership, and we are
delighted to be leading the telecom revolution in the country. The demand for the
telecom services across all segments remains buoyant and we believe that this growth
momentum can be sustained. We are confident that Bharti Airtel’s professional
management team with enhanced empowerment, backed by world-class product
offerings is well placed to strengthen our leadership position in the market.”
In line with emerging international practice, the Board of Directors has adopted a
rotation policy for statutory and internal auditors for a maximum tenure of five years
and rotation of audit partner every three years. Accordingly, they have recommended
the appointment of S R Batliboi and Associates, Chartered Accountants, a member
firm of Ernst & Young Global as statutory auditors at the conclusion of the
forthcoming annual general meeting on 2 July 2007 and Ernst and Young as auditors
for US GAAP for the financial year ending 31 March 2008. The Board has also
proposed to appoint Price Waterhouse, Chartered Accountants as internal auditors
after conclusion of their tenure as statutory auditors of the company.
Cash profit
2,193 1,205 82% 7,307 4,086 79%
from operations
Income before
1,507 741 103% 4,886 2,537 93%
income taxes
Mar. Q-on-Q
Dec. 31, Mar. 31, Y-on-Y
Parameters Unit 31,
2006 2006 Growth
2007 Growth
Customers on our
Network
Mobile Services 000's 37,141 31,974 16% 19,579 90%
Broadband & 000's 1,871 1,738 8% 1,347 39%
Telephone
Services
* The revenues & net profit for the full year ended March 31, 2007 was Rs.
18,520 crore and Rs. 4,257 crore, a growth of 59% & 89% respectively, on a year
on year basis.
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 & 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, 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, broadband & telephone services (B&T) &
enterprise services. The mobile business provides mobile & fixed wireless services
using GSM technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities. The Enterprise services provide end-to-
end telecom solutions to corporate customers and national & international long
distance services to carriers. All these services are provided under the Airtel brand.
2.6Business Sections
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India
and is the largest mobile service provider in the country, based on the number
of customers.
The group offers high speed broadband internet with a best in class network.
With Landline services in 94 cities we help you stay in touch with your friends
& family and the world.
The Enterprise services group has two sub-units - carriers (long distance
services) and services to corporate. All these services are provided under the
Airtel brand
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated private
telecom service provider. We are the first private telecom provider to connect India in
its entirety with the world's best technology. 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 strategic business units
(SBU's) - Mobile services, Broadband & Telephone services (B&T) & Enterprise
services.
We complement our mobile, broadband & telephone services with national and
international long distance services. We provide international connectivity with our
submarine cable landing station at Chennai and with our partnership in next
generation undersea cable system SEA-ME-WE-4. We provide reliable end-to-end
data and enterprise services to the corporate customers with our nationwide fiber optic
backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing station.
Mobile Services – Bharti Airtel offers GSM mobile services in all the 23-
telecom circles of India and was the first private telecom service provider to
connect all states of India.
Creating value for the customers, employees, investors, partners, vendors and the
society at large lies at the root of Bharti’s fundamental business strategy. Company’s
core principles of trust and transparency have come a long way in helping us develop
and nurture long-term relationships with our key stakeholders. Company’s
performance exudes from its belief in and commitment to the telecom sector; and
translates into creating innovative exciting opportunities for one and all.
2.10 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 company’s 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
& Mphasis.
The company's unique strategic outsourcing model has been studied and documented
by Harvard Business School as a case study.
Customer Base 37,141,210 GSM mobile and 1,871,387 broadband & telephone (fixed
line) customers (Status as at month ended March 31, 2007)
Operational Network Provides GSM mobile services in all the 23 telecom circles in
India, and was the first private operator to have an all India presence. Provides
broadband (DSL) and telephone services (fixed line) in 94 cities in India.
3.0 Organization Structure
Bold initiatives by both government and industry are needed to meet the target of 10Mn
broadband subscribers by end of 2007.
Broadband Internet is all set to unleash its power to provide the much needed fillip to the
Indian economy and thus improve the quality of life style of people. According to a status
paper by Confederation of Indian Industry (CII), the proliferation of broadband in e-
governance program has a potential of benefiting the Indian economy to the extent of USD
100 billion over a decade by enhancing the productivity. The broadband game encompasses
key players like BSNL, MTNL, Tata (VSNL), Reliance, Bharti, and Sify. The current
broadband subscriber base stands at little over 6.6 million that translates to a meager
broadband penetration of less than .02 percent. A startling trend that has come forward is that
the reductions in broadband tariffs have resulted in a spurt in demand. The incumbents
MTNL and BSNL have been the pioneers by offering 256Kbps broadband connectivity at
rate as low as Rs. 200 per month, respectively. This trend has led to a demand and supply gap
in certain areas where BSNL has a waiting list of several thousand. The most important
aspect is the future of broadband as the focused thrust has been laid in this direction by the
operators for building the required infrastructure that is expected to be the most advanced in
the world.
MAJOR CHALLENGES
At its nascent stage, India broadband market is fraught with the issues of poor PC penetration
attributed to the affordability and desirability issues, dearth of suitable content &
applications, certain policy bottlenecks, availability of cost effective spectrum for wireless
technologies, and substandard quality of service delivery. These limitations are quite likely to
limit the rapid proliferation of wide spread usage of broadband services.
GOVERNMENT ROADMAP
Government of India has been an enabler. Kudos to the government for taking trailblazing
initiatives in successful launch of broadband. But, there is absolutely no room for
complacency. In order to make broadband a useful proposition for the target mass and to
accelerate the penetration, Government will still have to take bold policy initiatives, sooner
than latter. Further liberalization of the broadband policy will deepen the impact resulting in
nimble growth of subscribers attaining the challenging milestones. Else the aspirations to
garner around 10 million broadband subscribers (about 1 percent penetration) by 2007 and 20
million (about 2 percent penetration) by 2010 will remain unattainable.
Having a retrospective view on telecom scenario in India is quite relevant here. In 1994, India
had just eight million telephone connections and providing 100 million connections at that
time seemed a distant dream. Now a little over a decade later, telephone connectivity in India
has indeed surpassed the 100 million mark and currently India can easily boast of over 160
million users. It is heartening to note that for recent past months India has been consistently
adding about 4.5-5.0 million telephone subscribers, which is a strong indicator of sustained
steep growth in the sector. It has been an amazing story when India added about 6.0 million
subscribers in the month of August. All these accomplishments are attributed to the proactive
initiatives by the government. The industry optimistically contemplate that India will repeat
this success story in broadband arena as well with the concerted combined effort of the
stakeholders of telecommunications industry.
Experience in developed & fast developing markets like US, UK, Japan, Germany, Korea,
and China where broadband is in vogue in a big way, have shown that growth of penetration
of Broadband is a key enabler in escalating the per capita GDP growth by enhancing the
operational efficiencies of governments & businesses and reducing the cost of social services
to the citizen. According to ITU, broadband developed economies every 1 percent increase of
broadband penetration results in an increase of per capita GDP by over USD 250. Therefore
Government will be compelled to encourage the penetration of broadband services as it will
have galvanizing impact on the general economy of the nation.
MARKET POTENTIAL
It is forecasted that to meet the target of 10 million broadband subscribers by 2007 and 20
million by 2010 for speedy proliferation of broadband; India would require an investment of
about USD 900 million by 2007 and over 1.5 billion by 2010. This is well supported by
estimations made by CII in its study Broadband Vision 2010 prepared in 2004.
Various technologies that are being talked about and deployed for facilitating broadband
include multi service access network (NG digital loop carrier) & xDSL technologies, metro
Ethernet, G-PON (gigabit passive optical network), Wi-Fi/WiMax/Wibro, VSATs operators,
and cable networks. Multiple broadband technologies will coexist as none of these can meet
the requirement of all environment in which the users operate. The demand of bandwidth is
growing fast due to evolution of bandwidth hungry multimedia applications. It is certain that,
India would embrace the most advanced technologies available anywhere in the world.
Among the various technologies, xDSL has the clear distinctions attributed to the huge
deployment base of over 40 million copper lines possessed by incumbents. About 25 percent
of these copper lines are suitable for DSL technology. If the regulator's recommendations on
unified licenses, which permit cable operators to provide broadband internet service, can be
implemented, there will be further scope of adding about 60 million broadband subscribers
through the cable network. The need of revamping the existing cable network infrastructure
thus makes it suitable for broadband Internet. Metro Ethernet, G-PON, and Wi-Fi/Wi-Max
are most likely to gain momentum as popular technologies of future, if present developments
are an indication. Moreover, 3G mobile technologies providing data connectivity for mobile
computing devices will come in vogue to give a fillip to the broadband penetration.
Some steps that could be taken in this direction include low price entry model, which needs
to be adopted, so that more and more subscribers can come on board and unbundling of last
mile local loop and infrastructure sharing. Broadband service should be granted status of
essential services, since it has galvanizing effect on holistic development of the national
economy, so that provisions of broadband could be made affordable to large masses. Certain
measures that could be taken in this direction include elimination of duties & taxes applicable
on the equipment required to build broadband network, removal of service tax & revenue
share levied on broadband service, and provision of tax exemptions to broadband subscribers.
The need of the hour is to make available suitable content and applications. Development of a
partnership revenue share model with content and applications will help service providers to
make broadband an attractive proposition. A multi pronged revenue model by way of
charging for content, services, and access will provide consistency in revenue generation.
Adequate measure to accelerate the National e-Governance Program (NeGP) at central and
state level will be most critical element making broadband a need and necessity for the users
and thus to give a fillip to expedite the growth; and availability of adequate cost-effective
spectrum for new wireless technologies such as WiMax/3G need to be ensured as wireless
means are set to emerge as one of the most suitable media for providing broadband access
connectivity. Ultimately all business models would be governed by prevalent market forces.
Thanks to the competitive environment created by market forces, the price of capital
equipment and terminal devices required to build the broadband infrastructure are declining
steeply. To a larger extent, this is fostering favorable conditions for steep subscriber growth.
As compared to High Speed Internet (HSI) Access at present, the future major demand
drivers of broadband will comprise of triple play services. IPTV and e-governance initiatives
have the real promises to become killer applications along with numerous other voice, data,
and video service like e-commerce, entertainment, education, gaming, healthcare as these are
contemplated to become the major revenue generating streams for the operators. This forecast
is strongly advocated by the facts that in our country people like to spend more on
entertainment. With about 100 million TV sets the penetration is more than double the
penetration of PCs and also with about 60 million subscribers the penetration of Cable TV is
more pronounced than the penetration of fixed line telephone. It is a very rare and unique
phenomenon that prevails in India, which is hardly, experienced anywhere else in the world.
A QUICK SNAPSHOT
BSNL : 36.94%
MTNL : 19.71%
SIFY : 14.16%
VSNL : 8.32%
M ARKET SHARE
7%
7%
13% 37%
24% 12%
REVENUE SHARE
7%
7% 24%
10%
10%
42%
Coming back to the Technology part. Just like you send data through Internet,
the broadcasters will use the Internet as a medium to send you the data.
Internet can be any other network as well. So each and every TV system in the
network will have an IP address. Thus the possibility of higher interaction
between broadcaster and your TV. Basically its in digital format. So your
existing analog television may require a new kind of Set Top box called IP Set
top box. Coming back to the Technology part. Just like you send data through
Internet, the broadcasters will use the Internet as a medium to send you the
data. Internet can be any other network as well. So each and every TV system
in the network will have an IP address.
Thus the possibility of higher interaction between broadcaster and your TV.
IPTV is basically a internet tv based on net connections and also known as
broadband tv sets. This evolution was first introduced by Kingston co. of
Japan who telecast its program on internet with the use of a software
programmer “Video confressing” but now this technology is going to roll out
its users with high digi quality of sound and pictures. It is using fibre optic
wire to provide better quality and smooth functioning of its programs.
With IPTV you usually mean distribution of television or video content over a
controlled IP network, where the end consumer receives the information
through a set-top box which is connected to its normal broadband connection.
Just because its name is IPTV (Internet Protocol Television) it dose not mean
that information is sent over the internet, only that IP protocol is used. So you
should not consider streaming video over the internet as IPTV. Below is a
table of differences between IPTV and internet video services, where you can
see that the two differs a lot.
Another big difference is that you will be able to have a high capacity two way
communication and have the ability to interact with the service provider, for
example you request a movie from your TV-guide and the program is
delivered to you. Other things that could be provided with IPTV is interactive
applications (e.g. video blog) or transactional applications (e.g. TV shopping).
Because of the point-to-point connection IPTV offers, every user will be able
to view their own individual broadcasts. You will be able to have VOD(Video
on Demand) which is your on personal video store where you can decide when
you want to see the movie.
EPG (Electronic Program Guide) and PVR (Personal Video Recorder), where
the EPG will be fully interactive with your own personal needs. You will also
be able to use features like pause, fast forward and rewind when you are
watching a movie on your TV. It will be possible to have personalized
advertising. You will be able to decide yourself, which kind of advertising you
would like to see.
The two primary protocols used for IPTV are IGMP version 2 for channel change
signaling for live TV and RTSP for Video on Demand. There are of course other
protocols, for example to distribute and route multicast groups between routers you
can use the PIM-SM protocol. For sending live-TV multicasting is used, this is
because it would be impossible to withhold the bandwidth it would require to send
with unicast. The providers of IPTV in Sweden are all using MPEG-2 for distributing
there media. This means, as you can see below in table 2, that SDTV will require for
full quality a bit rate of 4-6 Mbps. To watch HDTV other compression algorithms like
H.264 are required otherwise it would consume too much bandwidth.
Well Airtel is the first in trying out this one in India. They are trying IPTV in
around 50 houses near Delhi and doing some high end testing. That's a sort of
good news for the TV enthusiasts. Let us try to analyze on the Indian Market.
Most of these Telco’s have already connected most of the urban houses. State
owned BSNL is doing pretty well in connecting the rural India as well. So the
connectivity part is already present. Now the questions of equipments these
broadcasters need to have. From the broadcasting end, It is mandatory that
they need to have some streaming servers. Of course these are not so costly
when compared to satellites!. So the companies would be interested in
entering the market, of course a low investment but obviously a gamble. But
the ordinary people need to have IP Set top box. That is the real catch.
Looking at the present scenario, no household is interested in going for Set top
box.
Even the Cable TV people don't encourage the same. But the things may really
change if they come up with some new marketing mantra. I am Just
extrapolating what I saw in the case of broadband in India. BSNL's concept of
giving the broadband for very cheap price did hit the market in a real
constructive way. The problem that existed was the ADSL modem. But BSNL
overcame it with the "Modem for rent model". A low cost ADSL modem for
rent really worked out well. But broadband is driven by the factor called
necessity, But not the IPTV. That would be a real argument that could weaken
this case study comparison. But Instead of ADSL modem alone, what if a
IPSTB that also works as a ADSL modem. So TV on your computer. But the
percentage of people who opted for TV tuner cards is very less. So will it work
out? But If there is a possibility for the same device to give a TV
OUT...Bingo, that would solve all the problems right? Convergence to the
core will keep the things in place. This is the case of "where there is a will
there is a way". So its comparatively easy for Telco’s to survive in India than
other operators.
Telecom player Bharti Airtel will target high-end consumers of the top six to
seven cities as part of its IPTV (Internet Protocol Television) strategy.
“Our IPTV trials started three quarters ago in 1,000 households in Gurgaon
and we will launch our service before the end of the financial year. We will
deliberately go slow, rolling out in Delhi first in a phased manner and then go
to the other top seven cities in the country,” Atul Bindal, President, Airtel
Broadband & Telephone Services (ABTS) told Hindustan Times.
Clarifying that it will pursue different strategies for its DTH and IPTV
offerings, Bindal said, “IPTV will be targeted at top-end customers.
Customers outside this ambit will be the target for DTH. With DTH, we would
be able to offer pan-India coverage and serve all customers. With IPTV, we
would be able to offer a superior service to customers in the areas served by
our fixed line network.”
Other players with interest in the IPTV space include Reliance, BSNL, VSNL,
MTNL and Microsoft. MTNL has already rolled out its IPTV service.
Telco majors, the world over, have laid thousands of kilometers of optic fibre.
Closer home, there are nearly 350,000 route kilometers of optical fibre laid by
BSNL, Reliance Infocomm, Bharti Tele-ventures and VSNL.
"However, 90 per cent of this optic fibre is unlit (not connected to the end-user
equipment). How will Telco’s recover their investment and monetize this glut
of bandwidth? IPTV is one way to use this bandwidth," reasons Sanjay Gopal,
who leads the Communications and High Tech Industry group at Accenture
India.
MTNL and BSNL are planning to introduce this service of IPTV and is
expected the first roll-outs by June 2006," but now the date has been extended
to 15th of august for its launching. Maran recently said. Moreover, Reliance
Infocomm and Bharti are the other players whose rollouts are expected by the
year-end. They, however, were not ready to commit on the launch timing.
"Airtel already offers voice, data and broadband services to over 1.2 million
customers across the country. As we start offering IPTV to our customers, our
biggest USP over players in the cable and DTH space will be the two-way
service applications like time-shifted television, video-on-demand and
interactive-gaming."
"IPTV deployments are expected to begin this year itself, It will grow much
faster than people's expectations since everyone wants quality. This will
happen like the earlier importance VCR gained over TV, due to the sheer
quality of video output, not to mention the convenience VCRs offered.
Bharti Airtel, the telecom giant will target high-end consumers of the top 6-7
cities as part of its IPTV (Internet Protocol Television) strategy.
The company started the IPTV trials a year ago in 100 households in Gurgaon
and will launch its services before the end of the financial year. The IPTV
service will be first rolled out in Delhi in a phased manner and then it will be
launched in other top cities like Mumbai, Chennai, Kolkata, Hyderabad,
Bangalore, Gurgaon and Jaipur.
Bharti Airtel's IPTV service will be offered as a bundled offering along with
other services and the customer would be provided one combined bill at the
end of the month. Other players with interest in the IPTV space include
Reliance, BSNL, VSNL, MTNL and Microsoft. MTNL has already rolled out
its IPTV service.
Bharti Airtel has been upgrading their network to carrier-grade Ethernet for
the IPTV services, which has been completed in Delhi and is beginning soon
in Bangalore. The company would deliver the service through a backbone of
Carrier Ethernet network and last mile delivery on copper using ADSL2+
technology.
Bharti Airtel has partnered with UTStarcom, a player in VoIP, mobile internet,
internet television and telecommunication solutions for its IPTV project. There
would be 41.1 million IPTV households worldwide in 2011, up from
approximately five million in 2006..
First, broadband is the backbone of IPTV. And India has only around one
million broadband connections till date. TRAI projects the number to rise to
around 20 million by 2010. Second, the availability of the last mile is a factor
that is most instrumental in determining what the future of broadband in India
is going to be, according to Alok Shende, director, ICT practice, Frost and
Sullivan.
Cable operators opine that they are much better placed than IPTV providers
when it comes to the last-mile connectivity. "It's unrealistic to expect your
telephone connection to give you broadband right away. There will need to be
massive infrastructural changes," says Jagjit Singh Kohli, CEO, Siticable
Network, a subsidiary of Zee Telefilms.
There can be stiff opposition from local cable operators who need to be "co-
opted" rather than competed against, corroborates Gopal. Moreover, cable
operators themselves are getting into triple play services.
Hathway has a two-pronged strategy to combat new technologies like IPTV and DTH
� digitising our entire network and offering consumers more channels and content at
the same cost, said a Hathway spokesperson.
"Also the set-top box is being offered on an easy-payment basis. The second part of
our strategy is pushing high-speed broadband Internet into the homes and bundling
the same with our digital product. Thus Hathway is able to offer in its universe analog
cable TV services, digital cable TV services and bundling of digital cable TV services
with high-speed broadband Internet.
Eventually Hathway will also move into Triple Play to combat DTH and other
delivery platforms. Thus, as part of our offering we would be launching cable
telephony services in the current year," the spokesperson added.
Siti cable CEO Jagjit Singh Kohli said: "We have big plans for Triple Play services.
Our advantage is that we can have video on RF and data and voice on IP (which
currently is not adequate for good video output)." Tata Sky is investing in building a
digital infrastructure in the country to offer a "superior television viewing experience
to Indian households".
Vikram Kaushik, CEO, Tata Sky Ltd said, "We are committed to building a state-of-
the-art DTH operation in India for which we have selected NDS to provide end-to-end
solutions. This will enable us to transfer control and choice into the hands of
subscribers".
Sunil Khanna, CEO, Dish TV, takes the competition in his stride. "The global
phenomenon is that with increased TV penetration, there will be different distribution
platforms. There are hundreds of households where TV has just not reached. It's not
possible for IPTV to be everywhere - at least for now.
Moreover, there are always people who do not want to mix their telephone lines with
their TV. In countries like Hong Kong, IPTV and cable co-exist. There's room for
everyone," he concluded.
Bharti Tele - ventures ( Bharti airtel ) is planning to launch its new product that is
IPTV with the joint venture with UTStarcom by this year end. Sources in the industry
informed that UTStarcom would be offering the technology assistance to Bharti to
launch IPTV services. Airtel is currently offering IPTV services to its broadband
subscribers in Delhi and NCR region.
Bharti airtel already launch its product in Gurgaon on trial basis for the
confirmation of the service and also for the digital quality checkup. “They are already
conducting trials in around 100 households in Gurgaon and the technology support is
being offered by UTStarcom,” the source informed. The company is planning to offer
150 channels for its IPTV services in Delhi and NCR by the year-end.
6.0 TABLES AND GRAPHS
330
300
270
240
LEAD GENERATED
210
ORDER BOOKED
180
TOTAL SALES
150
120
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LEAD ORDER
LOG_DATE GENERATED BOOKED TOTAL SALES
1 234 60 143
2 230 57 114
3 236 51 98
4 148 39 72
5 290 78 194
6 224 68 138
7 207 48 96
8 284 85 214
9 207 68 133
10 220 55 98
11 149 41 78
12 237 63 125
13 236 58 138
14 268 51 95
15 177 40 87
16 219 54 112
17 205 55 127
18 131 40 74
19 262 76 147
20 277 74 183
21 327 89 173
22 336 91 178
23 211 67 131
24 223 54 108
25 147 37 70
26 380 84 153
27 270 54 108
28 240 54 100
TOTAL 6575 1691 3487
FEBUARY
420
390
360
330
300
270
240 LEAD GENERATED
210 ORDER BOOKED
180 TOTAL SALES
150
120
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
DATE
MARCH
450
420
390
360
330
300
270
LEAD GENERATED
240
ORDER BOOKED
210
TOTAL SALES
180
150
120
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
APRIL
360
330
300
270
240
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
MAY
390
360
330
300
270
240
LEAD GENERATED
210
ORDER BOOKED
180 TOTAL SALES
150
120
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
360
330
300
LEAD GENERATED
270
ORDER BOOKED
240
180
150
120
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
65
60
55
50
45
40 LEAD GENERATED
35 ORDER BOOKED
TOTAL SALES
30
25
20
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
110
100
90
80
70
LEAD GENERATED
60 ORDER BOOKED
SALES GENERATED
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
DATE
MARCH
210
180
150
120
LEAD GENERATED
ORDER BOOKED
TOTAL SALES
90
60
30
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
100
90
80
70
60 LEAD GENERATED
ORDER BOOKED
50 TOTAL SALES
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
MAY
140
130
120
110
100
90
80
70 LEAD GENERATED
ORDER BOOKED
60
TOTAL SALES
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
35
30
25
20
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
NCR
FE MA MA JUL
JAN B R APR Y JUN Y AUG
LEAD GENERATED 751 415 474 244 282 703 1225 164
ORDER BOOKED 418 205 170 63 72 334 713 33
129
TOTAL SALES 3 806 752 207 294 980 1617 65
NO OF UNIQUE
PARTICIPANT 158 110 102 67 92 149 213 53
NORT
H
FE MA MA
JAN B R APR Y JUN JUL AUG
LEAD GENERATED 42 46 4 62 54 76 73 5
ORDER BOOKED 14 15 2 22 10 25 33 0
TOTAL SALES 29 31 3 41 18 45 68 0
NO OF UNIQUE
PARTICIPANT 4 5 3 33 5 26 15 5
TOTAL
FE MA MA
JAN B R APR Y JUN JUL AUG
LEAD GENERATED 793 461 478 306 336 779 1298 169
ORDER BOOKED 432 220 172 85 82 359 746 33
132 102
TOTAL SALES 2 837 755 248 312 5 1685 65
NO OF UNIQUE
PARTICIPANT 162 115 105 100 97 175 228 58
1800
1600
1400
1200
600
400
200
0
JAN FEB MAR APR MAY JUN JUL AUG
MONTH
6.4 AGENCY REPORT-AGENT PRODUCTIVITY
LEAD
GENERATED
APR MAY JUN JUL
CC_MICROWAVE 7437 7922 8172 9846
DR IT 2158
CC_COMPETENT 1515 1346 1349 1208
CC_DR IT 565 887 902 1096
ORDER BOOKED
APR MAY JUN JUL
CC_MICROWAVE 741 851 1122 1168
DR IT 79
CC_COMPETENT 67 101 162 109
CC_DR IT 67 141 165 178
NO OF VOICE
APR MAY JUN JUL
CC_MICROWAVE 933 1589 2753 1524
DR IT 80
CC_COMPETENT 63 108 169 111
CC_DR IT 107 215 158 184
NO OF DSL
APR MAY JUN JUL
CC_MICROWAVE 641 736 996 1115
DR IT 78
CC_COMPETENT 52 78 135 103
CC_DR IT 63 116 148 164
6.5 AGENCT REPORT – AGENT PRODUCTIVITY NEW
LEAD
GENERATED
APR MAY JUN JUL
CC_MICROWAVE 7437 7922 8172 9846
DR IT 2158
CC_COMPETENT 1515 1346 1349 1208
CC_DR IT 565 887 902 1096
ORDER BOOKED
APR MAY JUN JUL
CC_MICROWAVE 732 846 1063 1323
DR IT 61
CC_COMPETENT 94 88 150 124
CC_DR IT 53 132 174 168
NO OF VOICE
APR MAY JUN JUL
CC_MICROWAVE 860 1239 1964 2844
DR IT 59
CC_COMPETENT 92 95 145 139
CC_DR IT 55 243 171 176
NO OF DSL
APR MAY JUN JUL
CC_MICROWAVE 618 749 949 1215
DR IT 61
CC_COMPETENT 76 67 125 113
CC_DR IT 41 112 158 153
7. KEY FACTS
Bharti Airtel added the highest ever net addition of 53 lakh customers in a
single quarter (Q4-FY0607) and also the highest ever the net editions of 1.8
crore total subscribers in 2006-2007
The company will invest up to $3.5 billion this fiscal (07 - 08) in network
expansion
Non-voice revenues (sms, voice mail, call management, hello tunes and Airtel
live) constituted 10% of total revenues during Q4, lower than 10.74% in Q4 of
the previous year
STRENGHTS
Unlimited clarity: Airtel’s connection provides voice clarity better then some
of other leading service providers.
Marketing strategy
WEAKNESSES
THREATS
CONCLUSION:
People are not ready to change their service providers because of their
long term investment in their product and again paying down for the
new service.
Recommendations:
Instead of targeting new customers the company must try to bind the
old customers.
The company should prefer broadband users and fixed line users to
target for introducing IPTV services.
Every Account manager should have one CRE(customer representative
executive) for better productivity and efficiency & these leads to
higher sales with customer satisfaction to the company.
Company need to improve Broadband service because most of the
customer facing problems like slow speed, connectivity etc.
Bibliography
1. www.bharti.com
2. www.airtelworld.com
3. www.touchtelindia.com
4. www.trai.gov.in
5. www.ciionline.com
6. www.wikipedia.org
7. www.howstuffworks.com
8. www.isp-providers-india.com
9. www.indiatelecomnews.com
10. www.internetworldstats.com
11. www.voicendata.com
12. www.indiabroadband.net
13. www.frost.com
14. www.tonsetelecom.com
15. www.zonkerala.com
16. www.thehindubusinessline.com