Project Report On AIRTEL

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ACKNOWLEGEMENT

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.

The Study & Research so put-in, unraveled the foresight inside me


and also numerous and quantifiable potent in me. The evolvement this long a
way, over the past 1 and odd year in this prestigious Institution has been
tremendous.

I also take this opportunity, reminiscent with memoirs of acquaintances


at BHARTI AIRTEL LTD., their overwhelming support & many unforgettable
gestures, and thank them profusely. A Special thanks to:

1. Mr.Vikas Khokha – Deputy General Manager (Sales)

2. Mr.Gaurav Kant – Senior Manager (Sales)

3. Mr.B.S.Rao –Senior Exe. (Sales)


1. VISION
“Airtel will leverage their strengths in executing complex global-scale projects to
make leading edge information and communication services affordable by all
individual consumers and business in India. In the year 2006 Bharti Airtel ranked 3rd
and with improving its performance this year in 2007 Bharti Airtel ranked on the No.
2 most popular and trusted service brand.”

1.1 Future plans:


By 2010 Airtel will be the most admired brand in India:

• Loved by more customers


• Targeted by top talent
• Benchmarked by more business

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.

3. This marks the beginning of Sunil Bharti’s dream of ushering in a digital


revolution in India by becoming a major catalyst in improving quality of life
and changing the face of India. It aims to achieve this by putting the power of
information and communication in the hands of the people of India at
affordable costs.
4. Bharti is currently offering mobile services, broadband services, fixed line
phone services, calling cards, and data cards. Soon the new project of Airtel
“IPTV” will join its company’s product range.

5. Recently, Bharti ventures tie up with the brand name “WALMART” to be


launch with in the vicious circle of Indian boundaries. WALMART already
has a business of 42 billion dollars in its parent city.

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.

1.3 PROJECT TITLE

OBJECTIVE –

 To study and analyze various marketing activities held at Airtel Broadband


and Telephone Services.

 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.

 Based on various analyses, strategize and develop an action plan which is


feasible and profitable for the company.

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.

1.5 SUNIL BHARTI MITTAL

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’.

Although he belonged to an influential political family, he chose to become a first


generation entrepreneur. He started his first venture in 1976 with a capital investment
of Rs.20,000 ($487) for a small bicycle firm at Ludhiana city in the north Indian state
of Punjab, but soon realized that the potential to scale up this business was limited. He
shifted his focus to import and distribution operations in Mumbai, India’s financial
capital and New Delhi, country’s national capital and started importing portable
generators from Japan. The flourishing venture, however, faced a sudden road-block
when the government banned the import of generators as it awarded licenses to two
Indian companies for manufacturing generators in India.

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.

 FORTUNE ASIA BUSINESSMAN OF THE YEAR:- SUNIL BHARTI


MITTAL was adjudged as the Asia Businessman of the year 2006 by the
globally renewed business magazine, fortune.
Sunil Bharti Mittal
Chairman & Group CEO, Bharti Enterprises

Professional Profile:

1. • Started a bicycle parts firm at Ludhiana, Punjab in 1976.


2. • Started import and distribution business in 1981.
3. • Started importing portable generators from Japan in 1982.
4. • Formed Bharti Teletech Ltd in 1982 to manufacture electronic push button
phones.
5. • Formed Bharti Healthcare Ltd in 1983-84 to manufacture capsules.
6. • Formed Bharti Cellular Ltd in 1995 to offer mobile phone services.
7. • Formed a joint venture with Singapore Telecommunications Limited to build
India’s first undersea cable link between Chennai, capital city of south Indian
state of Tamil Nadu, and Singapore.
8. • Formed a retail joint venture with Wal-Mart Stores Inc, U.S based world's
largest retailer in November 2006.
9. • Selected for “Padma Bhushan Awards”, an Indian civilian decoration in
2007.
10. • “Asia Businessman of the Year 2006” Award by Fortune magazine,
America's second longest-running business magazine.
11. • “Entrepreneur of the Year 2004” award by Ernst & Young, one of the Big
Four auditors
2. COMPANY OVERVIEW
2.1. Introduction

We are one of India’s leading providers of telecommunication services with a


nationwide presence in all the 23 licensed jurisdictions (also known as Telecom
Circles). We served an aggregate of 39,012,597 customers as of March 31, 2007; of
who 37,141,210 subscribe to our GSM services and 1,871,387 use our broadband &
telephone services either for voice or broadband access delivered through DSL. We
are the largest wireless service provider in the country, based on the number of
customers reported by the industry as of March 31, 2007. We also offer an integrated
suite of telecom solutions to our enterprise customers, in addition to providing long
distance connectivity both nationally and internationally. All these services are
rendered under a unified brand “Airtel”.

Future Investments

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.

Growth Potential

Following points go in favour of broadband growth in times to come in India:

 The Indian subcontinent is one of the fastest growing economies (projected to

grow at a rate of 10% for short and medium term).


 India’s huge population of a billion plus people holds a big opportunity.

 Rapidly expanding Indian middle class segment (approx. 250 million).

 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

extra sum of money for getting high speed internet availability.

 Private corporate spending a colossal amount in laying a fresh-last mile

network to reach the end customers

 With more than 35 million cable TV users, the cable broadband presents an

immense opportunity even if a fraction of this population can be tapped.

 Operators are exploring wireless technologies such as the Wi-Max

(Worldwide Interoperability for Microwave Access), High Speed Downlink

Packet Access (HSDPA) and Gigabit-capable Passive Optical Network

(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,

cafes, airports, railway stations, shopping malls, convention centers,

educational institutions and public locations in big cities.

 Entertainment is becoming a big business in India now. In this context it is

important to note that TV shows and live web casts are possible through

broadband. What this eventually leads to is again more opportunities for

Broadband penetration
 Health care remains one area that could potentially benefit from the

penetration of broadband in India. The healthcare industry accounted for 5.2

per cent of India’s

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 Broadband is estimates accordingly.

 Innovative and new Internet-based applications are prompting consumers to

go for broadband access. Typical applications include online shopping and

electronic commerce, both for home and business segments; Internet

telephony, video telephony, entertainment, gaming (including gambling over

the Internet) etc

Applications such as video-on-demand, which are bandwidth intensive, are still

unheard of in the Indian market. If somehow demand for these applications is

created, broadband will pick up in the home segment.

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

look forward to falling tariffs

Major Challenges ahead

 Poor PC penetration attributed to affordability & desirability issues

 Dearth of suitable content & applications

 Certain TRAI policy bottlenecks

 Availability of cost effective spectrum for wireless technologies


 Substandard quality of service delivery

 Despite 80% fall in prices, high installation charges made the broadband

subscriber base fall short of customer target; Dial-up still reigns supreme with

63% of the total subscriber base

Industry Study

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. There were ten key strategic

dimensions along which these new entrants positioned themselves in this sector.

These dimensions are:

1. Scope? Business Portfolio

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

segment or concentrate on only one segment.

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

segment with a view to achieving dominance through predatory pricing is

feasible. Given the scale-intensive nature of investments in infrastructure and

diversity of information and communication needs of various customer groups, it

is reasonable to expect that a strategy comprising economies of scale in

operations and offering customized and innovative products and services will be

key to future success.

4. Value Chain Configuration

Configuration of value chain depends on the generic strategy being pursued and

critical capabilities a firm has or proposes to have. If differentiation is the

objective then the key propositions around which the differentiation will be

achieved and capabilities needed to deliver those, will determine which activities

will be performed in-house and which will be outsourced. If efficiency in

operations is to be achieved, assessment needs to be made about scale and

ownership of various value creating activities.

5. Technology Platform

There exist a large number of technological options in telecom field, each

characterized by unique features, complexities, reliability and maintenance need.

Other associated but important issues are problems of lock-ins & switching costs

and flexibility to switch over to next generation technologies without wholesale

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.

6. Strategic Alliance Partner

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

the three segments or as a unified player throughout; should it have an

independent company for running the backend infrastructure and a separate outfit

for providing the information & related services.

8. Mode of Entry

Different telecom operators followed different routes for entry into the market

depending on their assessment as to which route will prove to be profitable for

them.

9. Timing of Entry & roll out

It is another decision to be made very carefully for it is said in the information

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.

10. Pace of Execution

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.

The Industry can be segmented into:

I. Fixed line (Landline)

II. Wireless (CDMA, GSM, WLL))

III. Internet Services (Dial-up, Broadband etc.)

Segmentation of the target customers

Customers were divided on the basis of their occupation

1. Home users (Residential)

2. Small & Medium Enterprises (SME)

3. Corporate Sector (SMB)

2.2 COMPANY HISTORY

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.

2.3 Bharti-Airtel Benchmarks over the last 12 years of


operations

1995

 Delhi’s first & country’s second mobile phone service launched by Bharti in
form of its mobile services brand- “Airtel”

 Bharti acquires G-Tel in march

 Bharti signs agreement with Siemens to form Siemens Telecom Ltd. On 27th
March

 Bharti launches first Airtel connect on 11th November

1996

 Bharti participated in Beep 96 on 10th December , joining paging service


providers, leading banks & pager manufacturers

 Following its successful Delhi launch, Bharti launched its services in


Himachal Pradesh on 20th December

 Nine of India’s premium cellular operators (Airtel, Hutchisonessar, Max,


Birla, AT&T, Escotel, Modicom, Hexacom, Modi Telstra, RPG Cellular
& Tata Cellular) formed an alliance in 1996- World 1 Network- to provide
automatic roaming services to cellular subscribers within India & abroad.
1997

 Airtel crosses One lakh customer mark

 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

 Bharti procures a license to provide mobile services in Seychelles.

1998

 Airtel, India’s first private basic telephony services was launched by


Bharti at Indore on 4th June

 Bharti launches mobile services in Seychelles

 Bharti BT Internet limited formed by a historic agreement between


Bharti & BT

1999

 A series of acquisitions- Bharti acquires controlling stakes in JT mobiles


& Sky cell, Chennai thus helping Bharti to become the largest Private
Telecom Operator in the country

 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

 Airtel becomes the first private telephony service to connect villages of


India’s heartland
 Bharti launches India’s first private Internet Gateway on 21st July

2001

 History-making largest ever investment of US$ 400 million by Singtel –


one of Asia’s leading Telecom player in the Bharti Group

 Bharti foundation & IIT,Delhi launched Bharti School of


Telecommunication Technology & Management, with a vision to develop
young Telecom leaders through education & Research.

 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

 An interconnect agreement was signed between Bharti & BSNL to make


India One’s services to be available to almost all mobile & BSNL
subscribers

2003
 With the launch of its MMS service, Airtel becomes India’s largest GPRS
Network

 Customer base of 5 lakh customers touched by Bharti in the Northern


region in just 17 months

 Bharti introduces EDGE(Enhanced Data Rate for Global Evolution) using


Ericsson’s cutting edge technology

 Unveiled in October 2003, “Express Yourself” was Airtel’s new brand


positioning platform. The campaign exhorted customers to freely express
themselves, reflecting the core values of trust, caring & simplicity.

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 announced a strategic partnership with Ericsson, involving the


building & managing of mobile networks

 Enterprise Business becomes Bharti’s new SBU, providing end-to-end


world class cutting- edge solutions & a single point contact to large
business customers

 Infotel introduces India’s first Broadband Wi-Fi for homes , when a


surfing speed of 8Mbps was made possible with the launch of Touchtel’s
Wireless Broadband on DSL, on 12th December

 A Network Brain was commissioned at the National Network Operation


Centre (NOC) in Gurgaon, Haryana, to centrally monitor, manage &
control performance & fault levels of Airtel’s Nationwide network

 Bharti ranked second in the Hewitt Best Employers survey

 Enterprise Business deployed on IP-based Multi-Protocol Label


Switching (MPLS) backbone solutions from Cisco Systems, a global
leader in networking solutions
 Bharti unveiled a Unified Brand Strategy for all its telecom services,
with Airtel as the flagship brand

 Bharti & ELRo Holdings India Ltd. , announced the launch of FieldFresh
Foods Pvt Ltd., with a mission to link India’s fields to the world

 Blackberry- the globally acclaimed world’s most powerful Instant Email


Mobile Innovation, was introduced in India exclusively by Airtel

2005

 Airtel became the First GSM Operator in India to cross 10 million


customer milestone on 17th January

 Bharti commenced the second phase of expansion of its Broadband &


Telephony services, covering all of India under Unified License Regime

 On 13th April 2005, Bharti celebrated its Pan-India Footprint by


launching the Airtel One India celebrations in its 23rd circle Assam.

 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

 Bharti Airtel was awarded the “Most admired knowledge


enterprises”(MAKE)in 2006

 Bharti Airtel won awards in two cat6egories at the MIS ASIA IT


EXCELLENCE AWARDS –the best bottom line IT & best knowledge
management.

 It crossed 23 millions customers milestone s in July 2006 &became the


first Indian private telecom company to join an exclusive list of global
telecom operators.
 Partnered with IBM to delivered India’s first service delivery platform
(SDP)

 Airtel became the first telecom entity to offer Microsoft latest Windows
mobile 5.0 technology in India .

2007

 Bharti Airtel is growing rapidly in order to claim valuations in the range of


US$26-$27billions in the total worth of India’s telecommunication sector.

 Airtel ready to provide 2G & 3G mobile services in Sri Lanka.

2.4 BHARTI AIRTEL LIMITED - COMPANY PROFILE

Bharti Airtel Limited is one of India’s leading private sector providers of


telecommunications services with an aggregate of 42.68 million customers as of end
of May‘07, consisting of 40.74 million mobile customers. Bharti Airtel has been rated
among 10 best performing companies in the world in the Business Week IT 100 list.
Bharti Airtel is structured into three strategic business units - Mobile services,
Broadband & Telephone (B&T) services and Enterprise services. The mobile business
provides mobile & fixed wireless services using GSM technology across 23 telecom
circles. The B&T business provides 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. Airtel’s high-speed optic fiber network currently
spans over 40,000 kms covering all the major cities in the country. The company has
two international landing stations in Chennai that connects two submarine cable
systems - i2i to Singapore and SEA-ME-WE-4 to Europe.

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.

Bharti Airtel Limited - Summary of Consolidated Financial Statements –


represents Consolidated Statement of Income as per United States Generally
Accepted Accounting Principles (US GAAP)

(Amount in Rs. Crores, except ratios)

Quarter Ended Year Ended


Y-o-Y Y-o-Y
Particulars Mar. 2007 Mar. 2006 Mar. 2007 Mar. 2006
Growth Growth
Un-audited Un-audited Audited Un-audited

Total revenues 5,393 3,411 58% 18,520 11,621 59%

EBITDA 2,241 1,278 75% 7,451 4,337 72%

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

Net profit / (loss) 1,353 682 98% 4,257 2,257 89%

Operating Highlights (Figures in nos., except ratios)

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

Total 000's 39,013 33,712 16% 20,926 86%

* 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.

2.5 Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti
Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & 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.

 Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading


provider of telecommunications 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 services group provides GSM mobile services across India in 23
telecom circles, while the B&T business group provides broadband &
telephone services in 94 cities.

 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

2.7 Building Telecom... Building Relationships.

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.

All these services are provided under the Airtel brand.


2.8 Business Divisions

 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.

 Broadband & Telephone Services – Our Broadband (DSL) & telephone


services (fixed line) are present in the 92 cities across India.

 Enterprise Services (Carriers) – With 35,016 kilometers of optic fibre network


we are a leading national long distance service provider. For international
connectivity to east, we have a submarine cable landing station at Chennai.
For international connectivity to the west, the Company is a member of the
South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4)
consortiums along with 15 other global telecom operators.

 Enterprise Services (Corporate) – The group focuses on delivering


telecommunications services as an integrated offering including mobile,
broadband & telephone, national and international long distance and data
connectivity services to India's leading 1300 corporate,

2.9 Our 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.
Our Innovations we are changing the way India communicates by offering
innovations that not only add value to people's lives but also deliver an unmatched
customer experience.
We were the first to

• Provide electronic recharge for mobile phones.


• Initiate music retailing in the world with “Easy Music” and the first to offer a
Lifetime Prepaid service.
• Provide innovations such as Bollywood movie premiers, music services such
as ring back tones & many more.
• Investor Relations

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

As an outcome of a restructuring exercise conducted within the company; a


new integrated organizational structure has emerged; with realigned roles,
responsibilities and reporting relationships of Bharti’s key team players. With effect
from March 01, 2006, this unified management structure of 'One Airtel' will enable
continued improvement in the delivery of the Group’s strategic vision.
4.0 INDUSTRY OVERVIEW

BROADBAND INTERNET SCENARIO IN INDIA

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.

Broadband Technologies for India

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.

THE ROADMAP AHEAD

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.

CONCLUSION ON BROADBAND TECHNOLOGY

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

India has 6.6 Mn Internet subscribers.


Dial up is still the most common mode of connectivity.

Always on internet (< 128 Kbps) : 0.95 Mn (14%)


Broadband : 1.4 Mn (21%)
Dial base .. : 4.25 Mn (64%)
80% Dial base with Top 4 players

BSNL : 36.94%
MTNL : 19.71%
SIFY : 14.16%
VSNL : 8.32%

Estimated 50.6 Mn Internet users share 6.6 Mn Internet connections.


MARKET SHARE:-

Estimated DSL base as of Mar’07: 2.4 MN Subscribers

Estimated Base Market share


q BSNL : 0.89 Mn 37%
q MTNL : 0.29 Mn 12%
q Airtel : 0.58 Mn 24%
q Sify : 0.31 Mn 13%
q VSNL : 0.17 Mn 07%
q Others : 0.17 Mn 07%

M ARKET SHARE

7%
7%
13% 37%

24% 12%

BSNL MTNL AIRTEL SIFY VSNL OTHERS


Airtel has 24% market share & 42% of revenue share.
Retail Revenue : Revenue share

q BSNL : 239 Crore 24%


q MTNL : 88 Crore 10%
q Airtel : 442 Crore 42%
q Sify : 86 Crore 10%
q VSNL : 68 Crore 7%
q Others : 68 Crore 7%
q 991 Crore 100%
q

REVENUE SHARE

7%
7% 24%

10%

10%

42%

BSNL MTNL AIRTEL SIFY VSNL OTHERS


5. IPTV the future of television?
5.1 What is IPTV?

 IPTV is basically known as Internet Protocol TV. IPTV is another technology


of broadcasting channel through Internet. 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. 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.

5.2 What features does IPTV offer?

 The biggest difference with today’s distribution of television is that you


choose which information you want to have everything is not broadcasted as
with terrestrial, cable and satellite.

 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.

5.3 Technologies behind IPTV

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.

SDTV (Standard Digital Television) HDTV (High Definition Television)

MPEG-2: 20-24 Mbps


MPEG-2: 4-6 Mbps

H.264, WM9: 2-3 Mbps H.264, WM9: 10-12 Mbps

Table 2 – Typical bit rates for SDTV/HDTV

5.4 Is IPTV going to affect India in a big way?

 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.

 IPTV subscribers in the Asia-Pacific region (excluding Japan) are expected to


grow to over 20 million by 2009. Siemens maintains the global market for
IPTV technology could touch $1 billion by 2009.
 The German company, which competes in the IPTV technology market with
the likes of UTStarcom (which is building the IPTV architecture with Bharti)
and an alliance between Microsoft (which has an alliance with Reliance
Infocomm for the Microsoft IPTV edition) and Alcatel - has big hopes for
China, as well as IPTV in general.

 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.

 "The last-mile connectivity would be either through cable or fibre and


operators will offer services over a wired network to start with, even providing
ADSL connectivity. However, as the technology matures, operators would
offer last-mile connectivity over wireless networks, and Wi-Max is one of the
possibilities," according to Ravi Sharma, MD, Alcatel India.

 "Microsoft is developing a total solution to bring IPTV to the masses via


software and hardware technologies for broadcasting and viewing digital
video IPTV over broadband Internet connections," says Doug Hauger,
Business & Marketing Officer, Microsoft India.

 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.

5.5 IPTV will be targeted at top-end customers, and the


customers
 Outside this ambit will be the target for the direct-to-home (DTH) satellite
television service. With DTH, the company would be able to offer pan-India
coverage and serve all customers, and on the other hand with the IPTV, the
company would be able to offer a superior service to customers in the areas
served by the Bharti's fixed line network.

 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..

5.6 Hurdles to cross

 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.

 "Nowhere in the world will you see mass deployment of metro-ethernet


backbone (which is what the private telcos have laid). Moreover, IPTV suffers
from jitters. And talking about quality, IPTV will require 33 per cent more
bandwidth than radio frequency (RF � used by cable networks) for the same
result with the same codes," he adds.

 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.

IPTV, DTH, Cable - 'Triple Play' for the Digital Home


Screen Digest, a research firm, suggests that IPTV is set to pose a significant
challenge to established cable and satellite operators (read DTH). In the US, Triple
Play services are offered by cable television operators as well as by
telecommunication operators in the US.

'Triple Play' implies high-speed Internet, television (Video on Demand or regular


broadcasts) and telephone service over a single broadband connection. With wirless,
it's called 'Quadruple Play' and grouped services (triple and quadruple) are called
multi-play. The fact is not lost on Indian players.

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.

Launching of IPTV services?

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

6.1 FOR NEWSPAPER ADVERTISEMENT- NCR


REGION (JAN-JUNE)
TOTAL
DATE LEAD GENERATED ORDER BOOKED SALES
1 149 48 99
2 262 80 166
3 298 88 165
4 250 77 178
5 268 84 195
6 207 71 136
7 159 37 73
8 278 79 152
9 259 75 140
10 288 83 159
11 260 71 168
12 269 68 129
13 224 54 100
14 157 49 91
15 351 108 211
16 294 70 147
17 244 63 124
18 237 59 114
19 285 65 144
20 238 72 124
21 159 32 56
22 217 62 123
23 230 56 112
24 251 61 122
25 250 64 134
26 150 48 91
27 209 58 106
28 130 37 67
29 237 57 118
30 218 53 97
31 255 79 150
TOTAL 7283 2008 3991
JANUARY
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

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 238 53 95
2 188 59 110
3 171 49 94
4 61 15 25
5 179 58 108
6 209 53 101
7 376 91 182
8 306 76 140
9 289 85 158
10 278 91 168
11 139 37 70
12 281 67 125
13 357 78 153
14 304 65 138
15 318 96 185
16 415 97 197
17 318 72 132
18 191 43 78
19 341 94 179
20 283 73 159
21 250 69 127
22 273 73 172
23 258 64 124
24 257 69 150
25 201 56 112
26 294 83 160
27 233 67 116
28 262 72 150
29 240 56 142
30 220 48 82
31 228 42 136
TOTAL 7958 2051 4068

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 144 26 48
2 253 50 91
3 241 52 95
4 271 61 124
5 234 46 92
6 243 48 91
7 232 45 80
8 137 29 47
9 236 51 99
10 255 81 145
11 188 53 89
12 239 54 105
13 198 36 63
14 250 48 83
15 162 27 48
16 227 54 97
17 188 46 79
18 172 59 72
19 204 53 94
20 175 48 83
21 186 49 92
22 110 32 69
23 335 70 129
24 255 63 147
25 232 64 124
26 208 48 95
27 194 58 100
28 225 47 83
29 120 29 49
30 243 52 92
TOTAL 6357 1459 2705

APRIL
360

330

300

270

240

210 LEAD GENERATED


180 ORDER BOOKED
150 TOTAL SALES
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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 215 47 83
2 267 56 111
3 227 43 83
4 215 64 115
5 216 60 109
6 142 30 50
7 233 58 134
8 253 59 113
9 223 49 83
10 229 57 104
11 304 70 191
12 230 60 105
13 204 45 78
14 278 57 256
15 353 68 128
16 268 54 107
17 285 46 91
18 229 56 107
19 250 67 124
20 156 37 67
21 284 67 126
22 264 63 110
23 256 55 109
24 261 58 120
25 213 48 89
26 219 61 141
27 137 21 41
28 249 58 104
29 278 63 113
30 237 46 92
31 221 62 105
TOTAL 7396 1685 3389

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

LEAD ORDER SALES


DATE GENERATED BOOKED TOTAL
1 206 60 99
2 283 66 122
3 137 31 54
4 215 58 109
5 244 60 118
6 245 67 135
7 226 62 109
8 216 53 90
9 201 64 124
10 118 22 39
11 207 60 116
12 216 46 94
13 190 45 83
14 255 69 120
15 182 58 151
16 225 51 96
17 174 38 72
18 242 69 126
19 271 56 108
20 260 56 102
21 256 71 164
22 216 46 80
23 221 60 132
24 139 39 62
25 321 80 153
26 327 62 118
27 245 56 96
28 180 56 101
29 226 50 95
30 197 46 77
TOTAL 6641 1657 3145
JUNE

360

330

300
LEAD GENERATED
270
ORDER BOOKED
240

210 SALES TOTAL

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

6.2 FOR NEWSPAPER ADVERTISEMENT- NORTH


REGION (JAN- JUN)
LEAD ORDER TOTAL
LOG_DATE GENERATED BOOKED SALES
1 33 8 15
2 40 11 20
3 56 7 13
4 37 9 17
5 54 11 22
6 44 10 19
7 10 2 4
8 64 8 15
9 65 14 28
10 52 17 35
11 52 10 21
12 39 12 22
13 22 6 12
14 12 2 4
15 36 8 15
16 29 8 15
17 43 11 20
18 22 4 7
19 35 8 17
20 25 8 13
21 10 2 4
22 44 4 6
23 25 6 11
24 39 14 24
25 27 6 10
26 15 2 3
27 26 6 11
28 6 2 3
29 32 3 5
30 33 4 7
31 45 7 13
TOTAL 1072 230 431
JANUARY
70

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

LEAD ORDER SALES


LOG_DATE GENERATED BOOKED GENERATED
1 39 4 8
2 45 12 23
3 36 10 20
4 17 5 10
5 40 7 13
6 45 9 16
7 25 5 10
8 39 7 13
9 31 2 4
10 31 7 13
11 28 7 14
12 36 5 9
13 31 5 9
14 33 5 9
15 30 4 8
16 46 12 21
17 41 4 8
18 50 7 14
19 89 9 23
20 66 13 26
21 57 17 31
22 73 18 42
23 108 13 25
24 91 12 22
25 30 7 14
26 84 8 15
27 93 5 10
28 68 5 12
TOTAL 1402 224 442
FEBUARY
120

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 59 10 21
2 125 15 30
3 51 8 15
4 31 4 7
5 73 9 18
6 92 20 38
7 75 14 28
8 76 24 42
9 62 6 11
10 62 10 18
11 46 7 13
12 194 33 64
13 83 14 27
14 85 17 36
15 71 15 29
16 76 20 36
17 59 13 29
18 36 10 20
19 97 18 32
20 69 18 33
21 116 18 35
22 57 7 13
23 96 21 41
24 74 15 31
25 97 17 35
26 113 26 50
27 123 21 38
28 79 17 31
29 133 14 27
30 71 12 24
31 60 12 22
TOTAL 2541 465 894

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 18 3 6
2 77 15 26
3 76 19 39
4 60 9 16
5 77 7 12
6 77 17 30
7 61 13 25
8 27 5 7
9 65 11 18
10 51 15 26
11 77 14 26
12 58 10 18
13 57 15 22
14 52 8 14
15 14 3 6
16 66 17 28
17 72 15 25
18 59 14 26
19 71 16 29
20 58 5 10
21 33 8 14
22 83 8 13
23 82 12 22
24 80 15 26
25 60 8 14
26 61 14 24
27 89 12 20
28 39 3 5
29 39 3 4
30 103 14 24
TOTAL 1842 328 575
APRIL
110

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 66 18 32
2 74 18 26
3 75 14 25
4 67 13 23
5 65 16 27
6 32 5 9
7 63 17 30
8 68 8 16
9 74 18 33
10 77 12 22
11 70 11 20
12 51 19 35
13 23 7 13
14 57 12 19
15 127 22 37
16 97 19 36
17 95 22 38
18 81 19 36
19 85 18 31
20 32 5 8
21 93 19 33
22 82 20 34
23 117 14 23
24 78 11 19
25 67 11 20
26 63 6 11
27 37 9 14
28 86 11 18
29 70 6 8
30 79 14 22
31 79 10 17
TOTAL 2230 424 735

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

LEAD ORDER TOTAL


LOG_DATE GENERATED BOOKED SALES
1 80 17 30
2 49 14 27
3 34 6 13
4 54 13 30
5 65 17 30
6 70 19 31
7 69 18 33
8 71 18 32
9 54 15 26
10 33 10 15
11 66 16 31
12 67 19 32
13 56 16 30
14 69 14 23
15 75 12 22
16 66 13 23
17 35 6 12
18 73 18 33
19 82 12 22
20 85 15 29
21 78 16 30
22 74 16 31
23 51 9 18
24 39 5 9
25 63 16 30
26 55 11 19
27 59 12 20
28 67 19 40
29 69 14 24
30 49 7 16
TOTAL 1857 413 761
JUNE
90
85
80
75
70
65
60
55
50 LEAD GENERATED
45 ORDER BOOKED
40 TOTAL SALES

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

6.3 FOR EMPLOYEE REFERRAL SCHEME

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

1000 LEAD GENERATED


ORDER BOOKED
TOTAL SALES
800 NO OF UNIQUE PARTICIPANT

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

 It has an installed base of 40,000cell sites and 59% population coverage

 Bharti has over 39 million users as on march 31,2007

 It has set a target of 125million subscribers by 2010

 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

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

 It has completed 100% verification of its subscribers and in the process


disconnected three lakh subscribers
7.1 FACT SHEET

Name Bharti Airtel Limited


Business Provides mobile, broadband & telephone services and
Description enterprise services (carriers and services to corporates)

Established July 07, 1995, as a Public Limited Company


Proportionate Rs. 184,202 million (year ended March 31, 2007-Audited)
Revenue Rs. 117,255 million (year ended March 31, 2006-Audited)
 As per Indian GAAP accounts

Proportionate Rs. 74,407 million (year ended March 31, 2007-Audited)


EBITDA Rs.42,250 million (year ended March 31, 2006-Audited)
 As per Indian GAAP accounts

Shares in Issue 1,895,934,157 as at March 31, 2007


Listings The Stock Exchange, Mumbai (BSE)
The National Stock Exchange of India Limited (NSE)

Customer Base 40,743,725 GSM mobile and 1,941,805 broadband &


telephone customers (status as at month ended may 31, 2007)

Operational Provides GSM mobile services in all the 23 telecom circles in


Network India, and was the first private operator to have an all India
presence.
Provides broadband (DSL) and telephone services in 94 cities
in India.

Registered Bharti Airtel Limited


Name (A Bharti Enterprise)
8. SWOT ANALYSIS

STRENGHTS

 The Technology Airtel is offering.

 The strong subscriber base.

 Unlimited clarity: Airtel’s connection provides voice clarity better then some
of other leading service providers.

 Unlimited customer services: Airtel is providing 24 hours of customer care


services where executives are on call for expertise assistance.

 Unlimited performance: Airtel is constantly innovating and upgrading its


services to offer more value.

 Active management to enroll the projects into grooming areas.

 Marketing strategy

WEAKNESSES

 Restricted subscribers base due to limited wired area

 Centralized decision -making


OPPORTUNITIES

 High market growth rate

 Huge potential to increase customer base

 Airtel and Google to work together on the forth coming project

THREATS

 Competitors to be face of in the market with the same technology offering


and to be launch on:- MTNL, BSNL,RELIANCE
10.0 CONCLUSIONS AND RECOMMENDATIONS

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.

 It was found through tele-calling that most of the customers were


highly satisfied regarding the broadnet facility provided by the DSL
plans of Airtel.

 Customers had certain queries regarding distinguished features of


different plans ,what they actually wanted was an executive visit to
brief them more about the plans.

 Still there are many unwired areas in delhi like r.k.puram

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

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