RESEARCH OBJECTIVES:

To study the consumer trends in telecommunication sector. To study the level of customer satisfaction in Airtel. To study customer purchase decision behaviour and factor

influence the decision process. Comparative study of different mobile companies. To study competitive marketing strategies adopted by Airtel. To understand the needs of different consumer segments. To study consumer preferences. .

TELECOM HISTORY SINCE 1842 TILL NOW.. With the dramatic changes in interpersonal communication over the past decade, Internet messaging has emerged as the primary medium for transferring information quickly, inexpensively, and reliably. However, the growing popularity of wireless telephones has added another dimension to the communications equation mobility. As more Indians rely on cellular communication, this market is expected to see explosive growth over the forecast period. Lets have a review of telecommunication History:Telecom history 1842: Wireless by conduction 1843: Early electromagnetic research, wireless by induction 1865: Induction and Dr. Loomis

Early radio discoveries 1879: D.E. Hughes and the first radio-telephone reception 1880: The photophone and the first voice radio-telephone call 1880 to 1900: Radio development begins in earnest 1910: The first car-telephone 1924: The first car-mounted radio-telephone 1937: Early conventional radio-telephone development

The modern era begins 1946: The first commercial American radio-telephone service 1947: Cellular systems first discussed 3

1948: The first automatic radio telephone service 1969: The first cellular radio system 1973: The Father of the cell phone 1978: First generation analog cellular systems begin 1980: Growth of Japanese cellular development 1981: NMT -- the first multinational cellular system 1982: The rise of GSM 1990: North America goes digital: IS-54

Prehistory (Birth to Bell Labs, 1924) While puzzling over the mysteries of radio, many inventors worked concurrently on power generation, telegraphs, lighting, and later, telephone. The thorough understanding of electricity required to produce a reliable, practical radio system took a long time and happened in different phases.

In 1820, Danish physicist Christian Ousted discovered electromagnetism, the science that could help generate electrical power and, if fully understood and applied, usher in the era of telecommunication.

Michael Faraday - 1791 to 1867

In 1821 Michael Faraday reversed Oberstars experiment and in so doing discovered induction. This helped him build the world's first electricity generator. He worked on different electrical problems in the next ten years, eventually publishing his results on induction in 1831. 4

Joseph Henry - 1797 to 1878

In 1830 the great American scientist Professor Joseph Henry transmitted the first practical electrical signal; showing that electromagnetism could do more than just create current or pick up heavy weights -- it could communicate. In a stunning demonstration in his Albany Academy classroom, Henry created the forerunner of the telegraph. While Henry did not pursue electrical signaling, he did help someone who did. And that man was Samuel Finley Breese Morse.

Samuel Morse - 1791 to 1872

In 1837 Samuel Morse invented the first practical telegraph, applied for its patent in 1838 and was finally granted it in 1848. Joseph Henry helped Morse build a telegraph relay or repeater that allowed long distance operation. The telegraph brought the country closer and eventually the world. Morse also experimented with wireless, not by passing signals though the atmosphere but through the earth and water. Without a cable.

Wireless by conduction

On October 18, 1842, Morse laid wires between Governor's Island and Castle Garden, New York, a distance of about a mile. Part of that circuit was under water. But before he could complete this demonstration a passing ship pulled up his cable, ending it seemed, his experiment. Undaunted, Morse proceeded without the cable, passing his telegraph signals through the water itself. This is wireless by conduction.

Over the next thirty years most inventors and developers concentrated on wire line telegraphy, that is, conventional telegraphy carried over wires suspended on poles. Few tinkered exclusively with wireless since a basic radio theory had not yet been worked out. Telegraphy, however, did produce a good understanding of wireless by induction since wires ran parallel to each other and often induced rogue currents into other lines.

Early electromagnetic research In 1843 Faraday began intensive research into whether space could conduct electricity. In 1864 Maxwell released his paper "Dynamical Theory of the Electromagnetic Field" which concluded that light, electricity and magnetism were all related and that all electromagnetic phenomena traveled in waves. Induction and Dr. Loomis In 1865, a dentist Dr. Mahlon Loomis of Virginia may have been the first person to communicate through wireless via the atmosphere. Between 1866 and 1873 6

he transmitted telegraphic messages at a distance of 18 miles. At one location he even flew a metal-framed kite on a metal wire, perhaps taking inspiration from Benjamin Franklin. At another location a similar kite picked up these signals and noted them with a galvanometer.

Early radio discoveries Maxwell's 1864 conclusions were distributed around the world and created a sensation. But it was not until 1888 that Professor Heinrich Hertz of Bonn, Germany, could produce and detect radio waves consistently and reliably. On November 22, 1875, while working on acoustical telegraphy, a science close to telephony, Thomas Alva Edison noticed unusual looking electro-magnetic sparks. D.E. Hughes and the first radio-telephone reception From 1879 to 1886, London-born David Hughes discovered radio waves but was told incorrectly that he had discovered no such thing. Discouraged, he pursued radio no further. Hughes noticed a clicking noise in his home built telephone each time he worked using his induction balance, a device now often used as a metal detector. He transmitted signals from one room to another in his house in London. But since the greatest range there was about 60 feet, Hughes took to the streets with his telephone, intently listening for the

clicking produced by his clockwork transmitter, gradually diminishing until it no longer could be heard.

Alexander Graham Bell was the man who invented the telephone and made the first call on a wired telephone to Thomas Watson. Bell was also first with radio.

1888 onwards: Radio development begins in earnest In 1888 the German, Heinrich Hertz, conclusively proved Maxwell's prediction that electricity could travel in waves through the atmosphere. Unlike Hughes, the extensive and systematic experiments into radio waves that Hertz conducted were recognised and validated by inventors around the world. Jagadish Chandra Bose demonstrated electromagnetic waves in 1895 "by using them to ring a bell remotely and to explode some gunpowder".

Marconi established the first successful radio system. In 1901, his radiotelegraph system sent signals across the Atlantic Ocean. Ships were the first wireless mobile platforms. In 1901 Marconi placed a radio aboard a Thorny croft steampowered truck, thus producing the first land-based wireless mobile transmitting data, not voice. In December 24, 1906, Reginald Fessenden accomplished the first radio bandwave communication of human speech over a distance of 11 miles, from Brant Rock, Massachusetts, to ships in the Atlantic Ocean. Radio was no longer limited to telegraph codes, no longer just a wireless telegraph, but a means of verbal communication.

The first car-telephone From 1910 onwards, Lars Magnus Ericsson, the man who founded Ericsson in 1876, and his wife Hilda, regularly worked the first car telephone. Access was not by 8

radio, instead there were two long sticks, like fishing rods, handled by Hilda. She would hook them over a pair of telephone wires, seeking a pair that was free. When they were found, Lars Magnus would crank the dynamo handle of the telephone, which produced a signal to an operator in the nearest exchange.

Around the same time, the triode tube was developed, allowing far greater signal strength to be developed both for wireline and wireless telephony. No longer passive like a crystal set, a triode was powered by an external source, which provided much better reception and volume.

Later, with Armstrong's regenerative circuit, tubes were developed that could either transmit or receive signals, were stable and powerful enough to carry the human voice and sensitive enough to detect those signals in the radio spectrum.

In 1919, three firms came together to develop a wireless company that one day would have a reach across the globe. Heavy equipment maker ASEA, boiler and gas equipment maker AGA and telephone manufacturer LM Ericsson, formed SRA Radio, the forerunner of Ericsson's radio division.

The first car-mounted radio-telephone Bell Laboratories claims to have invented the first version of a mobile in 1924. It was a two-way, voice-based radio-telephone and the adjoining photograph from their site certainly seems to confirm it.

History of cellular mobile telephony: 1982 to 2001 1980 - First cellular phones began to appear 1982 - Nordic Mobile Telephony (NMT) standard 1983 - American Mobile Phone System (AMPS) standard 1986 - Nordic Mobile Telephony (NMT) 900 MHz 1991 - Commercial launch of the GSM service 1993 - Coverage of main roads GSM services start outside Europe 1994 - Japanese Digital Cellular (JDC) 1996 - USA Personal Communications Systems (PCS)

1982 - The beginning During the early 1980s, analog cellular telephone systems experienced rapid growth in Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany. Each country developed its own system, which was incompatible with those of others, in equipment and operation. This was an undesirable situation, because not

only was the mobile equipment limited to operation within national boundaries, but also limited to the market for each type of equipment. This scenario in a unified Europe was undesirable.

The Europeans realized this early on, and in 1982, the Conference of European Posts and Telegraphs (CEPT) form a study group called the Group Special Mobile (GSM) to study and develop a pan-European public land mobile system. The proposed system had to meet certain criteria, which included: 10

1. Good subjective speech quality. 2. Low terminal and service cost. 3. Support for international roaming. 4. Ability to support handheld terminals. 5. Support for a range of new services and facilities. 6. Spectral efficiency 7. ISDN compatibility.

Nordic Telecom and Netherlands PTT proposed to the CEPT the development of a new digital cellular standard that would cope with the everburgeoning demands on European mobile networks. The European Commission (EC) issued a directive which required member states to reserve frequencies in the 900 MHz band for GSM to allow for roaming.

1986 Main GSM radio transmission techniques were chosen. 1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory group signed the charter GSM (Groupe Spciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains.

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GSM specifications were drafted.

1989 1998 In 1989, GSM responsibility was transferred to the European

Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide.

The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost.

The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard.

1990 Phase 1 GSM 900 specifications were frozen DCS adaptation started. Validation systems implemented. First GSM World congress at Rome had 650 participants.

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1991 First GSM specification was demonstrated. DCS specifications were frozen. GSM World Congress at Nice had 690 participants.

1992 January - The first GSM network operator was Oy Radiolinja Ab in Finland. December 1992 - 13 networks were on air in 7 areas. GSM World Congress at Berlin had 630 participants.

1993 GSM was demonstrated for the first time in Africa at Telkom '93 in Cape Town. Roaming agreements between several operators were established. By December 1993, 32 networks were on air in 18 areas. GSM World Congress at Lisbon progressed with 760 participants.

Telkom '93 was held in Cape Town. First GSM systems were shown.

1994 First GSM networks in Africa were launched in South Africa. Phase 2 data /fax bearer services were launched. Vodacom became the first GSM network in the world to implement data/fax. GSM World Congress at Athens drew 780 participants. December 1994 -- 69 networks were on air in 43 areas.

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1995 GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas. GSM World Congress at Madrid attracted 1400 participants. December 1995 - 117 networks were on air in 69 areas. Fax, Data and SMS roaming started. GSM phase 2 standardisation was completed, including adaptation for PCS 1900. First PCS 1900 network was shown live 'on air' in the USA. Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data via GSM. Namibia goes on-line. Ericsson 337 wins GSM phone of the year. US FCC auctioned off PCS licenses.

1996 December 1996 - 120 networks were on air in 84 areas. GSM World Congress was held in Cannes. GSM MOU Plenary was held in Atlanta GA, USA. 8K SIM was launched. Pre-paid GSM SIM cards were launched. Bundled billing was introduced in South Africa. Libya goes on-line. Option International launches the world's first GSM/Fixed-line modem.

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2001 Feb -- GSM Conference held in Cannes. By May 2001 there were 500m GSM 900/1800/1900 users worldwide. 16 billion SMS messages were sent in April 2001. By April, 500 million people are GSM users.

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Trends in Mobile Communications The growth and penetration of sophisticated digital communication systems, infrastructures, and services, has been increasing constantly over the last decade. Examples of these services are the Internet, electronic mail, multimedia, pagers, PDA's, and mobile telephony. From marginal penetration 15 years ago, these systems and services are becoming a commodity in both professional and consumer markets worldwide. The developments in these fields are still going strong. In particular, rapid advances - both in technology and services - can currently be observed in wireless and mobile systems that support the communication of different media, such as data, speech, audio, video and control. Current wireless network and mobile phone services roll-out is centered around four available technologies, namely WAP, UMTS, Bluetooth, and mobile positioning systems. The wireless application protocol (WAP), initially carried by second generation GSM and in the future by third generation UMTS wireless networks, will turn the mobile phone into a networked smart-phone capable of low to medium data rate Internet functionalities. Bluetooth will allow for short-range data communication between consumer appliances in a domestic environment. Positioning systems will become integral part of mobile phones such that services can be made dependent on the location of the user in the network.

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When projecting the progress in mobile networks and services into the future, three developments are of importance. In the first place, we can observe that more and more mobile phone-like devices start to include accessories such as a small keyboard, a display, and a speech interface. Such communication and information-oriented systems are emerging as hybrids between the mobile phone and the wireless laptop personal computer. With higher bit rates supporting more advanced services, the integration of the personal computer and personal communication devices will be pushed even further. In the second place, we observe that computing resources are becoming ubiquitously - that is everywhere and at all time - available. We will soon live in an environment that supports us by providing ubiquitous Computing for a wide variety of tasks and services. Daily life consumables, durable products and services already contain an ever-increasing number of sensors, actuators, processing units, and (embedded) software. The personal computer has entered daily life as a necessary commodity, and the development of sophisticated communication systems in today's society relies heavily on the availability of computation resources. Finally, we observe that communication and computing is becoming increasingly personal. The device (and therefore the user) is always on-line, the user is identifiable, the device can be personalized, and the system knows about the users position.

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Cellular Mobile Pricing Structures and Trends

Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile relates to fixed networks. Accordingly, it is necessary for regulatory authorities to review current frameworks in those instances where regulation might impede the offering of certain pricing structures, such as calling party pays. This issue is critical in putting fixed and mobile networks on an equal footing, so the potential for competition between networks can be exploited. Testing the demand for new pricing structures can be left to the market. Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile communication relates to the Internet and electronic commerce. This report reviews and benchmarks the pricing of emerging services such as short message services. These services are the harbingers of? third generation? information services over mobile networks, and policy makers need to review current regulatory frameworks to enhance pricing innovation and competition in the provision of these services.

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Individual customization An important trend in our society is agility or mass individualization. Consumer behavior is much more volatile, much less predictable and increasingly concerned with instant gratification. The expectation is that in due course this trend towards individualization will become a more important factor in the emerging markets too, particularly in the urban areas. As well as setting quality standards for products, this attitude also demands delivery at the right time and in the right place. At any moment, wherever the consumer may be, it has to be possible to satisfy his or her requirements; it is a question of the consumer as a "moving target" and how we can increase our chances of "scoring a hit". In modern thinking about categories of consumers, every consumer has something of this instant consumer in his or her make-up, alongside other possible descriptions, such as "rational", "social" and "responsible". What's more, this can vary according to the product category. One moment, moreover, this instant consumer will be demanding products on the basis of flavor, convenience or cheapness, and in the next breath will be voicing concerns about the environment, animal welfare or his or her own health. The likelihood is that in the long term health, the environment and animal welfare will be significant factors in the concept of quality, as safety already is. Changes in consumption patterns are an important factor in this development. While the retail trade is evolving from supermarket to household service provider in response to mass individualization, consumers are increasingly also obtaining their

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food through other outlets: company canteens, take-away meals, snack bars, old people's homes etc. "Young couples" in Europe are rapidly moving towards the situation that already exists in the United States, where 50% of the food consumed is prepared outside the home. This places different demands on products in terms of keeping qualities (shelf life), convenience and presentation. Consumer-driven technology development These trends in the market and among consumers generate a demand for a more differentiated and more rapidly changing product range and also call for a different approach to technology development (dedicated production systems). In the future there will have to be product development that takes the dynamic of the market and the divergent wishes of the consumers as its starting point and uses the technologies of the future: biotechnology, separations technology, sensor technology and modern information technology (IT). To achieve this, product development will have to be tackled in a more structured way, and knowledge deriving from different areas of research will have to be integrated more effectively. The development of sensor technology in the agro sector, for instance, requires the integration of materials technology, biotechnology and process technology. New scientific developments also provide interfaces through which the sector may respond to wishes relating to health: both the information about genetic aspects and the new insights into bioactive components - substances that, in low concentrations, affect human health - offer interesting prospects of made-to-measure food!

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In the future, "made-to-measure food" will also mean "food produced in a way that the public finds socially acceptable". Such aspects as the environment, animal welfare etc. will play a major role. This will have to be specifically taken into account in the development of technology. From chains to flexible networks As well as imposing requirements in terms of technology development, trends such as mass individualization call for a responsive answer to a sharply fluctuating market demand. This places considerable demands on the organization of agricultural production chains. The full vertical integration of links in a chain can mean a loss of flexibility. It would appear to be more efficient to opt for a continuation of the development of the chain concept; leading to responsive networks that combine the advantage of co-ordination with the flexibility of more loosely linked organizations. These independent organizations work closely together in the flow of goods along the chain in order to achieve the desired "customer value" at the lowest possible cost.

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COMPANY PROFILE
Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers. VISION: To make mobile communications a way of life and be the customers' first choice.

MISSION:

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

Error- free service delivery Innovative products and services Cost efficiency Unified Messaging Solutions CORE VALUE:

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We will delight our customer with our simplicity, speed & innovation. We will honours our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.

Airtel Mobile Communications Limited Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.

Bharti Tele-Ventures vision for its mobile business is To make mobile communications a way of life and be the customers first choice. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Companys strategic objective is to consolidate its leadership position amongst the mobile service providers in India.

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The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: lower tariffs and handset prices over time; growth in pre-paid customer category; greater economic growth and continued development of India's economy; higher quality mobile networks and services; and greater variety and usage of value added services.

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Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited. As of June 30, 2004, approximately 92% of India's total mobile subscriber market resided in the Company's sixteen mobile circles, which collectively covered only 56% of India's land mass.

Mobile Footprint

The map below depicts the location of, and provides certain information for, Bharti Tele-Ventures' existing mobile circles in India:

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Source: (1) Population estimates are as per National Census, 2001 and are as of March 1, 2001. The population for Uttar Pradesh (West) circle is approximately 37% of the total population for the state of Uttar Pradesh.

(2) Mobile subscriber statistics are as of June 30, 2004 and are based on data released by COAI. Mobile market size comprises the total number of mobile subscribers of all the service providers in a circle. (3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals (metros) Mumbai and Chennai respectively.

(4) Demographics of Haryana does not include Faridabad & Gurgaon as they are included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) & Uttaranchal does not include Noida & Meerut as they are included in Delhi NCR. The significant growth in the Company's mobile business has been through a combination of organic growth and acquisitions of additional licenses and has been summarized below. The information given below is for the total market and is not representative of our market share or network coverage.

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1) Comprises the circles of Delhi and Himachal Pradesh.

2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Pradesh.

Andhra

3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and Chennai. 4) Comprises the sixteen operational circles of Bharti Tele-Ventures.

5) Based on data released by the COAI on the total number of persons subscribing to mobile services in our licensed areas. Mobile Strategy

Capture maximum telecommunications revenue potential with minimum geographical coverage to maximise its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer superior services.

Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles.

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Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles.

Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.

Key highlights of Jan-04 are as follows:

Industry additions were up from the last month's 12.71 Lacks to 13.69 Lacs

this month. In percentage terms, this translates to a increase of 8 % in net adds over last month. The number of subscribers moved up from 21.99 Mn at the end of Dec-03 to

23.36 Mn at the end of Jan-04, a growth of 6.22 %. All India monthly growth in subscriber numbers was 6.13 %. The growth

elsewhere was : Metros 5.28 % A circles 6.22 % B circles 7.75 % C circles 3.43 % All Circles Total 6.67 % Airtel 6.39 %

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B Circle category has shown the highest growth in subscriber base on an

individual basis this month.

At Airtel, we have always sought to enhance value for you as a customer by providing you the most relevant and easy to use services through innovation and by harnessing the latest developments in technology. In line with this strategy, we have constantly introduced innovative products and services to suit your unique needs and wants.

Our services range from CLI to Music Messaging to Lost Call Alerts you better.

all to serve

Move your mouse over any service from the following menu to get a brief description on what it is all about.

SMS Astrology Music Messaging Ring tones Dial-a-Ring tone Logos Blinking SMS

Voice Mail Itemised Billing Inquiry Services Picture Messages Yahoo Dating Yahoo! Mail Yahoo Messenger

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Flash SMS Jokes Love Logos Caller Line Identification

Group Messaging Mobile Banking News Updates

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COMPANYS PLANS

Prepaid Plans

Are you wary of committing yourself to a date for making your bill payments? Is it too much of a bother for you to remember dates for bill payments? Do you often end up paying late fees against your monthly utility services bills? Do you end up spending too much if you have the option to pay the bill later?

Think over for if one of these represents you, we have a solution for you. Start thinking prepaid is our advise!

So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance. For e.g. if you feel that you need Rs. 300 worth of talktime for a month, you can buy a recharge coupon which gives you that much talktime on your cellphone. Once that money gets exhausted you can buy another recharge coupon for the same or different denomination depending on your future need.

Prepaid allows you to be in control of your cellular expenses even while you are spending. You will be surprised that today In India, Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony. Thats because almost every one of us wants to be in control of our cellular expense.

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Advantages of prepaid:

Some of the many advantages that you enjoy with Airtel Pre-Paid... Total Cost Control Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much as you feel the need to! Now that's what we call complete freedom!

No Rentals Buy an Airtel prepaid card without having to pay any rentals!

No deposits Your Airtel prepaid card comes without you having to pay heafty deposits!

STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! Our STD/ISD facility allows you to make long distance calls in India and Overseas from your cellular phone!

Instant Balance Inquiry Check your talk-time instantly by calling our toll-free number!

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60 second pulse Airtel provides you with a 60-second pulse rate! Freedom for you to experience like never before!

Instant Recharge Avail of instant recharge on your Airtel prepaid card with just a few simple steps!

24-hour recharge facility With our round-the-clock recharge facility, recharge you Airtel prepaid card anytime, anywhere!

Caller Line Identification Call Line Identification gives you the power to know the phone number of the calling party even before you answer the call, thus giving you the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book. So that the next time you want to call the same person, you don't need to retype his number, simply use your phone book.

Call Divert, Call Hold and Call Wait Avail of special services like call waiting, call hold and call divert all with your Airtel prepaid card!

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Short Messaging Service (SMS) With Airtels Short Messaging Service (SMS), send messages and jokes to your friends and colleagues, anytime anywhere!

SMS based Information Services With Airtel's SMS based information services; you can get up to-the-minute cricket scores, order flowers as well as send couriers or check your daily horoscope!

Voice Mail service Voice Mail lets you receive messages even when your handset is switched off or when you are outside the coverage area. You can listen to your messages whenever you feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration.

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Post-paid Plan

Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way. Postpaid Plan : Value Added Services

InteNatio Call Happy Smart Bol Hrs. Monthly Rent 99 99 24hrs 50% discount Description on M2M discount predefined calls nos 50% tariff 50% tariff 50% tariff Outgoing to Mobiles discount Outgoing to PSTN NA and WLL Applicable to 249 & 349 plans For all Plans " " 1.8 NA discount discount 1.2 1/MO 49 discount F&F Roaming Roaming 25 49 Roaming ng 149 0 0 Regional National nal Forwardi SMS

11pm-9am to 2

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Airtel Out of Home Circle

We have established one of the most extensive roaming tie-ups - both national and international- with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. We currently provide roaming coverage in more than 1000 cities and major highways across India. We also provide international roaming in 56 countries across 101 networks.

To get more information on our roaming coverage, click on the respective links:

National Roaming Our national roaming coverage currently spans across more than a 1000 cities across India. To subscribe to National Roaming, you have to pay the following:

Security Deposit- Rs 1500 Monthly Rental- Rs 49 National Roaming Tariffs:

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Distance( Charges(R Service category Outgoing Within the roamed Circle M 2 M / PSTN / Any WLL Outside the roamed Circle (STD) M2M M 2 PSTN/WLL ISD Incoming Any Any source distance SMS Mobile Originated Mobile Terminated 3 0 1.99 Gulf Rest of the World 0 - 200 > 200 0 - 200 200 - 500 > 500 1.99 2.99 2.99 3.99 4.99 15.99 15.99 1.99 Location Km) s.)

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Customer Care

Do you need any clarifications on your bills? Do you have any feedback or query on our Products & services? You can call us, send us an E-mail or meet us in person. We shall be glad to help you out in every possible way.

Contact us by phone

If you are on Airtel, just call us on 121 your Airtel Prepaid phone.

If you are on Airtel postpaid, just call us on 9897012345 or toll free 121 from your Airtel Postpaid phone.

These toll free numbers however, cannot be dialed when you are roaming.

Airtel launches Music Messaging service

Customers can dedicate songs along with their voice messages;

Dec. 22, 2003, Merrut : Airtel, one of the leading cellular operators in Haryana, UP(West) & Uttranchal and Kerala today announced the launch of a new innovative

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service called Music Messaging. The service will allow music lovers to listen to the various songs and then dedicate the

same to any other Airtel mobile subscriber along with a personalized voice message.

For using the service, the customer simply needs to dial 646 from his mobile and follow the voice prompts. This will lead him to the options Hindi and English songs. There are 10 songs under each option and the customer can either go on to listen to the song clippings of 90 seconds each or move on to the next or previous song. While listening to the song, the subscriber may choose to dedicate the song to some other Airtel Subscriber after recording a 10 second long personalized voice message. The music message will then be received by the person to whom it has been dedicated as a Voice Message with the CLI of the sender. Once delivered, the message begins with the senders voice message followed by a 30 second clip of the song that has been dedicated. The charge for the service is just Rs 7/minute for a 60 second pulse.

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Announcing the launch of the service, Mr. N.F.Aibara, COO, Airtel-Haryana said The mobile phone today is no longer just a communication device. Rather it is a driver of self-identity and creative pursuits especially for the youth segment which constitutes about 70 % of the new customers that we enrol every month. We have always sought to provide our customers with new and exciting services that have been made possible through innovation and use of latest technology. The launch of this new service is another step in the same direction as it enables customers to add a musical edge to their messages-nothing can be more powerful than a message in ones own voice along with a song to suit the situation. I am sure this service will be liked by all our customers and more specially the youth

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Coverage

Bharti Cellular footprint Bharti is to first achieve critical mass, then drill deep instead of spreading thin. Thereafter, it is ready for controlled expansion. In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of India's most attractive and contiguous telecom geographies, including the states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and Delhi (inclusive of NCR). With a footprint dominating the map of India, Airtel Cellular accesses over 45% of India's total telephony potential. With the objective of critical mass achieved, Airtel Cellular turned to drilling deep.

43

44

MANAGEMENT HIERARCHY AT AIRTEL

" M C V M A I C R E K C D C H I S A T N R N P V ES I R H

A I E

N F

A S

G A

E L

M E S

N A

T N

R I C E E S C I P D H R E I E EN S F T I D G E E N N T A I LN E G S S P T L R A A N T N E I G N C L E S A L E S & H TC GM E

IP C R T E O P E R L E O

P P A E I RD MP P AA E IRRD

M A H AT E I R O A K N D E K A M EM T ATI A O I N RN N A KG

45

46

Some Marketing And Business Tools Adopted By AIRTEL As To Promote Its Activities:

Seminars: seminars are conducted at different places by the expert time by time to make people aware.

Publicity: publicity is done through various media.

Stalls at famous places: they conduct their stall after a particular period of time on the famous and public place to attract them towards themselves.

DSA (Direct Sales Agency)

Print media

Hoarding

Banners

Advertisement

Leaflets

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Follow ups

By KNOP COOPERATIVE STUDY OF DIFFERENT MOBILE COMPANIES

PREPAID COMPANY Airtel Idea BSNL Circle S.T.D. Circle S.T.D. Circle S.T.D. AIRTEL 2.25/3.25/0.99/2.99/0.90/2.00/IDEA 2.25/3.25/0.99/2.99/0.90/2.00/BSNL 2.25/3.25/0.99/2.99/0.90/2.00/OTHER / PNT WLL 2.25/3.25/1.89/2.99/0.90/2.00/-

Note: All calls are per minutes

48

POST PAID

AIRTEL

CIRCLE S.T.D. Monthly rant 99/Airtel Airtel 2.40/Airtel GSM 2.40/Airtel PNT/other 2.40/Airtel Airtel 2.99/Airtel GSM 2.99/2.99/- per 50-200 km. 3.99/- 200-500km 200/150+50 (CLI) 999/Note: 1.00 1.00 Free 1.00 2.00 Free 2.40/2.00 1.20 3.00 2.00 2.00 3.00 3.00 2.00 4.99/- 500 to above 3.25 3.00 2.00 Airtel PNT/other

1. If rental plane 150, 25 paid extra. All GSM calls is 1/-/ minute in circle.

2. If paid 75 extra, all India STD GSM 2/- min. POST PAID BSNL

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CIRCLE Monthly rant 325/225/525/BSNL to all G.S.M 0.80/0.90/0.40/BSNL to PNT / other 1.20/1.20/1.20/-

S.T.D. BSNL to all G.S.M 1.80/2.00/2.00/BSNL to PNT / other 1.80/2.00/2.00/-

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POST PAID IDEA

CIRCLE Monthly rant 99/Idea to all G.S.M 2.49/Idea to PNT / other 2.49/Idea to all G.S.M 2.99/-

S.T.D. Idea to PNT / other 2.99/- (50 200 km) 3.99/- (200 - 500 km)

349/399/- (Zero rental plan)

1.00/2.49/-

1.20/2.49/-

2.99/2.99/-

4.99/- (500 to above) 2.99/2.99/- (50 200 km) 3.99/- (200 - 500 km) 4.99/- (500 to above)

Note:- 339 rental plane is zero rental plan because in this plan we get 399/- talk time.

51

52

RESEARCH METHODOLOGY:
An Introduction

Meaning of research

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information as a specific topic. In fact, research is an are of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge. Redman and Mory define research as a

systematized effort to gain new knowledge. Some people consider research as movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research.

Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating

53

hypothesis. D. Slesinger and M Stephenson in the encyclopedia of Social Sciences define research as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art Research is , thus, an original contribution to the existing stock of knowledge making for its advancement. It is pursuit of truth with the help of study, observation , comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term research refers to the systematic method consisting of enunciating the facts and reaching certain conclusions either in the from of solutions(s) towards the concerned problem or in certain generalizations for some theoretical formulation.

54

Defining the research problem:

A researcher must find the problem and formulate it so that it becomes susceptible to research. Like a medical doctor, a researcher must examine all the symptoms (observed by him) concerning a problem before he can diagnose correctly.

And therefore, I have also defined the research problem i.e. to study consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd.

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Research methodology: After defining the research problem the foremost step will be planning for the further investigation. Preparing the blue print to undertake the research called research design. In other words,

A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure". Under this chapter methodological step has been adopted in the study of consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The research procedures followed are described as under:

56

Research Approach The research approach for the purpose was secondary research to collect the information on the subject.

Research Instrument I used direct observation, customer data & survey as research instrument. Research Design In this project use exploratory research design and for data collection fill-up the questionnaires from the customer of mobile, survey of the market and some information collect by interview of the users of the cellular at Meerut SAMPLING: I used Random Sampling because from a finite population refer to that method of sample selection which gives each of possible sample of combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. Sample Design:

A sample design is a definite plan for obtaining a sample from a given

population.

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Sample design may as well lay down the number of items to be included in the

sample is the size of the sample,

i) Type of Universe

The first step in developing any sample design is to clearly define the set of

objects, technically called the universe to be studied. The universe is

infinite as the number of customer is unlimited.

ii) Sampling Unit:

The study to be taken on the suppliers and consumer of mobile connection.

(iii) Size of the samples

As the universe is infinite so the number of consumers will be limited.

Hence sample size is of 50 consumers belong to various levels of society.

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STEPS IN SAMPLING

Define the Universe

Select the sample frame

Specify the sampling units

Select the sample design / methods

Determine the sample size

Specify the sampling plan

Select the sample

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Area of Research Meerut region Sources of Data: Research Data Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data can be obtained from two important sources, namely: 1. Primary Data 2. Secondary Data

60

Primary Data: Primary data are gathered for the specific purpose or for a specific research project, consist of original information for the fulfilment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data.

Primary data can be collected in four ways:1. Observation 2. Focus 3. Survey 4. Experiment

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Secondary data:

Secondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types: 1. Internal data 2. External data When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc.

Internal data are reports and memos generated within an organisation to facilitate its operations. External data are those specially produce for outside consumption.

Sources from which I have taken the secondary data are as under: 1. Direct observation 2. Airtel website 3. Books for marketing management 4. Surveys and customer data & report 5. KNOPs

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DATA ANALYSIS
(1) Do you have own mobile connection?

A. Yes B. No.

14

Having Mobile Not having mobile

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The data shows that the total sample size of 50 people taken for research out of which 86% of persons keep mobile with them. Sample size - 50

Having mobile Yes No

Respondent 43 7

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(2)

Which kind of phone you would like to use?

Land line Mobile WLL

The data shows that the total sample size of 50 people taken for research out of which 50% of persons like to use land line phone and 30% person like to use mobile and rest 20% person like to use WLL. Sample size 50 CONNECTION LANDLINE MOBILE WLL Respondent 25 15 10

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(3) Which age group do you belong to? (a) (b) (c) (d) 15-20 20-25 25-35 35- above

15-20 20-25 25-35 35-above

The analysis shows that 14% people from 15- 20 age group, 8% persons from 20-25 age group, 36% persons from 25-35 age group, and 42% of people from 35-above age group keep mobile with them. Sample size - 50 Age 15-20 20-25 25-35 35-above Respondent 7 4 18 21

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(4) What occupation do you have? (a) Business (b) Professional (c) Government Employee (d) Student
25 20 15 10 5 0 Occupation

The data shows that 50 persons are from, 23 persons are professionals, 16 persons are Private and 5 persons are found retirement 6 person are government employee to consume mobiles. Sample size - 50 Occupation Professional Private Retirement Government (5) Which connection would you prefer? (a) BSNL (b) Airtel Respondent 23 16 5 6

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(c) Escotel or Idea (d) Reliance

45 40 35 30 25 20 15 10 5 0 BSNL ESCOTEL RELIANCE AIRTEL

preferences

When the preferences for mobile phone connections were asked, results drawn that 40% of persons prefer to take BSNL because they believe in BSNLs better coverage & cheaper rates after BSNL, 20% of people opt Reliance services because of its cheaper rate and flexible schemes, then Airtel is only 25% but there is very high

recommendation for its better connectivity. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world.

Sample size: 50 Phone Connections VSNL Escotel / IDEA Respondent 20 8

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AIRTEL RELIANCE

12 10

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(6) You would like to take prepaid connection or Post paid connection?

a. Prepaid b. Post paid

pre paid 60%

post paid 40%

The research study shows that almost people from the selected segment give priority to Post Paid connection, because of the flexibility and attractive plans for this market segment. Sample size: 50 Connection Pre paid Post paid Respondent 30 20

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7. How would you rate Airtel over all? a. Very good b. Average c. Not good

20%

30% Very Good Average Not Good

50%

The above chart show that 30% buyers response is very good and 50% buyers response is average and 20% buyers response is not good. Sample size 50 Rating Very good Average Not good Respondents 15 25 10

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FINDINGS
The data shows that the total sample size of 50 people taken randomly for the research, 43 people out of then taken mobile with them. This segment comproise of professions, businessperson, service man & students.

About awareness of Telecom Company in Modinagar the data collected shows that 60% of the people knows about all the telephone companies dealing in Modinagar market, 30% of person knows only few companies, 5% of person knows only one company, 5% are not knowing any other company.

The segment belongs to business and professional like to have Post paid connection. Whereas students and service persons give their preference to Prepaid connection.

When the preferences for mobile phone connections were asked, results drawn that 40% of persons prefer to take BSNL because they believe in BSNLs better coverage & cheaper rates after BSNL, 20% of people opt Reliance services because of its cheaper rate and flexible schemes, then awareness of Airtel is only 25% but there is very high recommendation for its better connectivity. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world.

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LIMITATIONS
While working on this project I have to face some difficulties while conducting the survey. People were not interested in giving there actual information about their family income and airtime, as they were extremely scared about the income tax some people have difficult to take them in confidence so that they can give correct information. Some of the limitation are:

Not at home Refusal to co-operate

Respondent bias.

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75

CONCLUSION
Liberalization of the telecommunications market has entered a new phase: competition already exists (albeit in limited form) in some markets, such as the longdistance market and the market for Internet access via the STN. Other segments, such as the local loop (essentially the high-speed Internet access market), are being opened up. At this stage, it is no longer simply a question of opening up particular markets, but rather, consolidating the play of competition in those markets that have been opened as well as developing competitive new services. This explains the importance of highspeed access technologies for the future of the sector. To face up to these challenges, regulatory activity is changing. It is constantly adapting to market trends and to economic situations, which are often difficult. Among its priorities it now counts new economic and social concerns as the information society develops: national coverage is a major issue and Airtel intends to play its part to protect the interests of all consumers. To this backdrop, a new regulatory organisation is emerging. It must supply regulatory activity with new tools to encourage lasting competition in the telecommunications sector. It must also contribute to the development of a more consistent UP west market that is better able to face up to the challenges of the information society within the context of globalisation.

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After thorough analysis and interpretation of result obtained I studied overall consumer trends in Airtel Telecommunication Ltd. How people react to its services and schemes. How company attract its customer by adopting effective strategies. In the last the conclusion is drawn through this research that being the biggest and oldest network of mobile telecommunication in Uttar Pradesh West, having good quality of service, taking along a big part of people aware about Airtel, it is subsisting hard. For Airtel connection most of customers are professional and business segment.

Good service is the way to retain clients

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78

RECOMMENDATION & SUGGESTIONS

The company should go ahead with aggressive marketing. They should light competition on 1. Awareness level, 2. Product differentiation 3. Customer retention 4. Pricing strategy.

Thus, The recommendations fir these are as follows: 1. AWARENESS (a) The company should sponsor local programs. (b) The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc. (c) The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly. (d) The company should distribute, leaflets of AIRTEL

Cellular in posh colonies of Western U.P.

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2. PRODUCT DIFFERENTIATION (a) In order to build upon the theme of AIRTEL SANSAR the company should try to position itself as a trustworthy and everlasting partner [WE DO WHAT WE SAYS (Offering prompt, better, quality services at the most affordable prices).

(b) The company should highlight its strengths vis-a-vis competition.

3. CUSTOMEIR RETENTION The company should develop personal /intimate relations with the subscribers:

(a) Wishing birthdays (b) Offering subsidized airtime on festivals. (c) Giving free lasses to high air time user for the events Sponsored by the company. (d) Offering life insurance policy to the subscribers at nominal Prices.

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SUGGESTION

1. Company should provide special offer on time to time.

2. They should be provided every latest information

3. After sale service should be better

4. The company should offer installment facilities on handset.

5. Activation fees should be reduced

6. Credit facilities should be given

7. There should be no billing problem.

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82

BIBLIOGRAPHY Websites & Search Engine: www.airtelworld.com www.bhartiteleventures.com www.researchandmarket.com www.info-shop.com www.smartmobs.com www.yahoosearch.com AIRTELs reports Books & magazine on mobile communication Marketing Management by Philip Kotler Research Methodology by C.R. Kothari The Economics Times The times of India Business today Business word The economist Competition wizard

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QUESTIONNAIRE

Q-1: Which kind of phone you would like use?

a. Landline

b. Mobile (GSM)

c. WLL

Q-2: Which connection would you prefer? a. Airtel b. Idea c. BSNL d. Reliance

Q-3: Which kind of connection you prefer? a. Prepaid b. Postpaid

Q-4: Do you own mobile connection? a. Yes b. No

Q-5: If yes, name the company and your plan (Post or Prepaid)

Q-6: Please rank (In 1 to 10) according to your experience that factor that influence your purchase decision. (You can give same rank to more than 1 factor)

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a. Connectivity b. Easy accessibility c. More talk time d. Pulse rate e. CDMA/GSM f. Added feature like new rings tones g. Rooming feature h. Brand ambassador i. Network area j. Reduce the cost of Sim.

Q-7: How would you rating Airtel over all? a. Very good b. Average c. Not good

Q-8:- Name: _________________________________________________ Q-9: Address: _______________________________________________ Q-10: Phone No:_____________________________________________ Q-11: E-Mail________________________________________________ Q-12: Gender Q-13: Marital status Q-14: Date of birth: Male Married DD/MM/YY Single Female

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Q-15: Age: a. Below 20 b. 20-30 c. 31-40 d. 41-55 e. 56-65 f. 66 to above Q-16: Education: a. School Q-17: Occupation: a. Government Q-18: House hold income: a. Below - 15,000 b. 15,000 20,000 c. 20,000 25,000 d. 25,000 30,000 e. 30,000 above b. Private c. Retirement d. Professional b. Graduate c. Post graduate

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FEED BACK FORM

Q.1 Do you have mobile Phone Connection.

(a) Yes

_____

(b) No _____

Q.2 Do you know, how many telecoms Cos is present in Modinagar .

(a) Yes

_____

(b) No _____

Q.3 Name any 2 Telecom companies.

(1)

(2)

Q.4 If you have to purchase mobile phone connection, which Co. you will prefer and why.

Ans.

Q.5 You will take Post- paid or Pre-paid.

(a) Post-Paid _____

(b) Pre-Paid _____

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Q.6 Can you suggest a friend who intends to buy mobile.

(a) Yes ____

(b) No _____

YOUR NAME AND ADDRESS __________________________ __________________________ ______________

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