CHAPTER 1

TELECOM INDUSTRY IN INDIA

1
1.1 History of telecom industry in India :

The history of Indian Telecom Industry can be dated back to the year 1850 when postal

was the only source of communication in India. During the year 1850, the first

experimental electric telegraph line was commenced between Calcutta (now Kolkata)

and Diamond Harbor. In 1851, this telegraph line was made open for the use of British

East India Company. Subsequently, the telegraph lines were extended throughout India.

During the year 1881, the Oriental Telephone Company Ltd. of England launched the

telephone services in India by setting up telephone exchanges at Calcutta, Bombay,

Madras and Ahmadabad. The telephone services were combined with the postal system

in 1883. The capital of India got shifted to New Delhi in 1911 up till when Calcutta

remained the Indian capital. The Public Works Department was then the in charge for

administering the telecom operations in India. From the year 1902 to 1930, there had

been a lot of progress in the Indian Telecom Industry in the form of cable telegraph,

wireless telegraph, radio telegraph and radio telephone system. Radio Broadcasting was

introduced in India in 1927 which was given the name All India Radio in 1937.

2
After the year 1947, when India attained independence all foreign telecommunication

companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a

body governed by the Ministry of Communication. The Indian Telecom Industry was

completely owned by the Government till 1984, during which year private sector was

allowed to manufacture telecom equipment in this industry.

The actual progression of the Telecom Industry started after the year 1985 when the

Government separated the Department of Posts and Telegraph by setting up the

Department of Posts and Department of Telecommunications (DoT). DoT managed the

planning, engineering, installation, maintenance, management and operations of

telecom services for the whole of India. In order to make the operations of DoT easier,

two new Public Sector corporations, namely Mahanagar Telephone Nigam Limited

(MTNL) and Videsh Sanchar Nigam Limited (VSNL) were set up under the DoT in

1986. MTNL looked after the operation of basic telephone services in Delhi and

Mumbai whereas VSNL provided international telecom services to subscribers in India.

DoT looked after the basic telephone operations in areas other than Delhi and Mumbai.

The demand for telephones was rapidly increasing in the 1990s and the Government

was under increasing pressure to allow the private sector to invest in the Indian Telecom

Industry as a part of Liberalization- Privatization- Globalization Policies. Thus, the

private investment in the sector of Value Added Services (VAS) was allowed by the

Government and cellular telecom sector was opened up for competition from private

investments. After this period, the Government announced the National

Telecommunications Policy (NTP) in 1994 which defined certain objectives, including

availability of telephones on demand, provision of world class services at reasonable

prices, improving India’s competitiveness in global market and promoting exports,

attracting FDI and stimulating domestic investments, ensuring India’s emergence as a

3
major manufacturer of telecom equipment and universal availability of basic telecom

services to all villages. The entry of private service providers in the telecom industry

created an indispensable need for independent regulation. The Telecom Regulatory

Authority of India (TRAI) was thus, established on 20th Feb 1997 to regulate the

telecom services of India including fixation of tariffs for telecom services which were

earlier regulated by the Central Govt. TRAI’s mission was to create conditions for the

growth of telecommunications in the country in a manner that would enable India to

play a leading role in the global information society. In order to carry out the above

objectives, TRAI has issued a large number of regulations, orders and directives from

time to time to deal with issues coming before it and has helped the Indian Telecom

Industry to evolve from a Govt. owned sector to a multi-operator multi-service open

competitive market.

Further in 1998, the Government declared the policy for Internet Service Provision

(ISP) by private operators and the licensing for the same had begun from then.

Consequently, the Global Mobile Personal Communications by Satellite (GMPCS) was

also opened up for the private operators. Although the private players had been allowed

participation in many telecom service segments, the results of privatization were not

satisfactory. Therefore, a New Telecom Policy (NTP-99) came into existence from 1st

Apr 1999. The NTP-99 emphasized upon the opening of all the segments of the telecom

industry for private sector participation. It recognized the need for resolving the

prevalent problems of the operators to restore their confidence and improve the

investment climate. This policy provided the much needed relief to private players who

were earlier burdened with huge debts that they had to pay owing to the license fee.

After this, two new departments, viz. Department of Telecom Services (DTS) and the

Department of Telecom Operations were carved out of the Department of

4
Telecommunication (DoT) to separate the service provision and operational functions

of DoT. Later in 2000, DTS was corporatized and renamed as Bharat Sanchar Nigam

Limited (BSNL). DoT is now responsible for policy- making, licensing and promoting

private investments in both telecom equipment manufacturing and in telecom services.

Subsequently in 2002, even VSNL was privatized and its monopoly in International

Long Distance (ILD) services was terminated from 31st March, 2002.

1.2 Introduction:

India is currently the world’s second-largest telecommunications market and has

registered strong growth in the past decade and half. The Indian mobile economy is

growing rapidly and will contribute substantially to India’s Gross Domestic Product

(GDP), according to report prepared by GSM Association (GSMA) in collaboration

with the Boston Consulting Group (BCG).

5
The liberal and reformist policies of the Government of India have been instrumental

along with strong consumer demand in the rapid growth in the Indian telecom sector.

The government has enabled easy market access to telecom equipment and a fair and

proactive regulatory framework that has ensured availability of telecom services to

consumer at affordable prices. The deregulation of Foreign Direct Investment (FDI)

norms has made the sector one of the fastest growing and a top five employment

opportunity generator in the country.

The Indian telecom sector is expected to generate four million direct and indirect jobs

over the next five years according to estimates by Randstad India. The employment

opportunities are expected to be created due to combination of government’s efforts to

increase penetration in rural areas and the rapid increase in smartphone sales and rising

internet usage.

International Data Corporation (IDC) predicts India to overtake US as the second-

largest smartphone market globally by 2017 and to maintain high growth rate over the

next few years as people switch to smartphones and gradually upgrade to 4G.

6
1.1 .1 The Telecom Market Is Split Into Three Segments :

Mobile Internet
Fixed-line
(Wireless) Services
• Comprises • Consists of • Includes Internet
establishments companies that Service Providers
operating and operate and maintain (ISPs) that offer
maintaining switching and broadband internet
switching and transmission connections through
transmission facilities to provide consumer and
facilities to provide direct corporate channels
direct communications
communications via through landlines,
airwaves microwave or a
combination of
landlines and
satellite link-ups

1.3 Telecom Industry In India from 2007 to 2015:

Table 1: Growth of telephones over the years (in million)
YEAR WIRELESS WIRELINE TOTAL ANNUAL

SUBSCRIBERS SUBSCRIBERS SUBSCRIBERS GROWTH %

Mar’07 165.11 40.75 205.86 45

Mar’08 261.07 39.42 300.49 46

Mar’09 391.76 37.96 429.72 43

Mar’10 584.32 36.96 621.28 45

Mar’11 811.59 34.73 846.32 36

Mar’12 919.17 32.17 951.34 12

Mar’13 867.80 30.21 898.01 -6

Mar’14 904.52 28.50 933.02 4

Mar’15 969.90 26.59 996.49 7

Source: TRAI Annual Reports from 2012- 2015, Press Releases of TRAI

7
The above table indicates that over the years, the number of wireless subscribers has

increased whereas there has been a decline in the number of wireline subscribers due

to an increasing demand for wireless phones as compared to fixed telephones.

Graph 1: Growth of telephones (fixed and mobile) from

2007 to 2015

1.3.1 Telecom Service Providers:

The Indian Telecom Industry comprises of both public and private sector service

providers. The public sector telecom operators occupy a major share in the wireline

segment as compared to the wireless segment. The private telecom operators dominate

the wireless market. Their share is very less in the fixed line segment. BSNL and MTNL

are the two major public sector service providers. The major private sector service

providers are Bharti Airtel, Vodafone, Reliance Communications, Idea Cellular, Tata

Indicom.

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Market share of different service providers in the wireless

and wireline segment (%) from 2012 to 2015

YEAR/ MAR’12 MAR’13 MAR’14 MAR’15

SERVICE
Wireless wireline
PROVIDERS Wireless & wireline Wireless & wireline Wireless & wireline

BSNL 10.72 69.84 11.66 67.67 10.46 64.87 7.96 61.71

MTNL - 10.75 - 11.45 - 12.43 0.36 13.35

Bharti Airtel 19.72 10.16 21.69 10.87 22.71 11.78 23.30 12.83

Vodafone 16.37 0.06 17.56 0.12 18.41 0.19 18.95 0.30

Reliance Com. 16.65 3.95 14.17 4.11 12.26 0.75 11.29 4.45

Idea Cellular 12.26 - 14.01 - 15.01 - 16.27 -

Tata Indicom 8.89 4.48 7.65 4.98 6.97 0.19 6.81 6.29

As depicted in the table above, the public sector operators BSNL and MTNL have a

larger share in the wireline segment as compared to the wireless segment. BSNL’s share

is much larger in the wireline sector in comparison to MTNL because it covers whole

India whereas MTNL operates only in Delhi and Mumbai. Over the years, the wireline

market share has declined due to an increased demand for wireless phones by

subscribers. Amongst all the private sector operators, Bharti’s share is higher in the

wireless as well as wireline segment. Till March’13, the share of Idea Cellular was less

in the wireless segment as compared to Reliance Communications but its share

increased at the end of March’14 and March’15 as compared to Reliance thereby

securing a higher rank. Therefore, the private service providers namely Bharti Airtel,

Vodafone, Idea, Reliance Communications and Tata Indicom secured 1st, 2nd, 3rd, 4th

and 5th rank respectively according to their market share at the end of March’15.
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1.3.2 Foreign Direct Investments:

Foreign Direct Investment has been one of the major contributors in the growth of the

Indian economy and therefore, the need for higher FDI is felt across sectors in the Indian

economy. The telecom sector has played a crucial role in attracting FDI in India. The

telecom industry of India requires huge investments for its expansion as it is capital-

intensive and FDI plays a vital role in meeting the fund requirements for its expansion.

The relaxation in FDI norms has attracted many foreign telecom majors to this industry.

The presence of foreign players has not only encouraged faster infrastructure

development and up gradation but also has opened up the telecom industry to foreign

competition. The rise in FDI has also enabled technology transfer, market access and

has improved organizational skills. FDI is also used for providing telecom services to

rural areas, where tele-density is still very low [6]. During August 2013, the Telecom

Commission raised the FDI cap from 74% to 100% in order to encourage foreign

investors to invest in the Indian Telecom industry. This has made telecom one of the

major sectors attracting FDI inflows in India. According to the data released by the

Department of Industrial Policy and Promotion (DIPP), the industry has received FDI

of US$ 16, 994.68 million from April 2000 to January 2015 which contributes to 7%

of overall FDI inflow.

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1.3.3 Notable Trends In Indian Telecom Sector:

Expansion to Rural Emergence of BWA

Green Telecom
Markets Techonologies

• The green telecom
concept is aimed at
reducing carbon
footprint of the telecom
industry through lower
energy consumption
• Tata has invested around
USD16.38 million to
convert its 10,000 base
stations from indoor to
outdoor to reduce energy
consumption and carbon
footprint across its 20
telecom circles in India
so far
• There are over 62,443
uncovered villages in
India; these would be
provided with village
telephone facility with
subsidy support from the
government’s Universal
Service Obligation Fund
(thereby increasing rural
tele density)
• In September 2016, the
rural subscriber base
accounted for 41.42
per cent of the total
subscriber base,
thereby fueling the
sector’s growth
• The most significant
recent developments in
wireless communication
include BWA
technologies such as
WiMAX and LTE
• In 2016, Airtel
launched its 4G
services in 296 cities
across the India
• In 2016, BSNL started
its first 4G Wireless
Broadband Internet
Service- WiMAX
• Reliance Jio, has
launched 4G services
across pan- India as on
December 2015

1.10 Government Initiatives

The government has fast-tracked reforms in the telecom sector and continues to be

proactive in providing room for growth for telecom companies. Some of the other major

initiatives taken by the government are as follows –

• The Government of India has allocated Rs 10,000 crore (US$ 1.5 billion) for

rolling out optical fiber-based broadband network across 150,000 cumulative

gram panchayats (GP) and Rs 3,000 crore (US$ 450 million) for laying optical

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 fiber cable (OFC) and procuring equipment for the Network For Spectrum

(NFS) project in 2017-18.

• The Ministry of Communications & Information Technology has launched

Twitter Sewa, an online communications platform for registration and

resolution of user complaints in the telecommunications and postal sectors.

• The TRAI has released a consultation paper, which aims to offer consumers free

Internet services within the net neutrality framework, and has proposed three

models free data delivery to customers without violating the regulations.

• The Government of India has liberalized the payment terms for spectrum

auctions by allowing two options of payments to telecom companies for

acquiring the right to use spectrum, which include upfront payment and

payment in instalments.

• The Department of Telecommunications (DoT) has amended the Unified

License for telecom operations, which will allow sharing of active telecom

infrastructure like antenna, feeder cable, and transmission systems between

operators, thereby lowering the costs of operations and leading to faster rollout

of networks.

• The TRAI has recommended a Public-Private Partnership (PPP) model for

Bharat Net, the central government’s ambitious project to set up a broadband

network in rural India, and has envisaged central and state governments to

become the main clients in this project.

• The Ministry of Skill Development and Entrepreneurship (MSDE) signed a

Memorandum of Understanding (MoU) with DoT to develop and implement

National Action Plan for Skill Development in Telecom Sector, with an

12
 objective of fulfilling skilled labor requirement and providing employment and

entrepreneurship opportunities in

• the sector.

• The TRAI has directed the telecom companies or mobile operators to

compensate the consumers in the event of dropped calls with a view to reduce

the increasing number of dropped calls.

13
CHAPTER 2
COMPANY PROFILES

14
 COMPANIES PROFILE

Reliance Jio

Reliance Jio Infocomm Limited, doing business as Jio, is a LTE mobile

network operator in India. It is a wholly owned subsidiary of Reliance

Industries headquartered in Navi Mumbai, Maharashtra that provides

wireless 4G LTE service network (without 2G/3G based services) and is the only

'VoLTE-only' (Voice over LTE) operator in the country which lacks legacy network

support of 2G and 3G, with coverage across all 22 telecom circles in India.

The services were first beta-launched to Jio's partners and employees

on 27 December 2015 on the eve of 83rd birth anniversary of late Dhirubhai Ambani,

founder of Reliance Industries,[4][5] and later services were commercially launched on

5 September 2016.

In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel

Broadband Services Limited (IBSL) for ₹4,800cr. Although unlisted, IBSL was the

only firm to win broadband spectrum in all 22 zones in India in the 4G auction that took

place earlier that year.[6] Later continuing as RIL's telecom subsidiary, Infotel

Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in

January 2013.

In June 2015, Jio announced that it will start its operations all over the country

by the end of 2015.[8] However, four months later in October 2015, the company's

spokesmen sent out a press release stating that the launch was postponed to the first

quarter of the financial year 2016-2017.

15
 Later in July, a PIL filed in the Supreme Court by an NGO called the Centre

for Public Interest Litigation, through Prashant Bhushan, challenged the grant of pan-

India licence to Jio by the Government of India. The PIL also alleged that Jio was

allowed to provide voice telephony along with its 4G data service, by paying an

additional fees of just ₹165.8 crore (US$25 million) which was arbitrary and

unreasonable, and contributed to a loss of ₹2,284.2 crore (US$340 million) to the

exchequer.

16
 COMPANY PROFILE

Type Subsidiary of RIL

Industry Wireless Telecommunications

Headquarters: Navi Mumbai, Maharashtra, India

Key people: Sanjay Mashruwala (Managing Director)

Jyotindra Thacker (Head of IT)

Akash Ambani (Chief of Strategy)

Products: Mobile telephony, Wireless broadband

Owner: Mukesh Ambani

Parent: Reliance Industries

Customers: 72.4 million

Subsidiaries: LYF

Website: www.jio.com

17
 The 4G services were launched internally to Jio's partners, its staff and their

families on 27 December 2015. Bollywood actor Shah Rukh Khan, who is also the

brand ambassador of Jio, kick started the launch event which took place in Reliance

Corporate Park in Navi Mumbai, along with celebrities like musician A R Rahman,

actors Ranbir Kapoor and Javed Jaffrey, and filmmaker Rajkumar Hirani. The closed

event was witnessed by more than 35000 RIL employees some of whom were virtually

connected from around 1000 locations including Dallas in the US.

The company commercially launched its services on 5 September 2016.

Within the first month of commercial operations, Jio announced that it had acquired 16

million subscribers. This is the fastest ramp-up by any mobile network operator

anywhere in the world. Jio crossed 50 million subscriber marks in 83 days since its

launch. Jio crossed 100 million subscribers on 22 February 2017.

18
Network

Radio frequency summary

Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and

6 circles, respectively, of the total 22 circles in the country, and also owns pan-India

licensed 2,300 MHz spectrum. The spectrum is valid till 2035.

Partnerships

Ahead of its digital services launch, Mukesh Ambani-led Reliance Jio

entered into a spectrum sharing deal with younger brother Anil Ambani-

backed Reliance Communications. The sharing deal is for 800 MHz band across seven

circles other than the 10 circles for which Jio already owns. In September 2016, Jio

signed a pact with BSNL for intra-circle roaming which would enable users of the

operators to use each other's 4G and 2G spectrum in national roaming mode.

Marketing & Branding

On December 24, 2015, Bollywood actor Shah Rukh Khan was appointed as Jio's brand

ambassador

19
RELIANCE JIO 4G BROADBAND

The company has launched its 4G broadband services throughout India in the first

quarter of 2016 financial year. It was slated to release in December 2015 after some

reports said that the company was waiting to receive final permits from the government.

Mukesh Ambani, owner of Reliance Industries Limited (RIL) whose Reliance Jio is the

telecom subsidiary, had unveiled details of Jio's fourth-generation (4G) services on 12

June 2015 at RIL's 41st annual general meeting. It will offer data and voice services

with peripheral services like instant messaging, live TV, movies on demand, news,

streaming music, and a digital payments platform.

The company has a network of more than 250,000 km of fiber optic cables in the

country, over which it will be partnering with local cable operators to get broader

connectivity for its broadband services. With its multi-service operator (MSO) licence,

Jio will also serve as a TV channel distributor and will offer television-on-demand on

its network.

Benefits of JIO 4G plans

• Unlimited Data, Calls and SMS free till 31st December 2016.

• Data cost at cheaper rates (Rs 10/GB).

• No roaming charges, across India, any network.

• Unlimited Free calls on any network in India.

• No Roaming charges any network, all India.

• Students to get 25 percent extra data on the tariffs if they show a valid ID when

signing up for Jio.

20
Jio Tagline

“Karlo duniya mutthi mein” and “Jio Jee Bhar Ke”

21
 Airtel

Airtel India is the largest provider of mobile telephony and second largest

provider of fixed telephony in India, and is also a provider

of broadband and subscription television services. The brand is operated by several

subsidiaries of Bharti Airtel, with Bharti Hexacom and Bharti Telemedia providing

broadband fixed line services and Bharti Infratel providing telecom passive

infrastructure service such as telecom equipment and telecom towers. Bharti Airtel

Limited is part of Bharti Enterprises and is headed by Sunil Bharti Mittal.

Airtel is the first Indian telecom service provider to achieve Cisco Gold

Certification. It also acts as a carrier for national and international long distance

communication services. The company has a submarine cable landing station

at Chennai, with a connection to Singapore. As of September 2016, Airtel has 255.73

million subscribers with a market share of 24.7% in the Indian telephony market. Airtel

was named India's second most valuable brand in the first ever Brandz ranking

by Millward Brown and WPP plc.

On 19 May 2010, the broadband wireless access (BWA) or 4G spectrum

auction in India ended. Airtel paid ₹33.1436 billion (US$490 million) for spectrum in

4 circles: Maharashtra and Goa, Karnataka, Punjab and Kolkata. The company was

allocated 20 MHz of BWA spectrum in 2.3 GHz frequency band. Airtel's TD-

LTE network is built and operated by ZTE in Kolkata and Punjab, Huawei in

Karnataka, and Nokia Siemens Networks in Maharashtra and Goa. On 10 April 2012,

Airtel launched 4G services through dongles and modems using TD-LTE technology

in Kolkata, becoming the first company in India to offer 4G services. The Kolkata

22
launch was followed by launches in Bangalore (7 May 2012), Pune (18 October 2012),

and Chandigarh, Mohali and Panchkula (25 March 2013). Airtel obtained 4G licences

and spectrum in the telecom circles of Delhi, Haryana, Kerala and Mumbai after

acquiring Wireless Business Services Private Limited, a joint venture founded by

Qualcomm, which had won BWA spectrum in those circles in the 4G spectrum auction.

Airtel launched 4G services on mobile from February 2014. The first city to

get the service was Bangalore. Airtel has started their 4G services in Karnal and

Yamunanagar in Haryana on 16 June 2015. Airtel 4G trials have been started in Delhi

from 18 June 2015. Airtel had 1, 20,000 4G subscribers as of May 2014.

As of March 2016, Airtel provides 4G coverage in 350 cities in 15 circles. Airtel

extended its 4G network to 15 km off India's coastline, following a request by

the Indian Navy.

23
 COMPANY PROFILE

Type: Public

Industry: Telecommunications

Founded: 7 July 1995

Founder: Sunil Bharti Mittal

Headquarters: Bharti Crescent, 1, Nelson Mandela Road,

New Delhi, India.

Area served: India

Key people: Sunil Bharti Mittal

(Chairman and MD)

Products: Fixed line and mobile telephony, broadband

and fixed-line internet services,

digital television and IPTV

Customers: 256.80 million

Website: www.airtel.in

24
Network

Radio frequency summary

Airtel India owns spectrum in 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands

across the country.

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.

Products & Services

Telecom Services

Bharti Airtel offers GSM mobile services in all the 22-telecom circles of India and is

the largest mobile service provider in the country, based on the number of customers

Telemedia Services

25
The group offers high-speed broadband with the best in class network. With fixed line

services in 87 cities, we help you stay in touch with your friends & family and keep you

updated round the clock.

Airtel Business

Airtel business provides a broad portfolio of services to large Enterprise, Government,

Small & Medium businesses and carrier customers. It is India's leading and most trusted

provider of communication and ICT services, offering services that include voice, data,

network integration, data center & managed services, enterprise mobile applications

and digital media

Expert solutions that optimize cost

Businesses are constantly working on

optimising cost by reducing technology spend, managing service levels and

demonstrating the business value of information and communication technology. Airtel

solutions have skillfully optimized costs by streamlining workflows and business

processes across enterprises.

26
Digital TV services

Discover the magical experience of digital entertainment with Airtel. From DVD

quality picture and sound, the best and widest variety of channels and programmers to

the best on-demand content on Airtel Live, your TV viewing experience change forever

with digital TV from Airtel.

Empowering enterprises with intelligent networks

Offering end-to-end comprehensive solutions for network connectivity, Airtel’s

Intelligent Networks Solution empower your business through customised solutions

and increased coverage. Our MPLS, VSAT, IPLC, Ethernet, Internet, and NLD help

your enterprise reliably adopt technology for business growth

Getting mobility strategy right

Catering to the operational needs of your organization, Airtel’s Enterprise Mobility

Solutions make you the task master of your business with an inclusive service that

provides apps, voice plans & devices and gives your employees the freedom to work

from anywhere.

27
Building a business without boundaries

Airtel Collaboration Solutions brings you an exciting world of conferencing that

enables speedy decision taking – saving colossal amounts of effort and makes ample

room for growth opportunities by promoting teamwork between employees, partners

and customers

Making business seamless

Increase your revenue, decrease all operating expenses and enhance your business

dexterity with airtel Cloud and Managed Solutions. Its seamless integration helps

transform your business processes and unlocks the true potential of your organization

and employees, allowing you to tap into new revenue sources.

Connectivity to grow your business!

Whether you are looking to expand your existing business or start a new one, we offer

you a complete suite of office connectivity solutions. From fixed line to office internet

to mobile data on dongles and Wi-Fi dongles, we have got it all covered. Airtel's

recently launched MyPlan for business has further empowered enterprises with absolute

mobile plan flexibility.

Simply fill the form on the right and know how you can improve connectivity in your

office.

Enabling rich media experiences

Enterprises across verticals now need to manage and deliver compelling media

experiences in more places - faster, cheaper, and with less complexity. Airtel Digital

28
Media Solutions ensure end-to-end electronic distribution of content including content

production, acquisition, storage, processing, and delivery.

Just another instance of how our solutions are working for business every day.

Media centre

Bharti Airtel completes secondary sale of 10.3% stake in Bharti Infratel to a consortium

of KKR & Canada Pension Plan Investment Board (CPPIB)

Marketing & Branding

Chettri has effortlessly taken on the 'Airtel Girl' tag, earlier held by Rakul Preet Singh

who appeared in the memorable Airtel night plan campaign last year. A graduate in

advertising from Xavier's Institute of Communications (XIC) Mumbai, Chettri was a

trainee copywriter.

29
 Benefits of AIRTEL plans

For Prepaid users: Free 3GB data with every Rs 345* recharge

Under this offer, customers with any 4G mobile handset who are not on the

Airtel network or upgrading to a new 4G device can enjoy 3GB free data, in addition

to the regular pack benefits with Airtel’s Rs. 345 prepaid recharge. The pack will offer

free calls - Local and STD – to any network in India plus 4GB data (1GB regular pack

benefit+3GBfreedata).

The first time free 3GB data benefit can be availed through My Airtel app

and data benefits on subsequent recharges will be instant. The pack benefits will be

valid for 28 days and can be availed for a maximum of 13 recharges till December 31,

2017.

For Postpaid users: Free 3 GB data per month with all MyPlan

Infinity Plans

Customers with any 4G mobile handset, who are not on the Airtel

network or upgrading to a new 4G device, will now get 3GB free data per month, with

all MyPlan Infinity plans. This is in addition to regular plan benefits which includes

unlimited free voice calling - Local/STD/Roaming, generous bundles of data, free SMS

any free subscription to Wynk Music and Wynk Movies.

For instance, the Rs 549 Infinity plan will now offer unlimited free calling plus 6 GB

data (3GB regular data + 3GB free data) per month along with other pack benefits to

customers under this offer. The Rs 799 Infinity plan will offer unlimited free calling

plus 8 GB data (5 GB regular data + 3GB free data) per month along with other pack

benefits to customers under this offer.

30
New Tagline of Airtel

Touch Tomorrow and the Good Life

31
CHAPTER 3
OBJECTIVES
SCOPE OF THE STUDY
USE AND IMPORTANCE OF
THE STUDY

32
 OBJECTIVES

The objective of the study is to know the comparative measurement of customer

perception regarding the services of two major companies that are doing their business

in tirupati region. These two companies are: -Reliance Jio & Airtel" Along with this I

tried to find out the perceptions of the customer of different Age Group & different

Professions which are using the services of these companies permanently are given

below:

❖ To know the customer perception, choice and preference regarding various

mobile services.

❖ Which mobile service is preferred most by the customers?

❖ Comparative measurement of customer satisfaction level for various mobile

services available in tirupati.

❖ To understand the main problems faced by the customer while using the mobile

services.

❖ To know the features of a mobile service which attracts the customer most?

33
 SCOPE OF STUDY

❖ It would help us to know about which one is better (Jio or Airtel) according to

the customer.

❖ Which company gives better service to their customers?

❖ It would help us to know about how many customers are loyal to their brands

❖ It would help us to know about the reasons regarding non preference

34
 USE & IMPORTANCE OF THE STUDY

• To study the psychology of customers in respect of their need :

➢ Coverage area network

➢ Variety of plans

➢ Good signals

➢ New services provided by them

• Differentiation between Jio /Airtel in respect of consumer’s

Perception, which is better and why?

35
CHAPTER 4
DATA ANALYSIS

AND

INTERPRETATION

36
1. AGE WISE CLASSIFICTION

Age (in year) No. of respondents Percentage (%)

18-20 30 30

21-25 37 37

26-30 15 15

31-35 06 06

36-40 07 07

41& above 05 05

Total 100 100

Age wise Classification

7, 7% 5, 5%
6, 6% 30, 30% 18-20
21-25
26-30
31-35
15, 15%
36-40
41& above
37, 37%

Comment:- Above Graph shows are 30% of respondent in age group of 18-20, 37%of

respondent in age group of 21-25, 15% of respondent age group of 26-30, 7% and 5%

respondent are come in 36-40 and 41&above.

37
2. OCCUPATION WISE CLASSIFICATION
Occupation No. of respondents Percentage (%)

Servicemen 47 47

Student 30 30

Business 12 12

Profession 08 08

Others 03 03

Total 100 100

Occupation Wise Classification

100
No. of Respondents

80
60
No. of respondents
40
Percentage (%)
20
0
s
t

s
en

on
en

er
es
em

si

th
ud

in

es

O
us
St
ic

of
rv

Pr
Se

Occupation

Comment: - Above Chart Shows that 47 respondent are Servicemen out of 100 and

30 are the students. 12 respondents are businessman.

38
3. INCOME WISE CLASSIFICATION

<= 5000 54 54

5000-10,000 25 25

10,000-15,000 11 11

15,000-20,000 07 07

20,000 Above 03 03

Total 100 100

Income Wise Classification

7, 7% 3, 3%

11, 11%
5000
5000-10,000
10,000-15,000
15,000-20,000
54, 54%
20,000 Above
25, 25%

Comment: -

Above graph shows that 54% of respondents are income in <=5000 income level,

Second 25% of respondents are of 5000-10,000 income level. 11% of respondents are

of 10,000-15,000, 7% of respondents are of 15,000-20,000 and remain 3% of

respondents above 20,000 of income level.

39
 4. AGE V/S USAGE OF COMPANIE MOBILEPHONE

Age (in year) Airtel Jio BSNL Vodafone idea Total

1-20 08 12 03 02 05 30

21-25 13 16 03 03 02 37

26-30 09 02 01 03 00 15

31-35 02 00 01 01 02 06

36-40 01 2 02 01 01 07

41& above 01 01 00 02 01 05

Total 34 33 10 12 11 100

Age V/S Of Companies Telecom

No. Of
25 Respondents

20
18-20
21-25
15
26-30
31-35
10
36-40
41& above
5

0
Airtel Jio Vodafone BSNL Telenor

Comment:-Above Charts shows that 34 respondents are use Airtel Company’s

Telecom. And 33 respondents are using Jio

40
5. Who is decision maker for purchasing telecom in your

family?

Sources No. of respondents Percentage (%)

Father 46 46

Self 42 42

Mother 10 10

Others 02 02

Total 100 100

Decision maker for purchasing telephone

50 46
46
42
42
40

30

20 No. of respondents
Percentage (%)
10
10 10
2
0 Percentage (%)
2
Father No. of respondents
Self
Mother
Others

Comment: - Above Graph shows that 46 % respondents take decision by father for

purchasing telephone. And 42 % respondents are take decision by self for purchasing

telephone.

41
6- Purpose to purchase mobile phone

PRIMARY DATA

Purpose No. of Respondent Percentage

Official use 17 34

Home 23 46

Status symbol 10 20

Total 50 100

Purpose to purchase mobile phone

% Respondent

50 46
45
40 34
35
30
25 20 %
20
15
10
5
0
Official use Home use Status symbol

• 34% Respondents have the purpose to purchase to Mobile Phone for

official use.

• 46% Respondents have the purpose to purchase to Mobile Phone for off

home use.

• 34% Respondents have the purpose to purchase to Mobile Phone for

status.

42
CHAPTER 5
RESEARCH METHODOLOGY

43
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study

the various steps that are generally adopted by researcher in studying his research

problem along with the logic behind them. It is necessary for the researcher to know

not only the research methods/techniques but also the methodology. Researchers also

need to understand the assumptions underlying various techniques and they need to

know the criteria by which they can decide that certain techniques and procedures will

be applicable to certain problems and others will not.

We use a particular method of research in the context of our research study and explain

why we are using a particular method or technique and why we are not using other so

that research results are capable of being evaluated either by the researcher himself or

by others.

RESEARCH METHODOLOGY CAN BE SUB-HEADING BY

➢ Research

➢ Research Design

➢ Sampling Design

➢ Data Collection

➢ Tools and Techniques

➢ Survey area

➢ Sampling Size

44
RESEARCH

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic: The meaning of research is "a careful investigation or inquiry specially through

search for new facts in any branch of knowledge" According

to Clifford Woody – research comprises defining and redefining problems formulating

hypothesis or suggested solutions; collecting, organizing and evaluating , data; making

deductions and reaching conclusions; and at last carefully testing the conclusions to

determines whether they fit the formulating hypothesis.

Objectives of Research

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden

and which has not been discovered as yet. Though researcher study has to its own

specific purpose, we may think of research objectives as falling into a number of

following broad groupings.

1. To gain familiarity with a phenomenon or to achieve new insights into it,

2. To portray accurately the characteristics of a particular individual, situation or

a group.

3. To determine the frequency with which something occurs or with it is associated

with something else.

4. To test a hypothesis of a causal relationship between variables.

45
RESEARCH DESIGN

A research design is purely and simply the frame work of plan for a study that guides.

The collection and analysis of the data. Application and specification are the main

characteristic in a research design. Marketing research designs can be classified on the

basis of the fundamental objectives of the research.

Since our research is descriptive type, so research design is also descriptive.

Research Design in Case of Descriptive Research:

these designs are used for some definite purpose. A number of marketing research

studies are based on such designs. It is focused on the accurate description of the

variables present in the problem.

These designs try to find a complete and accurate description of a problem situation by

providing specified methods for selecting the sources of information and the procedure

for collecting data from these sources. The data is collected in such a manner that the

ambiguous nature of cause and effect relationship in the phenomenon is reduced to

maximum extent.

Importance of Descriptive Research

These are able to describe the characteristic of certain groups.

Specific predictions are possible

Can study relationship between two or more variables.

46
Descriptive Designs can be divides in two main categories:

(1) Case method

(2) Statistical Method

SAMPLING DESIGN

Sampling is the process of obtaining information about an entire population by

examining only a part of it. Sampling is used for a variety of reasons such as:

• Sampling can save time and money

• Sampling may enable more accurate measurements.

• Sampling remains the only way when populations contains infinitely many

members

• Sampling only remains the only choice when a test involves the destruction of

the item under study

Sampling Methods are divided

Probability sampling

Non-probability Sampling

In my research probability sampling is used. Again in probability sampling simple

random sampling is used. This sampling is stratified system.

47
DATA COLLECTION METHOD

Data collection methods are generally two types:

• Primary Data

• Secondary Data

Primary Data

The primary data are those which are collected a fresh and for the first time and thus

happens to be original in character. The primary data is collected in the process of

questionnaire and interview of the outlets.

Secondary Data

The secondary data are those which have already been collected by someone else and

which have been already been passed through the statistical process. In my research the

secondary data collected from the company sales, production and other records. The

other data was collected from research report.

TOOLS AND TECHNIQUES

The data was collected through questionnaire method and personal interview. Again

the research is descriptive type. The analysis is done through the tabular and graphical

representation.

48
SURVEY AREA

The research is done in the different areas of tirupati which are given below:

SAMPLE SIZE

The total sample size I had cover is 100. These size are generally outlets.

Sample Size (n) = 100

SAMPLE UNIT

The sample unit was customers.

49
 JIO VS AIRTEL

Jio vs. Airtel who is the best

Jio Networking

Rapidly Falling ARPU (Average revenue per user)

The competitive intensity in the telecom industry in India is one of the highest in the

world and has lead to sustained fall in realisation for the service providers. Intense

competitive pressure and cut throat pricing has resulted in declining ARPUs. With

increasing number of new entrants in the telecom space the competitive intensity is

likely to continue, putting further downward pressures on the telecom tariffs. Thus, the

telecom companies might have to grapple with further decline in ARPUs, going

forward.

Further, with the telecom companies moving their focus to the rural areas for driving

the future subscriber growth they might not witness a commensurate increase in

revenues. In fact, the risk of steep decline in ARPUs will increase going forward as the

telecom companies penetrate rural markets that are characterized by higher

concentration of low-income, low-usage customers. A higher-than-expected decline in

ARPU poses a risk of reduction in margins of service providers. Alternatively, telecom

operators are turning their focus to

steadily increasing the minutes of usage (MoU) to counter the sustained fall in ARPUs.

Likewise, the growth of the VAS is also crucial for some improvement in the ARPUs

of operators.

50
Lack of Telecom Infrastructure

Lack of telecom infrastructure in semi-rural and rural areas could be one of the major

hindrances in tapping the huge rural potential market, going forward. The service

providers have to incur a huge initial fixed cost to enter rural service areas. Further, as

many rural areas in India lack basic infrastructure such as road and power, developing

telecom infrastructure in these areas involve greater logistical risks and also extend the

time taken to roll out telecom services. The lack of trained personnel in the rural area

to operate and maintain the cellular infrastructure, especially passive infrastructure such

as towers, is also seen as a hurdle for extending telecom services to the under penetrated

rural areas.

Rural Areas Continue to Remain Under Penetrated

A rural teledensity of merely 15% point towards the fact that a majority of Indian

population still do not have access to telecom services. The rural India seems to have

remained untouched by the telecom revolution witnessed in the last few years. A huge

'digital divide', which is reflected by the enormous difference of 74% between the urban

and rural teledensity, reiterates this fact.

However, with the urban markets reaching a saturation point, the telecom service

providers are penetrating rural areas for driving future growth. Thus, the service

providers entering new rural markets might witness substantial increase in subscriber

base. The expansion in the rural areas, however, has increased the risk of further decline

in the ARPUs. Nonetheless the revenue growth from these regions is unlikely to match

the surge in the subscriber base.

51
Excessive Competition

Another major concern that has come to the forefront in the recent past has been

heightened competitive intensity in the industry that has correspondingly fuelled the

price war between industry players. The Indian wireless market is one of the world’s

most competitive markets, with 12 operators across 23 wireless ‘circles’ and 6 to 8

competing operators in each circle. The auction of new 4G licences and the introduction

of mobile number portability (MNP) are likely to heat up competition in the industry,

going forward.

Spectrum is the most important resource that is required for providing mobile services.

Given that spectrum is a finite resource, the availability of the same would be inversely

proportional to the number of operators. Thus, larger the number of service providers

smaller will be the amount of spectrum available to each of them.

Scarcity of spectrum leads to higher capex on deployment of mobile networks for the

operators as they need more cell sites to improve service quality. Further the growing

usage of spectrum and the resultant scarcity may lead to re-use of spectrum and increase

chances of congestion in networks leading to constraints on service quality.

Evidently, the competition in the industry is expected to intensify further with the entry

of new players, both domestic as well as foreign players. With the competitive intensity

of the industry already at such high levels new operators might find it difficult to gather

significant share in Indian telecom market. While the new players may benefit from a

faster network rollout through tower sharing, they will face challenges in terms of high

subscriber acquisition costs and lower ARPU customers.

52
Lower Broadband Penetration

The Indian economy remains highly underpenetrated in terms of broadband

connections. High cost of devices (PC and laptop), high internet charges and lower

wireline connections have been some of the major factors inhibiting broadband

penetration. Broadband is one of the key catalysts for economic development and major

initiatives by both the government and service providers are needed to increase its

penetration.

Spectrum Allocation

4G Spectrum availability is one of the major concerns for the industry. Lack of adequate

spectrum which is the most integral part of the mobile telephony sector could hamper

its growth severely. However, the spectrum allotment has been the most controversial

issues in the Indian telecom sector.

The smooth process of scheduled 4G spectrum allocation is likely to be one of the key

factors affecting the industry dynamics, going forward. Given the highly-competitive

nature of the Indian telecom industry on one hand, and limited licenses in the 4G

network on the other, the risk of excessive biding by the service providers has increased.

Irrational bidding, especially in some circles, might render 4G services financially-

unviable. Further, there exists a risk of delay in allotment of proposed spectrum to the

service providers who have successfully bid for the 4G spectrum

Other Growth Inhabiting Factors

While the implementation of mobile number portability is likely to aid improvements

in quality of service, it is also likely to increase the churn out ratio significantly. The

53
service providers are likely to turn to the VAS as a service differentiator; however,

widespread VAS deployment is restricted due to language and illiteracy.

The deployment of 4G services is likely to help the emergence of new VAS. Mass

acceptance will be crucial for the success of 4G services in India. Comparatively higher

cost of handsets required for accessing 4G services is likely to be one of the major

roadblocks in mass 4G adoption in India.

Airtel Networking

"In a service industry like telecom, people live a brand 24X7. It's all about experience;

and for Airtel 'brand=customer experience," says Rajan Mittal, joint managing director,

Bharti Tele-Ventures Ltd.

That's now, but when mobile telephony began in India a decade ago, the brand was all

about aspiration. That's understandable: a handset cost about Rs 45,000 - the price of a

second-hand Fiat - and call charges hovered around Rs 16 a minute.

Naturally, the target customer was clearly defined: elite, up market professionals and

entrepreneurs. "We positioned Airtel as an aspirational and lifestyle brand, in a way

that trivialised the price in the mind of the consumer. It was pitched not merely as a

mobile service, but as something that gave him a badge value," recalls Hemant Sachdev,

chief marketing officer (mobility) and director, Bharti Tele-Ventures.

Airtel was on a power trip: the logo was black, uppercase bold lettering; and the baseline

was "the power to keep in touch". "From day one, it was decided that the brand should

always connote leadership - be it in network, innovations, offerings or services," says

54
Diwan Arun Nanda, CMD, Rediffusion-DY&R, the agency that has created all Airtel

ads over the past decade. The taglines emphasized that stance: "Airtel celebrates the

spirit of leadership" and "The first choice of the corporate leaders".

This was also a time when customers needed to be educated; interest levels were high,

but customers' exposure to the cellular world was limited. Airtel took out full and half-

page ads in newspapers, answering queries like "what is roaming?", "what is coverage

area?" and "how to make international calls".

In 1999, the rules of the game changed. The New Telecom Policy came into effect,

replacing licence fees with a revenue-sharing scheme and extending the license period

from 10 to 20 years. Now, cellular service operators could drop their prices and target

new customer segments. As SEC B became part of the catchments area, Airtel's

communication changed from "power" to "touch tomorrow".

The focus now was on the endless possibilities of technology to make life good and

advertising became two-pronged: a product-driven communication that showcased new

offerings like the Magic prepaid card, and an emotional communication that showed

younger people.

In 2002, Airtel signed on music composer A R Rahman and changed its tune to "Live

every moment": Rahman's signature tune for Airtel is, perhaps, the most downloaded

ring tone in India. But that was just part of the ongoing communication.

The following year Airtel adopted the "Express yourself" positioning, which is also its

current tagline. Now, the emotional angle was predominant - and stark, black and white

imagery to stand out in what was becoming a highly commodities, crowded market.

55
The latest campaign continues that thought. Only, mobile telephony is now extending

to even low-income mass categories. So the first TVCs in Hindi and regional languages

are now on air, as are low-priced products, like the Rs 200 recharge coupon.

Communication was just part of the battle: customer service would prove more critical.

"We were very clear that Airtel will be a service-led brand," says Mittal.

Accordingly, Airtel was the first cellular service provider to start customer centers

(called Airtel connects), where customers could pay their bills, apply for new

connections and touch and feel new handset models.

The way to the future, though, seems to be through product innovations such as easy

charge (recharging prepaid connection through SMS), hello tunes, the Blackberry

option, stock tickers and M-cheques (mobile credit cards).

The customer care centers, too, are metamorphosing into "relationship centers", one-

stop shops where subscribers can not only pay their bills and have their queries

answered, they can shop for new phones, surf the net and enjoy a cup of coffee. "What

matters is what the customers want," points out Mittal.

Jio vs. Airtel Prepaid

Filed in: Telecom Add comments

I just switched from Airtel postpaid to JIO as far as my GSM mobile connection goes,

but I also looked into Jio prepaid seriously before making the deal. I found JIO to be

far better for a variety of services it offers:

56
 • Jio has membership plans and given benefits after join membership. But Airtel

has no membership plans.

• Receiving missed calls alerts for when the phone was switched off is free

whereas it costs each time.

• Jio provides a free restricted GPRS service for free whereas Airtel offer a WAP

version called Planet. Jio users for Rs. 99 membership plans. Jio has a full blown

one with unlimited usage for Rs. 149 or 303 per month.

• Jio given freed voice calling std/local but Airtel Also provide voice calling but

condition is that Airtel given 1200 minute one week. That means 300 minuts

per day.

• Jio provide 28GB ultd. Data is 28 day (1GB per day). But Airtel given a

condition for Airtel users they use 500 MB ultd. Data and 500 MB (2pm to

5pm).

I did spare a moment’s thought in thinking if Airtel offered any benefits that Jio did

not, but couldn’t come up with any. If any of my readers know of one, then they’re

welcome to inform me via the comments.

2 Responses to “Jio vs. Airtel Prepaid”

GINI

I want to take a new connection of Jio prepaid & want to know the price structure & I

want a connection in which there min prices for Sms & want a long validity card. I

know that there is lifetime validity card and its call rates is very Low & does Airtel has

condition for the users.

57
58
CHAPTER 6
FINDINGS
SWOT ANALYSIS
RECOMMENDATIONS
CONCLUSION

59
 FINDINGS

During the project we meet various people & trying to find their perception regarding

various mobile services in the tirupati. While studying we find that the main customer

or the users of mobile services are the self-employed persons who have their own

business & other major users are the college going students.

Jio is the leading mobile service provider in the tirupati region & it is far ahead from

their competitors in terms of customers. Which have come just now in the city have

capture a good market. Jio is capturing a lot of market because of its good services in

rural area. In starting it is well accepted by the people by its low call rate & some and

good connectivity. Jio management is not able to make their services available to the

general customer.

But the Airtel is also creating an image on the high-class customers by its good network

and good quality of voice in the long distance. The Airtel is the choice of the high class

and the people who worked in the higher position.

60
 SWOT Analysis on Jio

Strengths

1. Low tariff: - Company has launched its 4G service with highly competitive

or rather very low tariff. Company has strong financial capacity to withstand

initial losses

2. Very wide network:-Company has created wide national network with a

huge investment of around $20 billon. The company has used latest

technology and hence capable to give quality service.

3. Brand Name: - Brand Value of company is very high.

Weaknesses

1. Late entry into telecommunication sector: - The telecom sector had

grown exponencially in its initial phases which started around two decades

earlier. Presently market has seen only modest growth and it has become

highly competitive due to entry big players such as Vodafone, Idea etc.

2. Operation of Mobile Number Portability Still not

3. Smooth:- Nowadays mobile number has become identity of a person and

hence it is difficult for anyone to change his mobile number.MNP takes many

days for its implementation and it is hard to manage this transition period.

MNP is crucial for Jio as a large number of customers is expected through

migration from existing service providers.

61
4. Highly dependent upon data consumption: - As per the current

trend around 60 to 70 percent of revenue comes from voice calling and hence

there is a huge potential loss for making voice calling free. This loss can be

offset only when consumption of data increases manifold.

Opportunity

1. Large scale availability of smart phones: In last 2 decades the

number of people using Smartphone has increased manifolds. If company is

able to provide quality service at competitive rate it can quickly grab large

number of customers.

2. Increasing rate of data consumption: In its earlier phase almost entire

revenue of the mobile service provider was from voice calling. However since

last two years the proportion of revenue from data users is increasing

exponentially which has resulted in almost 30-40% of the total revenue. Lower

data tariff may further increase data consumption and thus contribute more to

the revenue of company.

3. International market:-There is huge opportunity in many developing

countries.

62
Threats

1. Saturated market: - The initial phase of rapid increase in subscriber is

now over. A new entrant like Jio needs a large customer base to cross

breakeven point.

2. Highly competitive market:- After the entry of big players like

Vodafone, Idea etc. the market has become highly competitive.

3. Changing Government Policy: The changing government policy like

cancelling of 2G licences ,imposition of tax with retrospective effect(on

Vodafone), refund for call drop etc. has created uncertainty in the market

causing adverse impact on the investment sentiment.

4. Rapid upgradation in Technology:- From 2G to 3G and 3G to 4G

changes have occurred in very short span of time. Even next generation 5G is

approaching shortly. Each upgradation requires huge investment and it is not

possible to remain in market without it.

SWOT Analysis on Airtel

Strengths

• Bharti Airtel has more than 254 million customers (July 2016). It is the largest

cellular provider in India, and also supplies broadband and telephone services -

as well as many other telecommunications services to both domestic and

corporate customers.

63
 • Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing

Tel, with whom they hold a strategic alliance. This means that the business has

access to knowledge and technology from other parts of the telecommunications

world.

• The company has covered the entire Indian nation with its network. This has

underpinned its large and rising customer base

Weaknesses

• An often cited original weakness is that when the business was started by Sunil

Bharti Mittal over 30 years ago, the business has little knowledge and

experience of how a cellular telephone system actually worked. So the start-up

business had to outsource to industry experts in the field.

• Until recently Airtel did not own its own towers, which was a particular strength

of some of its competitors such as Hutchison Essar. Towers are important if

your company wishes to provide wide coverage nationally.

• The fact that the Airtel has not pulled off a deal with South Africa's MTN could

signal the lack of any real emerging market investment opportunity for the

business once the Indian market has become mature.

Opportunities

• The company possesses a customized version of the Google search engine

which will enhance broadband services to customers. The tie-up with Google

can only enhance the Airtel brand, and also provides advertising opportunities

in Indian for Google.

64
• Global telecommunications and new technology brands see Airtel as a key

strategic player in the Indian market. The new iPhone will be launched in India

via an Airtel distributorship. Another strategic partnership is held with

BlackBerry Wireless Solutions.

• Despite being forced to outsource much of its technical operations in the early

days, this allowed Airtel to work from its own blank sheet of paper, and to

question industry approaches and practices - for example replacing the

Revenue-Per-Customer model with a Revenue-Per-Minute model which is

better suited to India, as the company moved into small and remote villages and

towns.

• The company is investing in its operation in 120,000 to 160,000 small villages

every year. It sees that less well-off consumers may only be able to afford a few

tens of Rupees per call, and also so that the business benefits are scalable - using

its 'Matchbox' strategy.

• Bharti Airtel is embarking on another joint venture with Jio Essar and Reliance

GSM Cellular to create a new independent tower company called Indus Towers.

This new business will control more than 60% of India's network towers. IPTV

is another potential new service that could underpin the company's long-term

strategy.

65
Threats

• Jio & Airtel seem to be having an on/off relationship. Jio which owned a 13.5%

stake in the Airtel business sold it back to Airtel, and instead invested in its rival

Hutchison Essar. Knowledge and technology previously available to Airtel now

moves into the hands of one of its competitors.

• The quickly changing pace of the global telecommunications industry could

tempt Airtel to go along the acquisition trail which may make it vulnerable if

the world goes into recession. Perhaps this was an impact upon the decision not

to proceed with talks about the potential purchase of South Africa's MTN in

May 2016. This opened the door for talks between Reliance Communication's

Anil Ambani and MTN, allowing a competing Indian industrialist to invest in

the new emerging African telecommunications market.

• Bharti Airtel could also be the target for the takeover vision of other global

telecommunications players that wish to move into the Indian market.

Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles. Bharti

Airtel since its inception has been at the forefront of technology and has steered the

course of the telecom sector in the country with its world class products and services.

The businesses at Bharti Airtel have been structured into three individual strategic

business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise

Services.

66
LIMITATIONS

➢ customers are not aware of new plans (Jio/Airtel)

➢ Cost is the biggest factor in postpaid.

➢ Very few schemes are available in the prepaid plans (Roorkee).

➢ Low or weak signals.

➢ They take more time in connectivity.

➢ Low sales promotion support, company is not paying much attention in

advertising plans and schemes.

➢ Low penetration rate among customers.

➢ Products and services available to the customers are expensive.

➢ Services provided by Jio/Airtel are not up to the mark.

➢ Unawareness to customers about the new plans of Jio/Airtel.

67
 RECOMMENDATIONS

• There, I would like to suggest few point over which top management should

think and take corrective action to overcome those drawback due to which

Mobile Service providing companies & authorized dealer has gradually losing

its market position so that the company must take following measure to regain

its market position.

• Promotion by local advertisement & on electronic media more as to print media

as it is the biggest media to reach common customer.

• Companies should also start promotional schemes for the customer.

• To attracts the customer the firms should improve there services by introducing

latest technology in the market. & they should also try to increase the range of

there signals in the city.

• The companies should try to increase there capacity to solve the

connectivity problem.

• The marketing personnel should give complete feedback with logical rejoining

from the market to increase service standards.

• For a particular order particular person should be made responsible not a group

as a whole this will increase the commitment of that. Person towards the work

and would make him feel more responsible towards an order.

• Marketing people should be given incentives for each order they bring to the

company. It could be a fix percentage.

• The local persons are appointed more in the field of marketing to attracts the

customer.

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 CONCLUSION

This research report is conducted to compare the two biggest competitors in all time in

the telecom sector. In this research we find that the both Jio and Airtel are the well-

established companies in the market. Customers are aware about the name of both the

companies. They prefer to buy both.

Airtel is the more popular then the Jio. Airtel is preferred by the every class and it

established itself as a better quality and better service provider then its competitors.

But Jio is no fear of it because the young customers are more attracted by it, now the

Jio takes over Airtel and now they give the new schemes in the market and for the

customers.

Last but not the least, we can say that the both the Airtel and the Jio are going equally

to the customer and they choose and at the time of purchasing. The result is that the Jio

is better then the Airtel in the tirupati region. The customers in Roorkee thinks that the

connectivity and network of Airtel is good But Jio services are better then the Airtel.

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 BIBLIOGRAPHY

WEB SITE

• www.google.com

• www.jio.com

• www.airtel.in

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