Indian Telecom Sector Introduction The telecom services have been recognized the world-over as an important tool for

socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also. Status of Telecom Sector The Indian Telecommunications network with 621 million connections (as on March 2010) is the third largest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Presently, all the telecom services have been opened for private participation. The Government has taken following main initiatives for the growth of the Telecom Sector: RELIENCE COMMUNICATIONS Reliance Communications is company of the Anil Dhirubhai Ambani Group (ADAG) of companies with over 85 million customers. The Late Dhirubhai Ambani dreamt of a digital India - an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire info comm (information and communication) value chain, including infrastructure and services for enterprises as

well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life.

OBJECTIVE OF THE STUDY (BHARTI AIRTEL) Every organization has to achieve its organization goals. For this it is very essential for an organization to know about the view of consumers and their competitive products. This survey research may be also aimed as to estimate potential buyer for the product. The objective of the study is as under: To know about customer acceptance of the product. To suggest the steps for the sales promotion of the product. To study the requirement regarding to the future of the product. To analysis the consumer perception about the quality of the services. To find out solution of customers problems. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. COMPANY PROFILE OF BHARTI AIRTEL Vision "As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer."These are the premise on which Bharti Enterprises has based its entire plan of action. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and innovations to its c r e d i t , ranging from being the first mobile service in Delhi, first p r i v a t e basic telephone service provider in the country, first Indian company t o provide comprehensive telecom services outside Ind ia in Seychelles and first private sector service provider t o l a u n c h National Long Distance Services in India. Bharti had approximately3 . 2 1 million total customers nearly 2.88 million mobile a n d 334,000 fixed line customers. VISION OF RELIANCE COMMUNICATION By 2015, be amongst the top 3 most valued Indian companies,

Providing Information, Communication & Entertainment services, and being the industry benchmark in Customer Experience, Employee Centricity and Innovation.

STRATEGIES: Bharti Tele-Ventures' strategic objective isto capitalise on the growth opportunities that the Company believesa r e a v a i l a b l e i n t h e I n d i a n telecommunications market and c o n s o l i d a t e i t s p o s i t i o n t o b e t h e l e a d i n g i n t e g r a t e d telecommunications services provider in key markets in India, with a focus on providing mobile services. The Company has developed the following strategies to achieve its strategic objective: Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage; O f f e r m u l t i p l e t e l e c o m m u n i c a t i o n s s e r v i c e s t o p r o v i d e customers with a "one-stop shop" solution; Position itself to tap data transmission opportunities and offer advanced mobile data services; Focus on satisfying and retaining customers by ensuring high level of customer satisfaction; Leverage strengths of its strategic and financial partners; and E m p h a s i z e o n h u m a n r e s o u r c e d e v e l o p m e n t t o a c h i e v e operational efficiencies. Brand Architecture: Bharti is working on a complex Three- layered branding architecture To: Create specific brands for each service, Build sub-brands within each of these services and

U s e B h a r t i a s t h e m o t h e r b r a n d p r o v i d i n g t h e g r o u p i t s corporate identity as well as defining its goal to become a national builder of telecoms infrastructure Brand positioning by Rim Market segmentation Geographical segment (rural India)Demographic segment - middle income groups Target marketing People living in small towns and villages. Poor and middle income groups. Youngsters in big cities. Businessmen Positioning Creating brands Ads and promotions Marketing mix Price: low price strategy Place: maximum outlets and service centres Product : varieties available for various groups Promotion: various schemes for pre-paid and post-paid.

Reliance Communications Ltd. vs Bharti Airtel

Reliance Communications Ltd. How hot is this stock? Rediff.com

Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures. Report card Attribute Value Date PE ratio -21.72 28/10/11 EPS (Rs) -3.67 Mar, 11 Sales (Rs crore) 2,835.00 Jun, 11 Face Value (Rs) 5 Net profit margin (%) -5.40 Mar, 11 Last dividend (%) 10 31/05/11 Return on average equity -1.57 Mar, 11 Compare Reliance Communications Ltd. with
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Bharti Airtel How hot is this stock? Rediff.com

Price* Volume* MF holdings Sales Net profit margin * Computed on last 15 days' trading figures. Report card Attribute PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Value Date 19.21 28/10/11 20.32 Mar, 11 10,180.00 Jun, 11 5 20.21 Mar, 11

Attribute Value Last dividend (%) 20 Return on average equity 17.6

Date 05/05/11 Mar, 11

the results are very good with Airtel doing better than RCom probably.

Airtel has a net profit of Rs 7,859 crores vs RCom had a net profit of Rs 6,147 crores for the year 2008-09. For Q4, Airtel made a net profit of Rs 2,049 crores vs RCom had Rs 1,516 crores. Overall the verdict in the newspapers has been that Airtel has come out as a big winner!

In the statements made by Airtel they have explained their strategy going forward. They are giving importance to rural penetration and high end users. Now this is an interesting strategy by a company like Airtel, which is looking for growth in customer base and generating revenues through the existing user base as well. By emphasizing rural markets they are paving way for the future, expanding their network throughout the country further and gearing up for the next wave of users. In the last quarter they added 8 million subscribers. In the cities they are dropping the unviable schemes offering free minutes to users, allowing competition to grab these users but instead are focusing on their core strengths, their high end users! They already have a huge user base and now they are generating the profits from them. A very good strategy indeed! Reliance on the other hand seems slightly on a different track. They completed the worlds largest network rollout ahead of schedule, according to Anil Ambani. They also spent $2 billion creating a GSM network in major cities. They gave out lots of free minutes to users to create an existing user base, which Airtel said they discontinued. Reliance is cutting down on Capital Expenditure since it already has the network and now believes it also has the user base and will be able to generate good cash flows. It seems the 2 giants are competing but at different levels. RCOM has completed the network and Airtel is trying to expand it further. Airtel has started milking its user base while RCOM is just about getting there. I believe both the giants have deep enough pockets, great infrastructure and rich user base to be a great telecom company. Looking forward to even better quarters. Airtel

Airtel is the brand name of the service provided by the telecom company called Bharti Airtel Ltd. Airtel has a subscriber count of 139.75 million (June 2010). Offers its services in 19 countries. Uses GSM and EDGE technologies.

Reliance

Reliance communications is owned by Reliance Anil Dhirubhai Ambani Group. Had 109.15 million subscribers in May 2010. Reliance covers 24,000 towns and 600,000 villages in India. Reliance uses various technologies such as CDMA 2000 1x, GSM, WiMAX, EDGE and EVDO.

THESE ARE THE BASIC DIFFERENCE IN THE WORKING STYLE AND STRATEGIES OF THE TWO TOP TELECOM COMPANIES IN INDIA. THE ABOVE ASSIGNMENT IS TO KNOW THE GROWTH LEVEL AND STRATEGIES OF THE TWO SERVICE SECTOR COMPANIES SELECTED