Airtel Report

1. INTRODUCTION TO INDUSTRY
In the early 1990s, the Indian government adopted a new economic policy aimed at improving
India's competitiveness in the global markets and the rapid growth of exports. Key to achieving
these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai
and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are
further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C"
being the least attractive. The regulatory body at that time — the Department of
Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. Thirty-
four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular
service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was
stipulated that no firm can win in more than one metro, three circles or both. The circles of
Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and
Assam had only one bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok
Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The
government decided to set up TRAI to separate regulatory functions from policy formulation,
licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole
responsibility of the DOT. High license fees and excessive bids for the cellular licenses put
tremendous financial burden on the operators, diverting funds away from network. As a result,
by 1999 many operators failed to pay their license fees and were in danger of having their
licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom
Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by
a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid
to the government.
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1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR
RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by
several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of
these roadblocks / current position is tabulated below:
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ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment
of license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum, while
businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with
4/5 major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all
operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making
roles vested in different bodies.
Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI
(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in
methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared
with vacation of frequencies for usage by GSM operators.
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Problems in Financial closures due to:
 Licensing tenure of 10 years
 Large up front cash requirements from promoters due to heavy license fee burden in
initial stages of deployment Asset based financing approach by Indian Financial
Institutions.
 Licensing tenure increased from 10 to 20 years
 Large up front cash requirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital
expenditure; project financing being considered by most financial institutions.
Foreign ownership / change of partner limitations
Foreign ownership norms clarified, and change of partners allowed as a matter of routine
allowing ease of entry / exit - paves the way for full control of businesses by foreign
companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom.
1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
The interconnection regime between cellular operators and fixed-line operators is still biased
against the former. Despite the recent gains of the cellular industry, not everything is rosy. The
cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people. In
recent years, many foreign companies had pulled out from their cellular joint ventures in India
due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled
out from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of
Thailand and Jasmine International from JT Mobile.
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In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of
Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti
Cellular. Bell South International has also indicated its intention to pull out from Skycell
Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice
Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is
uncertain, and the former is reviewing various options.
The string of sell-outs notwithstanding, there has been a merger and acquisition wave
sweeping across the Indian cellular industry in recent years. Hong Kong-based Vodafoneison
Whampoa, via Vodafoneison Telecommunications (HK), acquired major stakes in Sterling
Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000).
Through a partnership with local company, Kotak Mahindra Finance, Vodafoneison Whampoa
practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit
on foreign ownership in Indian cellular operators. Vodafoneison Whampoa is also the
controlling shareholder of Vodafoneison Max Telecom. Not to be outdone, Bharti Enterprises
— another major cellular player — acquired control of JT Telecom, which was later renamed
Bharti Mobile (December 1999), and
Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the
Punjab license of Essar and started operations, giving competition to the lone operator there,
Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into
one entity.
Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in
four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses,
followed by Escotel with four, Vodafoneison with three, and Reliance and Idea cellular with one
each. Bharti and Vodafoneison have already commenced operations in all the circles while
Idea is set to launch in Delhi. Escotel and Reliance have not made any headway.
BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001.
BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in
January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was
scheduled for 2 October 2002. However, this has been postponed until after mid October.
Once BSNL rolls out its service, most telecom circles will have four cellular operators.
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There will be tremendous competitive pressure, which will result in lower tariffs. Future rate
cuts are expected, which will drive demand, together with falling handset prices and the
introduction of prepaid services. In the midst of declining interest in technology stocks, Bharti
came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the
success of its cellular service, the company got a very good response from the primary market.
The total size of the IPO was 185 million shares at a floor price of Rs10.
The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used
to fuel its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general packet radio service
(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea
have GPRS-enabled networks, there is caution on their part to launch the service. With hardly
any applications, the success of GPRS remains a question.
Building visibility and awareness
Deviating from competing on the price platform, cellular operators are actively promoting their
brand and service portfolio through high-visibility advertising and promotional campaigns.
Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on
hoardings and kiosks. Public transport like the city rail system and cabs are used widely to
carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the
establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange
Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like
discounts on airfare, food and beverages, among others. Others offer special privileges in
retail outlets, cinemas and music shops.
Enterprise mobile applications — promising revenue stream
All along, customer acquisition and the top line have been the focus. Few operators have
concentrated on offering differentiated services for businesses. However, as operators realize
that offering basic voice and Short Message Service (SMS) will get them the numbers but not
the margins, some are now seriously looking at the enterprise segment for provisioning
superior services.
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Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and
instant alerts are being offered. A variety of mobile applications are finding takers among the
enterprise segment. Bharti is in the process of introducing a facility to fleet management
companies so that they can improve the efficiency of trucks or buses by tracking movement
and ensuring higher-use, accurate route planning.
Premium automakers are also installing a global system for mobile communications inside a
vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose
enhanced services like user-defined call routing to prevent misuse. Calls can be barred,
limiting access to select numbers and diverting calls to one single number. Broadcasting
services are also quite popular, especially among fast food centers that have a central number.
Group SMS is quite popular, especially among enterprises both in the service as well as the
fast-moving consumer goods (FMCG) segment that have a large field force and need to
provide regular updates on inventory status, discount schemes and movement of goods from
warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward
transactional alerts to their customers.
1.3 FUTURE TRENDS AND DEVELOPMENT
There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.
• The implementation of enhanced networks like 2.5G will enable operators to offer data
services. This is an opportunity to customize and differentiate better.
• The entry of state-run operators like BSNL and BHARTI means that prices will no longer
be controlled, thus there is less chance of a cartel being formed.
• Network coverage in terms of geographic spread and quality of coverage is crucial
especially for the business subscriber.
• The bigger the service provider's national presence, the better it is for businesses. On
the roaming front, signing up with a national operator is advantageous.
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• Limited mobility wireless in local-loop services (by fixed network service providers) will
be a disadvantage for cellular operators in the short term. Consequently, operators
need to streamline their customer relation activities and adopt aggressive subscriber
acquisition and retention strategies.
1.4 REGULATORY ISSUES
The operations of this sector are determined as under the Indian Telegraph Act of 1885. A
document buried in the sands of time. The next major policy document, which was produced,
was the National Telecom Policy of 1994, a consequence of the on going process of
liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DoT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
1994 Telecom policy announced
September 1994 Guidelines for private sector participation in basic services
November 1994 Cellular licenses issued for metros
December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros
January 1995 Tenders for 2nd operator in basic services apart from DoT on circle basis.
August 1995 VSNL launches Internet services
January 1996 TRAI formed
November 1998 Internet policy announced
The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather
than a series of action points. Like other policies, it sought to achieve the impossible in finite
time like improve quality of service and its availability, wide coverage (a phone in every
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village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn
additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had
also allowed private operators in value added services.
To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21
circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The
basic premise on which competition has been introduced is that every circle will have one
private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/
BHARTI have the option to become the third cellular operator in future.
Government did not achieve most of its stated targets. The basic theme, which was
broadening the reach of telephony in India, has not been met. Even liberalization policies were
not implemented properly. The regulator TRAI was set up after delays and confusion and even
after its creation, DoT continued to fight with it in courts. It was also affected by the resource
crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy
direction it showed was to allow private sector entry in both basic and value added services.
The intention, though noble failed to achieve its goals because of improper implementation, the
economic costs are still borne by the end user.The telecom sector has witnessed some
fundamental structural and institutional reforms in the past decade. telecom equipment
manufacturing was completely deregulated in 1991.
Value-added services (including cellular services) were thrown open to private sector
participation in 1992. An independent telecom regulatory Authority of India was set up in 1997.
A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing
independent service providers to enter the sector ending the earlier monopoly of VSNL.
Reorganization of DoT, separating policymaking function and service provision and
corporatization of DoT's operational network are two major institutional reforms, which need to
be implemented.
2. INRODUCTION TO THE ORGANISATION
2.1 BHARTI GROUP
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Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services.
Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts
and innovations to its credit. 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.
Bharti is the leading cellular service provider, with a footprint in covering all four metros. It has
over eight million satisfied customers.
JOINT VENTURES
Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg
Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance
Corporation, USA and New York Life International, USA.
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 telecommunication services based
on a strong customer base consisting of approximately 8.37 million total customers which
constitute, approximately 17.67 million mobile and approximately 2704,000 fixed line
customers, as of June 30, 2004Bharti Tele-Ventures current businesses include -
• Mobile services
• Fixed-line
• National and international long distance services
• VSAT, Internet services and network solutions
2.2 MANGEMENT STRUCTURE
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The group has been structured to create functional and operational specialization with a linear
vision of business lines and functional areas. The Company is headed by Chairman and Group
Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- Akhil
Gupta and Rajan Bharti Mittal. The Company also has two Presidents- President Mobile
Services and President Infotel Services, this responsibility includes Fixed-line, Long Distance
and Broadband Services. The Presidents report to the Group Chairman and Managing
Director. The head of units and Strategic Business Units (SBU) report to the respective
business's President.
PROFILE OF THE COMPANY
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Historical prospective of Bharti Airtel:-
Sunil Bharti Mittal:-
Chairman& Managing Director since October 2001
Board director since: July 1995
Age: 50 years
Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. Head quartered at
New Delhi, India.
Bharti Airtel, India’s leading private integrated telecom company has been at the forefront of
the Telecom revolution and has transformed the telecom sector with its world-class services
built on leading edge technologies. Bharti has been a pioneering force in the telecom sector
and today enjoys a strong nationwide presence.
Sunil started his career at a young age of 18 after graduating from Punjab University in
India and founded Bharti, with a modest capital, in the year 1976. Today, at 50 he heads a
successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40
billion and employing over 30,000 people.
Bharti has grown successfully in partnership with various leading companies of the world -
Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other
businesses in the group are consumer electronics (Bee tel), life insurance with AXA of France
(Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and
export fruits and vegetables to the world (Field Fresh) Bharti has recently entered into a JV
with Wal-Mart for setting up supply chain, logistics and cash and carry to support the
burgeoning retail market in India.
Sunil is an alumnus of Harvard Business School, MA, USA.
Sunil has been conferred one of the highest civilian award – Padma Bhushan.
Sunil has been conferred the degree of Doctor of Science (Honoris Causes) by the G B Pant
University of Agriculture & Technology.
Sunil is an Honorary Fellow of “The Institution of Electronics and Telecommunication
Engineers (IETE)".
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Sunil is the Honorary Consul General of the Republic of Seychelles in New Delhi, India.
Bharti Enterprises, India's leading telecom conglomerate, has been at the forefront of
technology and has revolutionized telecommunications with its world-class products and
services. Established in 1976, Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit. Bharti has many joint ventures with telecom leaders
like SingTel, Singapore; British Telecom, UK; E.M.Warburg Pincus, USA; Talia, Sweden and
New York Life International, USA.
Bharti Airtel was founded in 1995, to the name of BTVL (Bharti Tele Venture Limited).Its head
quarter is in New Delhi. It is Public listed company on BSE. The named changed to Bharti
Airtel in early 2006.
Bharti Tele-Ventures Limited (BTVL) is India's largest Telecom Business operator with more
than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband
services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal.
The company also provides telephone services and Internet access over DSL in 14 circles.
The company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing station
at Chennai, which connects the submarine cable connecting Chennai and Singapore. The
company provides end-to-end data and enterprise services to the corporate customers through
its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing station.
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand name
Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporate). It has presence in all 23 circles of the country
and has the covers 71% of the current population till FY07.
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.
In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey
in the Channel Islands by the local telecommunications regulator the JCRA. In September
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2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile
telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the
launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel
signed a MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed
network. In August 2007, the company announced it will be launching a customized version of
Google search engine that will provide an 'array of services' to its broadband customers.
In March 2009, Bharti Airtel will roll out third generation services in Sri Lanka in
association with SingTel. This is because Singapore-based Asian telecom major SingTel,
which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it has already
third generation networks in several markets across Asia.
Organization culture of Bharti Airtel:-
• Organization Culture is a Dynamic system of shared values, beliefs, philosophies,
experiences, habits, behavior that give an organization its distinctive character.
• This excellence extends beyond technology roles, and is equally important to how we
manage and sustain this rapid growth.
• The spirit of innovation and excellence.
• The opportunity for cross-functional moves.
• Taking a risk on new ideas and giving us ours own creativity space to operate in.
External training courses are sponsored to ensure that the objective of offering continuous
professional development is achieved.
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Various department of Bharti Airtel:-
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2.3 BHARTI’S VISION
“To make mobile communications a way of life and be the customers first choice”.
BHARTI’S MISSION
Meet the mobile communication needs of the customer through
1) Error free service
2) Innovative products and services and
3) Cost efficiency.
4) Unified messaging solutions
Airtel from Bharti Cellular Limited is a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises.
2.4 CORE VALUE OF BHARTI
Innoventuring
• Generating and implementing entrepreneurial and innovative ideas, to create new growth
engines.
Customer First
• Committed to delivering service beyond the expectations of the customer.
Performance Culture
• Benchmarking processes and performance against world-class standards helps to
distinguish between performers and non-performers by valuing achievement at the
individual as well as the team level. The culture encourages and invites feedback,
learning and ideas sought and acted upon.
Valuing Partnership
• Committed to building exemplary relationship with partners, which stands on the
principles of mutual trust and mutual growth.
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Valuing People
• Nurtures an environment where people are respected and their uniqueness is valued.
Firmly believing that people are key differentiates.
Responsible Corporate Citizenship
• Committed to making a positive and proactive contribution to the community and as a
responsible corporate citizen will contribute to and abide by environmental and legal
norms.
Ethical Practices
• Will uphold the highest ethical standards in all internal and
external relationship and will not allow misuse or
mis-representation of any facts.
2.5 BUSINESS STRATEGY
Bharti Tele-Ventures' strategic objective is
“To capitalize on the growth opportunities that the Company believes are available in
the Indian telecommunications market and consolidate its position to be the leading
integrated 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;
• Offer multiple telecommunications services to provide customers with a "one-stop shop"
solution;
• Position itself to tap data transmission opportunities and offer advanced mobile data
services;
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• Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction;
• Leverage strengths of its strategic and financial partners.
Emphasis is laid heavily on human resource development to achieve operational efficiencies.
2.6 MOBILE STRATEGY
• Capture maximum telecommunications revenue potential with minimum geographical
coverage to maximize its revenues and margins.
• Build high quality mobile networks by deploying state-of-the-art technology to offer
superior services.
• 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.
• Attract and retain high revenue generating customers by providing competitive tariffs,
offering high quality customer services.
2.7 COMPETITIVE STRENGTH
Bharti Tele-Ventures believes that the following elements will contribute to the Company's
success as an integrated telecommunication services provider in India and will provide the
Company with a solid foundation to execute its business strategy:
• Nationwide Footprint - As of June 30, 2004, approximately 92% of India's total mobile
subscribers resided in the Company's sixteen mobile circles. These 16 circles
collectively accounted for approximately 56% of India's land mass;
• Focus on telecommunications to enable the Company to better anticipate industry
trends and capitalize on new telecommunications-related business opportunities
• The strong brand name recognition and a reputation for offering high quality service to
its customers;
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• The Company's strong relationships with international strategic and financial investors
such as Singtel, Warburg Pincus, International Finance Corporation, Asian
Infrastructure Fund Group and New York Life Insurance.
• Quality management teams with vision and proven execution skills.
2.8 MOBILE DIVISION
The Indian mobile market, according to the (COAI), has increased from approximately 1.2
million subscribers as of March 31, 1999 to approximately 37.38 million subscribers as of
December 31, 2004.
Despite this rapid growth, the mobile penetration rate in India, at approximately 3.6% as of
December 31, 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, 2006 projected it 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;
• Higher quality mobile networks and services; and
• Greater variety and usage of value added services.
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the
twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing
mobile services under Bharti Cellular Limited.
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2.9 NETWORK
The map below depicts the location of, and provides certain information for, Bharti Tele-
Ventures' existing mobile circles in India:
The key demographics of Bharti Tele-Ventures' mobile circles are set forth below.
All India Bharti Circles Bharti as % of All India
Number of circles
22 16 73%
Area of the circles (in '000 sq. km)(1)
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3,278 1,848 56%
Population in the licensed areas (in Mn)(2)
1,027 593 58%
Market Mobile subscribers in the licensed areas (in Mn) (3)
37.38 36.31 97%
Market DELs in the licensed area (in Mn) (4)
37.7 30.7 81%
Number of vehicles in the licensed areas (in '000s)(5)
36,132 29,025 80%
1. Area estimates are from National Census, 2001.
2. Population estimates for all the circles other than the metropolitan areas are as per
National Census, 2001 and are as of March 1, 2001. Population estimates for the Uttar
Pradesh (West) circle is 37% of the total population of the state of Uttar Pradesh.
3. Based on data released by the COAI on the total number of mobile subscribers in the
circles as of December 31, 2004.
4. DELs as on March 31, 2002. Based on data released questions and Government
statistics as per The Financial Express dated June 10,2002.
5. Vehicles comprise four wheeler and two wheeler non-commercial.
6. Vehicles and are derived from data released by the Motor Transport Statistics of India
as of March 31, 1997 in its most recent report.
2.10 ACHIEVEMENTS
• The largest private sector in integrated telecommunications services group in India in
terms of the number of customers.
• Largest Mobile footprint in India, covering 20 of the 23 licensed areas.
• Proven track record of managing growth - both organic as well as by way of
acquisitions.
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• Existing foreign shareholders have acquired direct and indirect equity interests in the
Company for a total consideration exceeding US$1 billion.
• First and largest private telecommunications services company offering fixed-line
services in India.
• First private telecommunications company to launch long distance services.
• First off the block to launch fixed-line services in all the four circles of Delhi, Haryana,
Karnataka and Tamil Nadu.
FIRST AMONGST
FIRST operator to revolutionize the concept of retailing with the inaugurations of connects
(exclusive showrooms) in 1995.
FIRST mobile communication service provider in India to be certified for ISO9001: 2000.
FIRST in world certified by British Standards Institution for mobile Communication.
FIRST to expand its network with the installation of second mobile switching centers in
1997.
FIRST TO introduce the intelligent network platform first to provide retail subscribers by
forming an association called World 1 Network.
FIRST to provide roaming facility in USA.
FIRST to introduce a wide array of value added services like Smart mail, fax facility, call
waiting, Web-messages, information services etc. to enhance the convenience of its
subscribers.
2.11 AWARDS AND RECOGNITION
Bharti Tele-Ventures, its subsidiaries and management have received several awards and
recognition’s, including:
• Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in November
2001 in the Asian edition of the "tele.com" magazine with analytical inputs from
research consultants Frost &Sullivan.
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• The leading telecommunications service provider in India in a survey of Indian
companies conducted by Business World in association with Indian Marketing Research
Bureau in September 2001.
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• The “Techies” award from Information Communications World, an international business
magazine, for four consecutive years (1997 to 2000) for brand excellence, network
quality, customer service and value added service in our Delhi mobile circle.
• Golden Peacock National Training Award – 1999 to Bharti Cellular for our Delhi mobile
operations from the Institute of Directors, a non-profit association in India committed to
improving the competitiveness of Indian business by focusing on development of
business leaders, for the best human resources and training practices.
• Ascent – Times of India and Sodexho Pass award in 1999 from the Asia Pacific HRD
conclave to Bharti Cellular for corporate excellence in the category of most innovative
human resource practices.
• Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honored as " One
of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for the year
2001 by international business magazine, Business Week.
• Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by Business
India.
• Mr. Sunil Bharti Mittal was awarded the “Dataquest IT man of the year 2002”.
• Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World HRD
congress.
• Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial Officer
for year 2001 for Mergers & Acquisitions activities by EIU.
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Introduction of Indian Telecom sector
The industry is considered as having the highest potential for investment in India. The
growth in demand for telecom services in India is not limited to basic telephone services. India
has witnessed rapid growth in cellular, radio paging, value added services. This is expected to
soar in the next five years.
Recognizing that the telecom sector is one of the prime movers of the economy, the
Government’s regulatory and policy invites have also been directed towards establishing world
class telecommunications infrastructure in India. The telecom sector in India therefore offers
an ideal environment for investment.
The telecommunications initiative in the country is lead by Minister of Communications
through the Department of Telecommunication $ Department of Telecom services and its
undertaking for provision of basic telephone services, national and international long distance
communications, manufacture of complete range of Telecom equipment, research and
development, and consultancy services. The telecom Commission performs the Executive and
policy making functions. The Telecom regulatory authority of India performs the functions of an
independent regulatory body.
About GSM:-
The most prevalent wireless standard in the world today, is GSM. The GSM association
(Global system for Mobile communications) was introduced in 1987 to Promote and expedite
the adoption, development, deployment and evolution of the GSM standard for digital wireless
communications.
The GSM association was formed as a result of European community agreement on the
need to adopt common standards suitable for cross border European Mobile
communications.
Starting of primarily as a European standard, the Group special Mobile as it was then called,
soon came to represent the Global system for Mobile communications as it achieved the status
of world-wide standards. GSM is today, the world’s leading digital standard accounting for 70%
of the global digital wireless market.
25

The Indian Government when considering the introduction of cellular services into the Country,
made a landmark decision to introduce the GSM standard, leapfrogging Obsolescent
technologies /standards.
Although cellular license were made technology neutral in September 1999, all the private
operators are presently offering only GSM based mobile services. The new licenses for the 4th
cellular licenses that were awarded in July 2001 too, have adopted for GSM technologies to
offer their mobile services.
The GSM standard for digital cell phones was established in Europe in the mid-1980s--long
before digital cellular phones became common place in American culture.
It is now possible to locate a person using a cellular phone down to a range of a few meters,
anywhere on the Globe.
About Airtel
Airtel cellular’s antecedents date back to 1995 that time it is known to the named by “BTVL”
(Bharti tele venture limited) and named changed in early 2006 to Bharti Airtel. It is established
by “Sunil Mittal Bharti”.
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest
Telecom Business operator with more than 64.4 million subscribers as of April 2009. It also
offers fixed line services and broadband services. It offers its TELECOM services under the
Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and
Internet access over DSL in 14 circles. The company complements its mobile, broadband &
telephone services with national and international long distance services. The company also
has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company provides end-to-end data and enterprise
services to the corporate customers through its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circle. Bharti enterprises are public listed company, and its
revenue is $6 billion. In July 2007 the company announced to the collaboration with Nokia-
Siemens for a $900 million expansion of its mobile and fixed network. Vision of the company is
125 million customers on 2010.President of Bharti Airtel is Manoj Kohli, and Joint Managing
26

Director is Rajan B. Mittal. Airtel has three BSU unit respectively Mobile, Broadband and
telephone enterprises.
The total customer of Airtel as on 31st
May 2009 is “66825935”.The company will invest
up to $3.5 billion this Fiscal 2007-08 in network expansion. In Mar 2009 Bharti Airtel will rollout
3G service in Sri Lanka In associated with SingTel, which stake is 30% in Airtel
The study has revealed the following results:-
The Market share of following GSM services in India is following:-
Group Company Total Subscribers
Airtel(GSM) 66825935
Reliance (CDMA + GSM) 48696295
Vodafone Essar(GSM) 47466853
BSNL(GSM) 36997418
IDEA(GSM) 26140643
Tata (CDMA) 25476062
Aircel(GSM) 11491986
Spice(GSM) 4497675
MTNL(GSM + WLL) 3350437
BPL(GSM) 1331261
HFCL (CDMA) 326150
Shyam (CDMA) 108396
Total (All India) 272709111
27

The market share in percentage of the various GSM service providers in the corporate sector
of India is as follows:-
Airtel: - 24.50% Tata Indicom: - 9.34%
BSNL:-13.57% Vodafone: - 17.41%
Idea:-9.59% Others:-7.73%
Reliance (GSM+CDMA):- 17.86%
28

3. TELECOM IN RAJASTHAN & RELATED ASPECTS
3.1 AIRTEL IN RAJASTHAN
Rajasthan is India’s largest state with 10.4% of the country’s geographical area and 5.5% of
the country’s population. Located in the western India, Rajasthan is a popular tourist
destination with tourism contributing nearly 12% of the state's revenue. The state has a low
wireless density of 1.68% and offers huge potential for the growth of wireless services.
Recently, Bharti has reached an agreement with the Shyam group to acquire their equity stake
of 67.5% in Hexacom, whereby Bharti Tele-Ventures has successfully acquired the
Rajasthan operations. The addition of the Rajasthan circle to its domain of mobile operations
is a step ahead towards an all India footprint.
Vodafone (Aircel Digilink), BSNL, Reliance, Shyam Telelink are the other four existing wireless
service providers in the Rajasthan circle. As on June 30, 2004, Hexacom had approximately
296,700 GSM customers in Rajasthan, with a GSM market share of approximately 38% in the
circle.
3.2 CELLULAR ANALOGY
Introduction to telecomm technologies
There are two types of telephone service infrastructure –
• Fixed – wired (standard telephones using copper or fibre cables) and wireless (cordless
analogue and DECT digital)
• Mobile – cellular analogue and digital (GSM), and satellite
29

The technologies used by these services may be analogue, or in the case of newer
technologies, digital. Most can be used for more than simple voice telephony, for example to
transmit faxes and to transfer files including data, audio and video.
Fixed telephony
• POTS – the standard (or "plain old") telephone service, an analogue system using
copper wires.
30

• ISDN – Integrated Services Digital Network. ISDN uses the same copper wires as
POTS, but by (at its simplest) providing two channels per physical line can be thought of
as the equivalent of two lines. In larger installations one physical line can carry up to 30
voice or data channels.
• ADSL – Asymmetrical Digital Subscriber Line. ADSL, which also uses existing copper
wires, is a fast and permanent "always on" connection to the Internet, which includes
one phone line or voice channel which can be used at the same time.
• Cable modems – use the hybrid fiber coax (HFC) networks of the cable companies.
Shared bandwidth means speeds 5-10 times as fast as single channel ISDN, similar to
ADSL. ADSL and cable modem connections are referred to as ‘Broadband’.
• Fixed wireless – fixed base station and wireless DECT type handsets are gaining in
popularity for voice telephony. Wireless LAN systems’ using a base station and cards
with aerials inserted into computers are on the market and becoming more popular.
These wirelesses LANs are also appearing in shared working spaces although there are
some concerns about security of such networks. They are referred to as WiFi or 802.11
networks. An associated technology called ‘Mesh’ turns each wireless appliance into a
repeater station so spreading the range of the network.
3.3 MOBILE TELEPHONY
• GSM – unlike cellular (analogue) mobile phones, GSM is a digital service. It can provide
e-mail/text messaging and WAP Internet connectivity, but at a relatively low bandwidth,
and therefore slow or restricted functionality.
• GPRS – a new data network which offers an "always on" connection to the Internet, and
increases the speed at which data is transferred over mobile phones. A GPRS device,
such as a desktop/laptop/palm top computer, can be permanently connected to the
network through an internal card or external box, with an aerial for Internet and other
services. Starting bandwidth is up to 28 or 56kbps depending on strength of signal, with
plans to increase this to 128kbps. At the higher bandwidth the service could be a viable,
always-on alternative to ISDN.
31

• Third generation (3G) mobile or UMTS (Universal Mobile Telephone Service) will
provide fast Internet access, which will in practice enable data transfer and network
applications to be used from laptop, notebook and handheld computers.
• Satellite phones are bulky and expensive but can be used most anywhere in the world.
3.4 GSM TECHNOLOGY
The development of GSM started in the early 1980s. It was the mainstay of the plans
for Europe’s mobile communication infrastructure for the 1990s. Today, GSM and its
DCS 1800 and PCs 1900 versions have spread far beyond Western Europe with
networks installed across all continents.
The story begins in 1982 when the European Conference of Posts and
Telecommunications Administrations (CEPT), consisting then of the telecommunication
administrations of twenty-six nations made two very significant decisions. The first was
to establish a team with the title "Groupe Spéciale Mobile" (hence the term "GSM",
which today stands for Global System for Mobile Communications) to develop a set of
common standards for a future pan-European cellular network. The second was to
recommend that two blocks of frequencies in the 900 MHz band be set aside for the
system. The CEPT made these decisions in an attempt to solve the problems created
by the uncoordinated development of individual national mobile communication
systems using incompatible standards.
The impossibility of using the same terminal in different countries whilst traveling
across Europe was one of these problems; another was the difficulty of establishing a
Europe-wide mobile communications industry that would be competitive in world
markets due to the lack of a sufficiently larger home market with common standards.
By 1986 it was clear that some of these analogue cellular networks would run out of
capacity by the early 1990s. As a result, a directive was issued for two blocks of
frequencies in the 900 MHz band, albeit somewhat smaller than recommended by the
CEPT, to be reserved absolutely for a pan-European service to be opened in 1991.
32

The digital system would offer improved spectrum efficiency, better quality
transmission and new services with enhanced features including security. It would also
permit the use of Very Large Scale Integration (VLSI) technology, which would lead to
smaller, and cheaper mobiles, including hand held terminals. Finally, a digital approach
would complement the development of the Integrated Services Digital Network (ISDN)
with which GSM would have to interface.
GSM initially stood for Group Special Mobile, the CEPT (Conference of European
Posts & Telegraphs) formed the group to develop a Pan-European cellular system to
replace the many systems already in place in Europe that were all incompatible.
The main features of GSM were to be International Roaming ability, good sound
quality, small cheap handsets and ability to handle high volumes of users. GSM was
taken over in 1989 by the ETSI (European Telecommunications Standards Institute)
and they finalized the GSM standard in 1990. GSM service started in 1991. It was also
renamed this year to Global System for Mobile communications (GSM). Today there
are approx. 105 countries with GSM networks or planned networks and many more
are planned with around 32 million subscribers worldwide on the 139 networks. The
MoU "Memorandum of Understanding" has over 210 members from 105 countries; this
organization meets ever three to four months to look at new or better implementations
to the GSM system.
Home Location Register (HLR)
A Home Location Register (HLR) is a database that contains semi-permanent mobile
subscriber information for wireless carriers' entire subscriber base. HLR subscriber
information includes the International Mobile Subscriber Identity (IMSI), service
subscription information, location information (the identity of the currently serving
Visitor Location Register (VLR) to enable the routing of mobile-terminated calls),
service restrictions and supplementary services information.
The HLR handles transactions with both Mobile Switching Centers (MSCs) and VLR
nodes, which either request information from the HLR or update the information
contained within the HLR. The HLR also initiates transactions with VLRs to complete
incoming calls and to update subscriber data.
33

Traditional wireless network design is based on the utilization of a single Home
Location Register (HLR) for each wireless network, but growth considerations are
prompting carriers to consider multiple HLR topologies.
Visitor Location Register (VLR)
A Visitor Location Register (VLR) is a database which contains temporary information
concerning the mobile subscribers that are currently located in a given MSC serving
area, but whose Home Location Register (HLR) is elsewhere.
When a mobile subscriber roams away from his home location and into a remote
location, SS7 messages are used to obtain information about the subscriber from the
HLR, and to create a temporary record for the subscriber in the VLR. There is usually
one VLR per MSC.
International Mobile Subscriber Identity (IMSI) Number
The IMSI is a unique non-dialable number allocated to each mobile subscriber in the
GSM system that identifies the subscriber and his or her subscription within the GSM
network. The IMSI resides in the Subscriber Identity Module (SIM), which is
transportable across Mobile Station Equipment (MSE). The IMSI is made up of three
parts
1. The mobile country code (MCC) consisting of three digits,
2. The Mobile Network Code (MNC) consisting of two digits,
3. The Mobile Subscriber Identity Number (MSIN) with up to 10 digits.
Mobile Subscriber ISDN (MSISDN) Number
The MSISDN is the dialable number that callers use to reach a mobile subscriber.
Some phones can support multiple MSISDNs - for example, an U.S.-based MSISDN
and a Canadian-based MSISDN. Callers dialing either number will reach the
subscriber.
34

Mobile Station Equipment (MSE) Subscription Services
GSM carriers typically order Mobile Station Equipment (MSE) (or GSM phones) from
their suppliers (Nokia, Motorola, Sony, etc.) in large quantities (e.g. 1000 Units). After
receiving an order, the equipment supplier will program the ordered MSE SIMs with a
range of IMSI numbers.
Once the range of IMSI numbers has been determined, the HLR can be populated
with the new IMSI records that will be configured and activated at a future date by
authorized sales or service subscription representatives. The fact that the HLR can be
populated with ranges or blocks of IMSI numbers creates efficiencies in the storage
and retrieval of routing information.
The wireless carrier distributes the Mobile Station Equipment to Sales Outlets that sell
GSM subscription services. When a new subscriber orders a GSM phone at one of the
outlets, the service representative will create a Service Order (SO) to enter the new
subscriber's service subscription information, including the MSISDN number.
The key to the Service Order is the IMSI that is programmed in the SIM. The SO is
sent to the HLR, where the IMSI record is created. It can either be set to an active
state immediately, allowing the new subscriber to send and receive telephone calls or
it can be activated at a future date.
3.5 GSM CALL ROUTING
Mobile Subscriber Roaming
When a mobile subscriber roams into a new location area (new VLR), the VLR
automatically determines that it must update the HLR with the new location
information, which it does using an SS7 Location Update Request Message. The
Location Update Message is routed to the HLR through the SS7 network, based on
the global title translation of the IMSI that is stored within the SCCP Called Party
Address portion of the message. The HLR responds with a message that informs the
VLR whether the subscriber should be provided service in the new location.
35

Mobile Subscriber ISDN Number (MSISDN) Call Routing
When a user dials a GSM mobile subscriber's MSISDN, the PSTN routes the call to
the Home MSC based on the dialed telephone number. The MSC must then query the
HLR based on the MSISDN, to attain routing information required routing the call to
the subscribers' current location.
The MSC stores global title translation tables that are used to determine the HLR
associated with the MSISDN. When only one HLR exists, the translation tables are
trivial. When more than one HLR is used however, the translations become extremely
challenging, with one translation record per subscriber (see the example below).
Having determined the appropriate HLR address, the MSC sends a Routing
Information Request to it.
When the HLR receives the Routing Information Request, it maps the MSISDN to the
IMSI, and ascertains the subscribers' profile including the current VLR at which the
subscriber is registered. The HLR then queries the VLR for a Mobile Station Roaming
Number (MSRN). The MSRN is essentially an ISDN telephone number at which the
mobile subscriber can currently be reached. The MSRN is a temporary number that is
valid only for the duration of a single call. The HLR generates a response message,
which includes the MSRN, and sends it back across the SS7 network to the MSC.
Finally, the MSC attempts to complete the call using the MSRN provided.
Adding a Second HLR to the GSM Network
As a GSM wireless carrier's subscriber base grows, it will eventually become
necessary to add a second HLR to their network. A service subscription record storage
capacity issue, or perhaps an SS7 message processing performance issue might
prompt this requirement. It might possibly be prompted by a need to increase the
overall network reliability.
Typically, when new subscribers are brought into service, the second HLR will be
populated with blocks of IMSI numbers that are allocated when new MSE equipment is
ordered.
36

Much more complicated SS7 message routing Global Title Translations are required
for Routing Information Request transactions between the MSCs distributed over the
entire wireless carrier serving area and the two or more HLRs. MSC Routing
Information Requests are routed to the appropriate HLR based on the dialed MSISDN
and not the IMSI.
Unlike the IMSI numbers, the MSISDN numbers can not easily be arranged in groups
to reside within a single HLR and therefore, the MSC must contain an MSISDN to HLR
address association record for every mobile subscriber homed on each of the MSCs.
As the example illustrates, the MSC routing tables quickly grow much more extensive
than the STP tables. The network administration becomes increasingly complex and
prone to error.
3.6 FACILITIES PROVIDED BY AIRTEL - PRE-PAID...
→Total Cost Control
Provides the liberty of total cost control. Re-charge as much as one feels the need to!
→No Rentals
Airtel prepaid card is available without having to pay any rentals!
→No deposits
Airtel prepaid card comes without having to pay hefty deposits!
→STD/ISD facility till the last rupee
complete freedom of allowing STD/ISD facility to make long distance calls in India and
Overseas from your cellular phone!
→Voice Mail service
Voice Mail facility allows to receive messages even when the handset is switched off
or outside the coverage area. Messages could be heard whenever one feels like, from
anywhere in the world. Voice Mail can store up to 75 messages, with each message of
two-minute duration.
37

→Caller Line Identification
Call Line Identification provides facility 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 if the same person calls, he is identified.
→60-second pulse
Airtel provides you with a 60-second pulse rate!
Freedoms for you to experience like never before!
→Instant Balance Inquiry
talk-time limit could be checked instantly by calling toll-free number!
→Instant Recharge
Re-charge could be made on prepaid card with just a few simple steps!
→24-hour recharge facility
Round-the-clock recharge facility enables to recharge prepaid card anytime,
anywhere!
→Call Divert, Call Hold and Call Wait
special services like call waiting, call hold and call divert are available with prepaid
card!
→Short Messaging Service (SMS)
Short Messaging Service (SMS) facilitates sending messages
→SMS based Information Services
SMS based information services provides upto-the-minute cricket scores, order
flowers as well as send couriers or check daily horoscope!
→Roaming (National and International)
Airtel's Roaming service enables usage of mobile phone to make or receive calls from
almost anywhere in India and abroad!
38

→Roaming - GPRS - BlackBerry [International]
Airtel's GPRS Roaming service provides GPRS services to access the Internet and
office mails from almost anywhere in India and abroad.
→Prepaid Roaming
Freedom to enjoy the luxury of Airtel’s roaming facility with prepaid connection.
→Itemized Bill
Keep track of billing procedure with Airtel’s itemized billing viz. message as well as call
charges with the easy-to-decipher itemized billing sheet that is billed every month.
→Conversion from Post-Paid to Prepaid
→Conversion from Prepaid to Post-Paid
39

4. RESEARCH METHODOLOGY
RESEARCH METHODOLOGY - DEFINED
a. Research is the systematic investigation to establish facts or collect information on a pre-
decided subject.
b. Methodology is the specification of the system of principles and techniques used in a
particular discipline.
40
Define the problem and research objective
Develop the research plan
Collect the information
Analyze the information
Finding & Recommendations

4.1 TITLE OF THE STUDY: -
Market Analysis of Telecom Sector in Pre-Paid Cash Card Retailing
4.2 DURATION OF THE STUDY: -
The duration of the project training was 45 days undertaken to accomplish the title and
objective.
4.3 OBJECTIVE OF THE STUDY
1. To identify the difference in market performance of Airtel industry.
2. To study the market of Airtel Industry in big scale sector.
3. To compare various parameters of manufacturing process, technology, production
policy, advertising, collaboration, export scenario, future prospect and government
policies.
4.4 TYPE OF RESEARCH DESIGN
Research design involves a general plan of how to go about answering the research questions
set keeping in mind the research objective.
4.5 METHOD OF SELECTING SAMPLE
SECONDARY SOURCES: -
For the completion of the research it was important that the secondary data should be
supplemented by primary data originated specifically for the research in hand. The primary
data was gathered through questionnaires. My research findings are based on information
collected from filled questionnaires. The main sources of secondary data were: -
Internal Data:
Some previous market studies provided by the guide,
Reports and database of HEXACOM provided by guide
PRIMARY DATA COLLECTION METHOD
Method used to collect primary data is:
Questionnaire
41

Questionnaire Method: For the purpose of the study survey was conducted across different
areas of Jaipur city. The Questionnaire (a sample copy is attached) was prepared according to
the objectives of the project and was administered accordingly. The data gathered through this
exercise became the primary data.
SAMPLING ERRORS
While interpreting the results I kept in mind the potential errors. Two sources of errors are
random sampling error, which arises due to the fact that the sample may not be a true
representative of the population, and non-sampling error which comes up because of faulty
coding, untruthful responses, respondent fatigue etc.
QUESTIONNAIRE DEVELOPMENT PROCESS
In order to gather primary data, I used structured questionnaires, prepared in advance to elicit
the necessary response from the respondents. Questionnaires help to facilitate communication
and know the perceptions of the respondents clearly. The following points were kept in mind
while structuring the questionnaire.
Content of the questions: the questions had been framed keeping in mind the objective of the
research. Type of questions: the questionnaire consists of open-ended, closed-ended,
dichotomous and multiple-choice questions. Further I made use of likert scale to get a more
vivid response.
Wording of the questions: the questions are such that they are easy to understand and the
respondents do not have any hesitation in answering the questions.
Note: - A sample questionnaire is enclosed with the report in Annexure- I at the end.
4.6 METHOD OF SELECTING SAMPLE
RAISAR PLAZA
About the market:
This market is the hub for the electronic gadgets retailing cash card and Telecom outlets. It
has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of
which the ground, basement and 1st
floors deal with the retailing of cash cards.
Total Number of Shops : 488
42

Shops Dealing in Cash Cards : 33
43

4.7 LIMITATIONS OF THE STUDY
No project is without limitations and it becomes essential to figure out the various constraints
that we underwent during the study. The following points in this direction would add to our total
deliberations:-
1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2. The respondents from whom primary data was gathered any times displayed complete
ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/wholesalers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience also because hurdle for me.
8. Some retailers did not answer all the questions or do not have time to answer.
All research papers have its own limitations in terms of methodology and the resources
available for its conduct. This study is no exception to it and has been carried under following
limitation:
 Some of the respondents were not forthcoming with information as they thought it to be
a waste of time.
 A number of respondents were biased towards a particular brand, which was giving
them better returns.
 Some of the respondents were not available so, contacted person was not able to
present a fair view.
 Respondent’s lack of time to give information and their casual attitude was a big
hindrance in the study.
44

5. FACTS & FINDINGS
1. Details of the retail outlets
NATURE OF RETAIL OUTLETS NO OF RETAIL
OUTLETS
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 5 -
(ii) Departmental Stores - -
(iii) Telecom Outlet 38 31
(iv) Electronic Gadgets 14 -
(v) Others 431 2
Total 488 33
2. Brand holding in the retail outlets
BRAND NO. OF OUTLETS
AIRTEL 56
VODAFONE 38
BSNL 7
Reliance 6
Exclusiveness and combination of brands selling along with O
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
24 2* 2** - 6 6
∗ Out of the 2 outlets 1 sells BSNL Recharge coupon
∗∗ Out of the 2 outlets 1 sells BSNL Recharge coupon
“OTHERS” Outlet details:
RETAIL OUTLET NO. OF OUTLETS
Electronic Repair Shop 2
45

INFERENCE:
MARKET LEADER: VODAFONE
The retailers prefer vodafone because
∗ Numerous schemes
∗ Better service
∗ Customer preference
5.1 IN RESPECT TO RAJA PARK
About the market:
This place occupies a prominent position due to the absence of other market in near by
vicinity. The market is an agglomeration of boutiques, showroom dealing in apparel,
departmental stores and lots of telephone booths.
Total number of Shops : 810
Shops dealing in cash cards : 24
Details of the retail outlets
NATURE OF RETAIL OUTLETS NO OF RETAIL
OUTLETS
OUTLETS SELLING CASH
CARDS
(i) STD/ISD/PCO 20 1
(ii)Departmental stores 17 -
(iii)Telecom Outlet 9 9
(iv) electronic Gadgets 12 2
(v)Others 752 12
Total 810 24
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BRAND NO. OF OUTLET
AIRTEL 21
Vodafone 21
BSNL 12
Reliance 8
3. Exclusiveness and combination of brands selling along with OASIS
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
20 - 1* 1 6 4
∗ Outlet sells BSNL Recharge coupon along with OASIS cash card
“OTHERS” Outlet details
Pharmaceuticals 2
Book Depot. 2
Stationary Stores 2
Music Gallery 1
Bakery 1
Mobile Repair Shop 1
Ice Cream Parlor 1
Garment Shop 1
INFERENCE:
MARKET LEADER: AIRTEL
Airtel has an edge in this area.
∗ The shops here have high inventory & the sale is also higher.
∗ The absence of any other major market also helps them.
∗ The “OTHERS” have an upper hand in terms of sale than the electronics, STD/PCO,
Departmental etc.
47

5.2 IN RESPECT TO M I ROAD
About the market:
Market with a rich history, It’s frequented with bookstores, Telecom outlet, Banks (CANARA,
STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower
shop. This market surrounds the city.
Total number of Shops : Above 450
NATURE OF RETAIL
OUTLETS
NO OF RETAIL OUTLET OUTLETS SELLING
CASH CARDS
(ii)Departmental Stores 1 -
Electronic Gadgets 18 -
(v) Others 2
Total 15
BRAND NO. OF OUTLET
AIRTEL 15
VODAFONE 15
BSNL 3
RELIANCE 2
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
15 - - - 3 2
OTHERS Outlet details
48

Pharmaceutical 1
Watch Showroom 1
INFERENCE:
∗STD/PCO outlets have a major holding over here followed closely by the telecom outlets.
∗The customers of this area are mostly of working class followed by students and
∗Vodafone with its better coverage & corporate image satisfies there needs.
5.3 IN RESPECT TO CHANDPOL
About the market: Highly populated area. It has shops dealing in whole sailing i.e. in the bulk
selling of the goods to the retailers & other shops regarding food grains, stationers, timber
related products & shops selling cycles.
OBSERVATIONS :
Specifications of the retail outlets
NATURE OF RETAIL
OUTLETS
CASH CARDS
(I) STD/ISD/PCO 6 2
49

(v) Others 425 2
Total 463 5
BRAND NO. OF OUTLET
AIRTEL 5
VODAFONE 5
BSNL 2
RELIANCE 1
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
5 - - - 2 1
Stalls 1
Pharmaceutical 1
INFERENCE:
MARKET LEADER: Neck-to-Neck between Vodafone and Oasis
∗It’s not a commercial area the sales of the cash card is low.
∗Proximity to johari bazaar, chaura raasta and other major markets
thus it’s facing a lot of competition.
∗BSNL recharge coupons are a big hit with the customers.
5.4 IN RESPECT TO STATION ROAD
(From Station to Grah sangrah)
About the market
50

This market covers the station (Railways). Thus you find here dhabas, bookstores, STD/ PCO
Booths and sweet-meat shop.
Shops dealing in cash card : 9
OBSERVATION:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(ii)Departmental Stores 9 2
(iii)Telecom Outlet - -
Electronic Gadgets - -
(v) Others 138 4
Total 156 9
51

2. Brands holding in the retail outlets
AIRTEL 8
VODAFONE 9
BSNL 3
RELIANCE 1
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
8 1 - - 3 1
Hotel + STD 1
Enterprise + STD 1
Book Depot. 1
Panwala 1
Trading Company 2
INFERENCE:
MARKET LEADER: OASIS
The Recharge coupon of BSNL sales is high. More prominence in this area is given to Oasis
with majority of shops selling more Oasis cards. The reasons are:
∗Village connectivity is less in case of Vodafone.
∗Good service to customers & more profit to retailers. For some it’s
Affiliation & sense of duty.
5.5 IN RESPECT TO RAILWAY STATION ROAD
(Extended from Grah Sangrah to Chandpol)
52

About the market:
Covers a stretch of 2-3 kilometer. It’s the most prominent area of the city playing host to hotels,
main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies.
OBSERVATIONS :
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(v) Others 329 2
Total 376 8
BRAND NO.OF OUTLETS
AIRTEL 5
VODAFONE 7
BSNL 1
RELIANCE 1
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
RIM
Oasis &
BSNL
Oasis &
RIM
5 2 - 1 1 -
Exclusive retail Outlet of Vodafone
53

1. Medical shop
2. STD Outlet
Pharmaceuticals 1
INFERENCE:
∗With its large number of telephone booths and medical shops the market is a major attraction.
∗Still the coverage here is dramatically poor, only 8 shop deals in cash card retailing.
5.6 IN RESPECT TO LAL KOTHI
About the market:
The focal point of this market is the SMS stadium. The market is an agglomeration of
departmental stores, flower shops & petrol pump. Situated adjacent to tonk phatak.
54

OBSERVATIONS
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 6 2
(v) Others 113 -
Total 127 4
BRAND NO. OF OUTLET
OASIS 4
VODAFONE 4
BSNL 2
RELIANCE 1
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
4 - - - 2 1
INFERENCE :
MARKET LEADER: VODAFONE Vs BSNL
∗ Irrespective of the fact that oasis has more outlets it’s BSNL
Recharge coupon that seems to have a hold in this area.
5.7 IN RESPECT TO TONK PHATHAK
55

About the market: Surrounded by K.v.no.1 School & SBI bank this area consists of
Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of
telecom outlets.
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
CASH CARDS
Electronic Gadgets 7 4
(v) Others 222 13
Total 275 34
OASIS 26
VODAFONE 22
BSNL 10
RELIANCE 6
56

Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
22 7 2 - 10 6
Pharmaceuticals 2
Book Depot. 2
Studio 2
Bakery 1
Cyber Cafe 1
Travel Agency 1
Hard Wares Shop 1
Textiles 1
Fashion House 1
Auto Parts Shop 1
INFERENCE:
∗Due to its location (it’s one of the favorable trade routes) & prominent location the sales in this
area is high with Oasis having a clear gain over Vodafone.
∗People relate to Oasis as a pride of Rajasthan.
∗The major contributors of this area are the others followed by
STD/PCO outlets.
5.8 IN RESPECT TO UNIVERSITY MARG
About the market:
57

Adjacent to the university, Canoria College, Commerce College & podar institute. The market
consists of agglomeration of Xerox shops, PCO booths &departmental stores.
Total number of shops : 128
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
CASH CARDS
(i) STD/ISD/PCO 4 2
(v) Others 121 5
Total 129 9
BRAND NO. OF OUTLET
OASIS 8
VODAFONE 9
BSNL 2
RELIANCE -
58

Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
8 1 - - 2 -
Photostat Shop 4
Ice Cream Parlor 1
INFERENCE:
MARKET LEADER: Neck-to-Neck between Vodafone and Oasis
∗ Place is frequented by students & hence here they are the prominent
Customers
∗ Sales low.
5.9 IN RESPECT TO JANTA STORE
About the market:
Adjacent to the main market tonk phatak. This market consists of departmental stores, cyber
cafe, gift shops, restaurants & ice cream parlors.
59

OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 4 0
(v) Others 40 1
Total 62 6
BRAND NO.OF OUTLET
OASIS 5
VODAFONE 6
BSNL 2
RELIANCE 1
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
5 - - - 2 -
Ice Cream Parlor 1
INFERENCE:
∗ This is an residential area near the university campus thus it has a
P.G. houses & covers the govt. Quarters of indira nagar.
60

5.10 IN RESPECT TO MALVIYA NAGAR
About the market:
It is a residential area, covering two to three main markets. The most prominent locale is the
Gaurav Towers, which is turning out to be the hub of life for teenagers plus it’s a prime location
area.
Total no of shops : 179
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(v) Others 136 3
Total 179 14
61

BRAND NO. OF OUTLET
OASIS 12
VODAFONE 13
BSNL 5
RELIANCE 3
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
12 1 - 1 5 3
Xerox Shop 2
Stationary Stores 1
INFERENCE:
∗Compared to the vast area, the numbers of shops dealing with the cash cards are less; this
discrimination is due to the fact that Malviya Nagar is a residential area with three main
markets and each being at the center of 3-4 sectors. Thus limiting the growth of other shops
and the shops has their own faithful customers.
∗Gaurav towers provide the maximum sales in compared to this main market
62

5.11 IN RESPECT TO HAWA MAHAL
About the market
This market deals with the shops selling the traditional dresses of Rajasthan; it’s also a major
tourist attraction center. The market mainly comprises of clothes shops, departmental stores
and spare automobiles shop.
Total no of shops : 479
OBSERVATIONS :
NATURE OF RETAIL
OUTLETS
CASH CARDS
(v) Others 477 -
Total 479 5
BRAND NO. OF OUTLET
AIRTEL 5
VODAFONE 5
BSNL 1
RELIANCE 2
63

AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
5 - - - 1 2
INFERENCE:
MARKET LEADER: VODAFONE Vs OASIS
∗It’s a run down market in respect to the cash cards. This place
doesn’t seem to be gaining the customer’s confidence.
5.12 IN RESPECT TO JOHRI BAZAAR
About the market:
Johri Bazaar is basically known for jewelry shops with a considerable number of clothes
apparel shops and very few electronic retail outlets.
OBSERVATION:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(v) Others 336 2
Total 387 9
64

AIRTEL 5
VODAFONE 6
BSNL 3
RELIANCE -
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
4 2 - 1* 3 -
*Only one BSNL Distributor
Stationary Store 1*
Jewelry Shop + STD 1*
*Exclusively sells Vodafone
INFERENCE:
∗Since most of the stores deal with jewelry shops and clothes apparel they don’t want to
diversify into the retail outlets for the cash cards
∗This is the reason as to why the market though having comparatively larger amount of
departmental stores but only Two shops has gone in for sale of cash cards.
∗Vodafone is doing better in terms of market penetration as it is having 2 exclusive retail
outlets.
5.13 IN RESPECT TO CHOURA RASTA
65

About the market: Choura rasta is an agglomeration of bookstores, watch shops and
stationary shops. There are very few showrooms.
OBSERVATION
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(ii)Departmental Stores 1 1(recharge
coupon)
(v) Others 357 6
Total 378 10
. Brands holding in the retail outlets
BRAND NO.OF OUTLETS
AIRTEL 6
VODAFONE 8
BSNL 3
RELIANCE -
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
Oasis &
RIM
6 2 - 3 - -
Stationary Stores 1
Pharmaceuticals 1
66

Watch Co.(showroom) 1
Music Gallery 1
INFERENCE:
MARKET LEADER: OASIS Vs VODAFONE
∗One remarkable thing to be noted over here is that out of 10 to12
Watch shops, 3 shops are going in for the sale of cash cards.
∗And here Vodafone sells exclusively in 2 outlets (no exclusive outlet of
Oasis) Moreover here the stock level is comparatively less than that o
of Johri Bazaar but the % of sales is high.
∗Here the STD/ISD/PCO shops that do sell cash cards are in fact the
Subsidiary of the main shops Their details are:
STD + Plastic center + Telecom outlet STD + General Stores
STD + Stationery (only recharge coupon)
5.14 IN RESPECT TO KISHAN POLE BAZAAR
About the market:
Kishan Pole Bazaar constitutes of Toys (Bicycle) shops; Outlets dealing with Plastic based
goods, Oil and Paint shops. There are good amount of Provisional (Kirana) stores also. This
bazaar also has a Fine Arts college and an Ayurvedic Hospital and thus few ayurvedic
medicine shops.
OBSERVATIONS;
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 8 2
67

(v) Others 304 5
Total 338 7
AIRTEL 6
VODAFONE 6
BSNL 4
RELIANCE 2
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
RIM
AIRTEL &
BSNL
**
AIRTEL
& RIM
6 - - 1 4 2
Watch Co. + STD 1
Stationary + STD 1
Pan Shop 1
Ice Supplier 1
Oil Trading Corp. 1
INFERENCE:
MARKET LEADER: VODAFONE Vs BSNL
∗There is considerable number of departmental (Kirana) stores but not even a single shop has
gone in for sale of cash cards.
∗Baring 1 to 2 shops VODAFONE has got more sales followed by BSNL, and then OASIS
68

5.15 IN RESPECT TO NEHRU BAZAAR
About the market:
Nehru Bazaar is situated left to Choura Rasta. Shops mainly comprise of clothes apparels &
few Electrical repair shops.
Total number of Shops : 177 Shops dealing in cash card : 8
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 4 4
(v) Others 143 2
Total 177 8
BRAND NO. OF OUTLET
AIRTEL 7
VODAFONE 8
BSNL 4
RELIANCE 3
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
7 1 - - 4 3
Book Store 1
Watch Company 1
69

INFERENCE:
MARKET LEADER: Stiff competition between Oasis and Vodafone.
∗Due to its location i.e. being adjacent to the main market it faces a lot of competition.
∗The market primitively deals in apparels and thus there are only few shops which have
ventured for the retailing of the Cash card
70

5.16 IN RESPECT TO BAPU BAZAAR
About the market:
Bapu Bazaar is situated left to Johri Bazaar. Shops mainly comprise of clothes apparels,
fancy stores & footwear shops.
Shops dealing in cash card : Nil
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 3 -
(v) Others 185 -
Total 192 -
INFERENCE:
∗This market is all about women starting from Apparels to Footwear
Thus the soul of the market is care of woman’s need.
∗There isn’t even a single outlet that deals with cash card, this could be due to the fact that
Sarogi Mansion is situated facing the main road.
5.17 IN RESPECT TO SAROGI MANSION
About the market:
Sarogi Mansion is a Shopping Complex. It is an extension of Bapu Bazaar.
Total number of Shops : Above 200
OBSERVATIONS:
71

NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 1 -
(ii)Departmental Stores - -
(v) Others -
Total 4
BRAND NO. OF OUTLET
AIRTEL 4
VODAFONE 4
BSNL -
RELIANCE -
AIRTEL &
Vodafone
Exclusive
Vodafone
Exclusive
AIRTEL
Exclusive
BSNL
AIRTEL &
BSNL
AIRTEL
& RIM
4 - - - - -
INFERENCE:
MARKET LEADER: VODAFONE Vs OASIS
∗Has high inventory stock and so is the sales.
∗Is prominent because of it’s location on the main road and is
Particularly famous with the youth as it’s just a version of a mall.
5.18 IN RESPECT TO INDRA BAZAAR
About the market:
72

Indra Bazaar is just attached to Jayanti Bazaar. Raizar Plaza (complex known for Telecom
outlets, Computers and Electronic Gadgets) is also included in Indra Bazaar’s part. Though
this Bazaar contains all kinds of shops but there is considerable number of clothes apparels.
Market is also famous for vehicle repair shops & service center.
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 5 -
(v) Others 491 8
Total 528 14
BRAND NO. OF OUTLET
AIRTEL 14
VODAFONE 14
BSNL 4
RELIANCE 4
Watch Company 1
Cassette Shop 1
Sari Matching Center 1
Fancy Store 1
Auto Parts Shop 1
73

INFERENCE:
∗The location of this area is a bit subdued in comparison to others. Let’s say Raizar Plaza has
more than 100 outlets dealing with cash cards & Jayanti Bazaar is known for its reliability &
has a reputation to live up to.
∗Retailers give prominence to Vodafone as they feel that a national brand sells & that its
connectivity is increasing steadily by leaps & bounds. But the decision is mostly centered on
the customer preference and service than the commission to the retailer.
5.19 IN RESPECT TO JAYANTI BAZAAR
About the market:
Jayanti Bazaar is located as an extension of M.I. road. This market is specific for Electronic
goods shops(includes T.V, washing machines, refrigerators, V.C.D etc.).Moreover shops
dealing with telecom products like handsets, service centers are there. Some shops are
combination of both electronics and telecom outlets. This market is divided into two parts :one
as main Jayanti Bazaar (with 55 shops) and second as Jayanti Bazaar Extension (with 48
shops).
74

OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 2 -
(ii)Departmental Stores - -
(v) Others 66 -
Total 103 15
BRAND NO. OF OUTLET
Z 13
VODAFONE 14
BSNL 3
RELIANCE 1
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
13 2 - - 3 -
75

INFERENCE:
The stock level is high that ranges from Rs.15, 000 - Rs.1, 50,000. Inspite of tough competition
from Vodafone, Oasis seems to have an edge & people are going in for Oasis because of:
∗It’s Image of being first in Rajasthan.
∗Better services.
∗Customer preference
But shops, which have newly started, prefer Vodafone assuming that it would be more
profitable to them.
5.20 IN RESPECT TO TRIPLOLIA BAZAAR
About the market:
Tripolia Bazaar is full of Utensils shops, Watch shops, Clothes and Electrical components &
repair shops.
OBSERVATIONS :
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 7 1
(v) Others 362 6
Total 382 8
76

BRAND NO. OF OUTLET
OASIS 8
VODAFONE 8
BSNL 3
RELIANCE 1
Oasis &
Vodafone
Exclusive
Vodafone
Exclusive
Oasis
Exclusive
BSNL
Oasis &
BSNL
Oasis &
RIM
8 - - - 3 1
Repair Shop 2
Watch Co.(showroom) 4
INFERENCE:
∗Though the STD shops are few in numbers but only 1 is concerned
with selling the cash cards. Watch holds most of the stock
companies & none by the departmental store (kiranas). There was
no exclusive shop of Vodafone.
77

5.21 IN RESPECT TO COLLECTRATE CIRCLE
About the market:
This area encloses the Court, post office, some Government offices & the residential area Bani
Park. This area is near to Station also thus lot of hotels is also there.
OBSERVATIONS:
NATURE OF RETAIL
OUTLETS
NO OF RETAIL
OUTLET
OUTLETS SELLING
CASH CARDS
(i) STD/ISD/PCO 7 1
(v) Others 42 -
Total 45 3
BRAND NO.OF OUTLET
OASIS 3
VODAFONE 3
BSNL 2
RELIANCE -
INFERENCE:
MARKET LEADER: Competition between Oasis & Vodafone.
∗Though this area has a good amount of shops but only 3 are dealing in cash cards. Here the
stocking among the shopkeepers is high as there are only 3 shops dealing in Prepaid and
more numbers of customers.
6. ANALYSIS AND INTERPRETATION
78

FRAGMENTATION of “TOTAL SHOPS”
MARKET POSITION
0
50
100
150
200
250
300
std dept telecom electronics
specification of retail outlets
total no.of shops
shops dealing in cashcards
79

MARKET SHARE OF TELECOM PLAYERS IN JAIPUR
80

AGE GROUP GRAPH
AGE GROUP
15-21
15%
21-28
65%
28-35
20%
As we can see from the above graph, the people who are in the age group of 21-28 years are
the ones who are the maximum users of mobile phones. This segment is the one which gives
maximum business to the mobile operators. This segment constitutes the young executives
and other office going people. They are 65% of the total people who were interviewed. The
next age group are the people who are 28-35 years old. They are 20% of the total. They are
those who are at home or have small business units etc. And the next age group is the
youngest generation who are 15-21 years old. They are school and college going students and
carry mobile phones to flaunt. They are 15% of the total interviewed people.
OCCUPATION GRAPH
OCCUPATION
15%
55%
20%
10%
STUDENTS
EXECUTIVES
HOUSEHOLDS
OTHERS
As the above graph shows that 55% of the total people interviewed are working. So, these
people are the ones who are the maximum users of mobile phones. They are the young
executives, managers, Tele - callers etc. who require mobile for their official purposes. The
next category is the households, who are either housewife, small units which operate from
81

their homes etc. They are 20% of the whole. The next segment is the students. They are 15%
of the whole. And 10% of the whole is a category who is the professionals.
Service Provider Graph
SERVICE PROVIDER
15%
30%
5%
50%
IDEA AIRTEL VODAPHONE OTHERS
The above graph shows a slice of 50%. These are the total no. of people who are using Airtel.
It seems that people are more aware of Airtel than any other brand. The next popular brand is
Vodaphone. 305 of the people interviewed had Vodaphone connections. The next popular
brand was Idea. 15% people had Idea connections. As it came very late in the market when
Airtel had established it self very well So that could be one of the reasons of such a low
percentage. The remaining 5% had trump connections.
Customer Service At Airtel Graph
CUSTOMER SATISFACTION LEVEL
10%
20%10%
60%
FULLY PARTIALLY
DISSATISFIED FULLY DISSATISFIED
As the above graph clearly shows that customer services at Airtel seems poor. 60% of the
people are dissatisfied with the customer services provided by Airtel. They are the ones who
have the maximum share in the market but they are lagging behind in the customer services.
10% of the people were fully dissatisfied with the customer services of Airtel. This could leave
82

an impact on the mind of the consumer. He can even switch over his brand. 20% of the people
seemed partially satisfied with the customer services and only 10% seem to be fully satisfied
with Airtel’s customer services, which is a very small amount.
1. EDUCATION OR OCCUPATION
STUDENT HOUSEWIVES PRO. SERVICE BUSINESS
BSNL 15 4 10 9 21
AIRTEL 13 8 16 7 25
RELIANCE 15 5 8 15 21
0
5
10
15
20
25
STUDENT H.WIVES PRO. SERVICE BUSINESS
BSNL
AIRTEL
RELIANCE
2. MALE OR FEMALE
MALE FEMALE
BSNL 52 8
AIRTEL 48 12
RELIANCE 57 3
83

0%
20%
40%
60%
80%
100%
BSNL AIRTEL RELIANCE
FEMALE
MALE
3. WHICH INSTRUMENT DO CUSTOMERS HAVE?
LG SONY SAM. PAN. MOTO. NOKIA
BSNL - 2 5 - - 53
AIRTEL - 1 15 2 3 39
RELIANCE 39 - 19 - - 2
0
20
40
60
80
100
LG SONY SAM. PAN. MOTO NOKIA
RELIANCE
AIRTEL
BSNL
4.WHICH CARD CUSTOMER HAVE ?
PREPAID POSTPAID
BSNL 22 38
AIRTEL 29 31
RELIANCE 30 60
84

0%
20%
40%
60%
80%
100%
POSTPAID
PREPAID
6. WHY YOU OPT THIS COMPANY’S CONNECTION?
CHEAPEST 29 7 35
NON AVAILABILITY 11 25 -
RELATIVE SUGGEST 2 10 5
NO COMMENT 18 7 10
GOOD NETWORK - 4 3
GOOD SERVICE - 7 7
7. FROM WHERE DID YOU COME TO KNOW ABOUT THE COMPANY ?
E.M. P.M. DEALERS REL. ANY
BSNL 11 19 18 12 -
AIRTEL 12 15 8 25 -
RELIANCE 49 6 - 5 -
85
0
5
10
15
20
25
30
35
CHEAPEST NON
AVAILABILITY
RELATIVE
SUGGEST
NO COMMENTGOOD NETWORKGOOD SERVICE

0
10
20
30
40
50
60
70
80
E.M. P.M. DEALERS REL ANY
RELIANCE
AIRTEL
BSNL
8. ARE YOU AWARE ABOUT ALL THE SERVICES PROVIDED BY THIS
COMPANY?
YES NO
BSNL 40 20
AIRTEL 54 6
RELIANCE 48 12
0%
20%
40%
60%
80%
100%
NO
YES
9. GIVE YOUR SATISFACTION LEVEL FOR THE FOLLOWING SERVICES.
9.1 BILLING SYSTEN
EXCE. GOOD POOR
BSNL 10 5 7
AIRTEL 23 6 -
RELIANCE 18 37 5
86

0
5
10
15
20
25
30
35
40
EXCE. GOOD POOR
BSNL
AIRTEL
RELIANCE
9.2 CUSTOMER CARE SERVICES
EXCE. GOOD POOR
BSNL 15 40 5
AIRTEL 32 27 1
RELIANCE 14 40 6
0
20
40
60
80
100
120
EXCE. GOOD POOR
RELIANCE
AIRTEL
BSNL
9.3 MESSAGING SERVICES
EXCE. GOOD POOR
BSNL 5 30 25
AIRTEL 25 30 5
RELIANCE 10 42 8
87

0
5
10
15
20
25
30
35
40
45
EXCE. GOOD POOR
BSNL
AIRTEL
RELIANCE
9.4 ROMING SERVICES
EXCE. GOOD POOR
BSNL 15 35 10
AIRTEL 5 35 20
RELIANCE 7 45 8
0
5
10
15
20
25
30
35
40
45
EXCE. GOOD POOR
BSNL
AIRTEL
RELIANCE
9.5 COVERAGE OF NETWORK
88

EXCE.
GOOD
POOR
9.6 CALL CHARGES
EXCE. GOOD POOR
BSNL 4 30 26
AIRTEL 12 40 8
RELIANCE 6 49 5
EXCE. GOOD POOR
BSNL 10 35 15
AIRTEL 5 30 25
RELIANCE 20 35 5
89

0
5
10
15
20
25
30
35
EXCE. GOOD POOR
BSNL
AIRTEL
RELIANCE
9.7 QUALITY OF VOICE
0% 20% 40% 60% 80% 100%
EXCE.
GOOD
POOR BSNL
AIRTEL
RELIANCE
9.8 OTHER VALUE ADDED SERVICES (CALLER ID, CALL WATING, CALL
FOR WARDONS ETC.
EXCE. GOOD POOR
BSNL 10 35 15
AIRTEL 5 30 25
RELIANCE 20 35 5
90

10. WHEN YOU HAD ANY COMPLAINT IN HOW MANY DAYS IT HAS
SOLVED ?
DAYS 0-2 2-4 4-6 6-8 8-10 MORE NO
BSNL 20 - - - 15 20 5
AIRTEL 37 3 - - - 50 15
RELIANCE 19 11 - - - 24 6
0 to 2
2 to 4
4 to 6
6 to 8
8 to 10
more
no
11. ARE YOU THINKING TO SWITCH OFF FROM RECENT COMPANY TO
OTHER COMPANY?
YES NO
BSNL 17 43
AIRTEL 37 23
RELIANCE 7 53
EXCE. GOOD POOR
BSNL 17 33 10
AIRTEL 9 35 16
RELIANCE 25 27 8
91

0
10
20
30
40
50
60
YES
NO
12. ARE YOU AWARE ABOUT THE NEW COMING COMPANIES?
YES NO
BSNL 43 17
AIRTEL 57 9
RELIANCE 53 7
0
10
20
30
40
50
60
YES
NO
92

1. EDUCATION OR OCCUPATION
STUDENT HOUSEWIVES PRO. SERVICE BUSINESS
BSNL 15 4 10 9 21
AIRTEL 13 8 16 7 25
RELIANCE 15 5 8 15 21
According to the data taken from customer, researcher come to know that there are maximum
customers of BSNL, AIRTEL and RELIANCE are business man, besides this students also
occupied second rank in this context. On the other hand house wives are those who
categorized in the last position as customer.
2. MALE OR FEMALE
MALE FEMALE
BSNL 52 8
AIRTEL 48 12
RELIANCE 57 3
The respondents were maximum males. By this mean the maximum customer who are using
services are male. And there was 57 customer of Reliance who was male, which were
maximum and in female category maximum number was in Airtel connection.
3. WHICH INSTRUMENT DO CUSTOMERS HAVE?
LG SONY SAM. PAN. MOTO. NOKIA
BSNL - 2 5 - - 53
AIRTEL - 1 15 2 3 39
RELIANCE 39 - 19 - - 2
93

When this was asked to the customers that which instrument they use, it is found that BSNL
customer have nokia and least was Sony instrument.
In AIRTEL connection maximum 39 has got nokia instrument and less was Panasonic.
And in Reliance LG instrument was maximum and nokia was laest.
5. WHICH CARD CUSTOMER HAVE ?
PREPAID POSTPAID
BSNL 22 38
AIRTEL 29 31
RELIANCE 23 37
The most of respondent of BSNL, AIRTEL and Reliance had post-paid card
in comparative prepaid. In Reliance the connection of prepaid is not
available so customers have to take post paid connection.
6. WHY YOU OPT THIS COMPANY’S CONNECTION?
CHEAPEST 29 7 35
NON AVAILABILITY 11 25 -
RELATIVE SUGGEST 2 10 5
NO COMMENT 18 7 10
94

GOOD NETWORK - 4 3
GOOD SERVICE - 7 7
When this question was asked to the respondent BSNL holder reply that this card is cheapest
and 18 go for no comment. Maximum number of customer replied non-availability of other card
when they take connection. The Reliance respondent gives the reason for opting this card the
cheapest value and minimum opt for good networking.
7. FROM WHERE DID YOU COME TO KNOW ABOUT THE COMPANY?
E.M. P.M. DEALERS REL. ANY
BSNL 11 19 18 12 -
AIRTEL 12 15 8 25 -
RELIANCE 49 6 - 5 -
19 respondent of BSNL replied that he has come to know about the company from print media
and minimum from electronic media. The respondent of Airtel is 25 comes fro relatives and
least number comes to know from dealers. And in Reliance maximum comes to know fro
electronic media and least opt on advice of relatives.
8. ARE YOU AWARE ABOUT ALL THE SERVICES PROVIDED BY THIS
COMPANY?
YES NO
BSNL 40 20
AIRTEL 54 6
RELIANCE 48 12
Maximum customer of BSNL, Airtel and Reliance know about the services provided by these
company. According to fact and finding it is founded that 66.67%, 90% and 80% customer of
BSNL, Airtel and Reliance respectively know about the facility provided by these company.
9. GIVE YOUR SATISFACTION LEVEL FOR THE FOLLOWING SERVICES.
95

9.1 BILLING SYSTEN
EXCE. GOOD POOR
BSNL 10 5 7
AIRTEL 23 6 -
RELIANCE 18 37 5
There was 63.33% and 51.67% customer of BSNL and Airtel respectively who has
prepaid card services hence they have no need of billing sustem. Out of remaining 33.67% of
BSNL customer 45.45% says that this system is excellent, 22.72% said that is good and rest
said it is poor. In case of Airtel out of remaining 48.33% customer, 79.31% said that it is
excellent and rest said it is good. Billing system is especially important in reliance because this
company has no prepaid card facility. Out of its customers 30% said it is excellent, 61.67%
said it is good and rest said it is poor.
9.2 CUSTOMER CARE SERVICES
EXCE. GOOD POOR
BSNL 15 40 5
AIRTEL 32 27 1
RELIANCE 14 40 6
25% BSNL customer said that this is excellent, 66.67% said it is good and rest said it is
poor. According to 53.33% customer of Airtel this services is excellent 45% said that is good
remaning takes it is poor. Reliance customer’s said on an average this service is good.
9.3 MESSAGING SERVICES
EXCE. GOOD POOR
BSNL 5 30 25
AIRTEL 25 30 5
RELIANCE 10 42 8
Airtel customers are more satisfied regarding messaging service, 25 said it is excellent and 30
customer said it poor. In Reliance 42 customer said it is good and 10 said it is excellent
96

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