ACKNOWLEGEMENT The Project could not have materialized, if it were not for the Guidance from my Seniors, Peers, my honorable Teaching Staff, Faculty members of IIPM, New Delhi, little bit of my own Research work, mind-work and above all the people at BHARTI AIRTEL LTD. The inception of this project has been a great learning experience, and also has put in place all fragmented ideas in various areas within me to more logical and meaningful results. The Study & Research so put-in, unraveled the foresight inside me and also numerous and quantifiable potent in me. The evolvement this long a way, over the past 1 and odd year in this prestigious Institution has been tremendous. I also take this opportunity, reminiscent with memoirs of acquaintances at BHARTI AIRTEL LTD., their overwhelming support & many unforgettable gestures, and thank them profusely. A Special thanks to: 1. Mr.Vikas Khokha – Deputy General Manager (Sales) 2. Mr.Gaurav Kant – Senior Manager (Sales) 3. Mr.B.S.Rao –Senior Exe. (Sales)
1. VISION “Airtel will leverage their strengths in executing complex global-scale projects to make leading edge information and communication services affordable by all individual consumers and business in India. In the year 2006 Bharti Airtel ranked 3rd and with improving its performance this year in 2007 Bharti Airtel ranked on the No. 2 most popular and trusted service brand.”
1.1 Future plans: By 2010 Airtel will be the most admired brand in India: •
Loved by more customers
•
Targeted by top talent
•
Benchmarked by more business
1.2 ABSTRACT
1. Bharti Airtel offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that enhance productivity of enterprises and individuals. 2. Bharti tele-ventures the brand name which later known as Bharti Airtel, the first of Infocomm’s initiatives was launched on July 7, 1995. And the founder of this group is Mr. Sunil Bharti Mittal. 3. This marks the beginning of Sunil Bharti’s dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs.
4. Bharti is currently offering mobile services, broadband services, fixed line phone services, calling cards, and data cards. Soon the new project of Airtel “IPTV” will join its company’s product range. 5. Recently, Bharti ventures tie up with the brand name “WALMART” to be launch with in the vicious circle of Indian boundaries. WALMART already has a business of 42 billion dollars in its parent city. This is not all about Bharti Airtel it has a long success journey which itself leads a great story of success that continues with the launching of its new product “IPTV” by the end of this year.
1.3 PROJECT TITLE OBJECTIVE – To study and analyze various marketing activities held at Airtel Broadband and Telephone Services. Analytically find out the activities that contribute the most to attract the users towards AIRTEL services. To study in detail about the various aspects of the most profitable activity. Based on various analyses, strategize and develop an action plan which is feasible and profitable for the company.
The project helped in understanding the factors that need to be considered before investing in any activity and the reasons for its implementation. Also the project proves to be in complete agreement with the “4P” Principle given by Philip Kotler, namely 1) PRODUCT
2) PRICE 3) PROMOTION 4) PLACE And proved that these are the best tools available for decision making before carrying out any marketing activity. Its all about the AIRTEL (the company growth and extension of new product for the beneficial of its customers the enhancement of technology) AIRTEL is going to strike out the market by introducing its new range of product after striking the market and ruling the stratified market with the satisfaction of customers and by giving them better facilities at the most reasonable rates. BHARTI AIRTEL announces its new product IPTV after a huge success of its GSM mobile services, landline and broadband services it is now going to target the customers with the new face of future technology. It is going to step in the market of TV subscribers with its new product IPTV (internet protocol tele vision)
This technology brings a new revolutionary change in the present market scenario and gives the customer the new face of TRAI services on one connection (voice calls, internet connection and TV cable connection). This project is all about the success story of company and all about IPTV its technology and its services.
1.5 SUNIL BHARTI MITTAL He has the knack to strike at the right place at the right time. His contribution in shaping the modern telecom industry in India earned him the sixth place in the Forbes list of ‘India’s 40 Richest’. Although he belonged to an influential political family, he chose to become a first generation entrepreneur. He started his first venture in 1976 with a capital investment of Rs.20,000 ($487) for a small bicycle firm at Ludhiana city in the north Indian state of Punjab, but soon realized that the potential to scale up this business was limited. He shifted his focus to import and distribution operations in Mumbai, India’s financial capital and New Delhi, country’s national capital and started importing portable
generators from Japan. The flourishing venture, however, faced a sudden road-block when the government banned the import of generators as it awarded licenses to two Indian companies for manufacturing generators in India. However, during a trip to Taiwan he came across electronic push button phones. He sensed an opportunity, as only bulky rotary phones were available to Indian users that time. In 1982, he introduced the push button phones to India. This was the first experience of Indian consumers with modern age telecom. He formed Bharti Teletech Ltd and started manufacturing push button phones in technical tie-up with Siemens AG of Germany. His company is now one of the largest manufacturers of telephones in the world. The real opportunity for Sunil came in 1992, when the Indian government awarded licenses for GSM mobile phone services first ever in the country. Armed with considerable experience in telecom manufacturing, he secured the license for offering mobile phone services in Delhi. His company Bharti Cellular Ltd started mobile phone operations in 1995 under the brand name Airtel.
Sunil Bharti Mittal has been awarded the Padma Bhushan, one of India’s highest Civilian Honours. The award is recognition of his pioneering efforts to put the nation on the global telecom map.
ASIA MONEY AWARD :- SUNIL BHARTI MITTAL was chosen as the top executive at the 2006 Asia money award.
Avaya Best Customer Service Award :- BHARTI AIRTEL has won the ‘Avaya global connect customer responsiveness award,2006’ for best customer service in the telecom sector for the second year running.
FORTUNE ASIA BUSINESSMAN OF THE YEAR:- SUNIL BHARTI MITTAL was adjudged as the Asia Businessman of the year 2006 by the globally renewed business magazine, fortune.
Sunil Bharti Mittal Chairman & Group CEO, Bharti Enterprises
Professional Profile: 1. • Started a bicycle parts firm at Ludhiana, Punjab in 1976. 2. • Started import and distribution business in 1981. 3. • Started importing portable generators from Japan in 1982. 4. • Formed Bharti Teletech Ltd in 1982 to manufacture electronic push button phones. 5. • Formed Bharti Healthcare Ltd in 1983-84 to manufacture capsules. 6. • Formed Bharti Cellular Ltd in 1995 to offer mobile phone services. 7. • Formed a joint venture with Singapore Telecommunications Limited to build India’s first undersea cable link between Chennai, capital city of south Indian state of Tamil Nadu, and Singapore. 8. • Formed a retail joint venture with Wal-Mart Stores Inc, U.S based world's largest retailer in November 2006. 9. • Selected for “Padma Bhushan Awards”, an Indian civilian decoration in 2007. 10. • “Asia Businessman of the Year 2006” Award by Fortune magazine, America's second longest-running business magazine. 11. • “Entrepreneur of the Year 2004” award by Ernst & Young, one of the Big Four auditors
2. COMPANY OVERVIEW 2.1. Introduction We are one of India’s leading providers of telecommunication services with a nationwide presence in all the 23 licensed jurisdictions (also known as Telecom Circles). We served an aggregate of 39,012,597 customers as of March 31, 2007; of who 37,141,210 subscribe to our GSM services and 1,871,387 use our broadband & telephone services either for voice or broadband access delivered through DSL. We are the largest wireless service provider in the country, based on the number of customers reported by the industry as of March 31, 2007. We also offer an integrated suite of telecom solutions to our enterprise customers, in addition to providing long distance connectivity both nationally and internationally. All these services are rendered under a unified brand “Airtel”.
Future Investments It is forecasted that to meet the target of 10 million broadband subscribers by 2007 and 20 million by 2010 for speedy proliferation of broadband; India would require an investment of about USD 900 million by 2007 and over 1.5 billion by 2010. This is well supported by estimations made by CII in its study Broadband Vision 2010 prepared in 2004.
Growth Potential Following points go in favour of broadband growth in times to come in India: The Indian subcontinent is one of the fastest growing economies (projected to grow at a rate of 10% for short and medium term).
India’s huge population of a billion plus people holds a big opportunity. Rapidly expanding Indian middle class segment (approx. 250 million). The increasing purchasing power of the Indian middle class (The proportion of households in the low income group has declined from 58.8% in 1990, to 49% in 1996, At the same time, the middle & higher income-group has increased from 14% to 20%, in the same period), Making them more willing to pay an extra sum of money for getting high speed internet availability. Private corporate spending a colossal amount in laying a fresh-last mile network to reach the end customers With more than 35 million cable TV users, the cable broadband presents an immense opportunity even if a fraction of this population can be tapped. Operators are exploring wireless technologies such as the Wi-Max (Worldwide
Interoperability for Microwave Access), High Speed Downlink
Packet Access (HSDPA) and Gigabit-capable Passive Optical Network (GPON) on devices like the mobile handset and the television. These are alternate technologies & are ideally suited for rural areas where 70% of India’s population resides Many companies are betting big on Wi-fi they plan to cover hotels, restaurants, cafes, airports, railway stations, shopping malls, convention centers, educational institutions and public locations in big cities.
Entertainment is becoming a big business in India now. In this context it is important to note that TV shows and live web casts are possible through broadband. What this eventually leads to is again more opportunities for Broadband penetration
Health care remains one area that could potentially benefit from the penetration of broadband in India. The healthcare industry accounted for 5.2 per
cent
of
India’s
GDP in 2002, and this figure could reach $ 47 billion or 6.2-7.5 per cent of GDP by 2012 with an annual growth rate of 13% a year. Thus revenue growth for Broadband is estimates accordingly.
Innovative and new Internet-based applications are prompting consumers to go for broadband access. Typical applications include online shopping and electronic commerce, both for home and business segments; Internet telephony, video telephony, entertainment, gaming (including gambling over the Internet) etc
Applications such as video-on-demand, which are bandwidth intensive, are still unheard of in the Indian market. If somehow demand for these applications is created, broadband will pick up in the home segment. For the consumers all this means more choice not just for operator but also a choice of technology and the device they want to access broadband on. With more operators slugging it out to take a larger share of the pie, consumers can look forward to falling tariffs
Major Challenges ahead Poor PC penetration attributed to affordability & desirability issues Dearth of suitable content & applications Certain TRAI policy bottlenecks Availability of cost effective spectrum for wireless technologies
Substandard quality of service delivery Despite 80% fall in prices, high installation charges made the broadband subscriber base fall short of customer target; Dial-up still reigns supreme with 63% of the total subscriber base
Industry Study As soon as the telecom industry opened to private sector investment beginning 1994, a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations. There were ten key strategic dimensions along which these new entrants positioned themselves in this sector. These dimensions are:
1.
Scope? Business Portfolio
In the telecom sector, there are a number of ways by which a new entrant can develop its business portfolio. The key issue is whether the firm wants to be an integrated player or focused player, i.e. to foray in both the wireless and wire line segment or concentrate on only one segment.
2.
Scope? Geographical
The number of geographical sectors the new entrants wants to be present is also a key decision. The range of choices available can include local, regional, and national.
3.
Value Propositions
There are essentially three generic strategies, viz. differentiation, cost leadership
and niche. This basic concept is applicable in the telecom sector too, though pursuing the niche strategy may not be viable, given the fact that the boundaries within and across various segments are increasingly getting blurred, possibility of substitute competition is high and opportunities for cross subsidizing any niche segment with a view to achieving dominance through predatory pricing is feasible. Given the scale-intensive nature of investments in infrastructure and diversity of information and communication needs of various customer groups, it is reasonable to expect that a strategy comprising economies of scale in operations and offering customized and innovative products and services will be key to future success.
4.
Value Chain Configuration
Configuration of value chain depends on the generic strategy being pursued and critical capabilities a firm has or proposes to have. If differentiation is the objective then the key propositions around which the differentiation will be achieved and capabilities needed to deliver those, will determine which activities will be performed in-house and which will be outsourced. If efficiency in operations is to be achieved, assessment needs to be made about scale and ownership of various value creating activities. 5.
Technology Platform
There exist a large number of technological options in telecom field, each characterized by unique features, complexities, reliability and maintenance need. Other associated but important issues are problems of lock-ins & switching costs and flexibility to switch over to next generation technologies without wholesale rejection of legacy system. One way to manage the risks associated is to delay the process of freezing the technology till such time technological and regulatory
issues become more certain and clear.
6.
Strategic Alliance Partner
Companies enter into such alliances to improve upon their chances of success in the unfolding industry. The choice of alliance partner can be very critical for future success.
7.
Legal Structure
This consists of figuring out whether the firm will exist as a separate entry in all the three segments or as a unified player throughout; should it have an independent company for running the backend infrastructure and a separate outfit for providing the information & related services. 8.
Mode of Entry
Different telecom operators followed different routes for entry into the market depending on their assessment as to which route will prove to be profitable for them.
9.
Timing of Entry & roll out
It is another decision to be made very carefully for it is said in the information goods industry that early movers have the advantage over the late entrants and such advantages are difficult to overcome once these accrue to the first movers.
10. Pace of Execution It is well known that longer the execution time more will be the overall cost of the project and it will imply loss of opportunity to use the investments being
made.
The Industry can be segmented into:
I. Fixed line (Landline) II. Wireless (CDMA, GSM, WLL)) III. Internet Services (Dial-up, Broadband etc.)
Segmentation of the target customers
Customers were divided on the basis of their occupation 1. Home users (Residential) 2. Small & Medium Enterprises (SME) 3. Corporate Sector (SMB)
2.2 COMPANY HISTORY As soon as the telecom industry opened to private sector investment beginning 1994, a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations; Bharti Airtel was one of the first comers, which in times to come was going to be the Numero Uno storywriter of The Great Indian Telecom story. Bharti launched its first cellular telephony service “Airtel” in Delhi in September 1995, which was Delhi’s first & India’s second after Modi Telestra. Bharti Airtel
since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The company has an eventful history .Each year of its existence was marked
by a
number of major events that have helped shape the company as it is today.
2.3 Bharti-Airtel Benchmarks over the last 12 years of operations 1995 Delhi’s first & country’s second mobile phone service launched by Bharti in form of its mobile services brand- “Airtel” Bharti acquires G-Tel in march Bharti signs agreement with Siemens to form Siemens Telecom Ltd. On 27th March Bharti launches first Airtel connect on 11th November
1996 Bharti participated in Beep 96 on 10th December , joining paging service providers, leading banks & pager manufacturers Following its successful Delhi launch, Bharti launched its services in Himachal Pradesh on 20th December Nine of India’s premium cellular operators (Airtel, Hutchisonessar, Max, Birla, AT&T, Escotel, Modicom, Hexacom, Modi Telstra, RPG Cellular & Tata Cellular) formed an alliance in 1996- World 1 Network- to provide automatic roaming services to cellular subscribers within India & abroad.
1997 Airtel crosses One lakh customer mark Bharti became the first telecom company in the private sector to sign an agreement with DOT , Govt. Of India, to provide basic telephone services in state of M.P on 28th February Bharti procures a license to provide mobile services in Seychelles.
1998 Airtel, India’s first private basic telephony services was launched by Bharti at Indore on 4th June Bharti launches mobile services in Seychelles Bharti BT Internet limited formed by a historic agreement between Bharti & BT
1999 A series of acquisitions- Bharti acquires controlling stakes in JT mobiles & Sky cell, Chennai thus helping Bharti to become the largest Private Telecom Operator in the country Bharti gets a National ISP license from DoT in May to provide Internet services
2000 Bharti launches services into South India with an aim to Integrate India into one, aided by its Nationwide private infrastructure Airtel becomes the first private telephony service to connect villages of India’s heartland
Bharti launches India’s first private Internet Gateway on 21st July
2001 History-making largest ever investment of US$ 400 million by Singtel – one of Asia’s leading Telecom player in the Bharti Group Bharti
foundation
&
IIT,Delhi
launched
Bharti
School
of
Telecommunication Technology & Management, with a vision to develop young Telecom leaders through education & Research. India One- India’s first private sector International National Long Distance service launched on 17th December ,2001 28th September, 2001 was a memorable day for Bharti, licenses for 8 new circles (Maharashtra, Gujarat, Tamil Nadu, Kerala, UP West, Madhya Pradesh, Haryana & Mumbai) were procured, catapulting the company to the status of largest cellular operator in the country.
2002 Bharti goes public with its issue of shares of face value of Rs 45 for its IPO 3,200 km i2i cable between India & Singapore laid at a cost of US$ 250 million An interconnect agreement was signed between Bharti & BSNL to make India One’s services to be available to almost all mobile & BSNL subscribers
2003
With the launch of its MMS service, Airtel becomes India’s largest GPRS Network Customer base of 5 lakh customers touched by Bharti in the Northern region in just 17 months Bharti introduces EDGE(Enhanced Data Rate for Global Evolution) using Ericsson’s cutting edge technology Unveiled in October 2003, “Express Yourself” was Airtel’s new brand positioning platform. The campaign exhorted customers to freely express themselves, reflecting the core values of trust, caring & simplicity.
2004 In March 2004, Bharti & IBM India made a historic agreement, wherein IBM was to Consolidate, Transform & Manage Bharti’s comprehensive IT infrastructure & applications Bharti announced a strategic partnership with Ericsson, involving the building & managing of mobile networks Enterprise Business becomes Bharti’s new SBU, providing end-to-end world class cutting- edge solutions & a single point contact to large business customers Infotel introduces India’s first Broadband Wi-Fi for homes , when a surfing speed of 8Mbps was made possible with the launch of Touchtel’s Wireless Broadband on DSL, on 12th December A Network Brain was commissioned at the National Network Operation Centre (NOC) in Gurgaon, Haryana, to centrally monitor, manage & control performance & fault levels of Airtel’s Nationwide network Bharti ranked second in the Hewitt Best Employers survey Enterprise Business deployed on IP-based Multi-Protocol Label Switching (MPLS) backbone solutions from Cisco Systems, a global leader in networking solutions
Bharti unveiled a Unified Brand Strategy for all its telecom services, with Airtel as the flagship brand Bharti & ELRo Holdings India Ltd. , announced the launch of FieldFresh Foods Pvt Ltd., with a mission to link India’s fields to the world Blackberry- the globally acclaimed world’s most powerful Instant Email Mobile Innovation, was introduced in India exclusively by Airtel
2005 Airtel became the First GSM Operator in India to cross 10 million customer milestone on 17th January Bharti commenced the second phase of expansion of its Broadband & Telephony services, covering all of India under Unified License Regime On 13th April 2005, Bharti celebrated its Pan-India Footprint by launching the Airtel One India celebrations in its 23rd circle Assam. Sunil Mittal, CMD, Bharti Airtel, represented India at the Ernst & Young Entrepreneur of the year award ceremony in Monte Carlo, Monaco as the Ernst & Young Entrepreneur of the Year 2004
2006
Bharti Airtel was awarded the “Most admired knowledge enterprises”(MAKE)in 2006 Bharti Airtel won awards in two cat6egories at the MIS ASIA IT EXCELLENCE AWARDS –the best bottom line IT & best knowledge management. It crossed 23 millions customers milestone s in July 2006 &became the first Indian private telecom company to join an exclusive list of global telecom operators.
Partnered with IBM to delivered India’s first service delivery platform (SDP) Airtel became the first telecom entity to offer Microsoft latest Windows mobile 5.0 technology in India .
2007 Bharti Airtel is growing rapidly in order to claim valuations in the range of US$26-$27billions in the total worth of India’s telecommunication sector. Airtel ready to provide 2G & 3G mobile services in Sri Lanka.
2.4 BHARTI AIRTEL LIMITED - COMPANY PROFILE Bharti Airtel Limited is one of India’s leading private sector providers of telecommunications services with an aggregate of 42.68 million customers as of end of May‘07, consisting of 40.74 million mobile customers. Bharti Airtel has been rated among 10 best performing companies in the world in the Business Week IT 100 list. Bharti Airtel is structured into three strategic business units - Mobile services, Broadband & Telephone (B&T) services and Enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles. The B&T business provides broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. Airtel’s high-speed optic fiber network currently spans over 40,000 kms covering all the major cities in the country. The company has two international landing stations in Chennai that connects two submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe. Bharti had over 3.9 crore customers, as on March 31, 2007, an increase in the total customer base of 86%, over the last year and maintained its leadership position through an improved market share of all India wireless subscribers at 22.9% as on March 31, 2007, up from 20.4% last year.
Commenting on the results and performance, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said, “The Indian telecom sector has witnessed an unprecedented growth this year led by the mobile segment. At Bharti Airtel, this has been a year of accelerated growth and market leadership, and we are delighted to be leading the telecom revolution in the country. The demand for the telecom services across all segments remains buoyant and we believe that this growth momentum can be sustained. We are confident that Bharti Airtel’s professional management team with enhanced empowerment, backed by world-class product offerings is well placed to strengthen our leadership position in the market.” In line with emerging international practice, the Board of Directors has adopted a rotation policy for statutory and internal auditors for a maximum tenure of five years and rotation of audit partner every three years. Accordingly, they have recommended the appointment of S R Batliboi and Associates, Chartered Accountants, a member firm of Ernst & Young Global as statutory auditors at the conclusion of the forthcoming annual general meeting on 2 July 2007 and Ernst and Young as auditors for US GAAP for the financial year ending 31 March 2008. The Board has also proposed to appoint Price Waterhouse, Chartered Accountants as internal auditors after conclusion of their tenure as statutory auditors of the company.
Bharti Airtel Limited - Summary of Consolidated Financial Statements – represents Consolidated
Statement of
Income as
per United States Generally
Accepted Accounting Principles (US GAAP) (Amount in Rs. Crores, except ratios) Quarter Ended Particulars
Mar. 2007 Mar. 2006
Year Ended Y-o-Y Growth
Un-audited Un-audited
Mar. 2007 Mar. 2006 Audited
Un-audited
Y-o-Y Growth
Total revenues
5,393
3,411
58%
18,520
11,621
59%
EBITDA
2,241
1,278
75%
7,451
4,337
72%
2,193
1,205
82%
7,307
4,086
79%
Cash profit from operations
Income before
1,507
741
103%
4,886
2,537
93%
Net profit / (loss) 1,353
682
98%
4,257
2,257
89%
income taxes
Operating Highlights (Figures in nos., except ratios) Mar. Parameters
Unit 31, 2007
Dec. 31, 2006
Q-on-Q Growth
Mar. 31, Y-on-Y 2006
Growth
Customers on our Network Mobile Services
000's 37,141 31,974
16%
19,579
90%
Broadband &
000's 1,871
8%
1,347
39%
16%
20,926
86%
1,738
Telephone Services Total
000's 39,013 33,712
* The revenues & net profit for the full year ended March 31, 2007 was Rs. 18,520 crore and Rs. 4,257 crore, a growth of 59% & 89% respectively, on a year on year basis.
2.5 Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers broadband & telephone services in 94 cities. The Enterprise services provide end-toend telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.
2.6Business Sections Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.
The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world.
Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23
telecom circles, while the B&T business group provides broadband & telephone services in 94 cities.
The Enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand
2.7 Building Telecom... Building Relationships.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated private telecom service provider. We are the first private telecom provider to connect India in its entirety with the world's best technology. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three strategic business units (SBU's) - Mobile services, Broadband & Telephone services (B&T) & Enterprise services. We complement our mobile, broadband & telephone services with national and international long distance services. We provide international connectivity with our submarine cable landing station at Chennai and with our partnership in next generation undersea cable system SEA-ME-WE-4. We provide reliable end-to-end data and enterprise services to the corporate customers with our nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. All these services are provided under the Airtel brand.
2.8 Business Divisions Mobile Services – Bharti Airtel offers GSM mobile services in all the 23telecom circles of India and was the first private telecom service provider to connect all states of India.
Broadband & Telephone Services – Our Broadband (DSL) & telephone services (fixed line) are present in the 92 cities across India.
Enterprise Services (Carriers) – With 35,016 kilometers of optic fibre network we are a leading national long distance service provider. For international connectivity to east, we have a submarine cable landing station at Chennai. For international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators.
Enterprise Services (Corporate) – The group focuses on delivering telecommunications services as an integrated offering including mobile, broadband & telephone, national and international long distance and data connectivity services to India's leading 1300 corporate,
2.9 Our Partnerships:
We partner with world's finest companies like Vodafone, Singtel (Singapore Telecom), Ericsson, Nokia, IBM and many more to bring the best of products & service to you.
Our Innovations we are changing the way India communicates by offering innovations that not only add value to people's lives but also deliver an unmatched customer
experience.
We were the first to •
Provide electronic recharge for mobile phones.
•
Initiate music retailing in the world with “Easy Music” and the first to offer a Lifetime Prepaid service.
•
Provide innovations such as Bollywood movie premiers, music services such as ring back tones & many more.
•
Investor Relations
Creating value for the customers, employees, investors, partners, vendors and the society at large lies at the root of Bharti’s fundamental business strategy. Company’s core principles of trust and transparency have come a long way in helping us develop and nurture long-term relationships with our key stakeholders. Company’s performance exudes from its belief in and commitment to the telecom sector; and translates into creating innovative exciting opportunities for one and all.
2.10 Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations
for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.
The company's unique strategic outsourcing model has been studied and documented by Harvard Business School as a case study. Customer Base 37,141,210 GSM mobile and 1,871,387 broadband & telephone (fixed line) customers (Status as at month ended March 31, 2007)
Operational Network Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence. Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India.
3.0 Organization Structure
As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bharti’s key team players. With effect from March 01, 2006, this unified management structure of 'One Airtel' will enable continued improvement in the delivery of the Group’s strategic vision.
4.0 INDUSTRY OVERVIEW BROADBAND
INTERNET SCENARIO
IN INDIA
Bold initiatives by both government and industry are needed to meet the target of 10Mn broadband subscribers by end of 2007. Broadband Internet is all set to unleash its power to provide the much needed fillip to the Indian economy and thus improve the quality of life style of people. According to a status paper by Confederation of Indian Industry (CII), the proliferation of broadband in egovernance program has a potential of benefiting the Indian economy to the extent of USD 100 billion over a decade by enhancing the productivity. The broadband game encompasses key players like BSNL, MTNL, Tata (VSNL), Reliance, Bharti, and Sify. The current broadband subscriber base stands at little over 6.6 million that translates to a meager broadband penetration of less than .02 percent. A startling trend that has come forward is that the reductions in broadband tariffs have resulted in a spurt in demand. The incumbents MTNL and BSNL have been the pioneers by offering 256Kbps broadband connectivity at rate as low as Rs. 200 per month, respectively. This trend has led to a demand and supply gap in certain areas where BSNL has a waiting list of several thousand. The most important aspect is the future of broadband as the focused thrust has been laid in this direction by the operators for building the required infrastructure that is expected to be the most advanced in the world.
MAJOR CHALLENGES At its nascent stage, India broadband market is fraught with the issues of poor PC penetration attributed to the affordability and desirability issues, dearth of suitable content & applications, certain policy bottlenecks, availability of cost effective spectrum for wireless technologies, and substandard quality of service delivery. These limitations are quite likely to limit the rapid proliferation of wide spread usage of broadband services. GOVERNMENT ROADMAP Government of India has been an enabler. Kudos to the government for taking trailblazing initiatives in successful launch of broadband. But, there is absolutely no room for complacency. In order to make broadband a useful proposition for the target mass and to
accelerate the penetration, Government will still have to take bold policy initiatives, sooner than latter. Further liberalization of the broadband policy will deepen the impact resulting in nimble growth of subscribers attaining the challenging milestones. Else the aspirations to garner around 10 million broadband subscribers (about 1 percent penetration) by 2007 and 20 million (about 2 percent penetration) by 2010 will remain unattainable. Having a retrospective view on telecom scenario in India is quite relevant here. In 1994, India had just eight million telephone connections and providing 100 million connections at that time seemed a distant dream. Now a little over a decade later, telephone connectivity in India has indeed surpassed the 100 million mark and currently India can easily boast of over 160 million users. It is heartening to note that for recent past months India has been consistently adding about 4.5-5.0 million telephone subscribers, which is a strong indicator of sustained steep growth in the sector. It has been an amazing story when India added about 6.0 million subscribers in the month of August. All these accomplishments are attributed to the proactive initiatives by the government. The industry optimistically contemplate that India will repeat this success story in broadband arena as well with the concerted combined effort of the stakeholders of telecommunications industry. Experience in developed & fast developing markets like US, UK, Japan, Germany, Korea, and China where broadband is in vogue in a big way, have shown that growth of penetration of Broadband is a key enabler in escalating the per capita GDP growth by enhancing the operational efficiencies of governments & businesses and reducing the cost of social services to the citizen. According to ITU, broadband developed economies every 1 percent increase of broadband penetration results in an increase of per capita GDP by over USD 250. Therefore Government will be compelled to encourage the penetration of broadband services as it will have galvanizing impact on the general economy of the nation. MARKET POTENTIAL It is forecasted that to meet the target of 10 million broadband subscribers by 2007 and 20 million by 2010 for speedy proliferation of broadband; India would require an investment of about USD 900 million by 2007 and over 1.5 billion by 2010. This is well supported by estimations made by CII in its study Broadband Vision 2010 prepared in 2004. Broadband Technologies for India Various technologies that are being talked about and deployed for facilitating broadband include multi service access network (NG digital loop carrier) & xDSL technologies, metro Ethernet, G-PON (gigabit passive optical network), Wi-Fi/WiMax/Wibro, VSATs operators,
and cable networks. Multiple broadband technologies will coexist as none of these can meet the requirement of all environment in which the users operate. The demand of bandwidth is growing fast due to evolution of bandwidth hungry multimedia applications. It is certain that, India would embrace the most advanced technologies available anywhere in the world. Among the various technologies, xDSL has the clear distinctions attributed to the huge deployment base of over 40 million copper lines possessed by incumbents. About 25 percent of these copper lines are suitable for DSL technology. If the regulator's recommendations on unified licenses, which permit cable operators to provide broadband internet service, can be implemented, there will be further scope of adding about 60 million broadband subscribers through the cable network. The need of revamping the existing cable network infrastructure thus makes it suitable for broadband Internet. Metro Ethernet, G-PON, and Wi-Fi/Wi-Max are most likely to gain momentum as popular technologies of future, if present developments are an indication. Moreover, 3G mobile technologies providing data connectivity for mobile computing devices will come in vogue to give a fillip to the broadband penetration. THE ROADMAP AHEAD Some steps that could be taken in this direction include low price entry model, which needs to be adopted, so that more and more subscribers can come on board and unbundling of last mile local loop and infrastructure sharing. Broadband service should be granted status of essential services, since it has galvanizing effect on holistic development of the national economy, so that provisions of broadband could be made affordable to large masses. Certain measures that could be taken in this direction include elimination of duties & taxes applicable on the equipment required to build broadband network, removal of service tax & revenue share levied on broadband service, and provision of tax exemptions to broadband subscribers. The need of the hour is to make available suitable content and applications. Development of a partnership revenue share model with content and applications will help service providers to make broadband an attractive proposition. A multi pronged revenue model by way of charging for content, services, and access will provide consistency in revenue generation. Adequate measure to accelerate the National e-Governance Program (NeGP) at central and state level will be most critical element making broadband a need and necessity for the users and thus to give a fillip to expedite the growth; and availability of adequate cost-effective spectrum for new wireless technologies such as WiMax/3G need to be ensured as wireless means are set to emerge as one of the most suitable media for providing broadband access connectivity. Ultimately all business models would be governed by prevalent market forces. Thanks to the competitive environment created by market forces, the price of capital
equipment and terminal devices required to build the broadband infrastructure are declining steeply. To a larger extent, this is fostering favorable conditions for steep subscriber growth. CONCLUSION ON BROADBAND TECHNOLOGY As compared to High Speed Internet (HSI) Access at present, the future major demand drivers of broadband will comprise of triple play services. IPTV and e-governance initiatives have the real promises to become killer applications along with numerous other voice, data, and video service like e-commerce, entertainment, education, gaming, healthcare as these are contemplated to become the major revenue generating streams for the operators. This forecast is strongly advocated by the facts that in our country people like to spend more on entertainment. With about 100 million TV sets the penetration is more than double the penetration of PCs and also with about 60 million subscribers the penetration of Cable TV is more pronounced than the penetration of fixed line telephone. It is a very rare and unique phenomenon that prevails in India, which is hardly, experienced anywhere else in the world.
A QUICK SNAPSHOT India has 6.6 Mn Internet subscribers. Dial up is still the most common mode of connectivity. Always on internet (< 128 Kbps) : 0.95 Mn (14%) Broadband
: 1.4 Mn (21%)
Dial base ..
: 4.25 Mn (64%)
80% Dial base with Top 4 players BSNL
: 36.94%
MTNL
: 19.71%
SIFY
: 14.16%
VSNL
: 8.32%
Estimated 50.6 Mn Internet users share 6.6 Mn Internet connections.
MARKET SHARE: Estimated DSL base as of Mar’07: Estimated Base
2.4 MN Subscribers
Market share
q BSNL
:
0.89 Mn
37%
q MTNL
:
0.29 Mn
12%
q Airtel
:
0.58 Mn
24%
q Sify
:
0.31 Mn
13%
q VSNL
:
0.17 Mn
07%
q Others
:
0.17 Mn
07%
M ARKET SHARE
7%
7%
37%
13%
24%
BSNL
12% MTNL
AIRTEL
SIFY
VSNL
OTHERS
Airtel has 24% market share & 42% of revenue share. Retail Revenue : Revenue share q BSNL
:
239 Crore
24%
q MTNL
:
88 Crore
10%
q Airtel
:
442 Crore
42%
q Sify
:
86 Crore
10%
q VSNL
:
68 Crore
7%
q Others
:
68 Crore
7%
q
991 Crore
100%
q
REVENUE SHARE 7%
7%
24%
10%
10%
42%
BSNL
MTNL
AIRTEL
SIFY
VSNL
OTHERS
5. IPTV the future of television? 5.1 What is IPTV?
IPTV is basically known as Internet Protocol TV. IPTV is another technology of broadcasting channel through Internet. Basically its in digital format. So your existing analog television may require a new kind of Set Top box called IP Set top box.
Coming back to the Technology part. Just like you send data through Internet, the broadcasters will use the Internet as a medium to send you the data. Internet can be any other network as well. So each and every TV system in the network will have an IP address. Thus the possibility of higher interaction between broadcaster and your TV. Basically its in digital format. So your existing analog television may require a new kind of Set Top box called IP Set top box. Coming back to the Technology part. Just like you send data through Internet, the broadcasters will use the Internet as a medium to send you the data. Internet can be any other network as well. So each and every TV system in the network will have an IP address.
Thus the possibility of higher interaction between broadcaster and your TV. IPTV is basically a internet tv based on net connections and also known as broadband tv sets. This evolution was first introduced by Kingston co. of Japan who telecast its program on internet with the use of a software programmer “Video confressing” but now this technology is going to roll out its users with high digi quality of sound and pictures. It is using fibre optic wire to provide better quality and smooth functioning of its programs.
With IPTV you usually mean distribution of television or video content over a controlled IP network, where the end consumer receives the information through a set-top box which is connected to its normal broadband connection. Just because its name is IPTV (Internet Protocol Television) it dose not mean that information is sent over the internet, only that IP protocol is used. So you should not consider streaming video over the internet as IPTV. Below is a table of differences between IPTV and internet video services, where you can see that the two differs a lot.
5.2 What features does IPTV offer?
The biggest difference with today’s distribution of television is that you choose which information you want to have everything is not broadcasted as with terrestrial, cable and satellite. Another big difference is that you will be able to have a high capacity two way communication and have the ability to interact with the service provider, for example you request a movie from your TV-guide and the program is delivered to you. Other things that could be provided with IPTV is interactive applications (e.g. video blog) or transactional applications (e.g. TV shopping). Because of the point-to-point connection IPTV offers, every user will be able to view their own individual broadcasts. You will be able to have VOD(Video on Demand) which is your on personal video store where you can decide when you want to see the movie.
EPG (Electronic Program Guide) and PVR (Personal Video Recorder), where the EPG will be fully interactive with your own personal needs. You will also be able to use features like pause, fast forward and rewind when you are watching a movie on your TV. It will be possible to have personalized
advertising. You will be able to decide yourself, which kind of advertising you would like to see.
5.3 Technologies behind IPTV The two primary protocols used for IPTV are IGMP version 2 for channel change signaling for live TV and RTSP for Video on Demand. There are of course other protocols, for example to distribute and route multicast groups between routers you can use the PIM-SM protocol. For sending live-TV multicasting is used, this is because it would be impossible to withhold the bandwidth it would require to send with unicast. The providers of IPTV in Sweden are all using MPEG-2 for distributing there media. This means, as you can see below in table 2, that SDTV will require for full quality a bit rate of 4-6 Mbps. To watch HDTV other compression algorithms like H.264 are required otherwise it would consume too much bandwidth.
SDTV (Standard Digital Television)
HDTV (High Definition Television)
MPEG-2: 20-24 Mbps MPEG-2: 4-6 Mbps H.264, WM9: 2-3 Mbps
H.264, WM9: 10-12 Mbps
Table 2 – Typical bit rates for SDTV/HDTV
5.4 Is IPTV going to affect India in a big way?
Well Airtel is the first in trying out this one in India. They are trying IPTV in around 50 houses near Delhi and doing some high end testing. That's a sort of
good news for the TV enthusiasts. Let us try to analyze on the Indian Market. Most of these Telco’s have already connected most of the urban houses. State owned BSNL is doing pretty well in connecting the rural India as well. So the connectivity part is already present. Now the questions of equipments these broadcasters need to have. From the broadcasting end, It is mandatory that they need to have some streaming servers. Of course these are not so costly when compared to satellites!. So the companies would be interested in entering the market, of course a low investment but obviously a gamble. But the ordinary people need to have IP Set top box. That is the real catch. Looking at the present scenario, no household is interested in going for Set top box.
Even the Cable TV people don't encourage the same. But the things may really change if they come up with some new marketing mantra. I am Just extrapolating what I saw in the case of broadband in India. BSNL's concept of giving the broadband for very cheap price did hit the market in a real constructive way. The problem that existed was the ADSL modem. But BSNL overcame it with the "Modem for rent model". A low cost ADSL modem for rent really worked out well. But broadband is driven by the factor called necessity, But not the IPTV. That would be a real argument that could weaken this case study comparison. But Instead of ADSL modem alone, what if a IPSTB that also works as a ADSL modem. So TV on your computer. But the percentage of people who opted for TV tuner cards is very less. So will it work out? But If there is a possibility for the same device to give a TV OUT...Bingo, that would solve all the problems right? Convergence to the core will keep the things in place. This is the case of "where there is a will there is a way". So its comparatively easy for Telco’s to survive in India than other operators.
Telecom player Bharti Airtel will target high-end consumers of the top six to seven cities as part of its IPTV (Internet Protocol Television) strategy.
“Our IPTV trials started three quarters ago in 1,000 households in Gurgaon and we will launch our service before the end of the financial year. We will deliberately go slow, rolling out in Delhi first in a phased manner and then go to the other top seven cities in the country,” Atul Bindal, President, Airtel Broadband & Telephone Services (ABTS) told Hindustan Times.
Clarifying that it will pursue different strategies for its DTH and IPTV offerings, Bindal said, “IPTV will be targeted at top-end customers. Customers outside this ambit will be the target for DTH. With DTH, we would be able to offer pan-India coverage and serve all customers. With IPTV, we would be able to offer a superior service to customers in the areas served by our fixed line network.”
Other players with interest in the IPTV space include Reliance, BSNL, VSNL, MTNL and Microsoft. MTNL has already rolled out its IPTV service.
Telco majors, the world over, have laid thousands of kilometers of optic fibre. Closer home, there are nearly 350,000 route kilometers of optical fibre laid by BSNL, Reliance Infocomm, Bharti Tele-ventures and VSNL.
"However, 90 per cent of this optic fibre is unlit (not connected to the end-user equipment). How will Telco’s recover their investment and monetize this glut of bandwidth? IPTV is one way to use this bandwidth," reasons Sanjay Gopal, who leads the Communications and High Tech Industry group at Accenture India.
IPTV subscribers in the Asia-Pacific region (excluding Japan) are expected to grow to over 20 million by 2009. Siemens maintains the global market for IPTV technology could touch $1 billion by 2009.
The German company, which competes in the IPTV technology market with the likes of UTStarcom (which is building the IPTV architecture with Bharti) and an alliance between Microsoft (which has an alliance with Reliance Infocomm for the Microsoft IPTV edition) and Alcatel - has big hopes for China, as well as IPTV in general.
MTNL and BSNL are planning to introduce this service of IPTV and is expected the first roll-outs by June 2006," but now the date has been extended to 15th of august for its launching. Maran recently said. Moreover, Reliance Infocomm and Bharti are the other players whose rollouts are expected by the year-end. They, however, were not ready to commit on the launch timing. "Airtel already offers voice, data and broadband services to over 1.2 million customers across the country. As we start offering IPTV to our customers, our biggest USP over players in the cable and DTH space will be the two-way service applications like time-shifted television, video-on-demand and interactive-gaming."
"IPTV deployments are expected to begin this year itself, It will grow much faster than people's expectations since everyone wants quality. This will happen like the earlier importance VCR gained over TV, due to the sheer quality of video output, not to mention the convenience VCRs offered.
"The last-mile connectivity would be either through cable or fibre and operators will offer services over a wired network to start with, even providing ADSL connectivity. However, as the technology matures, operators would offer last-mile connectivity over wireless networks, and Wi-Max is one of the possibilities," according to Ravi Sharma, MD, Alcatel India.
"Microsoft is developing a total solution to bring IPTV to the masses via software and hardware technologies for broadcasting and viewing digital
video IPTV over broadband Internet connections," says Doug Hauger, Business & Marketing Officer, Microsoft India.
Bharti Airtel, the telecom giant will target high-end consumers of the top 6-7 cities as part of its IPTV (Internet Protocol Television) strategy.
The company started the IPTV trials a year ago in 100 households in Gurgaon and will launch its services before the end of the financial year. The IPTV service will be first rolled out in Delhi in a phased manner and then it will be launched in other top cities like Mumbai, Chennai, Kolkata, Hyderabad, Bangalore,
Gurgaon
and
Jaipur.
5.5 IPTV will be targeted at top-end customers, and the customers Outside this ambit will be the target for the direct-to-home (DTH) satellite television service. With DTH, the company would be able to offer pan-India coverage and serve all customers, and on the other hand with the IPTV, the company would be able to offer a superior service to customers in the areas served
by
the
Bharti's
fixed
line
network.
Bharti Airtel's IPTV service will be offered as a bundled offering along with other services and the customer would be provided one combined bill at the end of the month. Other players with interest in the IPTV space include Reliance, BSNL, VSNL, MTNL and Microsoft. MTNL has already rolled out its
IPTV
service.
Bharti Airtel has been upgrading their network to carrier-grade Ethernet for the IPTV services, which has been completed in Delhi and is beginning soon in Bangalore. The company would deliver the service through a backbone of
Carrier Ethernet network and last mile delivery on copper using ADSL2+ technology.
Bharti Airtel has partnered with UTStarcom, a player in VoIP, mobile internet, internet television and telecommunication solutions for its IPTV project. There would be 41.1 million IPTV households worldwide in 2011, up from approximately five million in 2006..
5.6 Hurdles to cross First, broadband is the backbone of IPTV. And India has only around one million broadband connections till date. TRAI projects the number to rise to around 20 million by 2010. Second, the availability of the last mile is a factor that is most instrumental in determining what the future of broadband in India is going to be, according to Alok Shende, director, ICT practice, Frost and Sullivan. Cable operators opine that they are much better placed than IPTV providers when it comes to the last-mile connectivity. "It's unrealistic to expect your telephone connection to give you broadband right away. There will need to be massive infrastructural changes," says Jagjit Singh Kohli, CEO, Siticable Network, a subsidiary of Zee Telefilms. "Nowhere in the world will you see mass deployment of metro-ethernet backbone (which is what the private telcos have laid). Moreover, IPTV suffers from jitters. And talking about quality, IPTV will require 33 per cent more bandwidth than radio frequency (RF � used by cable networks) for the same result with the same codes," he adds. There can be stiff opposition from local cable operators who need to be "coopted" rather than competed against, corroborates Gopal. Moreover, cable operators themselves are getting into triple play services.
IPTV, DTH, Cable - 'Triple Play' for the Digital Home
Screen Digest, a research firm, suggests that IPTV is set to pose a significant challenge to established cable and satellite operators (read DTH). In the US, Triple Play services are offered by cable television operators as well as by telecommunication operators in the US. 'Triple Play' implies high-speed Internet, television (Video on Demand or regular broadcasts) and telephone service over a single broadband connection. With wirless, it's called 'Quadruple Play' and grouped services (triple and quadruple) are called multi-play. The fact is not lost on Indian players. Hathway has a two-pronged strategy to combat new technologies like IPTV and DTH � digitising our entire network and offering consumers more channels and content at the same cost, said a Hathway spokesperson. "Also the set-top box is being offered on an easy-payment basis. The second part of our strategy is pushing high-speed broadband Internet into the homes and bundling the same with our digital product. Thus Hathway is able to offer in its universe analog cable TV services, digital cable TV services and bundling of digital cable TV services with high-speed broadband Internet. Eventually Hathway will also move into Triple Play to combat DTH and other delivery platforms. Thus, as part of our offering we would be launching cable telephony services in the current year," the spokesperson added. Siti cable CEO Jagjit Singh Kohli said: "We have big plans for Triple Play services. Our advantage is that we can have video on RF and data and voice on IP (which currently is not adequate for good video output)." Tata Sky is investing in building a digital infrastructure in the country to offer a "superior television viewing experience to Indian households". Vikram Kaushik, CEO, Tata Sky Ltd said, "We are committed to building a state-ofthe-art DTH operation in India for which we have selected NDS to provide end-to-end solutions. This will enable us to transfer control and choice into the hands of subscribers". Sunil Khanna, CEO, Dish TV, takes the competition in his stride. "The global phenomenon is that with increased TV penetration, there will be different distribution
platforms. There are hundreds of households where TV has just not reached. It's not possible for IPTV to be everywhere - at least for now. Moreover, there are always people who do not want to mix their telephone lines with their TV. In countries like Hong Kong, IPTV and cable co-exist. There's room for everyone," he concluded.
Launching of IPTV services?
Bharti Tele - ventures ( Bharti airtel ) is planning to launch its new product that is IPTV with the joint venture with UTStarcom by this year end. Sources in the industry informed that UTStarcom would be offering the technology assistance to Bharti to launch IPTV services. Airtel is currently offering IPTV services to its broadband subscribers in Delhi and NCR region.
Bharti airtel already launch its product in Gurgaon on trial basis for the confirmation of the service and also for the digital quality checkup. “They are already conducting trials in around 100 households in Gurgaon and the technology support is being offered by UTStarcom,” the source informed. The company is planning to offer 150 channels for its IPTV services in Delhi and NCR by the year-end.
6.0 TABLES AND GRAPHS 6.1 FOR NEWSPAPER ADVERTISEMENT- NCR REGION (JAN-JUNE)
DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 TOTAL
LEAD GENERATED 149 262 298 250 268 207 159 278 259 288 260 269 224 157 351 294 244 237 285 238 159 217 230 251 250 150 209 130 237 218 255 7283
ORDER BOOKED 48 80 88 77 84 71 37 79 75 83 71 68 54 49 108 70 63 59 65 72 32 62 56 61 64 48 58 37 57 53 79 2008
TOTAL SALES 99 166 165 178 195 136 73 152 140 159 168 129 100 91 211 147 124 114 144 124 56 123 112 122 134 91 106 67 118 97 150 3991
JANUARY 390 360 330 300 270 240 LEAD GENERATED
210
ORDER BOOKED
180
TOTAL SALES
150 120 90 60 30 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TOTAL
LEAD GENERATED
ORDER BOOKED 234 230 236 148 290 224 207 284 207 220 149 237 236 268 177 219 205 131 262 277 327 336 211 223 147 380 270 240 6575
60 57 51 39 78 68 48 85 68 55 41 63 58 51 40 54 55 40 76 74 89 91 67 54 37 84 54 54 1691
TOTAL SALES 143 114 98 72 194 138 96 214 133 98 78 125 138 95 87 112 127 74 147 183 173 178 131 108 70 153 108 100 3487
FEBUARY 420 390 360 330 300 270 240
LEAD GENERATED
210
ORDER BOOKED
180
TOTAL SALES
150 120 90 60 30 0 1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
LEAD GENERATED
ORDER BOOKED 238 188 171 61 179 209 376 306 289 278 139 281 357 304 318 415 318 191 341 283 250 273 258 257 201 294 233 262 240
TOTAL SALES 53 59 49 15 58 53 91 76 85 91 37 67 78 65 96 97 72 43 94 73 69 73 64 69 56 83 67 72 56
95 110 94 25 108 101 182 140 158 168 70 125 153 138 185 197 132 78 179 159 127 172 124 150 112 160 116 150 142
30 31
220 228 7958
TOTAL
48 42 2051
82 136 4068
MARCH 450 420 390 360 330 300 270 LEAD GENERATED
240
ORDER BOOKED
210
TOTAL SALES
180 150 120 90 60 30 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
LEAD GENERATED
ORDER BOOKED 144 253 241 271 234 243 232 137 236 255 188 239 198 250 162 227 188 172 204 175 186 110 335 255 232 208 194 225 120
TOTAL SALES 26 50 52 61 46 48 45 29 51 81 53 54 36 48 27 54 46 59 53 48 49 32 70 63 64 48 58 47 29
48 91 95 124 92 91 80 47 99 145 89 105 63 83 48 97 79 72 94 83 92 69 129 147 124 95 100 83 49
30
243 6357
TOTAL
52 1459
92 2705
APRIL 360 330 300 270 240 210
LEAD GENERATED
180
ORDER BOOKED
150
TOTAL SALES
120 90 60 30 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
LEAD GENERATED
ORDER BOOKED 215 267 227 215 216 142 233 253 223 229 304 230 204 278 353 268 285 229 250 156 284 264 256 261 213 219 137 249 278 237
TOTAL SALES 47 56 43 64 60 30 58 59 49 57 70 60 45 57 68 54 46 56 67 37 67 63 55 58 48 61 21 58 63 46
83 111 83 115 109 50 134 113 83 104 191 105 78 256 128 107 91 107 124 67 126 110 109 120 89 141 41 104 113 92
31
221 7396
TOTAL
62 1685
105 3389
MAY 390 360 330 300 270 240 LEAD GENERATED
210
ORDER BOOKED
180
TOTAL SALES
150 120 90 60 30 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TOTAL
LEAD GENERATED 206 283 137 215 244 245 226 216 201 118 207 216 190 255 182 225 174 242 271 260 256 216 221 139 321 327 245 180 226 197 6641
ORDER BOOKED
SALES TOTAL 60 66 31 58 60 67 62 53 64 22 60 46 45 69 58 51 38 69 56 56 71 46 60 39 80 62 56 56 50 46 1657
99 122 54 109 118 135 109 90 124 39 116 94 83 120 151 96 72 126 108 102 164 80 132 62 153 118 96 101 95 77 3145
JUNE 360 330 300 LEAD GENERATED
270 240
ORDER BOOKED
210
SALES TOTAL
180 150 120 90 60 30 0 1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
6.2 FOR NEWSPAPER ADVERTISEMENT- NORTH REGION (JAN- JUN)
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 TOTAL
LEAD GENERATED 33 40 56 37 54 44 10 64 65 52 52 39 22 12 36 29 43 22 35 25 10 44 25 39 27 15 26 6 32 33 45 1072
ORDER BOOKED
TOTAL SALES 8 11 7 9 11 10 2 8 14 17 10 12 6 2 8 8 11 4 8 8 2 4 6 14 6 2 6 2 3 4 7 230
15 20 13 17 22 19 4 15 28 35 21 22 12 4 15 15 20 7 17 13 4 6 11 24 10 3 11 3 5 7 13 431
JANUARY 70 65 60 55 50 45 40
LEAD GENERATED
35
ORDER BOOKED TOTAL SALES
30 25 20 15 10 5 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TOTAL
LEAD GENERATED 39 45 36 17 40 45 25 39 31 31 28 36 31 33 30 46 41 50 89 66 57 73 108 91 30 84 93 68 1402
ORDER BOOKED
SALES GENERATED 4 12 10 5 7 9 5 7 2 7 7 5 5 5 4 12 4 7 9 13 17 18 13 12 7 8 5 5 224
8 23 20 10 13 16 10 13 4 13 14 9 9 9 8 21 8 14 23 26 31 42 25 22 14 15 10 12 442
FEBUARY 120 110 100 90 80 70
LEAD GENERATED
60
ORDER BOOKED SALES GENERATED
50 40 30 20 10 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
LEAD GENERATED
ORDER BOOKED 59 125 51 31 73 92 75 76 62 62 46 194 83 85 71 76 59 36 97 69 116 57 96 74 97 113 123 79 133 71
TOTAL SALES 10 15 8 4 9 20 14 24 6 10 7 33 14 17 15 20 13 10 18 18 18 7 21 15 17 26 21 17 14 12
21 30 15 7 18 38 28 42 11 18 13 64 27 36 29 36 29 20 32 33 35 13 41 31 35 50 38 31 27 24
31
60 2541
TOTAL
12 465
22 894
MARCH 210
180
150
120
LEAD GENERATED ORDER BOOKED TOTAL SALES
90
60
30
0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TOTAL
LEAD GENERATED 18 77 76 60 77 77 61 27 65 51 77 58 57 52 14 66 72 59 71 58 33 83 82 80 60 61 89 39 39 103 1842
ORDER BOOKED
TOTAL SALES 3 15 19 9 7 17 13 5 11 15 14 10 15 8 3 17 15 14 16 5 8 8 12 15 8 14 12 3 3 14 328
6 26 39 16 12 30 25 7 18 26 26 18 22 14 6 28 25 26 29 10 14 13 22 26 14 24 20 5 4 24 575
APRIL 110 100 90 80 70 LEAD GENERATED
60
ORDER BOOKED
50
TOTAL SALES
40 30 20 10 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
LEAD GENERATED
ORDER BOOKED 66 74 75 67 65 32 63 68 74 77 70 51 23 57 127 97 95 81 85 32 93 82 117 78 67 63 37 86 70 79
TOTAL SALES 18 18 14 13 16 5 17 8 18 12 11 19 7 12 22 19 22 19 18 5 19 20 14 11 11 6 9 11 6 14
32 26 25 23 27 9 30 16 33 22 20 35 13 19 37 36 38 36 31 8 33 34 23 19 20 11 14 18 8 22
31
79 2230
TOTAL
10 424
17 735
MAY 140 130 120 110 100 90 80 LEAD GENERATED
70
ORDER BOOKED
60
TOTAL SALES
50 40 30 20 10 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
DATE
LOG_DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TOTAL
LEAD GENERATED
ORDER BOOKED 80 49 34 54 65 70 69 71 54 33 66 67 56 69 75 66 35 73 82 85 78 74 51 39 63 55 59 67 69 49 1857
TOTAL SALES 17 14 6 13 17 19 18 18 15 10 16 19 16 14 12 13 6 18 12 15 16 16 9 5 16 11 12 19 14 7 413
30 27 13 30 30 31 33 32 26 15 31 32 30 23 22 23 12 33 22 29 30 31 18 9 30 19 20 40 24 16 761
JUNE 90 85 80 75 70 65 60 55 50
LEAD GENERATED
45
ORDER BOOKED
40
TOTAL SALES
35 30 25 20 15 10 5 0 1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DATE
6.3 FOR EMPLOYEE REFERRAL SCHEME NCR
LEAD GENERATED ORDER BOOKED TOTAL SALES NO OF UNIQUE PARTICIPANT
JAN 751 418 129 3 158
FE B 415 205
MA R 474 170
APR 244 63
MA Y 282 72
JUN 703 334
JUL Y 1225 713
AUG 164 33
806
752
207
294
980
1617
65
110
102
67
92
149
213
53
JUN 76 25 45
JUL 73 33 68
AUG 5 0 0
26
15
5
JUL 1298 746
AUG 169 33
1685
65
228
58
NORT H
LEAD GENERATED ORDER BOOKED TOTAL SALES NO OF UNIQUE PARTICIPANT
JAN 42 14 29
FE B 46 15 31
4
MA R 4 2 3
62 22 41
MA Y 54 10 18
5
3
33
5
FE B 461 220
MA R 478 172
APR 306 85
MA Y 336 82
837
755
248
312
JUN 779 359 102 5
115
105
100
97
175
APR
TOTAL
LEAD GENERATED ORDER BOOKED TOTAL SALES NO OF UNIQUE PARTICIPANT
JAN 793 432 132 2 162
1800
1600
1400
1200
LEAD GENERATED
1000
ORDER BOOKED TOTAL SALES
800
NO OF UNIQUE PARTICIPANT
600
400
200
0
JAN
FEB
MAR
APR
MAY
MONTH
JUN
JUL
AUG
6.4 AGENCY REPORT-AGENT PRODUCTIVITY
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
APR 7437 1515 565
LEAD GENERATED MAY JUN 7922 8172 1346 887
1349 902
ORDER BOOKED APR MAY 741 851
JUN 1122
67 67
APR 933 63 107
101 141
NO OF VOICE MAY JUN 1589 2753 108 215
NO OF DSL APR MAY 641 736 52 63
162 165
78 116
169 158
JUN 996 135 148
JUL 9846 2158 1208 1096
JUL 1168 79 109 178
JUL 1524 80 111 184
JUL 1115 78 103 164
6.5 AGENCT REPORT – AGENT PRODUCTIVITY NEW
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
CC_MICROWAVE DR IT CC_COMPETENT CC_DR IT
APR 7437 1515 565
LEAD GENERATED MAY JUN 7922 8172 1346 887
1349 902
ORDER BOOKED APR MAY 732 846
JUN 1063
94 53
APR 860 92 55
88 132
NO OF VOICE MAY JUN 1239 1964 95 243
NO OF DSL APR MAY 618 749 76 41
150 174
67 112
145 171
JUN 949 125 158
JUL 9846 2158 1208 1096
JUL 1323 61 124 168
JUL 2844 59 139 176
JUL 1215 61 113 153
7. KEY FACTS
Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter (Q4-FY0607) and also the highest ever the net editions of 1.8 crore total subscribers in 2006-2007 The company will invest up to $3.5 billion this fiscal (07 - 08) in network expansion It has an installed base of 40,000cell sites and 59% population coverage Bharti has over 39 million users as on march 31,2007 It has set a target of 125million subscribers by 2010 Non-voice revenues (sms, voice mail, call management, hello tunes and Airtel live) constituted 10% of total revenues during Q4, lower than 10.74% in Q4 of the previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes It has completed 100% verification of its subscribers and in the process disconnected three lakh subscribers
7.1 FACT SHEET
Name
Bharti Airtel Limited
Business Description
Provides mobile, broadband & telephone services and enterprise services (carriers and services to corporates)
Established
July 07, 1995, as a Public Limited Company
Proportionate Revenue
Rs. 184,202 million (year ended March 31, 2007-Audited) Rs. 117,255 million (year ended March 31, 2006-Audited) As per Indian GAAP accounts
Proportionate EBITDA
Rs. 74,407 million (year ended March 31, 2007-Audited) Rs.42,250 million (year ended March 31, 2006-Audited) As per Indian GAAP accounts
Shares in Issue
1,895,934,157 as at March 31, 2007
Listings
The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE)
Customer Base 40,743,725 GSM mobile and 1,941,805 broadband & telephone customers (status as at month ended may 31, 2007)
Operational Network
Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence. Provides broadband (DSL) and telephone services in 94 cities in India.
Registered Name
Bharti Airtel Limited (A Bharti Enterprise)
8. SWOT ANALYSIS
STRENGHTS
The Technology Airtel is offering. The strong subscriber base. Unlimited clarity: Airtel’s connection provides voice clarity better then some of other leading service providers. Unlimited customer services: Airtel is providing 24 hours of customer care services where executives are on call for expertise assistance. Unlimited performance: Airtel is constantly innovating and upgrading its services to offer more value. Active management to enroll the projects into grooming areas. Marketing strategy
WEAKNESSES
Restricted subscribers base due to limited wired area Centralized decision -making
OPPORTUNITIES
High market growth rate Huge potential to increase customer base Airtel and Google to work together on the forth coming project
THREATS
Competitors to be face of in the market with the same technology offering and to be launch on:- MTNL, BSNL,RELIANCE
10.0 CONCLUSIONS AND RECOMMENDATIONS CONCLUSION: People are not ready to change their service providers because of their long term investment in their product and again paying down for the new service. It was found through tele-calling that most of the customers were highly satisfied regarding the broadnet facility provided by the DSL plans of Airtel. Customers had certain queries regarding distinguished features of different plans ,what they actually wanted was an executive visit to brief them more about the plans. Still there are many unwired areas in delhi like r.k.puram
Recommendations: Instead of targeting new customers the company must try to bind the old customers. The company should prefer broadband users and fixed line users to target for introducing IPTV services. Every Account manager should have one CRE(customer representative executive) for better productivity and efficiency & these leads to higher sales with customer satisfaction to the company. Company need to improve Broadband service because most of the customer facing problems like slow speed, connectivity etc.
Bibliography
1. www.bharti.com 2. www.airtelworld.com 3. www.touchtelindia.com 4. www.trai.gov.in 5. www.ciionline.com 6. www.wikipedia.org 7. www.howstuffworks.com 8. www.isp-providers-india.com 9. www.indiatelecomnews.com 10. www.internetworldstats.com 11. www.voicendata.com 12. www.indiabroadband.net 13. www.frost.com 14. www.tonsetelecom.com 15. www.zonkerala.com 16. www.thehindubusinessline.com