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<p>Contents ParticularsAcknowledgement Company Profile and Introduction Objective of the Research1. 2. 3. 4. 5. 6. 7. 8. 9. 10.</p> <p>Page no.3 5 25 27 31 35 38 43 48 61 64 67 69 71 73</p> <p>Research Methodology Customer Relationship Management Churn Management Customer Retention and Churn Management at Airtel Reasons of Churn amongst Airtel Subscribers Analysis of Findings Inferences from the Findings Grievances of some customers Recommendations Limitations Bibliography Annexure</p> <p>17. 18.</p> <p>Institute Of Management Studies, Noida</p> <p>1</p> <p>TO WHOM SO EVER IT MAY CONCERN</p> <p>This is certified that Mr. DHIRAJ KUMAR GUPTA is a bonafied regular student of M.B.A. course at this institute for the session 2003-2005. He has completed his Research Project on Reasons of churn among the</p> <p>AIRTEL Subcribers working of the company as explained in this report. I find this report up to the standard and recommend that it should be submitted to the U.P.Technical University for the evaluation.</p> <p>Dated: -</p> <p>(Coordinator/supervisor)</p> <p>Institute Of Management Studies, Noida</p> <p>2</p> <p>ACKNOWLEDGEMENT</p> <p>Institute Of Management Studies, Noida</p> <p>3</p> <p>Acknowledgment</p> <p>My first regards are to almighty god it was my trust and belief on him, which enable me to embark upon this task, move on the righteous path and recede the realm of facts.</p> <p>I would like to thanks from the core of my heart Dr. Shalini Singh, Faculty IMS, Noida for providing me the due inputs for the project assigned on Identification of reasons of churn amongst Airtel customers. motivation and has channelized my efforts. She has been a constant source of</p> <p>I feel privileged in expressing profound sense of gratitude and indebtness to my supervisor Mrs. Shalini Singh who has generously provided the chance to work at the esteemed field of service market. Her able guidance, constant encouragement and inspiration where instrumental in the completion of this research he always allowed me to encroach upon his precious time and ensured his generosity with ideas.</p> <p>Lastly but not be the least, I also thank my all the Faculties of IMS for giving me the opportunity to successfully finish my Research Project. I am highly thankful to my friends for providing me constant support &amp; bearing with me all throughout my learning phase. Dhiraj Kumar GuptaMBA 4th Sem.</p> <p>Institute Of Management Studies, Noida</p> <p>4</p> <p>COMPANY PROFILE</p> <p>Institute Of Management Studies, Noida</p> <p>5</p> <p>Company Profile</p> <p>Sunil Bharti Mittal or SBM as he is called, has at the age of 43 created a Telecom Giant in India. It has risen from humble beginnings in 1970s as a bicycle parts manufacturer, knitwear and stainless steel utensils in Ludhiana, Punjab state. Together with other foreign companies he has raised $ 1.5 billion of which $ 800 million is still in the bank. Bharti happens to be Indias premier telecom company in the field of telecom terminals and technology tie ups with world leaders like Siemens, Goldstar, Tatacom and Casio. It is the first company in India to export telephones to U.S.A and has finalized plans to manufacture GSM terminals in India. The success story of Bharti Enterprises can be acknowledged from the fact that Bharti has acquired 44% of stake of British Telecom, which was up till now one of the partners with Bharti Enterprises for $140.2 joint venture. The transaction was worth 100 million pounds. Bharti Enterprises controls about 20 % of the Total Telecom market in India. As he puts it , it was a mixture of Vision , good luck and hard work by a team of about 10 12 senior people. The early beginnings in 1985 were in manufacturing telephone handsets. They did not have the expertise to do</p> <p>Institute Of Management Studies, Noida</p> <p>6</p> <p>telephone exchanges, jelly -filled cables had become a commodity and their capital investment was high. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of approximately 11.50 million total customers which constitute, approximately 10.66 million mobile and approximately 836,000 fixed line customers, as of January 31, 2005.</p> <p>Bharti Teletech</p> <p>Bharti Teletech deals with telecom equipment manufactering. Bharti teletech has 2 subsidiaries Siemens Telecom and Bharti Duraline. Siemens Telecom is a joint venture between the global giants Siemens AG and Bharti Telecom. This alliance has brought to the Indian market the unmatched technology of Siemens and the manufacturing strength of Bharti Telecom. Siemens Telecom markets its product under the brand names of Siemens and Beetel. The Siemens range of telephones include electronic push button phones, feature phones ans the latest GSM cellular phones. Beetels commitment to quality, value and durability has made it the largest selling cordless phone in India.</p> <p>Institute Of Management Studies, Noida</p> <p>7</p> <p>Bharti Duraline Bharti Duraline is a translation of Bhartis commitment to serve the growing telecom market in India. This joint venture with Duraline Corp of U.S.A manufacture and markets high quality SILCORE TM HDPE telecom ducts. Duraline USA gas prestigious customers like AT&amp;T, Lucent technologies,Sprint MCI, Ericsson ,etc Bharti Telecom</p> <p>In the past few decades the telecom industry across the world has gone through a sea change and India has not been away from the technological revolution. Bharti Telecom the flagship company of Bharti Enterprises has continuously introduced world-class telecom products and services. From the introduction of push button telephones backing telephones to answering machines from cordless telephones to cellular services Bharti is breaking new grounds with host of new brands like Airtel and Beetel. Bharti Telecom has emerged as Indias finest Telecom Company. Incorporated in 1985 Bharti Telecom is one of the largest Telecom companies in the country. Bharti Telecom provides various basic /cellular services, Internet services and VSATs etc. through its several subsidiaries and joint ventures. The two subsidiaries of Bharti Telecom are Bharti Televenture and Bharti Telepatial.</p> <p>Institute Of Management Studies, Noida</p> <p>8</p> <p>Bharti Televenture Bharti Televenture Ltd. was incorporated on 7th July 1995. BTVL has been floated by Bharti Telecom Ltd. as Telecom operator to hold equity stake and to wide management services to cellular and fixed line Telecom Projects in India.Bharti Televenture is a holding company for Bharti Cellular and Bharti Telenet. Bharti Cellular Bharti Cellular Ltd offers cellular service under the brand name of Airtel. Bharti Telenet Bharti Telenet offers fixed line services in M.P. (Indore) and cellular services in H.P. the company the first private operator to provide fixed line services under the country. It launched its fixed lines services on 4th June 1998 in Indore, and as developed the customer based of over 35,000. The company as a market share of 80% in H.P. for its cellular services. Bharti Telespatial Bharti Telespatial provides Internet services and VSATs. It has gain two subsidiaries Bharti BT and Bharti BT Internet.</p> <p>Institute Of Management Studies, Noida</p> <p>9</p> <p>Bharti BT Bharti BT has a licensed to provide VSAT services in India. The company is second largest service provider in the shared hub and fastest growing VSAT service provider in the country. Identifying the core relevance of satellite communication, the joint venture is expanding the VSAT market through service leadership and product innovation, offering fast, secure and reliable telecom solutions for all times. BT helps its customers meet there short term goals and long term communications strategies.Taking advantage of its leading edge in technology, Bharti BT offers customized TDMA, VSAT solutions, PAMA services. The flexibility to integrate these services also enables the company to provide hybrid V-SAT services to meet the diverse requirement of the customers. Bharti BT Internet:- Bharti BT Internet has a licensed to provide Internet services in Mumbai, Delhi and Bangalore. The service became operational from May 99 under the brand name Mantra On Line.</p> <p>Institute Of Management Studies, Noida</p> <p>10</p> <p>EVOLUTION OF TELECOM INDUSTRY</p> <p>Institute Of Management Studies, Noida</p> <p>11</p> <p>EVOLUTION OF CELLULAR INDUSTRY In 1991, Government of India (GOI) announced its intentions to</p> <p>liberalize the telecommunication Industry. As part of the liberalization process, two licenses for Cellular Services</p> <p>and one license for Basic Services to be awarded to the private sector for each telecom circle. In 1992, GOI invited bids from private players for operating Cellular</p> <p>Services in the 4 metro circles. The licenses were to be awarded on the basis of a tender in which the</p> <p>license fees had been announced beforehand and the selection was on the basis of services to the subscriber and rentals. Due to legal issues related to the awarding of the licenses, the process</p> <p>got delayed and licenses to operate services in metro circles awarded in December 1994. The Do T announced the National Telecom Policy, which set out the</p> <p>objectives to increase the availability &amp; quality of telecommunications services in India by inviting the private sector into basic telecom services. The Objectives of NTP 94 were to: Ensure availability of telephones on demand as early as possible</p> <p> Achieve a telecom service that conforms to international standards</p> <p>Institute Of Management Studies, Noida</p> <p>12</p> <p> Assist the manufacture and export of telecom equipment Protect national defense and security interests In January 1995, GOI invited bids for cellular services In 20 non-metro circles, categorizing them into A, B and C circles based</p> <p>on geographic attractiveness and demographic size. per 169 bids were received from 32 consortia for 18 circles In August 1995, the Do T placed a 3 circle cap on category and B circles bidding consortium</p> <p> In September 1995, Bharti Cellular Ltd. launched Cellular Services in Delhi. Licenses were awarded in December 1995, with 2 Licenses per circle awarded to the 2 highest bidders.</p> <p>New Telecom Policy 1999 Existing structure of a fixed License fee to be replaced by a one-</p> <p>time entry fee and a revenue sharing agreement to be recommended by the TRAI. Strengthening of the TRAI through the separation of the Do Ts service provision functions from its policy and licencing functions. The DoT as</p> <p>Institute Of Management Studies, Noida</p> <p>13</p> <p>service provider will be</p> <p>subject to the directions of the TRAI and as the</p> <p>licensing authority will be required to seek TRAIs prior recommendation. Interconnectivity with service providers in different License areas to be announced as part of the structure for opening up national long distance-this will allow cellular operators to act as long distance carriers and provide a valuable upside. Cellular licensees will be allowed to directly interconnect with VSNL. This will provide cellular carriers with access to the valuable international long distance market Cellular licenses to be for a period of 20 years. Entry of MTNL/DOT as a service provider will be in a time bound manner and shall be based on the recommendations of the TRAI-entry of MTNL/Do T and other operators will be phased in giving the existing incumbents advantage. Traditional Fixed Line penetration is low at 2.15% as on 31st March an</p> <p>2000.</p> <p>High unsatisfied demand as reflected by Do T waitlists </p> <p>13.9% of installed capacity as of 31st March 2000 Lowering of entry barriers for consumer Falling handset prices. Lowering of recurring charges Falling Airtime Tariff.</p> <p>Institute Of Management Studies, Noida</p> <p>14</p> <p> Improved Accessibility Increased Rollout into newer circles. Growth in Cellular Subscriber base by 52% year on year. Large part from Prepaid.</p> <p>Bharti Cellular Ltd An Introduction BCL is a company launched by well-established and reputed companies across the global with the remarkable track record in Telecom Industry, particularly with excellent knowledge of cellular network operations in UK, Sweden and Mauritius. Bharti Cellular Ltd was granted the license to provide cellular mobile telephone services in New Delhi by the DoT on 29th November 1994 on a non-exclusive for the next ten years. BCL is a customer oriented company, whose goal is to position itself in the market as a serious enterprising supplier of reliable, easily available mobile telephone services of high quality, thus promoting opportunities for the business community and allowing private users to enjoy efficient, safe and cost effective mobile communication. Bharti has successfully accomplished this task over the last five years of operation with the help of its welldeveloped global systems for mobile communication.</p> <p>Institute Of Management Studies, Noida</p> <p>15</p> <p>THE EVOLUTION OF BCL</p> <p>1992</p> <p>Government invites bids for providing Cellular Mobile</p> <p>Telephony Bharti Enterprises forms a joint venture with CGE, EMTEL, Millicom and MSI. UK BHARTI CELLULAR is born. 1993 in Bharti Cellular granted license to provide Mobile Phone Services Delhi and NCR, Ghaziabad, Faridabad, Guragaon, Noida and</p> <p>Ballabgarh. Mar 1995 Aug15, 1995 Nov15, 1995 Nov 1995 Bookings for AirTel opened. Air Tel launches Cellular Services in Delhi. Cellular Services AIRTEL commercially launched in Delhi. AirTel crosses 10000 customers one million-call mark. The first AirTel Connect opens in Delhi. Sept 1996 200000 lines. Nov 1996 AirTel crosses 50000 customers hundred million-call marks. AirTel installs second Switch installed capacity reaches</p> <p>Institute Of Management Studies, Noida</p> <p>16</p> <p>Dec 1996 Jan 1997 April 1997 May 1997 Aug 15, 1998 Jan7, 1999</p> <p>Manual roaming launched. British Telecom joins hands with Bharti Cellular. Multi IMSI roaming launched. Mega Millennium Network launched. Smart roaming facilities launched. IN Network commissioned; Bharti launches Magic prepaid card.</p> <p>Dec 1999 June 2000 July 2001 July 9, 2001 July 15, 2001 July 16, 2001</p> <p>Smart Net facilities launched. Bharti buys acquired 44% of stake of British telecom. Worlds First SMS chat launched. Bharti bags cellular services in M.P. circle. Bharti acquired Modis promoted spicecell. Bharti bags license for cellular operating in 5 new circles. With this BCL is the only cellular operator to operate in</p> <p>all 4 metros (Delhi, Mumbai, Kolkata, Chennai) with its operationsin Bangalore &amp; Hyderabad too.</p> <p>Institute Of Management Studies, Noida</p> <p>17</p> <p>AirTel An Unflinched Brand AirTel, a part of Bharti Cellular Ltd., was conceived and nurtured under the adages of the Bharti and was born on the 14th day of November 1995, as the original licensee to provide Cellular Telephony to the customer base in the national capital New Delhi. Since its inception in...</p>