project on consumer behaviour towards spice telecom
DESCRIPTION
“ANALYSIS AND IDENTIFICATION OF SMALL MEDIUM BUSINESS (SMB) CUSTOMERS WITH AIRTEL” The company Bharti-Airtel has 3 basic SBUs- the fixed line, the mobile telephony and the data business units. Every SBU has got its own operations, sales and marketing teams. When a customer who is using all the three types of services of Airtel has any kind of problem with his devices/ networks then he needs to address the particular issue to the respective SBU contact person, he has a problem with. Our project aims at convergence of all the three SBUs in order to give its customers better services and even greater quality assured service to all its corporate customers. Our project aimed at achieving the same target. We actually did a feasibility analysis on the convergence issue. Airtel in all wanted to map the existing active key SMBEs (Small and Medium Business Enterprises) accounts with it which holds a business potential.I collected the data through various questionnaires given to me by the company and analysed the same.TRANSCRIPT
AMITY BUSINESS SCHOOL
11 INDIAN TELECOM INDUSTRY
History of Indian Telecommunications started in 1851 when the first operational land
lines were laid by the government near Calcutta (seat of British power) Telephone
services were introduced in India in 1881 In 1883 telephone services were merged with
the postal system Indian Radio Telegraph Company (IRT) was formed in 1923 After
independence in 1947 all the foreign telecommunication companies were nationalized to
form the Posts Telephone and Telegraph (PTT) a monopoly run by the governments
Ministry of Communications Telecom sector was considered as a strategic service and
the government considered it best to bring under states control
The first wind of reforms in telecommunications sector began to flow in 1980s when the
private sector was allowed in telecommunications equipment manufacturing In 1985
Department of Telecommunications (DOT) was established It was an exclusive provider
of domestic and long-distance service that would be its own regulator (separate from the
postal system) In 1986 two wholly government-owned companies were created the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas
In 1990s telecommunications sector benefited from the general opening up of the
economy Also examples of telecom revolution in many other countries which resulted
in better quality of service and lower tariffs led Indian policy makers to initiate a change
process finally resulting in opening up of telecom services sector for the private sector
National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive
roadmap for the Indian telecommunications sector In 1997 Telecom Regulatory
Authority of India (TRAI) was created TRAI was formed to act as a regulator to
facilitate the growth of the telecom sector New National Telecom Policy was adopted in
1999 and cellular services were also launched in the same year
Telecommunication sector in India can be divided into two segments Fixed Service
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Provider (FSPs) and Cellular Services Fixed line services consist of basic services
national or domestic long distance and international long distance services The state
operators (BSNL and MTNL) account for almost 90 per cent of revenues from basic
services Private sector services are presently available in selective urban areas and
collectively account for less than 5 per cent of subscriptions However private services
focus on the businesscorporate sector and offer reliable high- end services such as
leased lines ISDN closed user group and videoconferencing
Cellular services can be further divided into two categories Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA) The GSM sector
is dominated by Airtel Vodafone-Hutch and Idea Cellular while the CDMA sector is
dominated by Reliance and Tata Indicom Opening up of international and domestic long
distance telephony services are the major growth drivers for cellular industry Cellular
operators get substantial revenue from these services and compensate them for reduction
in tariffs on airtime which along with rental was the main source of revenue The
reduction in tariffs for airtime national long distance international long distance and
handset prices has driven demand
The telecom sector is also afflicted by a number of restraints These include
Sluggish pace of reform process
Lack of infrastructure in semi-rural and rural areas which makes it difficult to
make inroads into this market segment as service providers have to incur a huge
initial fixed cost
Limited spectrum availability
But notwithstanding these constraints telecom sector has undergone a revolution in the
past decade and has played a major part in bridging the rural-urban divide
The telecom industry is one of the fastest growing industries in India India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA With a growth rate of 45 Indian telecom industry has the highest growth rate
in the world
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The telecom network in India is the fifth largest network in the world meeting up with
global standards Presently the Indian telecom industry is currently slated to an estimated
contribution of nearly 1 to Indiarsquos GDP
The Indian Telecommunications network with 11001 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia
Today it is the fastest growing market in the world and represents unique opportunities
for US companies in the stagnant global scenario The total subscriber base which has
grown by 40 in 2005 is expected to reach 250 million in 2007 According to
Broadband Policy 2004 Government of India aims at 9 million broadband connections
and 18 million internet connections by 2007 The wireless subscriber base has jumped
from 3369 million in 2004 to 6257 million in FY2004-
2005 In the last 3 years two out of every three new telephone subscribers were wireless
subscribers Consequently wireless now accounts for 546 of the total telephone
subscriber base as compared to only 40 in 2003 Wireless subscriber growth is
expected to bypass 25 million new subscribers per month by 2007 The wireless
technologies currently in use are Global System for Mobile Communications (GSM) and
Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom circles and 4 metro cities covering
2000 towns across the country
Evolution of the industry-Important Milestones
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
3 | P a g e
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Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts Telephone and Telegraph (PTT) a monopoly run by the
governments Ministry of Communications
1985 Department of Telecommunications (DOT) established an exclusive
provider of domestic and long-distance service that would be its own regulator
(separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India New National Telecom Policy is
adopted
2000 DoT becomes a corporation BSNL
Major Players
There are three types of players in telecom services
bull -State owned companies (BSNL and MTNL)
bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)
bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures
Escotel Idea Cellular BPL Mobile Spice Communications)
BSNL
On October 1 2000 the Department of Telecom Operations Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL
is now Indiarsquos leading telecommunications company and the largest public sector
undertaking It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections The state-controlled BSNL operates basic cellular (GSM
and CDMA) mobile Internet and long distance services throughout India (except Delhi
and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year
Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March
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2007 BSNL which became the third operator of GSM mobile services in most circles is
now planning to overtake Bharti to become the largest GSM operator in the country
BSNL is also the largest operator in the Internet market with a share of 21 per cent of the
entire subscriber base
BHARTI
Established in 1985 Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit ranging from being the first mobile service in Delhi
first private basic telephone service provider in the country first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India Bharti Tele-
Ventures Limited was incorporated on July 7 1995 for promoting investments in
telecommunications services Its subsidiaries operate telecom services across India
Bhartirsquos operations are broadly handled by two companies the Mobility group which
handles the mobile services in 16 circles out of a total 23 circles across the country and
the Infotel group which handles the NLD ILD fixed line broadband data and satellite-
based services Together they have so far deployed around 23000 km of optical fiber
cables across the country coupled with approximately 1500 nodes and presence in
around 200 locations The group has a total customer base of 645 million of which 586
million are mobile and 588000 fixed line customers as of January 31 2004 In mobile
Bhartirsquos footprint extends
across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth
opportunities 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 servicesrdquo
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MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
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December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
9 | P a g e
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
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designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Provider (FSPs) and Cellular Services Fixed line services consist of basic services
national or domestic long distance and international long distance services The state
operators (BSNL and MTNL) account for almost 90 per cent of revenues from basic
services Private sector services are presently available in selective urban areas and
collectively account for less than 5 per cent of subscriptions However private services
focus on the businesscorporate sector and offer reliable high- end services such as
leased lines ISDN closed user group and videoconferencing
Cellular services can be further divided into two categories Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA) The GSM sector
is dominated by Airtel Vodafone-Hutch and Idea Cellular while the CDMA sector is
dominated by Reliance and Tata Indicom Opening up of international and domestic long
distance telephony services are the major growth drivers for cellular industry Cellular
operators get substantial revenue from these services and compensate them for reduction
in tariffs on airtime which along with rental was the main source of revenue The
reduction in tariffs for airtime national long distance international long distance and
handset prices has driven demand
The telecom sector is also afflicted by a number of restraints These include
Sluggish pace of reform process
Lack of infrastructure in semi-rural and rural areas which makes it difficult to
make inroads into this market segment as service providers have to incur a huge
initial fixed cost
Limited spectrum availability
But notwithstanding these constraints telecom sector has undergone a revolution in the
past decade and has played a major part in bridging the rural-urban divide
The telecom industry is one of the fastest growing industries in India India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA With a growth rate of 45 Indian telecom industry has the highest growth rate
in the world
2 | P a g e
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The telecom network in India is the fifth largest network in the world meeting up with
global standards Presently the Indian telecom industry is currently slated to an estimated
contribution of nearly 1 to Indiarsquos GDP
The Indian Telecommunications network with 11001 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia
Today it is the fastest growing market in the world and represents unique opportunities
for US companies in the stagnant global scenario The total subscriber base which has
grown by 40 in 2005 is expected to reach 250 million in 2007 According to
Broadband Policy 2004 Government of India aims at 9 million broadband connections
and 18 million internet connections by 2007 The wireless subscriber base has jumped
from 3369 million in 2004 to 6257 million in FY2004-
2005 In the last 3 years two out of every three new telephone subscribers were wireless
subscribers Consequently wireless now accounts for 546 of the total telephone
subscriber base as compared to only 40 in 2003 Wireless subscriber growth is
expected to bypass 25 million new subscribers per month by 2007 The wireless
technologies currently in use are Global System for Mobile Communications (GSM) and
Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom circles and 4 metro cities covering
2000 towns across the country
Evolution of the industry-Important Milestones
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
3 | P a g e
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Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts Telephone and Telegraph (PTT) a monopoly run by the
governments Ministry of Communications
1985 Department of Telecommunications (DOT) established an exclusive
provider of domestic and long-distance service that would be its own regulator
(separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India New National Telecom Policy is
adopted
2000 DoT becomes a corporation BSNL
Major Players
There are three types of players in telecom services
bull -State owned companies (BSNL and MTNL)
bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)
bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures
Escotel Idea Cellular BPL Mobile Spice Communications)
BSNL
On October 1 2000 the Department of Telecom Operations Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL
is now Indiarsquos leading telecommunications company and the largest public sector
undertaking It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections The state-controlled BSNL operates basic cellular (GSM
and CDMA) mobile Internet and long distance services throughout India (except Delhi
and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year
Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March
4 | P a g e
AMITY BUSINESS SCHOOL
2007 BSNL which became the third operator of GSM mobile services in most circles is
now planning to overtake Bharti to become the largest GSM operator in the country
BSNL is also the largest operator in the Internet market with a share of 21 per cent of the
entire subscriber base
BHARTI
Established in 1985 Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit ranging from being the first mobile service in Delhi
first private basic telephone service provider in the country first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India Bharti Tele-
Ventures Limited was incorporated on July 7 1995 for promoting investments in
telecommunications services Its subsidiaries operate telecom services across India
Bhartirsquos operations are broadly handled by two companies the Mobility group which
handles the mobile services in 16 circles out of a total 23 circles across the country and
the Infotel group which handles the NLD ILD fixed line broadband data and satellite-
based services Together they have so far deployed around 23000 km of optical fiber
cables across the country coupled with approximately 1500 nodes and presence in
around 200 locations The group has a total customer base of 645 million of which 586
million are mobile and 588000 fixed line customers as of January 31 2004 In mobile
Bhartirsquos footprint extends
across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth
opportunities 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 servicesrdquo
5 | P a g e
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MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
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AMITY BUSINESS SCHOOL
December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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AMITY BUSINESS SCHOOL
VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
8 | P a g e
AMITY BUSINESS SCHOOL
provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
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AMITY BUSINESS SCHOOL
Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
AMITY BUSINESS SCHOOL
(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
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designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
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called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
The telecom network in India is the fifth largest network in the world meeting up with
global standards Presently the Indian telecom industry is currently slated to an estimated
contribution of nearly 1 to Indiarsquos GDP
The Indian Telecommunications network with 11001 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia
Today it is the fastest growing market in the world and represents unique opportunities
for US companies in the stagnant global scenario The total subscriber base which has
grown by 40 in 2005 is expected to reach 250 million in 2007 According to
Broadband Policy 2004 Government of India aims at 9 million broadband connections
and 18 million internet connections by 2007 The wireless subscriber base has jumped
from 3369 million in 2004 to 6257 million in FY2004-
2005 In the last 3 years two out of every three new telephone subscribers were wireless
subscribers Consequently wireless now accounts for 546 of the total telephone
subscriber base as compared to only 40 in 2003 Wireless subscriber growth is
expected to bypass 25 million new subscribers per month by 2007 The wireless
technologies currently in use are Global System for Mobile Communications (GSM) and
Code Division Multiple Access (CDMA) There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom circles and 4 metro cities covering
2000 towns across the country
Evolution of the industry-Important Milestones
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
3 | P a g e
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Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts Telephone and Telegraph (PTT) a monopoly run by the
governments Ministry of Communications
1985 Department of Telecommunications (DOT) established an exclusive
provider of domestic and long-distance service that would be its own regulator
(separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India New National Telecom Policy is
adopted
2000 DoT becomes a corporation BSNL
Major Players
There are three types of players in telecom services
bull -State owned companies (BSNL and MTNL)
bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)
bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures
Escotel Idea Cellular BPL Mobile Spice Communications)
BSNL
On October 1 2000 the Department of Telecom Operations Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL
is now Indiarsquos leading telecommunications company and the largest public sector
undertaking It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections The state-controlled BSNL operates basic cellular (GSM
and CDMA) mobile Internet and long distance services throughout India (except Delhi
and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year
Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March
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2007 BSNL which became the third operator of GSM mobile services in most circles is
now planning to overtake Bharti to become the largest GSM operator in the country
BSNL is also the largest operator in the Internet market with a share of 21 per cent of the
entire subscriber base
BHARTI
Established in 1985 Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit ranging from being the first mobile service in Delhi
first private basic telephone service provider in the country first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India Bharti Tele-
Ventures Limited was incorporated on July 7 1995 for promoting investments in
telecommunications services Its subsidiaries operate telecom services across India
Bhartirsquos operations are broadly handled by two companies the Mobility group which
handles the mobile services in 16 circles out of a total 23 circles across the country and
the Infotel group which handles the NLD ILD fixed line broadband data and satellite-
based services Together they have so far deployed around 23000 km of optical fiber
cables across the country coupled with approximately 1500 nodes and presence in
around 200 locations The group has a total customer base of 645 million of which 586
million are mobile and 588000 fixed line customers as of January 31 2004 In mobile
Bhartirsquos footprint extends
across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth
opportunities 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 servicesrdquo
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MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
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December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
9 | P a g e
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
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designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
22 | P a g e
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
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2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts Telephone and Telegraph (PTT) a monopoly run by the
governments Ministry of Communications
1985 Department of Telecommunications (DOT) established an exclusive
provider of domestic and long-distance service that would be its own regulator
(separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India New National Telecom Policy is
adopted
2000 DoT becomes a corporation BSNL
Major Players
There are three types of players in telecom services
bull -State owned companies (BSNL and MTNL)
bull -Private Indian owned companies (Reliance Infocomm Tata Teleservices)
bull -Foreign invested companies (Hutchison-Essar Bharti Tele-Ventures
Escotel Idea Cellular BPL Mobile Spice Communications)
BSNL
On October 1 2000 the Department of Telecom Operations Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL) BSNL
is now Indiarsquos leading telecommunications company and the largest public sector
undertaking It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections The state-controlled BSNL operates basic cellular (GSM
and CDMA) mobile Internet and long distance services throughout India (except Delhi
and Mumbai) BSNL will be expanding the network in line with the Tenth Five-Year
Plan (1992-97) The aim is to provide a telephone density of 99 per hundred by March
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2007 BSNL which became the third operator of GSM mobile services in most circles is
now planning to overtake Bharti to become the largest GSM operator in the country
BSNL is also the largest operator in the Internet market with a share of 21 per cent of the
entire subscriber base
BHARTI
Established in 1985 Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit ranging from being the first mobile service in Delhi
first private basic telephone service provider in the country first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India Bharti Tele-
Ventures Limited was incorporated on July 7 1995 for promoting investments in
telecommunications services Its subsidiaries operate telecom services across India
Bhartirsquos operations are broadly handled by two companies the Mobility group which
handles the mobile services in 16 circles out of a total 23 circles across the country and
the Infotel group which handles the NLD ILD fixed line broadband data and satellite-
based services Together they have so far deployed around 23000 km of optical fiber
cables across the country coupled with approximately 1500 nodes and presence in
around 200 locations The group has a total customer base of 645 million of which 586
million are mobile and 588000 fixed line customers as of January 31 2004 In mobile
Bhartirsquos footprint extends
across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth
opportunities 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 servicesrdquo
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MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
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December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
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AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
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designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
2007 BSNL which became the third operator of GSM mobile services in most circles is
now planning to overtake Bharti to become the largest GSM operator in the country
BSNL is also the largest operator in the Internet market with a share of 21 per cent of the
entire subscriber base
BHARTI
Established in 1985 Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit ranging from being the first mobile service in Delhi
first private basic telephone service provider in the country first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India Bharti Tele-
Ventures Limited was incorporated on July 7 1995 for promoting investments in
telecommunications services Its subsidiaries operate telecom services across India
Bhartirsquos operations are broadly handled by two companies the Mobility group which
handles the mobile services in 16 circles out of a total 23 circles across the country and
the Infotel group which handles the NLD ILD fixed line broadband data and satellite-
based services Together they have so far deployed around 23000 km of optical fiber
cables across the country coupled with approximately 1500 nodes and presence in
around 200 locations The group has a total customer base of 645 million of which 586
million are mobile and 588000 fixed line customers as of January 31 2004 In mobile
Bhartirsquos footprint extends
across 15 circles Bharti Tele-Ventures strategic objective is ldquoto capitalize on the growth
opportunities 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 servicesrdquo
5 | P a g e
AMITY BUSINESS SCHOOL
MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
6 | P a g e
AMITY BUSINESS SCHOOL
December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
7 | P a g e
AMITY BUSINESS SCHOOL
VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
8 | P a g e
AMITY BUSINESS SCHOOL
provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
9 | P a g e
AMITY BUSINESS SCHOOL
Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
AMITY BUSINESS SCHOOL
(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
AMITY BUSINESS SCHOOL
13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services expand the telecom network and introduce new services and to raise
revenue for telecom development needs of Indiarsquos key metros ndash Delhi the political
capital and Mumbai the business capital In the past 17 years the company has taken
rapid strides to emerge as Indiarsquos leading and one of Asiarsquos largest telecom operating
companies The company has also been in the forefront of technology induction by
converting 100 of its telephone exchange network into the state-of-the-art digital mode
The Govt of India currently holds 5625 stake in the company In the year 2003-04 the
companys focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India entering into national long
distance operation widening the cellular and CDMA-based WLL customer base setting
up internet and allied services on an all India basis MTNL has over 5 million subscribers
and 329374 mobile subscribers While the market for fixed wire line phones is
stagnating MTNL faces intense competition from the private playersmdashBharti Hutchison
and Idea Cellular Reliance Infocommmdashin mobile services MTNL recorded sales of Rs
602 billion ($138 billion) in the year 2002-03 a decline of 58 per cent over the previous
yearrsquos annual turnover of Rs 6392 billion
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source httpwwwrilcomnewsitem2html) It is also an integrated
telecom service provider with licenses for mobile fixed domestic long distance and
international services Reliance Infocomm 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 Reliance India Mobile the first of Infocomm initiatives was launched on
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December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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AMITY BUSINESS SCHOOL
provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
9 | P a g e
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
December 28 2002 This marked the beginning of Reliances vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for Indias farmers
businesses hospitals government and public sector organizations Until recently
Reliance was permitted to provide only ldquolimited mobilityrdquo services through its basic
services license However it has now acquired a unified access license for 18 circles that
permits it to provide the full range of mobile services It has rolled out its CDMA mobile
network and enrolled more than 6 million subscribers in one year to become the countryrsquos
largest mobile operator It now wants to increase its market share and has recently
launched pre-paid services Having captured the voice market it intends to attack the
broadband market
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group which has 93 companies over
200000 employees and more than 23 million shareholders Tata Teleservices provides
basic (fixed line services) using CDMA technology in six circles Maharashtra
(including Mumbai) New Delhi Andhra Pradesh Tamil Nadu Gujarat and Karnataka
It has over 800000 subscribers It has now migrated to unified access licenses by paying
a Rs 545 billion ($120 million) fee which enables it to provide fully mobile services as
well The company is also expanding its footprint and has paid Rs 417 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime
The new licenses coupled with the six circles in which it already operates virtually gives
the CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm The company hopes to start off services in these 11 new circles by
August 2004 These circles include Bihar Haryana Himachal Pradesh Kerala Kolkata
Orissa Punjab Rajasthan Uttar Pradesh (East) amp West and West Bengal
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VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
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PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
VSNL
On April 1 1986 the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS The company operates a network of
earth stations switches submarine cable systems and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees VSNLs main gateway centers are located at Mumbai New Delhi
Kolkata and Chennai The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems eg FLAG SEA-
ME-WE-2 and SEA-ME-WE-3 The companys ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India The Indian
Government owns approximately 26 per cent equity Ms Panatone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs ADRs Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public The company provides international and
Internet services as well as a host of value-added services Its revenues have declined
from Rs 7089 billion ($162 billion) in 2001-02 to Rs 4812 billion ($11 billion) in
2002-03 with voice revenues being the mainstay To reverse the falling revenue trend
VSNL has also started offering domestic long distance services and is launching
broadband services For this the company is investing in Tata Telservices and is likely to
acquire Tata Broadband
HUTCH
Hutchrsquos presence in India dates back to late 1992 when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai Commercial operations began in November 1995 Between 2000 and March
2004 Hutch acquired further operator equity interests or operating licences With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006 it now
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provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
11 | P a g e
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
provides mobile services in 16 of the 23 defined license areas across the country Hutch
India has benefited from rapid and profitable growth in recent years it had over 175
million customers by the end of June 2006
IDEA
Indian regional operator IDEA Cellular Ltd has a new ownership structure and grand
designs to become a national player but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd IDEA operates in eight telecom ldquocirclesrdquo or
regions in Western India and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO according to parent company Aditya Birla Group
COMPANY MARKET SHARES
Company Million Subs
(Nov 2007)
share
BSNL 403 588
Reliance 61 89
Bharti 57 83
MTNL 49 72
Hutchison 29 42
Idea Cellular 21 30
BPL 14 21
Tata Teleservices 13 19
Spice 10 14
Escotel 08 11
Fascel 08 11
Aircel 09 14
Hexacom 02 03
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Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
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AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Shyam Telelink 01 02
Telecom Policy Environment
Indian telecommunications today benefits from among the most enlightened regulation in
the region and arguably in the world The sector sometimes considered the ldquoposter-boy
for economic reformsrdquo has been among the chief beneficiaries of the post-1991
liberalization Unlike electricity for example where reforms have been stalled
telecommunications has generally been seen as removed from ldquomass concernsrdquo and thus
less subject to electoral calculations Market oriented reforms have also been facilitated
by lobbying from Indiarsquos booming technology sector whose continued success of course
depends on the quality of
communications infrastructure Despite several hiccups along the way the Telecom
Regulatory Authority of India (TRAI) the independent regulator has earned a reputation
for transparency and competence With the recent resolution of a major dispute between
cellular and fixed operators (see below) Indian telecommunications already among the
most competitive markets in the world appears set to continue growing rapidly While
telecom liberalization is usually associated with the post-1991 era the seeds of reform
were actually planted in the 1980s At that time Rajiv Gandhi proclaimed his intention of
ldquoleading India into the 21 st centuryrdquo and carved the Department of Telecommunications
(DOT) out of the Department of Posts and Telegraph For a time he also even considered
corporatizing the DOT before succumbing to union pressure In a compromise Gandhi
created two DOT-owned corporations Mahanagar Telephone Nigam Limited (MTNL)
to serve Delhi and Bombay and Videsh Sanchar Nigam Limited (VSNL) to operate
international telecom services He also introduced private capital into the manufacturing
of telecommunications equipment which had previously been a DOT monopoly These
and other reforms were limited by the unstable coalition politics of the late 1980s It was
not until the early 1990s when the political situation stabilized and with the general
momentum for economic reforms that telecommunications liberalization really took off
In 1994 the government released its National Telecommunications Policy (NTP-94)
which allowed private fixed operators to take part in the Indian market for the first time
10 | P a g e
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(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
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GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
(cellular operators had been allowed into the four largest metropolitan centers in 1992)
Under the governmentrsquos new policy
India was divided into 20 circles roughly corresponding to state boundaries each of
which would contain two fixed operators (including the incumbent) and two mobile
operators As ground-breaking as NTP-94 was its implementation was unfortunately
marred by regulatory uncertainty and over-bidding A number of operators were unable
to live up to their profligate bids and confronted with far less lucrative networks than
they had supposed pulled out of the country As a result competition in Indiarsquos telecom
sector did not really become a reality until 1999 At that time the governmentrsquos New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue
sharing regime of approximately 15 This figure has subsequently been lowered (to
10-12) and is expected to be reduced even further over the coming years Still
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002) leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller Another perhaps even more significant
problem with Indiarsquos initial attempts to introduce competition was the lack of regulatory
clarity Private operators complained that the licensor ndash the DOT ndash was also the
incumbent operator The many stringent conditions attached to licenses were thus seen by
many as the DOTrsquos attempt to limit competition It was in response to such concerns that
the government in 1997 set up the Telecom Regulatory Authority of India (TRAI) the
nationrsquos first independent telecom regulator Over the years TRAI has earned a growing
reputation for independence transparency and an increasing level of competence Early
on however the regulator was beleaguered on all fronts It had to contend with political
interference the incumbentrsquos many challenges to its authority and accusations of
ineptitude by private players Throughout the late 1990s TRAIrsquos authority was steadily
whittled away in a number of cases when the courts repeatedly held that regulatory
power lay with the central government It was not until 2000 with the passing of the
TRAI
Amendment Act that the regulatory body really came into its own Coming just a year
after NTP-99 the act marks something of a watershed moment in the history of India
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telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
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Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
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new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
telecom liberalization It set the stage for several key events that have enabled the
vigorous competition witnessed today Some of these events include
bull The corporatization of the DOT and the creation of a new state-owned telecom
company Bharat Sanchar Nigam Ltd (BSNL) in 2000
bull The opening up of Indiarsquos internal long-distance market in 2000 and the subsequent
drop in long-distance rates as part of TRAIrsquos tariff rebalancing exercise
bull The termination of VSNLrsquos monopoly over international traffic in 2002 and the partial
privatization of the company that same year with the Tata group assuming a 25 stake
and management control
bull The gradual easing of the original duopoly licensing policy allowing a greater number
of operators in each circle
bull The legalization in 2002 of IP telephony (a move that many believe was held up due to
lobbying by VSNL which feared the consequences on its international monopoly) The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones despite
considerable opposition (including litigation) by fixed operators
bull And more generally the commencement of more stringent interconnection regulation
by TRAI which has moved from an inter operator ldquonegotiations-basedrdquo approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach
All of these events have created an impressive forward-momentum in Indian
telecommunications resulting in a vigorously competitive and fast-growing sector India
has also suffered from its fair share of regulatory hiccups Many operators (mobile
players in particular) still complain about the difficulties of gaining access to the
incumbentrsquos (BSNL) network and the governmentrsquos insistence on capping FDI in the
telecom sector to 49 (a move made in the name of national security) limits capital
availability and thus network rollout In addition ISPs who were allowed into the market
under a liberal licensing regime in 1998 continue to hemorrhage money and have been
pleading with the government for various forms of relief including the provision of
unmetered phone numbers for Internet access Despite initially impressive results the
growth of Internet in the country has recently stalled with only 8 million users
Broadband penetration too remains tiny
12 | P a g e
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
AMITY BUSINESS SCHOOL
13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
22 | P a g e
AMITY BUSINESS SCHOOL
National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Unified Licensing
But perhaps the biggest ndash and until recently most intractable ndash regulatory problem has
been the drawn-out battle over ldquolimited mobilityrdquo telephony This imbroglio began in
1999 when MTNL sought permission from TRAI to provide CDMA-based WLL
services with ldquolimited mobilityrdquo GSM cellular operators were soon up in arms arguing
that ldquolimited mobilityrdquo was simply a backdoor entry into their business Moreover fixed
operators had paid lower license and spectrum fees than cellular ones were not required
to pay access charges for cell-to-fixed calls (unlike their cellular counterparts) and
amidst accusations of cross-subsidization were charging
considerably lower rates than the cellular operators The resulting conflict dragged on in
the courts and in the political arena for years Fixed operators including new entrants
Reliance and Tata Teleservices claimed that they were being prevented from providing a
cheap service that would drive penetration and be of benefit to the ldquocommon manrdquo
cellular players bitterly opposed what they perceived as unequal regulatory treatment for
two kinds of operators who
were in fact offering the same service The real victim of course was the Indian
telecommunications market which suffered from investor perceptions of regulatory
confusion and operator in-fighting In late 2002 for example thousands of mobile users
in New Delhi were for a time cut off from the fixed-line network when MTNL shut down
interconnection for cellular companies (MTNL later attributed the incident to a
ldquotechnical snagrdquo)
It was not until late 2003 that the issue was finally resolved under considerable
government pressure when cellular operators agreed to withdraw their many cases
against the fixed-line operators Fixed operators would in effect be allowed to enter the
mobile business in return the government granted cellular players several concessions
including lower revenue-share arrangements estimated to total over $210 million
Perhaps most notably the government announced its intention to adopt a ldquounified access
licensingrdquo regime which would in the future provide a single technology-neutral license
for fixed and cellular operators The hope is that this
13 | P a g e
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
14 | P a g e
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
15 | P a g e
AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
AMITY BUSINESS SCHOOL
13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
22 | P a g e
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
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called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
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0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
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GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
new license category will prevent a repeat of the recent controversy and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws
MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the humble PC
internet broadband (both wireless and fixed) and cable handset features talking SMS
IPTV soft switches and managed services to the local manufacturing and supply chain
This report discusses key trends in the Indian telecom industry their drivers and the
major impacts of such trends affecting mobile operators infrastructure and handset
vendors
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself) They prefer
wireless services compared to wire-line services which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006 the
wire-line subscriber base growth rate is negligible during the same period In fact many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution The main drivers for this trend are
quick service delivery for mobile connections affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class ndash a prime market for this service Some of the positive impacts of
this trend are as follows According to a study 18 percent of mobile users are willing to
change their handsets every year to newer models with more features which is good
news for the handset vendors The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-
line services the mobile operators have numerous options to generate non-voice revenues
from their customers Some examples of value-added services are ring tones download
colored ring back tones talking SMS mobisodes (a brief video programme episode
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designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
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0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
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GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
designed for mobile phone viewing) etc Moreover there exists great opportunity for
content developers to develop applications suitable for mobile users like mobile gaming
location based services etc On the negative side there is an increased threat of virus ndash
spread through mobile data connections and Bluetooth technology ndash in mobile phones
making them unusable at times This is good news for anti-virus solution providers who
will gain from this trend
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services However it must also be noted that this may very well never
happen on account of low telecom penetration
NEW CIRCLES
As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can
accommodate more players we expect aggressive response by the companies to such
opportunities as and when they are created
Constraints
1048698 Slow pace of the reform process
1048698 It would be difficult to make in-roads into the semi-rural and rural areas because of the
lack of infrastructure The service providers have to incur a huge initial fixed cost to
make inroads into this market Achieving break-even under these circumstances may
prove to be difficult
1048698 The sector requires players with huge financial resources due to the above mentioned
constraint Upfront entry fees and bank guarantees represent a sizeable share of initial
investments While the criteria are important it tends to support the existing big and older
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players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
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reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
players Financing these requirements require a little more liberal approach from the
policy side
1048698 Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators
12 CURRENT SCENARIO
Yes thatrsquos true Indian telecommunication Industry is one of the fastest growing telecom
markets in the world The mobile sector has grown from around 10 million
subscribers in 2002 to reach 350 million by early 2009 registering an average growth
of over 90 The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices Surprisingly CDMA market has increased it market share up
to 30 thanks to Reliance Communication However across the globe CDMA has been
loosing out numbers to popular GSM technology contrary to the scenario in India The
other reason that has tremendously helped the telecom Industry is t he regulatory changes
and reforms that have been pushed for last 10 years by successive Indian governments
According to Telecom Regulatory Authority of India (TRAI) the rate of market
expansion would increase with further regulatory and structural reforms
Even though the fixed line market share has been dropping consistently the overall
(fixed and mobile) subscribers have risen to more than 200 million by first quarter
of 2007 The telecom reforms have allowed the foreign telecommunication companies to
enter Indian market which has still got huge potential International telecom companies
like Vodafone have made entry into Indian market in a big way
Currently the Indian Telecommunication market is valued at around $100 billion (Rupees
400000 crore) Two telecom players dominate this market - Bharti Airtel with 27
market share and Reliance Communication with 20 along with other players like BSNL
(Bharat Sanchar Nigam Limited) and ATampT
One segment of the market that has been puzzling is broadband Internet Despite the
manner in which the countries Internet market has been booming Indiarsquos move into high-
speed broadband Internet access has been distinctly slow And while there appears to be
considerable enthusiasm amongst the population for the Internet itself this has not been
16 | P a g e
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
17 | P a g e
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
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14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
19 | P a g e
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
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AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
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GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
reflected in broadband subscription numbers In 2006 India witnessed a good surge in
broadband users with the total subscriber base in the country expanding by almost
200 to just over 2 million by years end Despite this surge broadband penetration in
India still remains around only 02 broadband services still account for only 25 of
the total Internet subscriber base still in itself comparatively low
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth targeting 250 million telephone
subscribers by end-2007 and 500 million by 2010 Most of the expansion in subscribers is
set to occur in rural India Indiarsquos rural telephone density has been languishing at around
19
so if 70 of total population is rural the scope for growth in this Industry is
unprecedented
GSM and CDMA subscription numbers
YearGSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
200031 94 - -
2001505 76 - -
2002105 91 08 -
2003220 110 64 700
2004374 70 109 70
2005585 57 191 75
20061054 80 442 131
20071800 71 850 92
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13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
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Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
13 MARKET-SIZE PLAYERS AND TRENDS
Today India has the eighth largest telecom network in the world which is growing at an overall rate of over 20 per cent As of May 2004 India had about 43 million fixed lines and 36 million wireless subscribers contributing to the total tele-density of about 7
According to Morgan Stanley the total revenue from the Indian telecom market in financial year 2003 was estimated to be about US$ 92 billion Presently wireline service contribute about half of the total service revenues Over the next 5-8 years however their contribution is expected to fall to about 30 per cent and wireless services are expected to contribute half the industry revenue Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues
46
19
2
18 123
Wireline
GSM
CDMA
Domestic Long Distance
Iinternational Long Distance
Data
18 | P a g e
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
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AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
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AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
14 TELECOM INDUSTRY SCENARIO IN REST OF THE WORLD
Two major factors responsible for the growth of telecommunications industry are use of
modern technology and market competition One of the products of modern technologies
is optical fibers which are being used as a medium of data transmission instead of using
coaxial or twisted pair cables Optical fibers can carry a high volume of data and are
easier to maintain and install Use of communication satellites makes this
telecommunications industry a booming industry
The use of mobile network has a crucial role behind the growth of an improved
telecommunications industry Leading companies are showing their interest to invest in
this telecommunications industry Telecommunications industry is going to be a
digitized one Use of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and eventually enhanced the speed
and quality of digital communication
The introduction of these advanced technologies makes the telecommunications industry
a competitive one where a number of multinational companies have shown their interest
to invest in this industry and consequently the prices are reduced the quality is also
improved During the period of 1990 the telecommunication industry showed a speedy
growth in terms of investment and eventually increased the competition The competition
between the companies led to the decline of revenues
World telecom industry is an uprising industry proceeding towards a goal of achieving
two third of the worlds telecom connections Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry Substantial economic growth
and mounting population enable the rapid growth of this industry
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AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Research works associated with world telecommunication industry
A number of research works are being carried out all over the world to improve the
quality and speed of transmission Research works are also done on the basis of the users
needs The objective of the research work is to provide quality and affordable service to
the consumers
Market potentiality of world telecommunication industry
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010 The leading telecom companies like ATampT
Vodafone Verizon SBC Communications Bell South and Qwest Communications are
trying to take the advantage of this growth These companies are working on
telecommunication fields like broadband technologies EDGE(Enhanced Data rates for
Global Evolution) technologies LAN-WAN inter networking optical networking voice
over Internet protocol wireless data service etc
Economical aspect of telecommunication industry
World telecom industry is taking a crucial part of world economy The total revenue
earned from this industry is 3 percent of the gross world products and is aiming at
attaining more revenues One statistical report reveals that approximately 169 of the
world population has access to the Internet
Present market scenario of world telecom industry
Over the last couple of years world telecommunication industry has been consolidating
by allowing private organizations the opportunities to run their businesses with this
industry The Government monopolies are now being privatized and consequently
competition is developing Among all the domestic and small business markets are the
hardest
20 | P a g e
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
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15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Statistical report
Phoenix Center research revealed that in the coming years there will be a healthy
competition among the providers of telecommunication services At the same time the
price will be lower and quality will be higher The new telecommunications technologies
will replace the traditional telecom services Statistical data also reveals that the
telecommunications industry is going to be a dynamic and booming industry in the near
future The telecom industry comprises of complex network of services like telephones
mobile phones and internet services
Telecom industry trends
Throughout the world telecom industries are being controlled by private companies
instead of government monopolies Traditional telecom technologies are also being
replaced by modern wireless technologies specifically in case of mobile services One of
the major objectives of telecom industry is to enhance the quality and speed of Internet
technology
These days telecom industry is more concerned with texts and images (Internet
technologies) rather than voice (telephone service) Most of the research works are going
on Internet accessibility specifically on data applications and broadband services The
other major division of telecom industry is mobile network sector where lots of
innovative research works are going on Previously the traditional telephone calls used to
earn the maximum revenues but these days mobile service is going to replace traditional
telephone services
Telecom industry analysis from the expertrsquos point of view
Telecom industry is a vast and diversified industry and needs a huge capital to invest
That is why the competitors of this industry should be such that they can meet that
demand From the investors point of view it can be said that they should be well aware
of cash flow in this industry
21 | P a g e
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
22 | P a g e
AMITY BUSINESS SCHOOL
National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
15 COMPANY PROFILE
About 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 amp 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 Indiarsquos 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 (SBUrsquos) - Mobile Services Airtel Telemedia Services amp Enterprise Services The
mobile business provides mobile amp fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband amp
telephone services in 94 cities The Enterprise services provide end-to-end telecom
solutions to corporate customers and national amp international long distance services to
carriers All these services are provided under the Airtel brand
Bharti Group
Turnover Rs 6000 Crore
Employees 8000 +
Market Capitalization Rs 673 billion Approx
Mobility Voice amp Data Services across all India footprint covering all 23
telecom circles of the country
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National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
27 | P a g e
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
28 | P a g e
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
National Long Distance Fiber Optic Backbone across India
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
- I2i Undersea Fiber from Singapore to Chennai
Bharti Airtel is one of Indias leading private sector providers of telecommunications
services based on an aggregate of 64268047 customers as on March 31 2008 consisting
of 61984721 GSM mobile and 2283326 Bharti Telemedia subscribers
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUrsquos) - mobile services telemedia services (ATS) amp enterprise services
The mobile services group provides GSM mobile services across India in 23 telecom
circles while the ATS business group provides broadband amp telephone services in 94
cities The enterprise services group has two sub-units - carriers (long distance services)
and services to corporates All these services are provided under the Airtel brand
Company shares are listed on The Stock Exchange Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE)
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 companyrsquos 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 amp Mphasis
23 | P a g e
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Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
24 | P a g e
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
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1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
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PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
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GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
Company Background
Bharti Airtel Limited a part of Bharti Enterprises is Indiarsquos leading provider of
telecommunications services The businesses at Bharti Airtel have been structured into
three individual strategic business units (SBUrsquos) ndash mobile services broadband amp
telephone services (BampT) amp enterprise services The mobile services group provides
GSM mobile services across India in 23 telecom circles while the BampT business group
provides broadband amp telephone services in 94 cities The Enterprise services group has
two sub-units ndash carriers (long distance services) and services to corporate All these
services are provided under the Airtel brand
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 1970rsquos as bicycle parts
manufacturer knitwear and stainless steel utensils in Ludhiana Punjab state Together
with other foreign companies he has raised $ 15 billion of which $ 800 million is still in
the bank
Bharti happens to be Indiarsquos premier telecom company in the field of telecom
terminals and technology tie ups with world leaders like ldquo Siemens Goldstar
Tatacom and Casio It is the first company in India to export telephones to USA
and has finalized plans to manufacture GSM terminals in India
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 ndash 12 senior
people The early beginnings in 1985 were in manufacturing telephone handsets They
did not have the expertise to do 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 Indiarsquos leading private sector provider of
telecommunications services based on a strong customer base consisting of
approximately 1150 million total customers which constitute approximately 1066
million mobile and approximately 836000 fixed line customers as of January 31 2005
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Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
26 | P a g e
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
32 | P a g e
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Milestones
Telecom Services
Largest Private Telecom Service Provider in India- more than 15000000
subscribers
AIRTEL ndash Biggest footprint in India covering 23 states and largest GSM network
with over 14000000 users in India
First amp Largest Pvt Company to launch Fixed line Service in 15 states in India
starting Madhya Pradesh ndash Over 2000000 subs
First amp only Indian company to operate Telecom Services outside India ndash
Seychelles
First Private company to have Fiber Gateway for Data amp Voice at Chennai amp 7
Ku Band Gateway for Internet bandwidth
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 amp 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 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
25 | P a g e
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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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
29 | P a g e
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
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 2008 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
Touchtel
Until September 18 2004 Bharti provided fixed-line telephony and broadband services
under the Touchtel brand Bharti now provides all telecom services including fixed-line
services under a common brand Airtel
Apples iPhone 3G
Apple has announced launch of its new iPhone in US and other 25 countries on July 11th
2008 it is soon to be launched in India as well with Bharti
BlackBerry
On 19th October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM)
In the news
On February 12 2007 Vodafone sold its 56 stake in AirTel back to AirTel for US $16
billion and purchased a controlling stake in rival Hutchison Essar
In its monthly press release following statistics have been presented for end of April
2007
Bharti Airtel added the highest ever net addition of 53 million customers in a single
quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers
in 2006-07
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The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
The company will invest up to $35 billion this fiscal (07-08) in network expansion It has
an installed base of 40000 cellsites and 59 population coverage After the proposed
network expansion an additional 30000 towers will result in the company achieving
70 population coverage Bharti has over 39 million users as on March 31 2007 It has
set a target of 125 million subscribers by 2010 Prepaid customers account for 885 of
Bhartirsquos total subscriber base an increase from 827 a year ago ARPU has dropped to
Rs 406 Non-voice revenues (SMS voice mail call management hello tunes and Airtel
Live) constituted 10 of total revenues during Q4 lower than 107 in the Q4 of the
previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes
The company Has completed 100 verification of its subscribers and in the process
disconnected three lakh subscribers
Bharti Airtelrsquos enterprise Services President - David is busy connecting India to Europe
David announced the building of 15000 km 384 Terabit OFC sub-marine cable system
connecting Europe [London] to India via the Middle East The project is known as
Europe India gateway [EIG] and is expected to cost $700 million which is to be
completed by Q2-2010 Alcatel Lucent and Tyco are the telecom vendors for the project
Members in the EIG consortium include - ATampT BT CampW Djibouti Telecom Du
Gibtelecom IAM Libyan Telecom MTN Group Ltd Omantel PT Comunicacoes-SA
Saudi Telecom Company Telecom Egypt Telkom SA Ltd and Verizon Business
In May 2008 it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East The Financial Times reported that Bharti was
considering offering US$45 billion for a 100 stake in MTN which would be the largest
overseas acquisition ever by an Indian firm However both sides emphasize the tentative
nature of the talks while The Economist magazine noted If anything Bharti would be
marrying up as MTN has more subscribers higher revenues more subscribers and
broader geographic coverage However the talks fell apart as MTN group tried to reverse
the negotiations by making Bharti almost a subsidiary of the new company
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Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
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AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
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AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
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- Scaling
-
AMITY BUSINESS SCHOOL
Airtelrsquos Network
Transport System
Optical Fiber Cable (OFC) used for network for higher Performance amp Reliability
Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC
Network
Ring Topology for Full redundancy
State of the art Network Management System(Nortel) for SDH equipment
Vision amp Promise
By 2010 Airtel will be the most admired brand in India
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel We deliver what we promise and go out of our
way to delight the customer with a little bit more
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VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
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AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
VARIOUS SERVICES PROVIDED BY AIRTEL
For individuals
Various Services Provided by Airtel are
MOBILE
Experience total cost control no rentals and easy billing with our postpaid and prepaid
services Explore the world with our roaming services and get absolutely cool offers with
airtel live
HOME PHONES
Airtel welcomes you to the world of telephony services for your home experience a
world-class service and cutting edge technology with Airtel landline and our feature rich
Wireless fixed line Whatrsquos more calling is made more fun amp convenient with services
and entertainment on Airtel
BROADBAND INTERNET
Airtel Broadband Services Indiarsquos most preferred high-speed Internet service redefines
your Internet experience It is fast fun convenient and cost effective
BLACKBERRY
Blackberry from Airtel is and always connected wireless solution providing easy and
secure access to your email and data
EMAIL ON THE GO
Want to access information on your mobile Airtel brings you Email on the go You can
choose from Blackberry and Windows Mobile 50 depending upon the usage patterns
requirement and suitability
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CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
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CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
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for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
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4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
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TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
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The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
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TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
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BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
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RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
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BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
CALLING CARDS
Our calling card services connect you to the world from India and allow a better way to
call back India
WIRELESS INTERNET
With Airtelrsquos Wireless Internet you have the freedom to access the Internet anytime
anywhere across India It enables Internet Email and Office applications with real-time
secure VPN access to corporate applications whilst on the move
FOR CORPORATES
MOBILE
We offer you mobile solutions targeted for your business needs We create price plans
that work for your business along with a range of features
VOICE
Our voice services give you the right tools to suit the needs of small medium and large
enterprises and to stay ahead
PRI for COMPANY NAMEGroup
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires
OFFICE SOLUTION
Manage your business more efficiently and effectively with Airtelrsquos Office Solutions
Easy Mail and Data Card
DATA amp INTERNET
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs
30 | P a g e
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
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Organizational Structure Of Bharti Enterprise
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Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
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21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
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31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
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Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
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data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
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Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
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Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
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Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
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Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
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With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
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Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
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If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
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In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
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Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DIDDOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility
E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7
SATELLITE SERVICES
We provide you connectivity where ever you take your business Our Satellite Services
bring you the benefits of access in remote locations
CARRIER SERVICES
Indiarsquos first private long distance communications service provider with world-class
Voice and Data communication services
INTERNATIONAL SERVICES
Get the communication solutions your business needs to stay connected worldwide with
our International Services
31 | P a g e
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Enterprise
32 | P a g e
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Enterprise
32 | P a g e
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Organizational Structure Of Bharti Airtel Enterprise
2 RESEARCH METHODOLOGY
33 | P a g e
AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
21 ndash TITLE - ldquoIdentification and analysis of SMBEs customers with AIRTELrdquo
22 ndashOBJECTIVE - To find out the hidden business potential in SMBEs
23 ndashGAP -
To know about the potential hidden business opportunities
The know hidden business strength of the key accounts
Customer reactions about this exercise
34 | P a g e
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
31 ndash Primary Data collection
In primary data collection you collect the data yourself using methods such as interviews
and questionnaires The key point here is that the data you collect is unique to you and
your research and until you publish no one else has access to it
Advantages-
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey
Can be posted e-mailed or faxed
Can cover a large number of people or organizations
Wide geographic coverage
Relatively cheap
No prior arrangements are needed
Avoids embarrassment on the part of the respondent
Respondent can consider responses
Possible anonymity of respondent
No interviewer bias
Disadvantages-
Design problems
Questions have to be relatively simple
Historically low response rate (although inducements may help)
Time delay whilst waiting for responses to be returned
35 | P a g e
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Require a return deadline
Several reminders may be required
Assumes no literacy problems
No control over who completes it
Not possible to give assistance if required
Problems with incomplete questionnaires
Replies not spontaneous and independent of each other
Respondent can read all questions beforehand and then decide whether to
complete or not For example perhaps because it is too long too complex
uninteresting or too personal
Methods of collecting primary data used
Questionnaire - In this we have taken a sample size 150 respondents Our main
objective is to know the potential business points from where business can be
derived for Airtel
Face to face- This method involves direct interaction or personal interaction with
the focused group to get more and relevant information on the topic which I had
taken
32 ndash Secondary Data collection
All methods of data collection can supply quantitative data (numbers statistics or
financial) or qualitative data (usually words or text) Quantitative data may often be
presented in tabular or graphical form Secondary data is data that has already been
collected by someone else for a different purpose to yours For example this could mean
using
data collected by a hotel on its customers through its guest history system
36 | P a g e
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
data supplied by a marketing organization
annual company reports
Government statistics
Secondary data can be used in different ways
You can simply report the data in its original format If so then it is most likely
that the place for this data will be in your main introduction or literature review as
support or evidence for your argument
You can do something with the data If you use it (analyze it or re-interpret it) for
a different purpose to the original then the most likely place would be in the
lsquoAnalysis of findingsrsquo section of your dissertation A good example of this usage
was the work on suicide carried out by Durkheim He took the official suicide
statistics of different countries (recorded by coroners or their equivalent) and
analyzed them to see if he could identify variables that would mean that some
people are more likely to commit suicide than others He found for example that
Catholics were less likely to commit suicide than Protestants In this way he took
data that had been collected for quite a different purpose and used it in his own
study ndash but he had to do a lot of comparisons and statistical correlations himself in
order to analyse the data (Most research requires the collection of primary data
(data that you collect at first hand) and this is what students concentrate on
Unfortunately many dissertations do not include secondary data in their findings
section although it is perfectly acceptable to do so providing you have analyzed
it It is always a good idea to use data collected by someone else if it exists ndash it
may be on a much larger scale than you could hope to collect and could contribute
to your findings considerably
As secondary data has been collected for a different purpose to yours you should treat it
with care The basic questions you should ask are
Where has the data come from
37 | P a g e
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Does it cover the correct geographical location
Is it current (not too out of date)
If you are going to combine with other data are the data the same (for example
units time etc)
If you are going to compare with other data are you comparing like with like
Thus you should make a detailed examination of the following
Title (for example the time period that the data refers to and the geographical
coverage)
Units of the data
Source (some secondary data is already secondary data)
Column and row headings if presented in tabular form
Definitions and abbreviations for example what does SIC stand for For
example how is lsquosmallrsquo defined in the phrase lsquosmall hotelrsquo Is lsquosmallrsquo based on
the number of rooms value of sales number of employees profit turnover
square metres of space etc and do different sources use the word lsquosmallrsquo in
different ways Even if the same unit of measurement is used there still could be
problems For example in Norway firms with 200-499 employees are defined as
lsquomediumrsquo whereas in the USA firms with less than 500 employees are defined as
lsquosmallrsquo
There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources
Sources can be classified as
paper-based sources ndash books journals periodicals abstracts indexes
directories research reports conference papers market reports annual reports
internal records of organizations newspapers and magazines
38 | P a g e
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Electronic sourcesndash CD-ROMs on-line databases Internet videos and
broadcasts
The main sources of qualitative and quantitative secondary data include the follwing
Official or government sources
The arrangement is alphabetical by organization with details of titles produced and
contacts for further information It lists references to the following types of sources
trade associations
trade and other journals
private research publishers-
stock-broking firms
large company market reports
local authorities
professional bodies
Academic institutions
European Union (Community) sources
International sources
Organization for Economic Co-operation and Development (OECD)
United Nations and related organizations
Sources for the last two categories are many and varied If your dissertation requires
these sources you need to conduct a more thorough search of your library and perhaps
seek the assistance of the librarian
Methods I have used
39 | P a g e
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Internet Portals - The relevant data related to euro norms and consumer reactions
to various euro norms was searched from internet portals These portals act as a
intermediate between the user and the required information as it an intermediate
and used as a communication tool like Internet sites
Magazines- we had collected data from various magazines journals and also
referred to various newspapers for getting more information on euro norms
33 - SAMPLE SIZE AND AREA
Size ndash 150
Area ndash Delhi and NCR specially the following-
Hauz-Khas
Green Park
Lado Sarai
Vasant Kunj
Vasant Vihar
Chanakyapuri
Nehru Place
34- SAMPLING TECHNIQUES
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern especially
for the purposes of statistical inference Each observation measures one or more
properties (weight location etc) of an observable entity enumerated to distinguish
objects or individuals Results from probability theory and statistical theory are employed
to guide practice
40 | P a g e
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Nominal -Nominal scale is a simple system of assigning number symbols to
events in order to label them The usual example of this is assignment of numbers
of basketball players in order to identify them Such numbers cannot be
considered associated with an ordered scale of their order is of no consequence
the numbers are just convenient labels for the particular class of events and as
such have no quantitative value Neither can one usefully compare the numbers
assigned to one group with the numbers assigned to another
Interval - In case of intervals scale the interval are adjusted in terms of some rule
that has been established as a basis of making equal units The units are equal
only if one accepts the assumptions on which the rule is based Interval scales can
have an arbitrary zero but it is not possible to determine for them what may be
41 | P a g e
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
called an arbitrary zero or the unique origin One can say that there is same
increase in temperature from 30-40 degrees as in case of 60-70 degrees
Paired Comparison - this involve divided the questions on the basis of consumer
approval techniques like Yes and No questions
Summated Technique- This is also known as ldquolikert-type scalesrdquo which are
developed by utilizing the item analysis approach wherein a particular item is
evaluated on the basis of how well it discriminates between those persons whose
total score is high and whose total score is low Thus summated scales consists of
a number of statements which express either a favorable or an unfavorable
attitude towards the given object to which the respondent is asked to react
With simple random sampling each item in a population has an equal chance of inclusion
in the sample For example each name in a telephone book could be numbered
sequentially If the sample size was to include 2000 people then 2000 numbers could be
randomly generated by computer or numbers could be picked out of a hat These numbers
could then be matched to names in the telephone book thereby providing a list of 2000
people
Methods I have chosen
Random- In random sampling all items have some chance of selection that can be
calculated Random sampling technique ensures that bias is not introduced regarding
whom is included in the survey Five common random sampling techniques are
SIMPLE RANDOM SAMPLING
42 | P a g e
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
With simple random sampling each item in a population has an equal chance of inclusion in
the sample For example each name in a telephone book could be numbered sequentially If
the sample size was to include 2000 people then 2000 numbers could be randomly generated
by computer or numbers could be picked out of a hat These numbers could then be matched
to names in the telephone book thereby providing a list of 2000 people
A Tattslotto draw is a good example of simple random sampling A sample of 6
numbers is randomly generated from a population of 45 with each number having an
equal chance of being selected
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The advantage of simple random sampling is that it is simple and easy to apply when small
populations are involved However because every person or item in a population has to be
listed before the corresponding random numbers can be read this method is very cumbersome
to use for large populations
The sampling process consists of seven simple stages
Defining the population of concern
Specifying a sampling frame a set of items or events
possible to measure
Specifying a sampling method for selecting items or
events from the frame
Determining the sample size
Implementing the sampling plan
43 | P a g e
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Sampling and data collecting
Reviewing the sampling process
SYSTEMATIC SAMPLING
Systematic sampling sometimes called interval sampling means that there is a gap or
interval between each selection This method is often used in industry where an item is
selected for testing from a production line (say every fifteen minutes) to ensure that machines
and equipment are working to specification
Alternatively the manufacturer might decide to select every 20th item on a production line to
test for defects and quality This technique requires the first item to be selected at random as a
starting point for testing and thereafter every 20th item is chosen
This technique could also be used when questioning people in a sample survey A market
researcher might select every 10th person who enters a particular store after selecting a
person at random as a starting point or interview occupants of every 5th house in a street
after selecting a house at random as a starting point
It may be that a researcher wants to select a fixed size sample In this case it is first necessary
to know the whole population size from which the sample is being selected The appropriate
sampling interval I is then calculated by dividing population size N by required sample size
n as follows
I = Nn
44 | P a g e
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
If a systematic sample of 500 students were to be carried out in a university with an enrolled
population of 10000 the sampling interval would be
I = Nn = 10000500 =20
Note if I is not a whole number then it is rounded to the nearest whole number
All students would be assigned sequential numbers The starting point would be chosen by
selecting a random number between 1 and 20 If this number was 9 then the 9th student on
the list of students would be selected along with every following 20th student The sample of
students would be those corresponding to student numbers 9 29 49 69 9929 9949 9969 and
9989
The advantage of systematic sampling is that it is simpler to select one random number and
then every lsquoIthrsquo (eg 20th) member on the list than to select as many random numbers as
sample size It also gives a good spread right across the population A disadvantage is that you
may need a list to start with if you wish to know your sample size and calculate your
sampling interval
STRATIFIED SAMPLING
A general problem with random sampling is that you could by chance miss out a particular
group in the sample However if you form the population into groups and sample from each
group you can make sure the sample is representative
45 | P a g e
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
In stratified sampling the population is divided into groups called strata A sample is then
drawn from within these strata Some examples of strata commonly used by the ABS are
States Age and Sex Other strata may be religion academic ability or marital status
The committee of a school of 1000 students wishes to assess any
reaction to the re-introduction of Pastoral Care into the school
timetable To ensure a representative sample of students from all year
levels the committee uses the stratified sampling technique
In this case the strata are the year levels Within each strata the
committee selects a sample So in a sample of 100 students all year
levels would be included The students in the sample would be selected
using simple random sampling or systematic sampling within each
strata
Stratification is most useful when the stratifying variables are simple to work with easy to
observe and closely related to the topic of the survey
An important aspect of stratification is that it can be used to select more of one group than
another You may do this if you feel that responses are more likely to vary in one group than
another So if you know everyone in one group has much the same value you only need a
small sample to get information for that group whereas in another group the values may
differ widely and a bigger sample is needed
If you want to combine group level information to get an answer for the whole population
you have to take account of what proportion you selected from each group
46 | P a g e
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
CLUSTER SAMPLING
It is sometimes expensive to spread your sample across the population as a whole For
example travel can become expensive if you are using interviewers to travel between people
spread all over the country To reduce costs you may choose a cluster sampling technique
Cluster sampling divides the population into groups or clusters A number of clusters are
selected randomly to represent the population and then all units within selected clusters are
included in the sample No units from non-selected clusters are included in the sample They
are represented by those from selected clusters This differs from stratified sampling where
some units are selected from each group
Examples of clusters may be factories schools and geographic areas such as electoral sub-
divisions The selected clusters are then used to represent the population
Suppose an organisation wishes to find out which sports Year 11
students are participating in across Australia It would be too costly and
take too long to survey every student or even some students from every
school Instead 100 schools are randomly selected from all over
AustraliaThese schools are considered to be clusters Then every Year
11 student in these 100 schools is surveyed In effect students in the
sample of 100 schools represent all Year 11 students in Australia
Cluster sampling has several advantages reduced costs simplified field work and
administration is more convenient Instead of having a sample scattered over the entire
coverage area the sample is more localised in relatively few centres (clusters)
47 | P a g e
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
Cluster samplingrsquos disadvantage is that less accurate results are often obtained due to higher
sampling error than for simple random sampling with the same sample size In the above
example you might expect to get more accurate estimates from randomly selecting students
across all schools than from randomly selecting 100 schools and taking every student in those
chosen
MULTI-STAGE SAMPLING
Multi-stage sampling is like cluster sampling but involves selecting a sample within each
chosen cluster rather than including all units in the cluster Thus multi-stage sampling
involves selecting a sample in at least two stages In the first stage large groups or clusters are
selected These clusters are designed to contain more population units than are required for the
final sample
In the second stage population units are chosen from selected clusters to derive a final
sample If more than two stages are used the process of choosing population units within
clusters continues until the final sample is achieved
An example of multi-stage sampling is where firstly electoral sub-divisions
(clusters) are sampled from a city or state Secondly blocks of houses are
selected from within the electoral sub-divisions and thirdly individual
houses are selected from within the selected blocks of houses
The advantages of multi-stage sampling are convenience economy and efficiency Multi-
stage sampling does not require a complete list of members in the target population which
greatly reduces sample preparation cost The list of members is required only for those
clusters used in the final stage The main disadvantage of multi-stage sampling is the same as
48 | P a g e
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
for cluster sampling lower accuracy due to higher sampling error
Convenient - In this we carry out our survey based on nearness and approachability of the
respondent based o our convenience Here the area or the group of respondents which are
really easy to approach and interaction is possible within a less span of time are selected for
carrying out the survey and data collection
35- QUESTIONNAIRErsquoS SCALES AND SCALING TECHNIQUES
Scaling
Scaling is the branch of measurement that involves the construction of an instrument that
associates qualitative constructs with quantitative metric units Scaling evolved out of efforts
in psychology and education to measure immeasurable constructs like authoritarianism and
self esteem In many ways scaling remains one of the most arcane and misunderstood aspects
of social research measurement And it attempts to do one of the most difficult of research
tasks -- measure abstract concepts
Most people dont even understand what scaling is The basic idea of scaling is described in
General Issues in Scaling including the important distinction between a scale and a response
format Scales are generally divided into two broad categories one-dimensional and
multidimensional The one-dimensional scaling methods were developed in the first half of the
twentieth century and are generally named after their inventor Well look at three types of one-
dimensional scaling methods here
Thurston or Equal-Appearing Interval Scaling Likert or Summative Scaling Guttmann or Cumulative Scaling
In the late 1950s and early 1960s measurement theorists developed more advanced techniques
for creating multidimensional scales Although these techniques are not considered here you
may want to look at the method of concept mapping that relies on that approach to see the
power of these multivariate methods
49 | P a g e
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
4 ANALYSIS
TABLE I
The following table shows the percentage of different phone operators used by the SMBeS [age out of total 150 accounts surveyed]
50 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
TABLE SHOWING SMBeS HAVING FIXED LINE CONNECTIONS OF DIFFERENT OPERATORS
Operators
Values AIRTEL MTNL BSNL RCOM TATA INDICOM
27 45 17
11
Out of the total 150 customers surveyed the table above shows the percentage of
SMBeS using fixed line connections [telephone lines] of different companies Despite of
the fact that Airtel gives the best service both in terms of quality and customer service it
the state owned public sector company leads the pack in this segment It has the first
mover advantage with it Moreover most of the public sector companies gave undue
preference to MTNL BSNL for whatsoever reasons Here MTNLBSNL leads with
45 share whereas AIRTEL has 27 share RCOM and INDICOM has 17 and 11
shares respectively
CHART I
51 | P a g e
PERCENTAGE VALUES
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
AIRTEL27
MTNLBSNL45
RCOM17
TATA INDICOM11
Chart showing age of fixed telephone lines by different SMBeS
The above chart shows graphically which of the operators have largest share in fixed line
telephony market State owned companies MTNL BSNL lead with 45 share while
Airtel has 27 share in fixed telephony market Other new players like Tata Indicom and
reliance Infocomm has 11 and 17 shares respectively The market share of RCOM
and TATA INDICOM are improving slowly
TABLE II
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR COMPANY PAID MOBILE IN CORPORATES
52 | P a g e
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
The above table shows the percentage of different telecom operators used by the corporate for company paid mobile connections under different CUG plans
Operators
ValuesAirtel Vodafone Rcom Idea Others
562 111 197 88 42
Out of total 150 corporates surveyed Airtel showed up as the favorite brand as far as
company paid mobile connections are concerned just because of the excellent services it
provided Although Airtel did not provide the cheapest services still it is market leader
in this segment Here Airtel leads with 562 market share followed by Rcom with
197 share Vodafone with 111 and Idea with 88 share
GRAPH II
GRAPH SHOWING AGE OF COMPANY PAID MOBILE CONNECTIONS OF VARIOUS CORPORATES
53 | P a g e
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
0
10
20
30
40
50
60
562
111197
88
42
Airtel
Vodaphone
Reliance
Idea
Other
This Bar-graph shows that in present scenario Airtel has the largest market share in the
company paid mobile sector Airtel should continue providing better services and
schemes to maintain this position in company paid mobile connections segment
TABLE III
54 | P a g e
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
TABLE SHOWING AGE OF DIFFERENT OPERATORS FOR BROADBAND CONNECTIONS IN CORPORATES
The following table shows the percentage of different telecom operators used by corporate in Broadband segment
Operators
Values AIRTEL MTNL SPECTRANET HATHWAY
306 226 123 345
The table above shows the percentage of different telecom operators used by the
corporates in broadband segment Here Hathway leads the pack with 345 market
share followed by Airtel with 306 share followed by Mtnl with 226 share and
finally Spectranet with 123 market share
55 | P a g e
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
GRAPH III
GRAPH SHOWING AGE OF DIFFERENT TELECOM OPERATORS USED BY THE CORPORATES IN BROADBAND SEGMENT
05
101520253035
Airtel
MTNL
Spec-trane
t
Hathway
306 123
226
345
AirtelMTNLSpectranetHathway
The graph above shows the percentage of different telecom operators in broadband
segment Here Hathway leads the pack with 345 share followed by Airtel with
306 share followed by Mtnl with 226 share and finally Spectranet with 123
market share
56 | P a g e
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
CHART IV
PIE-CHART SHOWING THE PERCENTAGE OF SATISFIED CUSTOMERS WITH AIRTEL
88
10
2
SatisfiedNot SatisfiedCant Say
The above pie-chart shows that most of the existing customers with Airtel are satisfied
with the kind of services the company has been providing to them About 88 of the
customers are already satisfied with Airtelrsquos services 10 customers are not-satisfied
and 2 customers say that they canrsquot comment about it
57 | P a g e
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
BENEFITS OF AIRTEL INTERNET SERVICE
High Speed Access
Get the advantage of the quickest and easiest access to the Internet On the state of
the art Airtel network you can transfer data up to 155 Mbps
Service Level Guarantee
We guarantee service availability and network latency or extend your service for
free as per Service Level Guarantee
Scalability
Free yourself from the constraints of limited bandwidth by choosing from our
wide range of access speeds (64 Kbps to 155 Mbps) to cater to your needs
247 Network Monitoring and Technical Support
Our 247 network monitoring ensures your network runs smoothly A 247
technical support team is dedicated to you round the clock to resolve any
technical problems you may encounter and ensures that service is delivered as per
Airtel Service Level Guarantee
Integrated Solution Approach
Our Enterprise Services is an end-to-end communications solutions provider
giving customer centric integrated service We have the expertise and the
experience in the field of providing flawless Internet connectivity
Network
We have a completely managed IP network that builds a converged platform to
run all enterprise solutions The entire backbone is built on trusted names like
Cisco and Juniper to provide data capacity in terabytes and high routingswitching
speed Muti tier network architecture is designed to avoid single point of failure
and offer highest network availability Scalability in no time is the highlighting
point of our network
All the Internet core routers in the ISP backbone are connected in a
Star topology and are using OSPF routing protocol To communicate with
external world the EBGP-4 protocol is used at the international gateway egress
routers
58 | P a g e
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
RECOMMENDATIONS AND SUGGESTIONS
Develop plans targeting the specific user groups like youth students and wemen
Develop ultra economy plans for poor people to whom maintaining a connection
is still a luxury
Educate customer on the benefits of Value-added services
Company should make more promotional campaign in commercial areas
Strategic Partnerships with leading Global Telecom Service Providers amp
Investors
Know areas of strength and areas of improvement
Design Individual Development Plans so as to convert areas of improvement to
areas of strength
Identify the competencies required at different levels
Identification and development of employees for future roles and responsibilities
Customer care services provided to the active customers should be more efficient
towards the problem solution
59 | P a g e
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-
AMITY BUSINESS SCHOOL
BIBLIOGRAPHY
BOOKS
Philip Kotler ndash Marketing Management
Naresh K Malhotra ndash Marketing Research
INTERNET SITES
wwwairtelin
wwwbhartiairtelin
wwwgooglecom
wwweconomicstimesarchivecom
wwwmarketresearchcomproductdisplayasp
wwweconomywatchcombudgetindia-budget-2007sector-analysishtml -
26k -
hikrishblogspotcom200610indias-telecom-sector-growinghtml - 82k ndash
wwwoppaperscomtopicsforces-analysis-telecom-sector
wwwieoorgtel_polhtml - 13k
wwwprlogorg10075065-rncos-releases-new-report-indian-telecom-analysis-
2008-2012html
60 | P a g e
- Scaling
-