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1. INTRODUCTION TO INDUSTRY

In the early 1990s, the Indian government adopted a new economic policy aimed at improving

India's competitiveness in the global markets and the rapid growth of exports. Key to achieving

these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai

and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are

further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C"

being the least attractive. The regulatory body at that time the Department o

Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-

four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellularservice was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was

stipulated that no firm can win in more than one metro, three circles or both. The circles of

Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and

Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok

Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The

government decided to set up TRAI to separate regulatory functions from policy formulation,

licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole

responsibility of the DOT. High license fees and excessive bids for the cellular licenses put

tremendous financial burden on the operators, diverting funds away from network. As a result,

by 1999 many operators failed to pay their license fees and were in danger of having their

licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom

Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by

a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid

to the government.

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1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIRRESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by

several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some o

these roadblocks / current position is tabulated below:

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ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment

of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum, while

businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with

4/5 major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all

operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making

roles vested in different bodies.

Interconnect terms since rationalized, risks on pass through income to DOT / BHART

(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in

methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared

with vacation of frequencies for usage by GSM operators.

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Problems in Financial closures due to:

Licensing tenure of 10 years Large up front cash requirements from promoters due to heavy license fee burden in

initial stages of deployment Asset based financing approach by Indian Financia

Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee payments mitigated with migration to

revenue sharing mode allowing promoters to deploy more capital for capita

expenditure; project financing being considered by most financial institutions.Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine

allowing ease of entry / exit - paves the way for full control of businesses by foreign

companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective

measures taken, market / subscriber base expected to zoom.

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased

against the former. Despite the recent gains of the cellular industry, not everything is rosy. The

cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people. In

recent years, many foreign companies had pulled out from their cellular joint ventures in India

due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulledout from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of

Thailand and Jasmine International from JT Mobile.

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In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of

Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti

Cellular. Bell South International has also indicated its intention to pull out from Skycel

Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice

Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is

uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger and acquisition wave

sweeping across the Indian cellular industry in recent years. Hong Kong-based Vodafoneison

Whampoa, via Vodafoneison Telecommunications (HK), acquired major stakes in Sterling

Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000).

Through a partnership with local company, Kotak Mahindra Finance, Vodafoneison Whampoa

practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limi

on foreign ownership in Indian cellular operators. Vodafoneison Whampoa is also the

controlling shareholder of Vodafoneison Max Telecom. Not to be outdone, Bharti Enterprises

another major cellular player acquired control of JT Telecom, which was later renamed

Bharti Mobile (December 1999), and

Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the

Punjab license of Essar and started operations, giving competition to the lone operator there

Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into

one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in

four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses,

followed by Escotel with four, Vodafoneison with three, and Reliance and Idea cellular with one

each. Bharti and Vodafoneison have already commenced operations in all the circles whileIdea is set to launch in Delhi. Escotel and Reliance have not made any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001.

BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in

January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was

scheduled for 2 October 2002. However, this has been postponed until after mid October

Once BSNL rolls out its service, most telecom circles will have four cellular operators.

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There will be tremendous competitive pressure, which will result in lower tariffs. Future rate

cuts are expected, which will drive demand, together with falling handset prices and the

introduction of prepaid services. In the midst of declining interest in technology stocks, Bhart

came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the

success of its cellular service, the company got a very good response from the primary market.

The total size of the IPO was 185 million shares at a floor price of Rs10.

The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used

to fuel its investment in long-distance, basic and cellular services.

As of October 2002, only BPL Mobile has launched commercial general packet radio service

(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea

have GPRS-enabled networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively promoting their

brand and service portfolio through high-visibility advertising and promotional campaigns

Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on

hoardings and kiosks. Public transport like the city rail system and cabs are used widely to

carry the message of mobility.

Customer-focused activities are gaining traction among cellular operators with the

establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange

Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like

discounts on airfare, food and beverages, among others. Others offer special privileges in

retail outlets, cinemas and music shops.

Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have

concentrated on offering differentiated services for businesses. However, as operators realize

that offering basic voice and Short Message Service (SMS) will get them the numbers but not

the margins, some are now seriously looking at the enterprise segment for provisioning

superior services.

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Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and

instant alerts are being offered. A variety of mobile applications are finding takers among the

enterprise segment. Bharti is in the process of introducing a facility to fleet management

companies so that they can improve the efficiency of trucks or buses by tracking movement

and ensuring higher-use, accurate route planning.

Premium automakers are also installing a global system for mobile communications inside a

vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose

enhanced services like user-defined call routing to prevent misuse. Calls can be barred,

limiting access to select numbers and diverting calls to one single number. Broadcasting

services are also quite popular, especially among fast food centers that have a central number.

Group SMS is quite popular, especially among enterprises both in the service as well as the

fast-moving consumer goods (FMCG) segment that have a large field force and need to

provide regular updates on inventory status, discount schemes and movement of goods from

warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward

transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to

maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to offer data

services. This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means that prices will no longer

be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is crucial

especially for the business subscriber.

The bigger the service provider's national presence, the better it is for businesses. On

the roaming front, signing up with a national operator is advantageous.

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Limited mobility wireless in local-loop services (by fixed network service providers) wil

be a disadvantage for cellular operators in the short term. Consequently, operators

need to streamline their customer relation activities and adopt aggressive subscriber

acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A

document buried in the sands of time. The next major policy document, which was produced,

was the National Telecom Policy of 1994, a consequence of the on going process ofliberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DoT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995 Tenders for 2nd operator in basic services apart from DoT on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rathe

than a series of action points. Like other policies, it sought to achieve the impossible in finite

time like improve quality of service and its availability, wide coverage (a phone in every

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village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn

additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had

also allowed private operators in value added services.

To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21

circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The

basic premise on which competition has been introduced is that every circle will have one

private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/

BHARTI have the option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme, which was

broadening the reach of telephony in India, has not been met. Even liberalization policies were

not implemented properly. The regulator TRAI was set up after delays and confusion and even

after its creation, DoT continued to fight with it in courts. It was also affected by the resource

crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy

direction it showed was to allow private sector entry in both basic and value added services.

The intention, though noble failed to achieve its goals because of improper implementation, the

economic costs are still borne by the end user.The telecom sector has witnessed some

fundamental structural and institutional reforms in the past decade. telecom equipmen

manufacturing was completely deregulated in 1991.

Value-added services (including cellular services) were thrown open to private secto

participation in 1992. An independent telecom regulatory Authority of India was set up in 1997

A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing

independent service providers to enter the sector ending the earlier monopoly of VSNL

Reorganization of DoT, separating policymaking function and service provision and

corporatization of DoT's operational network are two major institutional reforms, which need to

be implemented.

2. INRODUCTION TO THE ORGANISATION

2.1 BHARTI GROUP

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Bharti Enterprises has been at the forefront of technology and has revolutionized

telecommunications with its world class products and services.

Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts

and innovations to its credit. Bharti provides a range of telecom services, which include

Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also

manufactures and exports telephone terminals and cordless phones.

Bharti is the leading cellular service provider, with a footprint in covering all four metros. It has

over eight million satisfied customers.

JOINT VENTURES

Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg

Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance

Corporation, USA and New York Life International, USA.

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in

telecommunications services. Its subsidiaries operate telecom services across India. Bhart

Tele-Ventures is India's leading private sector provider of telecommunication services based

on a strong customer base consisting of approximately 8.37 million total customers which

constitute, approximately 17.67 million mobile and approximately 2704,000 fixed line

customers, as of June 30, 2004Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

2.2 MANGEMENT STRUCTURE

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The group has been structured to create functional and operational specialization with a linear

vision of business lines and functional areas. The Company is headed by Chairman and Group

Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- Akhi

Gupta and Rajan Bharti Mittal. The Company also has two Presidents- President Mobile

Services and President Infotel Services, this responsibility includes Fixed-line, Long Distance

and Broadband Services. The Presidents report to the Group Chairman and Managing

Director. The head of units and Strategic Business Units (SBU) report to the respective

business's President.

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PROFILE OF THE COMPANY

Historical prospective of Bharti Airtel:-

Sunil Bharti Mittal:-

Chairman& Managing Director since October 2001

Board director since: July 1995

Age: 50 years

Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. Head quartered at

New Delhi, India.

Bharti Airtel, Indias leading private integrated telecom company has been at the forefront ofthe Telecom revolution and has transformed the telecom sector with its world-class services

built on leading edge technologies. Bharti has been a pioneering force in the telecom sector

and today enjoys a strong nationwide presence.

Sunil started his career at a young age of 18 after graduating from Punjab University in

India and founded Bharti, with a modest capital, in the year 1976. Today, at 50 he heads a

successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40

billion and employing over 30,000 people.

Bharti has grown successfully in partnership with various leading companies of the world -

Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other

businesses in the group are consumer electronics (Bee tel), life insurance with AXA of France

(Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and

export fruits and vegetables to the world (Field Fresh) Bharti has recently entered into a JV

with Wal-Mart for setting up supply chain, logistics and cash and carry to support the

burgeoning retail market in India.

Sunil is an alumnus of Harvard Business School, MA, USA.

Sunil has been conferred one of the highest civilian award Padma Bhushan.

Sunil has been conferred the degree of Doctor of Science (Honoris Causes) by the G B Pant

University of Agriculture & Technology.

Sunil is an Honorary Fellow of The Institution of Electronics and Telecommunication

Engineers (IETE)".

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Sunil is the Honorary Consul General of the Republic of Seychelles in New Delhi, India.

Bharti Enterprises, India's leading telecom conglomerate, has been at the forefront o

technology and has revolutionized telecommunications with its world-class products andservices. Established in 1976, Bharti has been a pioneering force in the telecom sector with

many firsts and innovations to its credit. Bharti has many joint ventures with telecom leaders

like SingTel, Singapore; British Telecom, UK; E.M.Warburg Pincus, USA; Talia, Sweden and

New York Life International, USA.

Bharti Airtel was founded in 1995, to the name of BTVL (Bharti Tele Venture Limited).Its head

quarter is in New Delhi. It is Public listed company on BSE. The named changed to Bhart

Airtel in early 2006.

Bharti Tele-Ventures Limited (BTVL) is India's largest TelecomBusiness operator with more

than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband

services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal

The company also provides telephone services and Internet access over DSL in 14 circles

The company complements its mobile, broadband & telephone services with national and

international long distance services. The company also has a submarine cable landing station

at Chennai, which connects the submarine cable connecting Chennai and Singapore. The

company provides end-to-end data and enterprise services to the corporate customers through

its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles,

VSATs, ISP and international bandwidth access through the gateways and landing station.

Airtel is a brand of telecommunication services in India operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of subscribers

Bharti Airtel owns the Airtel brand and provides the following services under the brand name

Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line

Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services(Telecommunications Consulting for corporate). It has presence in all 23 circles of the country

and has the covers 71% of the current population till FY07.

Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA. In September

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2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile

telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the

launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airte

signed a MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed

network. In August 2007, the company announced it will be launching a customized version of

Google search engine that will provide an 'array of services' to its broadband customers.

In March 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.

Organization culture of Bharti Airtel:-

Organization Culture is a Dynamic system of shared values, beliefs, philosophies,

experiences, habits, behavior that give an organization its distinctive character.

This excellence extends beyond technology roles, and is equally important to how we

manage and sustain this rapid growth.

The spirit of innovation and excellence.

The opportunity for cross-functional moves.

Taking a risk on new ideas and giving us ours own creativity space to operate in.

External training courses are sponsored to ensure that the objective of offering continuous

professional development is achieved.

Various department of Bharti Airtel:-

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2.3 BHARTIS VISION

To make mobile communications a way of life and be the customers first choice.

BHARTIS MISSION

Meet the mobile communication needs of the customer through

1) Error free service

2) Innovative products and services and

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3) Cost efficiency.

4) Unified messaging solutions

Airtel from Bharti Cellular Limited is a part of the biggest private integrated telecom

conglomerate, Bharti Enterprises.

2.4 CORE VALUE OF BHARTI

Innoventuring

Generating and implementing entrepreneurial and innovative ideas, to create new

growth engines.

Customer First

Committed to delivering service beyond the expectations of the customer.

Performance Culture

Benchmarking processes and performance against world-class standards helps to

distinguish between performers and non-performers by valuing achievement at the

individual as well as the team level. The culture encourages and invites feedback

learning and ideas sought and acted upon.

Valuing Partnership

Committed to building exemplary relationship with partners, which stands on the

principles of mutual trust and mutual growth.

Valuing People

Nurtures an environment where people are respected and their uniqueness is

valued. Firmly believing that people are key differentiates.

Responsible Corporate Citizenship

Committed to making a positive and proactive contribution to the community and as

a responsible corporate citizen will contribute to and abide by environmental and

legal norms.

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Ethical Practices

Will uphold the highest ethical standards in all internal and external relationship and

will not allow misuse or mis-representation of any facts.

2.5 BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective is

To capitalize on the growth opportunities that the Company believes are available in

the Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus

on providing mobile services.

The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographica

coverage;

Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

Position itself to tap data transmission opportunities and offer advanced mobile data

services;

Focus on satisfying and retaining customers by ensuring high level of custome

satisfaction;

Leverage strengths of its strategic and financial partners.

Emphasis is laid heavily on human resource development to achieve operational efficiencies.

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2.6 MOBILE STRATEGY

Capture maximum telecommunications revenue potential with minimum geographica

coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer

superior services.

Provide affordable tariff plans to suit each segment of the market with a view to

expand the reach, thereby increasing the mobile customer base rapidly.

Attract and retain high revenue generating customers by providing competitive tariffs,

offering high quality customer services.

2.7 COMPETITIVE STRENGTH

Bharti Tele-Ventures believes that the following elements will contribute to the Company's

success as an integrated telecommunication services provider in India and will provide the

Company with a solid foundation to execute its business strategy:

Nationwide Footprint - As of June 30, 2004, approximately 92% of India's total mobile

subscribers resided in the Company's sixteen mobile circles. These 16 circles

collectively accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to better anticipate industry

trends and capitalize on new telecommunications-related business opportunities

The strong brand name recognition and a reputation for offering high quality service to

its customers;

The Company's strong relationships with international strategic and financial investors

such as Singtel, Warburg Pincus, International Finance Corporation, Asian

Infrastructure Fund Group and New York Life Insurance.

Quality management teams with vision and proven execution skills.

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2.8 MOBILE DIVISION

The Indian mobile market, according to the (COAI), has increased from approximately 1.2

million subscribers as of March 31, 1999 to approximately 37.38 million subscribers as of

December 31, 2004.

Despite this rapid growth, the mobile penetration rate in India, at approximately 3.6% as of

December 31, 2004, is significantly lower than the average mobile penetration rate in other

Asian and international markets.

The number of mobile subscribers in India is expected to show rapid growth over the next four

years, 2006 projected it at 50 million by COAI and 44 million by Gartner.

Bharti Tele-Ventures believes that the demand for mobile services in India will continue to

grow rapidly as a result of the following factors:

Lower tariffs and handset prices over time;

Growth in pre-paid customer category;

Greater economic growth and continued development;

Higher quality mobile networks and services; and

Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the

twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing

mobile services under Bharti Cellular Limited.

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2.9 NETWORK

The map below depicts the location of, and provides certain information for, Bharti Tele-

Ventures' existing mobile circles in India:

The key demographics of Bharti Tele-Ventures' mobile circles are set forth below.

All India Bharti Circles Bharti as % of All India

Number of circles

22 16 73%

Area of the circles (in '000 sq. km)(1)

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3,278 1,848 56%

Population in the licensed areas (in Mn)(2)

1,027 593 58%

Market Mobile subscribers in the licensed areas (in Mn) (3)

37.38 36.31 97%

Market DELs in the licensed area (in Mn) (4)

37.7 30.7 81%

Number of vehicles in the licensed areas (in '000s)(5)

36,132 29,025 80%1. Area estimates are from National Census, 2001.

2. Population estimates for all the circles other than the metropolitan areas are as per

National Census, 2001 and are as of March 1, 2001. Population estimates for the Uttar

Pradesh (West) circle is 37% of the total population of the state of Uttar Pradesh.

3. Based on data released by the COAI on the total number of mobile subscribers in the

circles as of December 31, 2004.

4. DELs as on March 31, 2002. Based on data released questions and Governmentstatistics as per The Financial Express dated June 10,2002.

5. Vehicles comprise four wheeler and two wheeler non-commercial.

6. Vehicles and are derived from data released by the Motor Transport Statistics of India

as of March 31, 1997 in its most recent report.

2.10ACHIEVEMENTS

The largest private sector in integrated telecommunications services group in India in

terms of the number of customers.

Largest Mobile footprint in India, covering 20 of the 23 licensed areas.

Proven track record of managing growth - both organic as well as by way of

acquisitions.

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Existing foreign shareholders have acquired direct and indirect equity interests in the

Company for a total consideration exceeding US$1 billion.

First and largest private telecommunications services company offering fixed-line

services in India.

First private telecommunications company to launch long distance services.

First off the block to launch fixed-line services in all the four circles of Delhi, Haryana,

Karnataka and Tamil Nadu.

FIRST AMONGSTFIRST operator to revolutionize the concept of retailing with the inaugurations of connects

(exclusive showrooms) in 1995.

FIRST mobile communication service provider in India to be certified for ISO9001: 2000.

FIRST in world certified by British Standards Institution for mobile Communication.

FIRST to expand its network with the installation of second mobile switching centers in

1997.

FIRST TO introduce the intelligent network platform first to provide retail subscribers byforming an association called World 1 Network.

FIRST to provide roaming facility in USA.

FIRST to introduce a wide array of value added services like Smart mail, fax facility, call

waiting, Web-messages, information services etc. to enhance the convenience of its

subscribers.

2.11 AWARDS AND RECOGNITIONBharti Tele-Ventures, its subsidiaries and management have received several awards and

recognitions, including:

Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in November

2001 in the Asian edition of the "tele.com" magazine with analytical inputs from research

consultants Frost &Sullivan.

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The leading telecommunications service provider in India in a survey of Indian

companies conducted by Business World in association with Indian Marketing Research

Bureau in September 2001.

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The Techies award from Information Communications World, an international business

magazine, for four consecutive years (1997 to 2000) for brand excellence, network quality,

customer service and value added service in our Delhi mobile circle.

Golden Peacock National Training Award 1999 to Bharti Cellular for our Delhi mobile

operations from the Institute of Directors, a non-profit association in India committed to

improving the competitiveness of Indian business by focusing on development of business

leaders, for the best human resources and training practices.

Ascent Times of India and Sodexho Pass award in 1999 from the Asia Pacific HRD

conclave to Bharti Cellular for corporate excellence in the category of most innovative human

resource practices.

Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honored as " One

of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for the year 2001

by international business magazine, Business Week.

Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by Business

India.

Mr. Sunil Bharti Mittal was awarded the Dataquest IT man of the year 2002.

Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World HRD

congress.

Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial Officer

for year 2001 for Mergers & Acquisitions activities by EIU.

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Introduction of Indian Telecom sector

The industry is considered as having the highest potential for investment in India. Thegrowth in demand for telecom services in India is not limited to basic telephone services. India

has witnessed rapid growth in cellular, radio paging, value added services. This is expected to

soar in the next five years.

Recognizing that the telecom sector is one of the prime movers of the economy, the

Governments regulatory and policy invites have also been directed towards establishing world

class telecommunications infrastructure in India. The telecom sector in India therefore offers

an ideal environment for investment.

The telecommunications initiative in the country is lead by Minister of Communications

through the Department of Telecommunication $ Department of Telecom services and its

undertaking for provision of basic telephone services, national and international long distance

communications, manufacture of complete range of Telecom equipment, research and

development, and consultancy services. The telecom Commission performs the Executive and

policy making functions. The Telecom regulatory authority of India performs the functions of an

independent regulatory body.

About GSM:-

The most prevalent wireless standard in the world today, is GSM. The GSM association

(Global system for Mobile communications) was introduced in 1987 to Promote and expedite

the adoption, development, deployment and evolution of the GSM standard for digital wireless

communications.

The GSM association was formed as a result of European community agreement on the

need to adopt common standards suitable for cross border European Mobilecommunications.

Starting of primarily as a European standard, the Group special Mobile as it was then called

soon came to represent the Global system for Mobile communications as it achieved the status

of world-wide standards. GSM is today, the worlds leading digital standard accounting for 70%

of the global digital wireless market.

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The Indian Government when considering the introduction of cellular services into the Country,

made a landmark decision to introduce the GSM standard, leapfrogging Obsolescent

technologies /standards.

Although cellular license were made technology neutral in September 1999, all the private

operators are presently offering only GSM based mobile services. The new licenses for the 4 th

cellular licenses that were awarded in July 2001 too, have adopted for GSM technologies to

offer their mobile services.

The GSM standard for digital cell phones was established in Europe in the mid-1980s--long

before digital cellular phones became common place in American culture.

It is now possible to locate a person using a cellular phone down to a range of a few meters,

anywhere on the Globe.

About Airtel

Airtel cellulars antecedents date back to 1995 that time it is known to the named by BTVL

(Bharti tele venture limited) and named changed in early 2006 to Bharti Airtel. It is established

by Sunil Mittal Bharti.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largesTelecomBusiness operator with more than 64.4 million subscribers as of April 2009. It also

offers fixed line services and broadband services. It offers its TELECOM services under the

Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and

Internet access over DSL in 14 circles. The company complements its mobile, broadband &

telephone services with national and international long distance services. The company also

has a submarine cable landing station at Chennai, which connects the submarine cable

connecting Chennai and Singapore. The company provides end-to-end data and enterprise

services to the corporate customers through its nationwide fiber optic backbone, last mile

connectivity in fixed-line and mobile circle. Bharti enterprises are public listed company, and its

revenue is $6 billion. In July 2007 the company announced to the collaboration with Nokia-

Siemens for a $900 million expansion of its mobile and fixed network. Vision of the company is

125 million customers on 2010.President of Bharti Airtel is Manoj Kohli, and Joint Managing

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Director is Rajan B. Mittal. Airtel has three BSU unit respectively Mobile, Broadband and

telephone enterprises.

The total customer of Airtel as on 31st May 2009 is 66825935.The company will invest

up to $3.5 billion this Fiscal 2007-08 in network expansion. In Mar 2009 Bharti Airtel will rollout

3G service in Sri Lanka In associated with SingTel, which stake is 30% in Airtel

The study has revealed the following results:-

The Market share of following GSM services in India is following:-

Group Company Total Subscribers

Airtel(GSM) 66825935

Reliance (CDMA + GSM) 48696295

Vodafone Essar(GSM) 47466853

BSNL(GSM) 36997418

IDEA(GSM) 26140643

Tata (CDMA) 25476062

Aircel(GSM) 11491986

Spice(GSM) 4497675

MTNL(GSM + WLL) 3350437

BPL(GSM) 1331261

HFCL (CDMA) 326150

Shyam (CDMA) 108396

Total (All India) 272709111

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The market share in percentage of the various GSM service providers in the corporate sector

of India is as follows:-

Airtel: - 24.50% Tata Indicom: - 9.34%

BSNL:-13.57% Vodafone: - 17.41%

Idea:-9.59% Reliance (GSM+CDMA):- 17.86%

Others:-7.73%

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3. TELECOM IN RAJASTHAN & RELATED ASPECTS

3.1 AIRTEL IN RAJASTHAN

Rajasthan is Indias largest state with 10.4% of the countrys geographical area and 5.5% of

the countrys population. Located in the western India, Rajasthan is a popular touris

destination with tourism contributing nearly 12% of the state's revenue. The state has a low

wireless density of 1.68% and offers huge potential for the growth of wireless services.

Recently, Bharti has reached an agreement with the Shyam group to acquire their equity stake

of 67.5% in Hexacom, whereby Bharti Tele-Ventures has successfully acquired the

Rajasthan operations. The addition of the Rajasthan circle to its domain of mobile operations

is a step ahead towards an all India footprint.

Vodafone (Aircel Digilink), BSNL, Reliance, Shyam Telelink are the other four existing wireless

service providers in the Rajasthan circle. As on June 30, 2004, Hexacom had approximately

296,700 GSM customers in Rajasthan, with a GSM market share of approximately 38% in the

circle.

3.2 CELLULAR ANALOGY

Introduction to telecomm technologies

There are two types of telephone service infrastructure

Fixed wired (standard telephones using copper or fibre cables) and wireless (cordless

analogue and DECT digital)

Mobile cellular analogue and digital (GSM), and satellite

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GPRS a new data network which offers an "always on" connection to the Internet, and

increases the speed at which data is transferred over mobile phones. A GPRS device

such as a desktop/laptop/palm top computer, can be permanently connected to the

network through an internal card or external box, with an aerial for Internet and other

services. Starting bandwidth is up to 28 or 56kbps depending on strength of signal, with

plans to increase this to 128kbps. At the higher bandwidth the service could be a viable,

always-on alternative to ISDN.

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Third generation (3G) mobile or UMTS (Universal Mobile Telephone Service) wil

provide fast Internet access, which will in practice enable data transfer and network

applications to be used from laptop, notebook and handheld computers.

Satellite phones are bulky and expensive but can be used most anywhere in the world.

3.4 GSM TECHNOLOGY

The development of GSM started in the early 1980s. It was the mainstay of the plans

for Europes mobile communication infrastructure for the 1990s. Today, GSM and its

DCS 1800 and PCs 1900 versions have spread far beyond Western Europe withnetworks installed across all continents.

The story begins in 1982 when the European Conference of Posts and

Telecommunications Administrations (CEPT), consisting then of the telecommunication

administrations of twenty-six nations made two very significant decisions. The first was

to establish a team with the title "Groupe Spciale Mobile" (hence the term "GSM",

which today stands for Global System for Mobile Communications) to develop a set of

common standards for a future pan-European cellular network. The second was to

recommend that two blocks of frequencies in the 900 MHz band be set aside for the

system. The CEPT made these decisions in an attempt to solve the problems created

by the uncoordinated development of individual national mobile communication

systems using incompatible standards.

The impossibility of using the same terminal in different countries whilst traveling

across Europe was one of these problems; another was the difficulty of establishing a

Europe-wide mobile communications industry that would be competitive in world

markets due to the lack of a sufficiently larger home market with common standards.

By 1986 it was clear that some of these analogue cellular networks would run out of

capacity by the early 1990s. As a result, a directive was issued for two blocks of

frequencies in the 900 MHz band, albeit somewhat smaller than recommended by the

CEPT, to be reserved absolutely for a pan-European service to be opened in 1991.

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The digital system would offer improved spectrum efficiency, better quality

transmission and new services with enhanced features including security. It would also

permit the use of Very Large Scale Integration (VLSI) technology, which would lead to

smaller, and cheaper mobiles, including hand held terminals. Finally, a digital approach

would complement the development of the Integrated Services Digital Network (ISDN)

with which GSM would have to interface.

GSM initially stood for Group Special Mobile, the CEPT (Conference of European

Posts & Telegraphs) formed the group to develop a Pan-European cellular system to

replace the many systems already in place in Europe that were all incompatible.

The main features of GSM were to be International Roaming ability, good sound

quality, small cheap handsets and ability to handle high volumes of users. GSM was

taken over in 1989 by the ETSI (European Telecommunications Standards Institute)

and they finalized the GSM standard in 1990. GSM service started in 1991. It was also

renamed this year to Global System for Mobile communications (GSM). Today there

are approx. 105 countries with GSM networks or planned networks and many more

are planned with around 32 million subscribers worldwide on the 139 networks. The

MoU "Memorandum of Understanding" has over 210 members from 105 countries; this

organization meets ever three to four months to look at new or better implementations

to the GSM system.

Home Location Register (HLR)

A Home Location Register (HLR) is a database that contains semi-permanent mobile

subscriber information for wireless carriers' entire subscriber base. HLR subscriber

information includes the International Mobile Subscriber Identity (IMSI), service

subscription information, location information (the identity of the currently servingVisitor Location Register (VLR) to enable the routing of mobile-terminated calls),

service restrictions and supplementary services information.

The HLR handles transactions with both Mobile Switching Centers (MSCs) and VLR

nodes, which either request information from the HLR or update the information

contained within the HLR. The HLR also initiates transactions with VLRs to complete

incoming calls and to update subscriber data.

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Traditional wireless network design is based on the utilization of a single Home

Location Register (HLR) for each wireless network, but growth considerations are

prompting carriers to consider multiple HLR topologies.

Visitor Location Register (VLR)

A Visitor Location Register (VLR) is a database which contains temporary information

concerning the mobile subscribers that are currently located in a given MSC serving

area, but whose Home Location Register (HLR) is elsewhere.

When a mobile subscriber roams away from his home location and into a remote

location, SS7 messages are used to obtain information about the subscriber from the

HLR, and to create a temporary record for the subscriber in the VLR. There is usually

one VLR per MSC.

International Mobile Subscriber Identity (IMSI) Number

The IMSI is a unique non-dialable number allocated to each mobile subscriber in the

GSM system that identifies the subscriber and his or her subscription within the GSM

network. The IMSI resides in the Subscriber Identity Module (SIM), which is

transportable across Mobile Station Equipment (MSE). The IMSI is made up of three

parts

1. The mobile country code (MCC) consisting of three digits,

2. The Mobile Network Code (MNC) consisting of two digits,

3. The Mobile Subscriber Identity Number (MSIN) with up to 10 digits.

Mobile Subscriber ISDN (MSISDN) Number

The MSISDN is the dialable number that callers use to reach a mobile subscriber.

Some phones can support multiple MSISDNs - for example, an U.S.-based MSISDN

and a Canadian-based MSISDN. Callers dialing either number will reach the

subscriber.

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Mobile Station Equipment (MSE) Subscription Services

GSM carriers typically order Mobile Station Equipment (MSE) (or GSM phones) from

their suppliers (Nokia, Motorola, Sony, etc.) in large quantities (e.g. 1000 Units). After

receiving an order, the equipment supplier will program the ordered MSE SIMs with a

range of IMSI numbers.

Once the range of IMSI numbers has been determined, the HLR can be populated

with the new IMSI records that will be configured and activated at a future date by

authorized sales or service subscription representatives. The fact that the HLR can be

populated with ranges or blocks of IMSI numbers creates efficiencies in the storage

and retrieval of routing information.

The wireless carrier distributes the Mobile Station Equipment to Sales Outlets that sell

GSM subscription services. When a new subscriber orders a GSM phone at one of the

outlets, the service representative will create a Service Order (SO) to enter the new

subscriber's service subscription information, including the MSISDN number.

The key to the Service Order is the IMSI that is programmed in the SIM. The SO is

sent to the HLR, where the IMSI record is created. It can either be set to an active

state immediately, allowing the new subscriber to send and receive telephone calls or

it can be activated at a future date.

3.5 GSM CALL ROUTING

Mobile Subscriber Roaming

When a mobile subscriber roams into a new location area (new VLR), the VLR

automatically determines that it must update the HLR with the new location

information, which it does using an SS7 Location Update Request Message. The

Location Update Message is routed to the HLR through the SS7 network, based on

the global title translation of the IMSI that is stored within the SCCP Called Party

Address portion of the message. The HLR responds with a message that informs the

VLR whether the subscriber should be provided service in the new location.

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Mobile Subscriber ISDN Number (MSISDN) Call Routing

When a user dials a GSM mobile subscriber's MSISDN, the PSTN routes the call to

the Home MSC based on the dialed telephone number. The MSC must then query the

HLR based on the MSISDN, to attain routing information required routing the call to

the subscribers' current location.

The MSC stores global title translation tables that are used to determine the HLR

associated with the MSISDN. When only one HLR exists, the translation tables are

trivial. When more than one HLR is used however, the translations become extremely

challenging with one translation record per subscriber (see the example below).

Having determined the appropriate HLR address, the MSC sends a Routing

Information Request to it.

When the HLR receives the Routing Information Request, it maps the MSISDN to the

IMSI, and ascertains the subscribers' profile including the current VLR at which the

subscriber is registered. The HLR then queries the VLR for a Mobile Station Roaming

Number (MSRN). The MSRN is essentially an ISDN telephone number at which the

mobile subscriber can currently be reached. The MSRN is a temporary number that is

valid only for the duration of a single call. The HLR generates a response message,

which includes the MSRN, and sends it back across the SS7 network to the MSC.

Finally, the MSC attempts to complete the call using the MSRN provided.

Adding a Second HLR to the GSM Network

As a GSM wireless carrier's subscriber base grows, it will eventually become

necessary to add a second HLR to their network. A service subscription record storage

capacity issue, or perhaps an SS7 message processing performance issue mightprompt this requirement. It might possibly be prompted by a need to increase the

overall network reliability.

Typically, when new subscribers are brought into service, the second HLR will be

populated with blocks of IMSI numbers that are allocated when new MSE equipment is

ordered.

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Much more complicated SS7 message routing Global Title Translations are required

for Routing Information Request transactions between the MSCs distributed over the

entire wireless carrier serving area and the two or more HLRs. MSC Routing

Information Requests are routed to the appropriate HLR based on the dialed MSISDN

and not the IMSI.

Unlike the IMSI numbers, the MSISDN numbers can not easily be arranged in groups

to reside within a single HLR and therefore, the MSC must contain an MSISDN to HLR

address association record for every mobile subscriber homed on each of the MSCs.

As the example illustrates, the MSC routing tables quickly grow much more extensive

than the STP tables. The network administration becomes increasingly complex and

prone to error.

3.6 FACILITIES PROVIDED BY AIRTEL - PRE-PAID...

Total Cost Control

Provides the liberty of total cost control. Re-charge as much as one feels the need to!

No Rentals

Airtel prepaid card is available without having to pay any rentals!No deposits

Airtel prepaid card comes without having to pay hefty deposits!

STD/ISD facility till the last rupee

complete freedom of allowing STD/ISD facility to make long distance calls in India and

Overseas from your cellular phone!

Voice Mail service

Voice Mail facility allows to receive messages even when the handset is switched off

or outside the coverage area. Messages could be heard whenever one feels like, from

anywhere in the world. Voice Mail can store up to 75 messages, with each message of

two-minute duration.

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Caller Line Identification

Call Line Identification provides facility to know the phone number of the calling party

even before you answer the call, thus giving you the choice to either reject or take the

call. It provides the added advantage of saving the incoming number directly in the

Handset Phone Book. So that the next time if the same person calls, he is identified.

60-second pulse

Airtel provides you with a 60-second pulse rate!

Freedoms for you to experience like never before!

Instant Balance Inquiry

talk-time limit could be checked instantly by calling toll-free number!

Instant Recharge

Re-charge could be made on prepaid card with just a few simple steps!

24-hour recharge facility

Round-the-clock recharge facility enables to recharge prepaid card anytime,

anywhere!

Call Divert, Call Hold and Call Wait

special services like call waiting, call hold and call divert are available with prepaid

card!

Short Messaging Service (SMS)

Short Messaging Service (SMS) facilitates sending messages

SMS based Information Services

SMS based information services provides upto-the-minute cricket scores, order

flowers as well as send couriers or check daily horoscope!

Roaming (National and International)

Airtel's Roaming service enables usage of mobile phone to make or receive calls from

almost anywhere in India and abroad!

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Roaming - GPRS - BlackBerry [International]

Airtel's GPRS Roaming service provides GPRS services to access the Internet andoffice mails from almost anywhere in India and abroad.

Prepaid Roaming

Freedom to enjoy the luxury of Airtels roaming facility with prepaid connection.

Itemized Bill

Keep track of billing procedure with Airtels itemized billing viz. message as well as call

charges with the easy-to-decipher itemized billing sheet that is billed every month.

Conversion from Post-Paid to PrepaidConversion from Prepaid to Post-Paid

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4. RESEARCH METHODOLOGY

RESEARCH METHODOLOGY - DEFINED

a. Research is the systematic investigation to establish facts or collect information on a pre-

decided subject.

b. Methodology is the specification of the system of principles and techniques used in a

particular discipline.

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Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

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4.1 TITLE OF THE STUDY: -

Market Analysis of Telecom Sector in Pre-Paid Cash Card Retailing

4.2 DURATION OF THE STUDY: -

The duration of the project training was 45 days undertaken to accomplish the title and

objective.

4.3 OBJECTIVE OF THE STUDY

1. To identify the difference in market performance of Airtel industry.

2. To study the market of Airtel Industry in big scale sector.

3. To compare various parameters of manufacturing process, technology, production

policy, advertising, collaboration, export scenario, future prospect and governmen

policies.

4.4 TYPE OF RESEARCH DESIGN

Research design involves a general plan of how to go about answering the research questions

set keeping in mind the research objective.

4.5 METHOD OF SELECTING SAMPLESECONDARY SOURCES: -

For the completion of the research it was important that the secondary data should be

supplemented by primary data originated specifically for the research in hand. The primary

data was gathered through questionnaires. My research findings are based on information

collected from filled questionnaires. The main sources of secondary data were: -

Internal Data:

Some previous market studies provided by the guide,

Reports and database of HEXACOM provided by guide

PRIMARY DATA COLLECTION METHOD

Method used to collect primary data is:

Questionnaire

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Questionnaire Method: For the purpose of the study survey was conducted across different

areas of Jaipur city. The Questionnaire (a sample copy is attached) was prepared according to

the objectives of the project and was administered accordingly. The data gathered through this

exercise became the primary data.

SAMPLING ERRORS

While interpreting the results I kept in mind the potential errors. Two sources of errors are

random sampling error, which arises due to the fact that the sample may not be a true

representative of the population, and non-sampling errorwhich comes up because of faulty

coding, untruthful responses, respondent fatigue etc.

QUESTIONNAIRE DEVELOPMENT PROCESS

In order to gather primary data, I used structured questionnaires, prepared in advance to elicit

the necessary response from the respondents. Questionnaires help to facilitate communication

and know the perceptions of the respondents clearly. The following points were kept in mind

while structuring the questionnaire.

Content of the questions: the questions had been framed keeping in mind the objective of the

research. Type of questions: the questionnaire consists of open-ended, closed-ended

dichotomous and multiple-choice questions. Further I made use of likert scale to get a more

vivid response.

Wording of the questions: the questions are such that they are easy to understand and the

respondents do not have any hesitation in answering the questions.

Note: - A sample questionnaire is enclosed with the report in Annexure- I at the end.

4.6 METHOD OF SELECTING SAMPLE

RAISAR PLAZA

About the market:

This market is the hub for the electronicgadgets retailing cash card and Telecom outlets. It

has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of

which the ground, basement and 1st floors deal with the retailing of cash cards.

Total Number of Shops : 488

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4.7 LIMITATIONS OF THE STUDY

No project is without limitations and it becomes essential to figure out the various constraints

that we underwent during the study. The following points in this direction would add to our total

deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/wholesalers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience also because hurdle for me.

8. Some retailers did not answer all the questions or do not have time to answer.

All research papers have its own limitations in terms of methodology and the resources

available for its conduct. This study is no exception to it and has been carried under followinglimitation:

Some of the respondents were not forthcoming with information as they thought it

to be a waste of time.

A number of respondents were biased towards a particular brand, which was

giving them better returns.

Some of the respondents were not available so, contacted person was not able

to present a fair view.

Respondents lack of time to give information and their casual attitude was a big

hindrance in the study.

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5. FACTS & FINDINGS

1. Details of the retail outlets

NATURE OF RETAIL OUTLETS NO OF RETAIL

OUTLETS

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 5 -

(ii) Departmental Stores - -

(iii) Telecom Outlet 38 31

(iv) Electronic Gadgets 14 -

(v) Others 431 2

Total 488 332. Brand holding in the retail outlets

BRAND NO. OF OUTLETS

AIRTEL 56

VODAFONE 38

BSNL 7

Reliance 6

Exclusiveness and combination of brands selling along with O

Oasis &

Vodafone

Exclusive

Vodafone

Exclusive

Oasis

Exclusive

BSNL

Oasis &

BSNL

Oasis &

RIM

24 2* 2** - 6 6

Out of the 2 outlets 1 sells BSNL Recharge coupon

Out of the 2 outlets 1 sells BSNL Recharge coupon

OTHERS Outlet details:

RETAIL OUTLET NO. OF OUTLETS

Electronic Repair Shop 2

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INFERENCE:

MARKET LEADER: VODAFONE

The retailers prefer vodafone because

Numerous schemes

Better service

Customer preference

5.1 IN RESPECT TO RAJA PARK

About the market:

This place occupies a prominent position due to the absence of other market in near by

vicinity. The market is an agglomeration of boutiques, showroom dealing in apparel

departmental stores and lots of telephone booths.

Total number of Shops : 810

Shops dealing in cash cards : 24

Details of the retail outlets

NATURE OF RETAIL OUTLETS NO OF RETAIL

OUTLETS

OUTLETS SELLING CASH

CARDS

(i) STD/ISD/PCO 20 1

(ii)Departmental stores 17 -

(iii)Telecom Outlet 9 9

(iv) electronic Gadgets 12 2

(v)Others 752 12

Total 810 24

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2. Brand holding in the retail outlets

BRAND NO. OF OUTLET

AIRTEL 21

Vodafone 21

BSNL 12

Reliance 8

3. Exclusiveness and combination of brands selling along with OASIS

AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

20 - 1* 1 6 4

Outlet sells BSNL Recharge coupon along with OASIS cash card

OTHERS Outlet details


Pharmaceuticals 2

Book Depot. 2

Stationary Stores 2

Music Gallery 1

Bakery 1Mobile Repair Shop 1

Ice Cream Parlor 1

Garment Shop 1

INFERENCE:

MARKET LEADER: AIRTEL

Airtel has an edge in this area.

The shops here have high inventory & the sale is also higher.

The absence of any other major market also helps them.

The OTHERS have an upper hand in terms of sale than the electronics, STD/PCO,

Departmental etc.

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5.2 IN RESPECT TO M I ROAD

About the market:

Market with a rich history, Its frequented with bookstores, Telecom outlet, Banks (CANARA

STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower

shop. This market surrounds the city.

Total number of Shops : Above 450



NATURE OF RETAILOUTLETS

NO OF RETAIL OUTLET OUTLETS SELLINGCASH CARDS


(ii)Departmental Stores 1 -


Electronic Gadgets 18 -

(v) Others 2

Total 15


BRAND NO. OF OUTLET

AIRTEL 15

VODAFONE 15

BSNL 3

RELIANCE 2


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

15 - - - 3 2



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Pharmaceutical 1

Watch Showroom 1

INFERENCE:


STD/PCO outlets have a major holding over here followed closely by the telecom outlets.

The customers of this area are mostly of working class followed by students and

Vodafone with its better coverage & corporate image satisfies there needs.

5.3 IN RESPECT TO CHANDPOL

About the market: Highly populated area. It has shops dealing in whole sailing i.e. in the bulk

selling of the goods to the retailers & other shops regarding food grains, stationers, timber

related products & shops selling cycles.



OBSERVATIONS :

Specifications of the retail outlets

NATURE OF RETAIL

OUTLETS

NO OF RETAIL OUTLET OUTLETS SELLING

CASH CARDS

(I) STD/ISD/PCO 6 2




(v) Others 425 2

4949


50/107

Total 463 5


BRAND NO. OF OUTLET

AIRTEL 5

VODAFONE 5

BSNL 2

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

5 - - - 2 1



Stalls 1

Pharmaceutical 1

INFERENCE:

MARKET LEADER: Neck-to-Neck between Vodafone and Oasis

Its not a commercial area the sales of the cash card is low.

Proximity to johari bazaar, chaura raasta and other major markets

thus its facing a lot of competition.

BSNL recharge coupons are a big hit with the customers.

5.4 IN RESPECT TO STATION ROAD

(From Station to Grah sangrah)

About the market

This market covers the station (Railways). Thus you find here dhabas, bookstores, STD/ PCO

Booths and sweet-meat shop.

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Shops dealing in cash card : 9

OBSERVATION:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS


(ii)Departmental Stores 9 2

(iii)Telecom Outlet - -

Electronic Gadgets - -(v) Others 138 4

Total 156 9

5151


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2. Brands holding in the retail outlets

BRAND NO. OF OUTLETSAIRTEL 8

VODAFONE 9

BSNL 3

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

8 1 - - 3 1



Hotel + STD 1

Enterprise + STD 1

Book Depot. 1

Panwala 1

Trading Company 2

INFERENCE:

MARKET LEADER: OASIS

The Recharge coupon of BSNL sales is high. More prominence in this area is given to Oasis

with majority of shops selling more Oasis cards. The reasons are:

Village connectivity is less in case of Vodafone.Good service to customers & more profit to retailers. For some its

Affiliation & sense of duty.

5.5 IN RESPECT TO RAILWAY STATION ROAD

(Extended from Grah Sangrah to Chandpol)

5252


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About the market:

Covers a stretch of 2-3 kilometer Its the most prominent area of the city playing host to hotels,

main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies.



OBSERVATIONS:



NO OF RETAILOUTLET

OUTLETS SELLINGCASH CARDS





(v) Others 329 2

Total 376 8


BRAND NO.OF OUTLETS

AIRTEL 5

VODAFONE 7

BSNL 1

RELIANCE 1


Oasis &

Vodafone

Exclusive

Vodafone

Exclusive

Oasis

Exclusive

RIM

Oasis &

BSNL

Oasis &

RIM

5 2 - 1 1 -

Exclusive retail Outlet of Vodafone

5353


54/107

1. Medical shop

2. STD Outlet



Pharmaceuticals 1

INFERENCE:


With its large number of telephone booths and medical shops the market is a major attraction.

Still the coverage here is dramatically poor, only 8 shop deals in cash card retailing.

5.6 IN RESPECT TO LAL KOTHI

About the market:

The focal point of this market is the SMS stadium. The market is an agglomeration of

departmental stores, flower shops & petrol pump. Situated adjacent to tonk phatak.

Total number of Shops : 127Shops dealing in cash cards : 4

5454


55/107

OBSERVATIONS


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 6 2



Electronic Gadgets - -

(v) Others 113 -

Total 127 4


BRAND NO. OF OUTLET

OASIS 4

VODAFONE 4

BSNL 2

RELIANCE 1


Oasis &

Vodafone

Exclusive

Vodafone

Exclusive

Oasis

Exclusive

BSNL

Oasis &

BSNL

Oasis &

RIM

4 - - - 2 1

INFERENCE:

MARKET LEADER: VODAFONE Vs BSNL

Irrespective of the fact that oasis has more outlets its BSNL

Recharge coupon that seems to have a hold in this area.

5.7 IN RESPECT TO TONK PHATHAK

5555


56/107

About the market: Surrounded by K.v.no.1 School & SBI bank this area consists o

Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of

telecom outlets.



OBSERVATIONS:


NATURE OF RETAIL

OUTLETS


CASH CARDS




Electronic Gadgets 7 4

(v) Others 222 13

Total 275 34


BRAND NO. OF OUTLETS

OASIS 26

VODAFONE 22

BSNL 10

RELIANCE 6

5656


57/107


Oasis &Vodafone

ExclusiveVodafone

ExclusiveOasis

ExclusiveBSNL

Oasis &BSNL

Oasis &RIM

22 7 2 - 10 6



Pharmaceuticals 2

Book Depot. 2Studio 2

Bakery 1

Cyber Caf 1

Travel Agency 1

Hard Wares Shop 1

Textiles 1

Fashion House 1

Auto Parts Shop 1

INFERENCE:


Due to its location (its one of the favorable trade routes) & prominent location the sales in this

area is high with Oasis having a clear gain over Vodafone.

People relate to Oasis as a pride of Rajasthan.

The major contributors of this area are the others followed by

STD/PCO outlets.

5.8 IN RESPECT TO UNIVERSITY MARG

About the market:

5757


58/107

Adjacent to the university, Canoria College, Commerce College & podar institute. The market

consists of agglomeration of Xerox shops, PCO booths &departmental stores.

Total number of shops : 128


OBSERVATIONS:


NATURE OF RETAIL

OUTLETS


CASH CARDS

(i) STD/ISD/PCO 4 2



Electronic Gadgets - -

(v) Others 121 5

Total 129 9


BRAND NO. OF OUTLET

OASIS 8

VODAFONE 9

BSNL 2

RELIANCE -

5858


59/107


Oasis &Vodafone

ExclusiveVodafone

ExclusiveOasis

ExclusiveBSNL

Oasis &BSNL

Oasis &RIM

8 1 - - 2 -



Photostat Shop 4

Ice Cream Parlor 1

INFERENCE:

MARKET LEADER: Neck-to-Neck between Vodafone and Oasis

Place is frequented by students & hence here they are the prominent

Customers

Sales low.

5.9 IN RESPECT TO JANTA STORE

About the market:

Adjacent to the main market tonk phatak This market consists of departmental stores, cyber

cafe, gift shops, restaurants & ice cream parlors.



5959


60/107

OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 4 0




(v) Others 40 1

Total 62 6


BRAND NO.OF OUTLET

OASIS 5

VODAFONE 6

BSNL 2

RELIANCE 1


Oasis &

Vodafone

Exclusive

Vodafone

Exclusive

Oasis

Exclusive

BSNL

Oasis &

BSNL

Oasis &

RIM

5 - - - 2 -



Ice Cream Parlor 1

INFERENCE:


This is an residential area near the university campus thus it has a

P.G. houses & covers the govt. Quarters of indira nagar.

6060


61/107

5.10 IN RESPECT TO MALVIYA NAGAR

About the market:

It is a residential area, covering two to three main markets. The most prominent locale is the

Gaurav Towers, which is turning out to be the hub of life for teenagers plus its a prime location

area.

Total no of shops : 179


OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS





(v) Others 136 3Total 179 14

6161


62/107


BRAND NO. OF OUTLETOASIS 12

VODAFONE 13

BSNL 5

RELIANCE 3


Oasis &

Vodafone

Exclusive

Vodafone

Exclusive

Oasis

Exclusive

BSNL

Oasis &

BSNL

Oasis &

RIM

12 1 - 1 5 3



Xerox Shop 2

Stationary Stores 1

INFERENCE:


Compared to the vast area, the numbers of shops dealing with the cash cards are less; this

discrimination is due to the fact that Malviya Nagar is a residential area with three main

markets and each being at the center of 3-4 sectors. Thus limiting the growth of other shops

and the shops has their own faithful customers.

Gaurav towers provide the maximum sales in compared to this main market

6262


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5.11 IN RESPECT TO HAWA MAHAL

About the market

This market deals with the shops selling the traditional dresses of Rajasthan; its also a major

tourist attraction center. The market mainly comprises of clothes shops, departmental stores

and spare automobiles shop.

Total no of shops : 479


OBSERVATIONS :1. Details of the retail outlets

NATURE OF RETAIL

OUTLETS


CASH CARDS





(v) Others 477 -Total 479 5


BRAND NO. OF OUTLET

AIRTEL 5

VODAFONE 5

BSNL 1

RELIANCE 2

6363


64/107


AIRTEL &Vodafone

ExclusiveVodafone

ExclusiveAIRTEL

ExclusiveBSNL

AIRTEL &BSNL

AIRTEL& RIM

5 - - - 1 2

INFERENCE:

MARKET LEADER: VODAFONE Vs OASIS

Its a run down market in respect to the cash cards. This place

doesnt seem to be gaining the customers confidence.

5.12 IN RESPECT TO JOHRI BAZAAR

About the market:

Johri Bazaar is basically known forjewelry shops with a considerable number of clothes

apparel shops and very few electronic retail outlets.


Shops dealing in cash card : 9

OBSERVATION:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS




Electronic Gadgets 5 -(v) Others 336 2

Total 387 9

6464


65/107

2. Brands holding in the retail outlets

BRAND NO. OF OUTLETSAIRTEL 5

VODAFONE 6

BSNL 3

RELIANCE -


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

4 2 - 1* 3 -

*Only one BSNL Distributor



Stationary Store 1*

Jewelry Shop + STD 1*

*Exclusively sells Vodafone

INFERENCE:


Since most of the stores deal with jewelry shops and clothes apparel they dont want to

diversify into the retail outlets for the cash cards

This is the reason as to why the market though having comparatively larger amount of

departmental stores but only Two shops has gone in for sale of cash cards.

Vodafone is doing better in terms of market penetration as it is having 2 exclusive retail

outlets.

5.13 IN RESPECT TO CHOURA RASTA

6565


66/107


67/107


68/107

OBSERVATIONS;



NO OF RETAILOUTLET

OUTLETS SELLINGCASH CARDS

(i) ST

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