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Market Share of Airtel and Essar
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Indian cell market has just recently crossed the 2 million
mark.and there is more to happen. With new technological
upgradations occurring nearly everyday and the ever-increasing
demand for easier quicker connectivity, the cell market is
epected to race ahead.
In !elhi, the two cellular service providers, "ir#el and $ssar,
have %een competing aggressively for their market shares. With
&#'( and a )ourth player entering into the foray, this tussle will
only %ecome more tough. "nd the one who will %e a%le to
capture the largest part of the pie, will emerge as the leader.
#ill now, *harti "ir#el had enjoyed the lead over its only other
competitor in the region, $ssar. With these new entrants and
fierce competition from $ssar, will "ir#el %e a%le to retain its
market lead+ #his is the question we aim to answer in this
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India has a fast-growing cellular services market with ecellent
potential for the future. With almost half a million su%scri%ers
amassed in less than two years of operation, India,s growth
tempo has far eceeded that of numerous other markets, such
as -hina and #hailand, which have taken more than five years to
reach the figures India currently holds. #he num%er of mo%ile
phone su%scri%ers in the country would eceed ./ million %y
2//. and cross 0// million %y 2/1/, according to -ellular
2perators "ssociation of India 3-2"I4 "ccording to recent
strategic research %y Frost & Sulliv!, Indian -ellular 5ervices
&arket, such growth rates can %e greatly attri%uted to the
drastically falling price of cellular handsets, with price playing a
fundamental role in Indian su%scri%er requirements. 5u%scri%ers
in certain regions can acquire the handset at almost no cost,
thanks to the mass-market stage these technologies have
reached internationally. #he Indian consumer can %uy a handset
for 60// or less. #his should lead to increased su%scri%ership.
*y 2//0, revenues are epected to reach 61.7 %illion.
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May Jun Jul Aug Sep Oct
All India Cellular Subscribers
All India Cellular
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C'llulr Mo(il' S'rvi)' Provi*'rs + #he -ellular &o%ile
5ervice 8roviders 3-&584 shall %e permitted to provide mo%ile
telephony services including ,'r-issio! to )rr. its o/! lo!0
*ist!)' tr11i) /it2i! t2'ir s'rvi)' r' without seeking an
additional licence. !irect interconnectivity %etween licenced
-&589s and any other type of service provider 3including another
-&584 in their area of operation
including s2ri!0 o1 i!1rstru)tur' with any other type of
service provider shall %e permitted. Interconnectivity %etween
service providers in different service areas shall %e reviewed in
consultation with #:"I and the same would %e announced %y
"ugust 1., 1;;; as a part of the structure for opening up
national long distance. #he -&58 shall %e allowed to directly
interconnect with the <5'( after opening of national long
distance from =anuary 1, 2///.
#he -&58 shall %e free to provide, in its service area of
operation, all types of mo%ile services including voi)' !* !o!-
voi)' -'ss0's3 *t s'rvi)'s !* PCO4s utili>ing any type
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of network equipment, including circuit and?or packet switches,
that meet the relevant International
#elecommunication @nion 3I#@4 ? #elecommunication
$ngineering -enter 3#$-4 standards.-&58 would %e granted
separate licence, for each service area. (icences would %e
awarded for an initial period of twenty years and would %e
etendi%le %y additional periods of ten years thereafter. )or this
purpose, service areas would %e categori>ed into the four metro
circles and #elecom circles as per the eisting policy. -&58
would %e eligi%le to o%tain
licences for any num%er of service areas. "vaila%ility of
adequate frequency spectrum is essential not only for providing
optimal %andwidth to every operator %ut also for entry of
additional operators. *ased on the immediately availa%le
frequency spectrum %and, apart from the two private operators
already licenced, 5OT 6 MTNL /oul* (' li)'!)'* to (' t2'
t2ir* o,'rtor i! ')2 s'rvi)' r' in case they want to
enter, in a time %ound manner. In order to ensure level playing
field %etween different service providers in similar situations,
licence fee
would %e paya%le %y !o# also. Aowever, as !o# is the national
service provider having immense rural and social o%ligations,
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the Bovernment will reim%urse full licence fee to the !o#.
It is proposed to review the spectrum utilisation from time to
time keeping in view the emerging scenario of spectrum
availa%ility, optimal use of spectrum, requirements of market,
competition and other interest of pu%lic. #he entry of more
operators in a service area shall %e %ased on the
recommendation of the #:"I who will review this as required
and no later than every two years.
-&58 operators would %e required to pay a one-time entry fee.
#he %asis for determining the entry fee and the %asis for
selection of additional operators would %e recommended %y the
#:"I. "part from the one time entry fee, -&58 operators would
also %e required to pay licence fee %ased on a revenue share. It
is proposed that the appropriate level of entry fee and
percentage of revenue share arrangement for different service
areas would %e recommended %y #:"I in a time-%ound manner,
keeping in view the o%jectives of the 'ew #elecom 8olicy.
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'ew !elhi, as an upcoming commercial metropolitan
city is witnessing at present a tug-of-war for market
share in the cellular market, which is currently hovering
near the C.. lac figure mark. #his market is growing at
an etremely fast pace and so is the competition
%etween the two main cellular service providers -
AirT'l !* Essr. "ir#el, %eing the first to enter the
market in !elhi has %een the leader %ut the present
trend in the growth rate shows that $ssar might give it
a run for its share of the precious pie.

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May Jun Jul Aug Sep Oct
Total el!i
Subscriber Break Up
E!t'r77 t2' t2ir* ,l.'r
#:"I has, in its recent eposition, allowed the entry of the third
player in the Indian cell-circuit. In !elhi, MTNL will %e the third
one and it has announced that it is coming up with its cellular
services in =anuary net year. #his will change the market
scenario where the players enjoyed a duopoly market. $ntry of
&#'( will %ring in fresh competition from a company, which has
the advantage of the network of it own, and the tariff rate it
enjoys from !2#. #he ecitement of consumers a%out the &#'(
product could %e seen when it had to close its %ooking for
su%scription within three days %ecause of oversu%criptionD #his
will make eisting players to rethink there strategies and %e
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ready for some twist in market share distri%ution in the coming
W2o /ill (' t2' lu)9. 1ourt2??
With the Bovernment policy of li%erali>ing the telecom sector, it
has moved a step forward with letting a fourth player in the
cellular circles. With this there will %e one more private player in
each circle and the player will %e even allowed, as the previous
players for foreign joint ventures. With %ig players like
$vergrowth #elecom (td., )ascel (imited, Aeacom India
(imited, Autchison &a #elecom (imited, = # &o%ile 8hone
5ervice (imited entering the race for new licenses ,cellular
market in India is going to see some drastic changes in the near
future. In !elhi also things will not %e the same and the eisting
players will have to %e proactive for facing competition from
these players who are %ig, have prior eperience and full of
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Co-,!. Pro1il' o1
"ir#el comes to you from B2rti C'llulr Lt*8 " consortium of
giants in the telecommunication %usiness - Si!0t'l3 Si!0,or'3
T'l')o- Itli3 Itl.3 !* B2rti E!t'r,ris's I!*i8 *ritish
#elecom, @E had %een one of the key partners in "ir#el with
CCF stake %ut has recently %acked out of all its "sian
operations, leading to the recent =< %etween 5ingtel and *harti
#elecom. "ir#el launched it,s services in !elhi on 'ovem%er
1C,1;;.. It has at present over two lac twenty thousand
su%scri%ers. In it,s five years of pursuit of greater customer
satisfaction, "ir#el has redefined the %usiness through
marketing innovations, continuous technological upgradation of
the network, introduction of new generation value added
services and the highest standard of customer care.
AirT'l 2s )o!sist'!tl. s't t2' ('!)2-r9s 1or t2'
I!*i! )'llulr i!*ustr. to 1ollo/8
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AirT'l 2s t9'! t2' l'* o! -!. o))sio!s8 It
2s (''! t2' 1irst
#o launch -ellular service in !elhi on 'ovem%er 1;;..
2perator to revolutionali>e the concept of retailing with the
inauguration of AirT'l Co!!')t 3eclusive showrooms4 in
1;;.. #oday "ir#el has 17 -ustomer -are #ouch 8oints and
over 0// dealers in !elhi and '-: towns.
#o epand it,s network with the installation for second
mo%ile switching center in "pril, 1;;7 and the first in !elhi
to introduce the Intelligent 'etwork 8latform )irst to
provide :oaming to its su%scri%ers %y forming an
association called World 1 'etwork. )irst to provide
roaming facility in @5". "ir#el has the largest automatic
roaming service :SMART ROAM:- 'ational in 0./ cities in
India and G5&":# :2"&G - International in over H/
countries and ;. networks all over the world.
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"ir#el has consistently strived hard to, not only deliver
as per customer epectation, %ut also go %eyond that.
"ccording to its those at "ir#el, their vision, mission
and values are as follows.
#o make mo%ile communications a way of life and %e the
customers, first choice
We will meet the mo%ile communication needs of our customers
$rror-free service delivery
Innovative products and services
-ost efficiency
We will always put our customers first. We will always trust and
respect each other. We will respect our associates as we respect
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each other. We will work together through a process of
continuous improvement
Cov'r0' o1 AirT'l
"ir#el cellular service covers whole of !elhi and the adjoining
satellite cities as shown in the map. It %oost that the coverage
is uninterrupted and covers the widest area. $ssar which more
or less covers the same area will give "ir#el a toss in the future
when its partner Autchison which is planning to consolidate all
its Indian operation and give its customers a wider reach in term
of autoroam. 8layer who provides a %etter service in this respect
will have a edge in the future as we can see the way people and
%usiness is moving out of !elhi.
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825# 8"I! -":!
8:$ 8"I! -"5A -":!
Post Pi* Cr*
Business Lifestyle Plan
AirTel Standard
Leisure Plan
AirTel Easy
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Ho/ -u)2 *o's it )ost
5ecurity !eposit 3:efunda%le4 :s. 2///
"ctivation -harges :s. 12H/
#otal :s. 02H/
'oteI #he a%ove are one time entry cost. #he deposit is
completely refunda%le.
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Airti-' Rt's
Busi!'ss Li1'st.l' Pl!
&onthly :ental :s. H2. per month
2utgoing :ates3applica%le 2C hours4 :s. J per minute
Incoming :ates3applica%le 2C hours4 :s. 1 per minute
#he rates are valid 2C hours a day? 7 days a week
AirT'l St!*r* Pl!
&onthly :ental :s. C7. per month
5tandard Aours31/ am to ; pm4
:s. C per minute32utgoing
and Incoming4
-oncession Ars-I3J am to 1/ am K ; pm to
12 midnight4
:s. 0.;/ per
minute32utgoing and
-oncession Ars-II312 midnight to J am4
:s. 2.;/ per
minute32utgoing and
*illing pulse is of 0/ seconds. 2n 5undays and 'ational
Aolidays "ug, 2Hth =an K 2nd 2ct4 the tariff rates
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are of :s. 2.;/ per minute 3midnight to J am4 K :s.
0.;/ per minute 3J am to midnight4.
AirT'l L'isur' Pl!
&onthly :ental :s. .2. per month
Incoming K 2utgoing :ates
J pm to J am 3Weekdays4 ./ paisa per 0/ seconds
J am to J pm 3Weekdays4 :s. 0 per 0/ seconds
5undays K 'ational Aolidays 3all 2C hours4 ./ paisa per 0/ seconds
Weekdays are &onday to 5aturday. 'ational Aolidays
are "ug, 2Hth =an K 2nd 2ct. #he %illing pulse is
0/ seconds on all days.
AirT'l Es.
&onthly :ental :s. .2. per month
Out0oi!0 I!)o-i!0
8eak :ate
:s. H.// per
:s. 2.// per
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5tandard :ate
:s. H.// per
:s. 2.// per
2ff 8eak :ate
:s. H.// per
:s. 2.// per
Pr' Pi* Cs2 Cr*
M0i) Pr' Pi* Co!!')tio!
W2t is M0i)?
&agic :eady -ellular -ard is your ready-to-use, no-
hassle cellular connection. It comes pre-activated with
5#!?I5! calling facility. *acked %y "ir#el, the leading
cellular operator in India, it gives you crystal clear
communication in entire !elhi, Bha>ia%ad, '2I!",
Burgaon, )arida%ad and *alla%hgarh.
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MAGIC888 t2' si-,l'st /. to 0o )'llulr
Wi*' Avil(ilit.
&agic :eady -ellular -ard and &agic :echarge -ards
are availa%le widely all over the city at over 1J//
No ,,l.i!0
&agic is availa%le across the counter. Lou do not need
to apply in advance or go through complicated
formalities to get connected.
I!st!t Co!!')tivit.
&agic :eady -ellular -ard can %e used as soon as it,s
%ought. Lour connection is pre-activated with a host of
other services.
Co-,ti(l' /it2 ll H!*s'ts
With only &agic, you are assured that it would work
with all models of B5& cellular handsets.
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No Bills
'o more keeping track of %ills every month. With
&agic, you pay when you want and as much as you
Totl Cost Co!trol
&agic gives you complete control over your cellular
epenses every month. #he friendly I<: service tells
you your %alance, free of cost, whenever you desire.
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Co!v'!i'!t R')2r0i!0
:echarging your &agic card is very simple. Whenever
your %alance is running low, just %uy a recharge card of
value most suita%le or recharge on-line.
Fr'' Ho-' 5'liv'r.
=ust call G!ial-a-&agic, at 000 3toll free4 from your
&agic to place the order, and get the card delivered at
your preferred address at no etra cost. -urrently this
service is availa%le in !elhi and Burgaon only.
Ho/ *o's it /or9?
When you %uy a &agic :eady -ellular -ard pack you
get a 5I& card and a recharge card in the pack. Lour
&agic 5I& card is already activated and just needs to
%e loaded with calling value, which you can do %y using
the &agic :echarge -ard.
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#his calling value is valid for a pre-defined period called
the validity period. Lou can make and receive calls only
during this validity period. "s and when you make or
receive calls the calling value %alance on your &agic -ard
account keeps reducing as per the applica%le airtime rates.
Lou must get your &agic -ard recharged %efore the calling
value is over or the validity period ends. &agic :echarge
-ards are widely availa%le at over 2C// outlets spread
across the city in convenient denominations of :s..//,
:s.1///, :s.2/// and :s.0///.
$very time you recharge your &agic -ard you get a credit
of calling value which has a new validity period attached to
it. #he validity period is followed %y a grace period of 1.
days during which no calls can %e made or received, %ut
the &agic -ard "ccount can %e recharged. !uring the grace
period you can also order for a &agic :echarge -ard to %e
delivered at your doorstep, a%solutely free of cost, (.
si-,l. *ili!0 <<< 1ro- .our M0i)8
MAGIC 888 t2' -ost 11or*(l' )'llulr
'o :entals
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'o 5ecurity !eposits
8re-activated 5#!?I5!
)ree -(I
-ost 8ackage
sadasdasd M0i) :R'0ulr: ,)9
MRP :s. 1.2.
Inclusive of I
Clli!0 ;lu' :s. 7J..71
A)tivtio! F'' :s. .//
Pro)'ssi!0 F'' :s. 1HH.H7
S'rvi)' T= :s. 72.H2
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R')2r0i!0 M0i) Cr*
2ne can either recharge &agic online or purchase a
recharge card from any of our outlets spread across the
city. :echarge cards are availa%le in four convenient
denominations of :s..//, :s. 1///, :s. 2/// and :s
;lu' **'* s'rvi)'s
<alue added services can play a major role in determining the
market leader of the future.
#he following are the value added services and special services
provided %y "ir#el.
;lu' A**'* S'rvi)'s 1ro-
"ir#el offers you a host of value added services. #hese are
availa%le on request. #hey include I
S-rt Mil
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5mart &ail lets you receive messages even when your
handset is switched off or when you are outside the
coverage area. Lou can then retrieve these messages at
your own convenience.
AirT'l>s F= !* 5t S'rvi)'
If you can connect to "ir#el,s )a and !ata service , you can
take your office wherever you go. Lou can send and receive
data?fa documents, access the internet, email accounts and
corporate data%ases whenever you are on the move.
AirT'l>s F= S'rvi)'
If you connect to "ir#el,s )a service , you can take
your office wherever you go. Lou can send and receive
fa documents whenever you are on the move.
S-rt Ro-
"ir#el,s 5mart :oam service allows you to use your
mo%ile phone to make or receive calls from almost
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anywhere in India and a%road 3.; countries4 at '2
etra cost
5mart :oam gives you two great optionsI
S-rt Ro- Ntio!l
$njoy roaming in India across 2. partner networks and
over 0./ cities.
S-rt Ro- I!t'r!tio!l
:oam across international destinations, in .; countries
including @5", -anada, @E etc. with ;. partner
networks 3where B5& phase II networks eist4.
It'-i?'* Bill
#his is a comprehensive statement of all details on the
outgoing calls made %y you and the incoming calls
received %y you for the %illing period.
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It'-i?'* Clls
#he call %reakdown shows date of calls, the destination
of calls, the length of calls and the relevant cost.
Cll Co!1'r'!)'
It help,s you hold a tele-conference with H different people
simultaneously. Infact you can set up a conference, even if the
other five are using the 85#' line.
Cll Li!' I*'!ti1i)tio! Pr's'!ttio!
-(I8 gives you the power to know the phone num%er of
the calling party even %efore you answer the call. #hus
giving you the choice to either reject or take the call.
H!*s't I!sur!)' S'rvi)'
"ir#el and 'ew India Insurance present the eclusive
Aandset Insurance service. #he Aandset Insurance
service is an eclusive privilege for "ir#el customers
like you.
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Cll Li!' I*'!ti1i)tio! R'stri)tio!
If you don,t want others to know your num%er, you can
use the -(I: service, so that your cellular num%er is
not displayed on the phone screen of the person you
Cll Wit
#his service is availa%le to all "ir #el customers. If you are on a
call and some%ody else calls your num%er, your -all Waiting
feature alerts you with a special audi%le tone. Lou then have the
option to eitherI
1. 8ut the call-in-progress on hold, and answer the new
call, or
2. :eject the incoming call
Cll Hol*
#his service allows you to put an on-going conversation on hold,
and call someone or receive a call from another person. Lou may
switch %etween the two calls any time.
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Cll 5iv'rt
-all !ivert allows you to divert incoming calls to another
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S1' Custo*.
When you travel out of town for a short time "ir#el can
keep your connection in 5afe -ustody where the
connection is kept inactive for a short period, without
actually canceling it. Lou need not pay the monthly
rentals during this period.
S-rt A))'ss
5mart "ccess - the Interactive <oice :esponse 3I<:4 service for
accessing information related to your cellular phone. "ll you
have to do is dial our toll-free num%er 7C7 from your "ir#el
cellular or ;J1/1-7C7// from a landline any time of the day or
Mo(il' Hu!ti!0
" group of mo%ile connections is given one virtual mo%ile
num%er, which is known as the 8ilot or Aunting num%er and
other mo%ile num%ers remain the same, allowing you to make
and receive calls.
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#he 5#!? I5! facility allows you to make long distance calls in
India and 2verseas from your cellular phone. #his service is
applica%le to %oth "ir#el and &agic customers.
ST56IS5 5.!-i) Lo)9i!0 !* U!lo)9i!0
#his is a new service availa%le to "ir#el customers to lock and
unlock 5#! ?15! facility from his handset 3from specific
handsets only4 and avoid misuse
S,')il S'rvi)'s
AirT'l>s --B!9i!0 S'rvi)'s
m-%anking provides you with access to %anking and
credit card services directly from your cellular phone.
With m-%anking you can now conduct %anking and
credit card transactions from your "ir#el without
making a call from anywhere in India and over CH
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-urrently, you can access A!)- *ank accounts, I-I-I
%ank and credit card accounts. Lou need to have
accounts with either of the %anks to %e a%le to use m-
Cr H'l,li!' *il $<&
Introducing -ar Aelp (ine, from "ir#el. It is designed to
provide you help when your car %reaks down on the
road. "ll you have to do is dial ;0/ from your "ir#el
and help will reach you within thirty minutes.
H'rt H'l,li!' *il @&@
"ir#el provides you a unique service called Aeart
Aelpline. " panel of heart specialists at the $scorts
Aeart Institute and :esearch -enter are only a call
away to answer queries and guide you through an
emergency. "ll you have to do is to dial 7/7 from your
"ir#el cellular.
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GAeart AelplineG is a round the clock service which shall
provide answers to almost all heart related pro%lems
arising out of chest pain, palpitations, shortness of
%reath, a%dominal discomfort, weakness etc.
Essr )'llulr 2s lso ,rovi*'s lot o1 vlu' **'*
s'rvi)'s to *'!. AirT'l !. )l'r *v!t0' i! /i!!i!0
)usto-'rs o/i!0 to t2is 1)tor8
;lu' A**'* S'rvi)'s 1ro-
$ssar -ellphone offers a wide range of <alue "dded
-ell mail.
)a and data transfer.
-aller identification.
Itemi>ed %illing .
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&o%ile %anking.
<oice mail.
Co-,riso! o1 AirT'l !* Essr
In no other service or %usiness is technology such a major
factor. 5ales and marketing are futile without a sound
technological %ase. Aence we analy>e %oth $ssar and "ir#el on
the %asis of this parameter.
#echnological facets in cellular services are eplained and the
level of epertise of %oth players stated.
Cll s't u, ti-'+
#his is the time that it takes a user to get connected after the
completion of the dialing process.
8resently J-0/ seconds is considered normal set-up time.
AirTels call set up time is generally within this range but Essar
often takes longer.
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C,)it. Cll )o!0'stio!+
#his is the quality of getting calls through even in high user
density areas.
AirTel scores over Essar here and hence provides better
customer satisfaction.
This will enable them to increase their customer base leading to
increased revenues in the future.
;oi)' Aulit. !* Cov'r0'
It is the clarity of transmission. In city centers this quality is not
difficult to maintain. Aowever it %ecomes very important when the
transmission is %eing directed to or from under ground locations, from
%ehind tall %uilding and structures, narrow and congested city
AirTel provides better quality in the above mentioned. Essar on
the other hand has not been able to maintain similar standards.
The reason for this is the better infrastructure and technology.
Cll 5ro, Rt'+
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-all drop rate is the disruption of a call due to a loss of
frequency, transmission from one cell >one to another.
AirTels superior maintenance methods ensure lower call drop
Mo(il' to l!* li!' )o!!')tivit.+
#his is due to maintenance of high quality switching interface
with the
&#'( 3!2#4 networks.
Essar has lagged in providing high quality interface while AirTel
has managed to keep its nose ahead in this department.
All i! ll o! t2' routi!' t')2-s'rvi)' 1ro!t AirT'l is
2'* (ut !''*s to i!)r's' t2is 0,8
Co-,ri!0 t2' tri11 stru)tur'
AirT'l St!*r* Pl! Essr St!*r* Pri)' Pl!
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14 "ctivation fee K security deposit :s. 02H/.// :s. 02H/.//
24 &onthly rental :s. C7..// :s. C7..//
04 #ariff ?pulse Incoming 2utgoing Incoming
5tandard hours :s.C?min :s.C?min :s.C?min :s.C?min
-oncessional hours :s.0.;?min :s.0.;?min :s.0.;?min
Aappy hours :s.2.;?min :s.2.;?min:s.2.;?min
Busi!'ss Li1'-st.l' Pl! List'! Mor' BLMC
#4 A)tivtio! 1'' !* :s. 02H/.// (& 1I :s.
s')urit. *',osit (& 2I :s. 02H/.//
%C Mo!t2l. r'!tl :s. H2..// (& 1I :s.
(& 2I :s. H2..//
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<C Tri116 ,uls' Incoming 2utgoing
:e. 1?min :s. J?min 3(&1and(& 24
:e. 1?min :s. J?min
AirT'l L'isur' Pl! Liv' Mor'
#C A)tivtio! 1'' !* :s. 02H/.// :s.
s')urit. *',osit
%C Mo!t2l. r'!tl :s. .2..// :s. .2..//
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s')urit. *',osit
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Custo-'r )r'
In one of the market researches, consumers descri%ed &2*I($
#$($8A2'L as the 5il K Ris2t8 "nd always taking notice were
t2' % 0i!ts D AIRTEL !* ESSAR. "s the passage of time has
added importance to the a%ove concept, %oth these
organi>ations have tried getting the upper hand at providing
their clientele with customer care and services that wireless
technology can %ring to them
2ur foray into deciding the leader in this quest has left us with
etremely close results.
We looked at this competition at 2 different stagesI
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Customer care at the point of making the sale+-
)or %oth these concerns, this translated into providing
smoothness of transaction for the customer "I:#$( had %een
esta%lished to posses 0 core valuesM.(eadership, 8erformance
and !ynamism. In its quest for customer care, it em%arked
upon a campaign intended to add NwarmthO to these core values.
It was felt that the creative should reflect humane yet
aspirational, family-centric yet reacha%le and softer %rand
After-sales service: -
#he aspect of comfort should continue even after a customer has
made an initial purchase, and %oth corporations have made it a
locus point of their strategies. "I:#$( and $55": %oth have in
their arsenal an impressive num%er of after sales service
stations. "I:#$( is planning to %uild a network of over a do>en
AIRTEL CUSTOMER CENTRES from the present num%er of 2.
$55": too has an etremely strong sense of reassurance
emanating from itPs after sales %ack-up. AIRTEL TOUCH
POINTS D -reated to serve as lifestyle style esta%lishments,
their num%er is epected to go up to a%out ./ in !elhi itself.
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-ommensurately, %oth concerns have adeptly esta%lished e-
kiosks, which help the customer and visitors alike know a%out
the other peripheral services like !I"(-I', &$55"BI'B, $-
-2&&$:-$ etc.
Aere we9d like to mention that despite our %est efforts, no clear
winner emerges as far as this aspect of the study is concerned.
"greed that customer-relations emerges %y far strongly
accentuated as concerns %oth organisations, the fight to woo
and retain customers through understanding their sentiments
and needs is far from won.
Co-,riso! o1 ;lu' **'* S'rvi)'s
<alue added 5ervices that are provided %y $ssar %ut not
%y "ir#el
)ight status check.
-ell surf.
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T2'r' r' lso !u-('r o1 *il i! s'rvi)'s /2i)2
AirT'l *o's !ot ,rovi*'+
#arot line.
2rder a pi>>a.
!ial M a - ca%.
'!#< news headlines.
)lower delivery.
:eminders .
$ssar thus has a clear cut advantage as far as providing
additional services is concerned. "ir#el thus would have
to introduce more value added and special services to
counter the advantage $ssar may %e deriving from this.
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*oth the facets of technology i.e %ack%one as well as value
added services have already %een mentioned earlier. "ir#el is
performing up to the mark in %oth areas and hence it is strength
%ut in the future it shall have to upgrade at even faster as more
players especially multinationals enter the fray.
Custo-'r )r'
"ir#el prides itself on %eing really close to it9s customers, it is as
eplained earlier investing heavily in this area.
Mr9't s2r'
5ince "ir#el was a first cellular provider it has always had the
highest market share as far as customer %ase is concerned.
Br!* & ,ro-otio!s
"ir#el as a %rand in more prevalent in the customers mind than
that of $ssar. Its promotion has always %een of connectivity and
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a good live than promoting cellphones. It has a strong %rand
image and always uses promotional strategies that are used to
communicate to a mass of people, one %eing hoardings at the
%us stops.
Losi!0 l'* o! t')2!i)l '=,'rtis'
#hough "ir#el has managed to keep its nose ahead on %asic
technical aspects of telecommunication, $ssar %acked %y
Autchison K &#'( are %ridging the gap.
Sus)',ti(l' to ,ri)' /r
" price war is a distinct possi%ility since 2range may choose this
as a strategy to @pstage "ir#el. &#'( is also likely to make a
strong %id to fight on the price front.
*harti can ill-afford to wage a price war as it has already
investment heavily on the telecommunication infrastructure
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Out'r 5'l2i r!0' i!*'Eut'
2n and around the outskirts of !elhi the voice and signal quality
of "ir#el9s services tends to deteriorate. #his is a source of
irritation and hence customer dissatisfaction.
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C2!0' i! )usto-'r ,ro1il'
It has %een o%served that the customer profile has shifted from
rich %usinessmen to youngsters, traders, eecutives, working
women etc. #his is a segment, which is yet to %e tapped.
#he lower middle class is yet another segment to %e targeted as
first time users
T')2!i)l -!,o/'r *'rt2 t ESSAR
"n eodus of lower level technical staff has weakened $55":9s
maintenance and technical support %ase. #his could lead to a fall
in quality of their systems. It is a good time for "ir#el to score
over $55": on this front.
Gro/t2 o1 )'ll us'rs
#he past couple of years has seen a nearly eponential growth
in cell su%scri%ers. #his is %ecause of the drop in handset prices
and tariff rates. #hese two prices are likely to go down further
in the future due to technological %reakthroughs and
Bovernment policies. Aence a huge customer %ase is to open up.
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Essr is 0i!i!0 t')2!olo0i)ll.
$ssar has now acquired outsourcing for all its new projects.
&otorola is the company, which provides this outsourcing. #his
though epensive has greatly increased the efficiency and speed
of $ssars projects. It is a %ig challenge for "ir#elQ as its
technological superiority could %e challenged which would
seriously affect its status as market leader of cellular services.
Essr+ *'','r ,o)9'tsFF
Autchison, the cellular giant has started giving $ssar
technological and financial support. "s a result it has made it
possi%le for $ssar to epand and improve all its operations %e it
on the services, promotion, advertising or marketing fronts. #his
is a cause of worry for "ir#el as $ssar would %e a greater force
to reckon with, given the advantages cited.
T2ir* !* Fourt2 ,l.'rs
&#'( is to %e the third player in the !elhi circle. It has already
got most of the Infrastructure in place for commencement of
operations. #hey have put the infrastructure in place %y
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acquiring the epertise from (@-$'# #echnologies. &#'( also
has control of the landline systems, which eist.
"nother advantage is the government %acking that &#'( will
always enjoy.
Strt'0i's 1or Futur' to r'ti! its -r9't s2r'
Tr0't -r9'ts
Lo/'r -i**l' )lss
#his segment has not yet %een tapped %y any of the cellular
service providers. 5ince these would %e first time users in the
lower income group the price will %e a major factor. "ir#el will
have to model its price structure to accommodate this segment
of customers. 8repaid 5I& card may thus %e a good strategy to
start off with.
"lready "ir#el9s magic %rand is synonymous with youth. "ir#el
will have to lay greater emphasis on this a segment of
consumers %ecause with greater disposa%le income youngsters
can contri%ute greatly to the revenues.
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Wor9i!0 /o-'!
#his segment has not yet %een tapped. "ir#el can thus
concentrate on this segment %y introducing schemes aimed at
women. #his can %e done %y providing them specific value added
O,,o!'!t>s s2r'+
*y aggressively marketing their products and taking advantage
of the fact that as mentioned %efore $ssar is facing pro%lems
with its technical manpower at the services level. 5ooner or
later this is %ound to result in dissatisfaction of their clients.
"ir#el can a%sor% these users
I!)r's'* )o-,'titio! 1ro- t2' t2ir* !* 1ourt2 ,l.'r
&#'( will enter the cellular services market in a %ig way. "ir#el
will have to pay off their attack %y
'ew tariff plans.
&ore value added services.
*etter network quality.
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Intensification of marketing and advertising effort aimed at
highlighting the strengths of the %rand and their
continuous a%ility to provide good quality service.
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I!)r's' i! visi(ilit. !* )ov'r0'
"ir#el will have to go in for further image enhancement of the
"ir#el %rand with a care and family message and the magic
%rand with emphasis on targeting the youth. "lso, their retail
outlets and franchises will have to %e increased further %y ./F.
#his is infact a strategy that "ir#el is implementing and the
results will show soon. 5uch reach and visi%ility once attained
will have to %e complemented with ecellent peoples services
that "ir#el is known for. 2nce achieved this level of services will
%e hard new or esta%lished player to match.
In the long run this could %e the vital factor, which keeps "ir#el
'o. 1 in the industry.
T2' 1irst )o-' *v!t0'
<alue added services are the norm of the day. #he service
providers can gain a long term advantage %y consistently
introducing new incentives in value added services or tariff
structures. $very time a new scheme is launched it provides
temporary edge to the service provider over its counterpart.
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#his temporary advantage is in terms of the new clients it
acquires who have %een attracted %y the offer. Aowever after
some time this advantage is neutrali>ed %y the other player
offering something similar. #hus it important to innovate %efore
the competition time and again so that one can make the short
term advantage cumulatively long term and help increase Nmind
shareO as well as market share.
Cor,ort' )li'!t'l'
5ince this a target market %y itself its marketing methodology
itself would %e different. &ost organi>ations prefer to take
services for their employees in groups. Aence, this order
%ecomes very %ig for the service provider. 8ersonalised selling
would %e the order of the day for these users. #he presence in
the various %usiness and corporate circles would also enhance
"ir#els9 %rand image. 5pecial incentives can %e given to these
employees for maintaining their loyalty to the "ir#el %rand.
T2' AirT'l - AirT'l *v!t0'
"ir#el could lure more customers %y introducing schemes in
which calls from one "ir#el user to another would %e possi%le at
a reduced tariff. #his would encourage a group of users who
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need to communicate frequently to opt for this service only. "lso
it would help in promoting %ondage %etween the users and thus
further promote loyalty.
N'/ i!!ovtiv' ,)90's
"ir#el has to come up with new innovative packages like the
-"(( A2&$ scheme offered %y $ssar. 5uch schemes launched at
regular intervals will help in maintaining customer loyalty and
also attract new customers.
Coll(ortiv' s)2'-'s /it2 ot2'r )o-,!i's
"ir#el can colla%orate with companies like 'okia or any other
hardware provider and launch schemes like providing free
airtime with every hardware instrument %ought. $posing the
customer to the %rand increases the chances of the customer
%eing hooked on to the %rand. #he companies can ensure this %y
offering the option of renewal of the account at the epiry of the
free airtime.
5is)ou!t'* ,ro*u)ts
#he company has to offer more discount schemes like reducing
the activation charges or reducing the security fees. #his will
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provide the company a competitive edge. Aowever this may lead
to a price war. Aence the trade offs of indulging in this eercise
must %e considered.
R'0ulr 1r''(''s
"ir#el can offer at regular intervals and specially at festivals
schemes like free airtime to its users, free coupons for
shopping, free entry to shows etc. this would keep the
customers interested in the %rand and ensure that they remain
loyal to the %rand. #he other competitor will also %e indulging in
the same hence the effectiveness of these would depend on the
timing of these offers.
S,')il o11'rs
"ir#el may offer special incentives and rewards to the frequent
and regular users %y offering them free maintenance checks.
)ree or minimal cost upgradation to a category of users who use
the service over a specified limit of airtime.
Mor' o1 t2' '-1)tor
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#he future %elongs to the net. #he players who will %e
a%le to integrate the net in their operations will lead the
market. #his would mean advertising over the net,
allowing an interface of the net with the cellular service.
"ir#el is already on the right track as far as this is
concerned. #hey have introduced the concept of %eing
a%le to send messages to the user like a pager
message. #his can %e done from the "ir#el site.
Co!soli*t' WAP
"ir#el has the advantage of having introduced the W"8 %efore
its competitor $ssar has. #hey can use this as platform for
taking a lead when this technology %ecomes widespread. #ill
then it will act as %ait for status conscious users who want the
latest innovations irrespective of its present application.
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Fi!ll.3 to )'ll /'ll78
788!* r'-i! i! ,ositio!788
#o retain its position of the 'o. 1 player in the market *harti9s
"ir#el has to not only implement the strategies mentioned %ut
also time their moves perfectly.
2nly high level :K! complemented with sound technical services
can provide the %ack%one for the aggressive marketing that we
have suggested for "ir#el.
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To,i)s P0'
8rologue 2
#he -urrent -ell &arket 5cenario 0
'ew #elecom 8olicy C-.
#he 5cene in !elhi upto now H
#he #hird and )ourth 8layer 7
-ompany 8rofile J-1/
-overage of "ir#el 11
8roducts and 8rices 12-1H
<alue "dded 5ervice 17-2/
5pecial 5ervices 21
<alue "dded 5ervice from $ssar 22
-omparision of "ir#el K $ssar 20-2;
5W2# "nalysis 0/-00
5trategies for the )uture 0C-0J
-onclusion 0;
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Su(-itt'* to+ Pro18 S8N''l-'02-
Su(-itt'* (.+ A(2is2'9 G2i!0!
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