Manohar .Airtel Final Report

8/14/2019 Manohar .Airtel Final Report

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INDUSTRIAL PROFILE

The telecom industry has been divided into two major segments, that is, fixed and wirelesscellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have

been discussed in brief in the report.

In todays information age, the telecommunication industry has a vital role to play. Considered

as the backbone of industrial and economic development, the industry has been aiding delivery

of voice and data services at rapidly increasing speeds, and thus, has been revolutionizinghuman communication.

Although the Indian telecom industry is one of the fastest-growing industries in the world, the

current teledensity or telecom penetration is extremely low when compared with global

standards. Indias tele-density of 36.98% in FY09 is amongst the lowest in the world. Further,

the urban tele-density is over 80%, while rural teledensity is less than 20%, and this gap isincreasing. As majority of the population resides in rural areas, it is important that the

government takes steps to improve rural teledensity. No doubt the government has taken certainpolicy initiatives, which include the creation of the Universal Service Obligation Fund, for

improving rural telephony. These measures are expected to improve the rural tele-density andbridge the rural-urban gap in tele-density.

Evolution

Indian telecom sector is more than 165 years old. Telecommunications was first introduced inIndia in 1851 when the first operational land lines were laid by the government near Kolkata

(then Calcutta), although telephone services were formally introduced in India much later in

1881. Further, in 1883, telephone services were merged with the postal system. In 1947, after

India attained independence, all foreign telecommunication companies were nationalized toform the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of

Communication. The Indian telecom sector was entirely under government ownership until

1984, when the private sector was allowed in telecommunication equipment manufacturingonly. The government concretized its earlier efforts towards developing R&D in the sector by

setting up an autonomous bodyCentre for Development of Telematics (C-DOT) in 1984 to

develop state-of-the-art telecommunication technology to meet the growing needs of the Indian

telecommunication network. The actual evolution of the industry started after the Governmentseparated the Department of Post and Telegraph in 1985 by setting up the Department of Posts

and the Department of Telecommunications (DoT).

The entire evolution of the telecom industry can be classified into three distinct phases.

Phase I- Pre-Liberalization Era (1980-89)

Phase II- Post Liberalization Era (1990-99)

Phase III- Post 2000


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1. CURRENT SENARIO

The Indian telecom sector has witnessed tremendous growth over the past decade. Today, the

Indian telecom network is the second largest in the world after China. A liberal policy regime

and involvement of the private sector have played an important role in transforming this sector.

The total number of telephones as on 31st April 2013 was 897.02 million.

The telecom industry has witnessed significant growth in subscriber base over the last

decade, with increasing network coverage and a competition-induced decline in tariffs acting as

catalysts for the growth in subscriber base. The growth story and the potential have also served

to attract newer players in the industry, with the result that the intensity of competition has kept

increasing. Internet subscribers in India grew to 164.81 million as of March 31, 2013, with as

many as seven out of eight net users in the country accessing the services via their mobile

phones, according to telecom regulator TRAI. The total number of mobile internet subscribers

stood at 143.2 million at the end of the last fiscal.

2. GROWTH IN TELECOM

Growth Drivers

Key factors, which will fuel the growth of the sector include increased access to services owing

to launch of newer telecom technologies like 3G and BWA, better devices, changing consumer behavior

and the emergence of cloud technologies. A majority of the investments will go into the capital

expenditure for setting up newer networks like 3G and developing the backhaul, among other things.

Subscriber Base

The mobile subscriber base in India is estimated rise by 9 per cent to 696 million connections

this year, according to technology researcher Gartner. The mobile service penetration in the country is

currently at 51 per cent and is expected to grow to 72 per cent by 2016.


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Mobile Value Added Services (MVAS)

India's current MVAS industry has an estimated size of US$ 2.7 billion. The industry derives its

revenues majorly from the top five to six products such as game based applications, music downloads,

etc, which continue to form close to 80 per cent of VAS revenues. The Indian MVAS industry estimated

to grow to US$ 10.8 billion by 2015, with the next wave of growth in subscriptions expected to comefrom semi-urban and rural areas.

Mobile Number Portability (MNP)

Mobile Number Portability requests increased from 89.70 million subscribers at the end of March 2013

to 91.73 million at the end of April 2013.

Handsets

The mobile handset market's revenues in India will grow from US$ 5.7 billion in 2010 to US$ 7.8 billion in

2016, according to the study. India is the second largest mobile handset market in the world and is setto become an even larger market with unit shipment of 208.4 million in 2016 at a CAGR of 11.8 per cent

from 2010 to 2016. The Indian mobile handset market posted revenue of Rs 359.46 billion in 2012-2013,

compared to Rs 313.30 billion in the earlier fiscal year on the back of increasing sale of smartphones. In

2012-2013, Karbon grew 73.1 per cent, Samsung ended the year with revenue of Rs 113.28.

3. MARKET PLAYERS

Key Players

With new players coming in, the intensity of competition in the industry has increased, especially over

the last four years. The market share of telecom operators of the telecom companies reflects the

fragmented nature of the industry, with as many as 15 players. As of April 30, 2012, Bharti telecom led

the market with 19.94 per cent share, Reliance (16.58 per cent), Vodafone (16.41 per cent), Idea (12.4

per cent), BSNL (10.51 per cent), Tata (8.77 per cent), Aircel (6.93 per cent), with the remaining share

being held by other smaller operators.


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Telecom Operator wise Market Share

Bharti is far ahead with close 20% market share in India, Reliance (16.58%) and Vodafone (16.41) are

having a close battle. Reliance currently has 154 million subscribers as compared to 152.5 million of

Vodafone. Uninor, who is one of the late entrants in Indian Telecom market now has over 45million

subscribers and accounts for close to 5 percent of Indian mobile market share .

4. GOVERNMENT POLICY

Government Initiative

The Cabinet has given its approval to National telecom Policy (NTP) 2012. The policy directs new

initiatives, which includes free roaming, unrestricted Net telephony and a new unified licensing regime

for operators. The policy also endorses a boost to broadband expansion and an increase in local

manufacturing of telecom equipment.

The National Science and Technology Entrepreneurship Development Board (NSTEDB), the

Department of Science and Technology (DST), Government of India, Techno park and Mob ME Wireless

have joined hands to set up the Startup Village - Indian Telecom Innovation Hub in Kerala. The country's

first Public Private Partnership (PPP) telecom business incubator is a step to support new product

initiatives and turn them into successful ventures.

TRAI is also doing its bit to achieve the aim of carbon emission reduction under which operators

are directed to achieve carbon reduction to the extent of 5 per cent by 2012-13, 12 per cent by 2016-17

and 17 per cent by 2018-19. Concerning these norms under 'Green Telephony', TRAI has further

mandated for all the operators that at least 50 per cent of all rural towers and 20 per cent of all urban

towers are to be powered by hybrid power by 2015.

FDI Policy in Telecom

Foreign direct investment (FDI) in telecom sector (including radio paging, cellular mobile, and basic

telephone services) during April-March 2011-12 stood at US$ 1,997 million, as per the Department of

Industrial Policy & Promotion (DIPP) data.

Total telephone subscriber base in the country reached 952.91 million at the end of April 2012

from 951.34 million at the end of March 2012.

Total Wireless subscriber base increased from 919.17 million in March 2012 to 921.02 million at the endof April 2012. Wire line subscription stood at 31.89 million at the end of April 2012. Overall tele-density

has reached 78.71.

Total Broadband subscriber base has increased from 13.79 million at the end of March 2012 to 13.95

million at the end of April 2012, there by showing a monthly growth of 1.13 per cent.

Investment Policy


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Foreign direct investment limit in telecom services is 74 per cent subject to the following conditions:

This is applicable in case of Basic, Cellular, Unified Access Services, National/

International Long Distance, V-Sat, Public Mobile Radio Trunked Services

(PMRTS), Global Mobile Personal Communications Services (GMPCS) and other

value added Services . Both direct and indirect foreign investment in the licensee company shall be

counted for FDI ceiling. Foreign Investment shall include investment by Foreign

Institutional Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency

Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global

Depository Receipts (GDRs) and convertible preference shares held by foreign

entity. In any case, the 'Indian' shareholding will not be less than 26 per cent.

FDI up to 49 per cent is on the automatic route and beyond that on the

government route.

FDI in the licensee company/Indian promoters/investment companies

including their holding companies shall require approval of the ForeignInvestment Promotion Board (FIPB) if it has a bearing on the overall ceiling of

74 per cent. While approving the investment proposals, FIPB shall take note

that investment is not coming from countries of concern and/or unfriendly

entities.

The investment approval by FIPB shall envisage the conditionality that the

Company would adhere to license Agreement.

FDI shall be subject to laws of India and not the laws of the foreign

country/countries.


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COMPANY PROFILE

Bharti Airtel Limited is a leading global telecommunications company with operations in 20

countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks

amongst the top 4 mobile service providers globally in terms of subscribers. In India, the

company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed

line services, high speed DSL broadband, IPTV, DTH, enterprise services including national &

international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G

wireless services and mobile commerce. Bharti Airtel had over 269 million customers across its

operations at the end of March 2013.

ESTABLISHMENT

July 07, 1995, as a Public Limited Company.

REVENUE

Rs. 204,484 million (ended March 31, 2013-Audited).

Rs. 187,294 million ( ended March 31, 2012-Audited).

SHARES IN ISSUE

3,797,530,096 as at March 31, 2013.

Listed in, Bombay Stock Exchange Limited (BSE).

National Stock Exchange of India Limited (NSE).

CUSTOMER BASE

India & South Asia: 196,126,000 GSM mobile; 3,283,000Tele media customers and

8,100,000- Digital TV Services

(status as on March 31, 2013)

Africa: 63,718,000 GSM mobile customers.

(status as on March 31, 2013)


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Bharti airtel limitedOrganization structure

Chairman

Sunil Bharti Mittal

JMD & CEO (India)

Gopal Vittal

MD & CEO(International)

Manoj Kohli

Director-Consumer

Business#Director B2B#

Executive DirectorHuman Resources

Krish Shankar

Supply Chain*

Director, MarketOperations

Ajai Puri

Director, CustomerExperience

Raghunath Mandava

Director NetworkServices Group

Jagbir Singh

CFO

Nilanjan Roy

DirectorLegal & Regulatory

Jyoti Pawar

Director IT #

AIRTEL ADVANTAGE

Extensive Reach - Strong Presence : 120 + Domestic POP Dual POPs at multiple locations.

Diverse Path - Minimum 3 paths for International cable diversity.

High Performance - Stringent SLA :Uptime , Packet loss, Latency, Jitter, MTTR.

High Reliability - Carrier-grade Network Platform.

High Security - Separate Internet and MPLS Backbone.

Multiple Access - Fiber , Copper , RF, VSAT .

Consultative Approach - Network Design in consultation with the customers.

24x7 Support - 24x7x365 Helpdesk and Technical Support.

B2B PARTNERS OF AIRTEL

Airtel partner with the best organization to deliver world class IT & Telecom solution to suit

your needs. Airtel is association with partners like Cisco, Ericsson, Singtel , Microsoft helps

them build products for changing time and need. airtel have supported large companies


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realize growth through our cutting edge Telecom & IT solutions. Now it bring the same

expertise through a single window for SMEs.

PRODUCT PORTFOLIO

B2B PRODUCTS

1. Corporate Internet Services (ILP)

Ideal solution to allow web access to your business applications.

Offered in various contention ratios to allow you to choose the service which suits you the best.

Features

Guaranteed bandwidth

Defined SLA on key network parameters

End to end solution delivery on Airtel network

Easy scalability in multiples of 256 Kpbs

24 x 7 network monitoring and support

Data&I

nternet

ServicesBroadband

EnterpriseInternet

Lese Lines

MPLS

VPN in a Box

VSATIPLC

EnhanceProductivity Website Builder

Toll Free

Hosted Mail

Audioconferencing

Video

ConferencingNet PC

PC SecurVo

iceServices Centrex / Widex

Voice Line

ISDN- PRI/BRI

IP Centrex

Centrex solutions

Parallel Ringling

3 PartyConferencing

MobileConnections


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Benefits

Ensuring a reliable, always-on service

Predictable performance at all times

Transmission integrity and efficiency

Stability to support real-time apps.

2. MPLS

Secure and scalable connectivity across your multi location offices for Enterprise Wide

Application Access.Closed User Group for locations connected on the MPLS network Privatenetwork unlike Internet Domestic and International MPLS options.

What you Get

Closed User Group for locations connected on the MPLS network

Private network unlike Internet

Domestic and International MPLS options

Global coverage through On-Net and Extended-Net coverage

Application aware network to allow traffic prioritization

3. VSAT SERVICE

Allow remote locations to access your Enterprise Network through Satellite based VSAT

Services from Airtel.


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Airtel Advantage

Only VSAT Service Provider in the country with hubs in three citiesBangalore, Delhi

and Mumbai.

Connected through Linkstar (ViaSat) and Skyedge (Gilat) platforms.

4. Website Builder

Create your website at your personalized address yourcompany.com with zero technical

knowledge in minutes.

What you get

Free Domain Name

Unlimted Space to host the website

15000+ Templates to help build professional websites

Website Builder tool to create and edit the websites anytime

Over 100+ unmatched features to generate traffic for your website

Sell Online with Ecommerce Package

5. Audio Conferencing

Airtel Audio Conferencing allows businesses to connect and collaborate together, on one, secure

private telephone line. Schedule your large conferences without the limitation of port capacity.

What you get

All Forms of Audio Conferencing offered in both attended and unattended variants

- Reservation-less AC

- Reserved AC

- Dedicated Ports AC


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- Large Event Calls

Value added Services

- CD Recording and Delivery

- Play Back

- Q& A Session

- Roll Call

- Polling

- Attendance

6. Video Conferencing

Now you can connect with your colleagues at geographically distant locations can interact in

real-time with full-motion video and audio.

What you get:

Forms of Video Conferencing offered

- Reservation-less AC

- Reserved AC

- Point to Point Video Conference

- Point to Multipoint Video Conference

- Multipoint Video Conference

Value added Services

- CD Recording and Delivery

- Play Back


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- Q& A Session

- Data Conferencing

- Polling

7. Toll Free Services

Connect with your customers across India with 1-800- Toll Free Services from Airtel.

WHO REQUIRES A TOLL FREE

Organizations with frequent customer interactions

Home Delivery Organizations

Logistics Companies who want their customers to stay in touch

Organizations seeking instant & easy accessibility for the customer

Organizations with high frequency of impulse purchase

8. Fixed LinePRI

PRIPrimary Rate Interface is a digital connection with 30 concurrent channels delivering 2

mbps high speed to meet an organizations greater capacity requirement. It is a digital network

capable of carrying Voice and Data simultaneously.

Unique Features

30 channels for inward and outbound calls with multiple extensions in multiples

of 100

Single Bill with group pulsing

Immediate connectivity on digital network

Direct Inward/outward DialingDirect Line for every user

Reduced Call Holding time for your callers

Extension wise billing

Ideal for offices with >15 staff with monthly spends of above 8000/-


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Vision/Mission of Bharti AirTel:

"To provide global telecom services and delight customers

Lovedby more customers

Targetedby top talent

Benchmarkedby more businesses Wewill meet the mobile communication needs of our

customers through:

Error- free service delivery, Innovative products and service.

BUSINESS NEEDS AND CORRESPONDING PRODUCTS

Extensive data upload / downloadNeed for dedicated bandwidth

National presenceRequire traffic engineering

Limited bandwidth needOffice with basic internet access< 10 em lo ees

Business start up

Lack of dedicated IT personnel

Business Needs Data Productivity Enhancers Voice

Intl OperationsNeed point to point connectivityLookin at ex ansion

IntlMPLS

IPLC

VIDEOCONF

ILP

Telephone needs for > 15employees

AUDIOCONF

MPLS VPN

IN ABOX

VIDEOCONF

AUDIOCONF

DSL

PCSECURE

NET PC

IPCENTREX

DSL

HOSTEDMAIL

WEBSITEBUILDER

ANALOGDEL

PARALLELRINGING

PRI AUDIO

CONF


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PERFORMANCE AT A GLANCE

Particulars UNITS

Full Year Ended Quarter Ended

2011 2012 2013 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013Operating Highlights

000s 251,646 271,227 251,646 260,710 262,555 262,275 271,227Total Customer Base 220,877

Total Minutes on Network Mn Min 890,093 1,020,61

1,127,14

265,235 274,616 274,820 284,041 293,672

Sites on Network Nos 131,304 141,059 156,905 141,059 147,010 151,219 152,491 156,905

Total Employees3 Nos 23,371 20,479

20,479 20,892 21,299 23,413 26,596

No. of countries of operation Nos 19 20 20 20 20 20 20 2Population Covered Bn 1.83 1.84 1.85 1.84 1.84 1.85 1.85 1.85

Consolidated Financials (Rs Mn)

595,383 714,508

187,294 193,501 202,732 202,395 204,484Total Revenue Rs Mn

EBITDA Rs Mn 200,718 237,123

62,329 58,487 63,508 61,839 64,870

EBIT Rs Mn 98,652 103,442

27,646 20,916 24,948 22,834 25,042

Cash profit from operations before

Derivative & Exchange FluctuationsRs Mn 180,581 204,836

208 00853,581 48,671 53,539 50,995 54,805

Profit / (Loss) before Tax Rs Mn 76,782 65,183

17,056 12,629 14,729 9,515 12,947Net income Rs Mn 60,467 42,594

10,059 7,622 7,212 2,837 5,086

Capex Rs Mn 140,100 135,804

23,801 35,758 40,549 23,826 35,231

Operating Free Cash Flow (EBITDA - Rs Mn 60,617 101,319

38,528 22,729 22,959 38,013 29,639

Net Debt Rs Mn 599,512 650,394

650,394 682,983 667,600 642,825 638,395

Shareholder's Equity Rs Mn 487,668 506,113

506,113 495,150 493,070 516,274 503,217

Consolidated Financials (US$ Mn)

13,063 14,937

3,723 3,583 3,673 3,719 3,779Total Revenue1 US$ Mn

EBITDA 1 US$ Mn 4,403 4,957

1,239 1,083 1,151 1,136 1,199

EBIT 1 US$ Mn 2,163 2,162

55

38

45

42

46Cash profit from operations before

Derivative & Exchange Fluctuations 1US$ Mn 3,961 4,282

3 8211,065 90

1970

937

1,013

Profit / (Loss) before Tax 1 US$ Mn 1,682 1,363 915 33

23

26

17

23

Net income1

US$ Mn 1,325 890 418 20 14 13 52 9Capex 1 US$ Mn 3,072 2,839

47

66

73

43

65

Operating Free Cash Flow (EBITDA - US$ Mn 1,330 2,118

76

42

41

69

54Net Debt

2 US$ Mn 13,427 12,714

12,714 12,129 12,669 11,735 11,738

Shareholder's Equity 2 US$ Mn 10,922 9,893

9,893 8,793 9,357 9,425 9,252

Key Ratios

33.7% 33.2%

33.3% 30.2% 31.3% 30.6% 31.7%EBITDA Margin %

EBIT Margin % 16.6% 14.5%

14.8% 10.8% 12.3% 11.3% 12.2%

Net Profit Margin % 10.2% 6.0%

5.4% 3.9% 3.6% 1.4% 2.5%

Net Debt to Funded Equity Ratio Times 1.23 1.29 1.27 1.29 1.38 1.35 1.25 1.27

Net Debt to EBITDA (LTM) - US$ Times 2.95 2.56 2.57 2.56 2.54 2.72 2.55 2.57

Net Debt to EBITDA (Annualised) - US$ Times 2.95 2.56 2.57 2.56 2.80 2.75 2.58 2.45

Interest Coverage ratio Times 11.20 8.40 6.47 7.55 6.29 6.40 6.35 6.83

Return on Shareholder's Equity % 13.3% 8.6% 8.6% 7.7% 7.1% 5.6% 4.5%Return on Capital employed % 10.8% 7.2%

7.2% 6.6% 6.2% 6.0% 5.7%

Valuation Indicators

1,358 1,279

1,279 1,158 1,006 1,203 1,108Market Capitalization Rs Bn

Market Capitalization US$ Bn 30.4 25.0 20.4 25.0 20.6 19.1 22.0 20.4

Enterprise Value Rs Bn 1,957 1,929

1,929 1,841 1,673 1,846 1,747

EV / EBITDA (Annualised) Times 9.75 8.14 7.02 7.74 7.87 6.59 7.46 6.73


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DIVERSIFIED PRODUCT PORTFOLIO

DATA AND IP SERVICE

DSL BROADBAND

CORPORATEINTERNET LEASED

LINE

DOMESTIC INTEROFFICE

CONNECTIVITY MPLSAND NLD

REMOTE LOCATIONCONNECTIVITY . VSAT

AND TELEPORTSERVICE

INTERNATIONALCONNECTIVITY . I-

MPLS AND IPLC

VALUE ADDEDPRODUCTS OFPRODUCTIVITYENHANCEMENT

AUDIO CONFERENCE

VIDEO CONFERENCE

HOSTED MAIL

VOIP

ERP

MATE

VIRTUALIZATION

VOICE SERVICES

ANALOG DEL

PRI

CENTREX

3G AND 4G

MOBILE SERVICES


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TITLE OF THE STUDY

IDENTIFICATION OF PRODUCT WISE AIRTEL SHARE AND COMPETETIVE MAPPING IN B2B MARKET IN

BANGALORE

STATEMENT OF THE PROBLEM

The project is expected to help the company in identifying the share of airtel products in

telecom sector in a b2b market in bangalore. Further the project will help the

Organisation in identifying the existing competitors .

OBJECTIVE OF THE STUDY

1. Identification of opportunities for B2B Business in Bangalore.

2. Identification of New Businesses coming up in in Bangalore.

3. Product wise airtel share and Competition Mapping.

4. Segregation of entire b2b business product wise.

SCOPE OF THE STUDY

The scope of the study will cover the following categories of customers.

IT units

Construction firms

All types of business offices which may be small scale and medium scale firms.

The study will be conducted in Bangalore only.


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RESEARCH DESIGN

Research Design is an arrangement for the collection and analysis of the data in a manner that it aids to

research purpose. A design conceptual structure, within which the research is conducted it constitutes

the blue print of the collection and measurement of data.

Research Description

A Research design is the determination and start of the general approach and

strategy adopted for a particular study or project. The research has undertaken a

comprehensive plan of the sequence of operation for the descriptive study to

achieve the research objectives with the arrangement of condition for collection and

analysis of data.

Methodologies

The methodologies of the study are following :

Developing the problem and research objective.

Developing the research plan for collection information.

Developing sequential questionnaire to gather or collect data

Implementing the research plan collecting and analyzing the data.

The questionnaire is collected through primary data and the sample size is 100.

Sampling Design

In this research the convenience sampling is used which is essentially a non-probability

sampling. Here are researchers select the easiest members from which to obtain information

and persuading them to become customer of the company. The researcher used his judgement

to select population member who are good prospect for the company. The respondent are

surveyed as their convenience those who can be the prospect for becoming customer or

already a customer of airtel.


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Sampling Unit

This combines all the small scale and medium scale firms or business unit segment of the

society who can be the prospects of becoming customer. Each of them are being targeted as

per the convenience residing in Bangalore.

Sample Frame

Questionnaire was prepared for interviewing the prospects who may be decision makers ,

administration , manager. It was for the companies in Bangalore city of Karnataka.

Sample Size

The sample size of the respondents was taken as 100 considering the scope and constraints of

the study. The sample size selected for this study appears to be adequate.

Field work

The field work was conducted for a period of 45 days in Bangalore. The interview was

conducted for 5 to 10 min meeting directly with the concerned person who is well aware of

telecom services used by the firm.

SOURCE AND METHOD OF DATA COLLECTION

Primary Data :

In it we study various steps that are generally adopted by researcher in studying a research

problem along with the methodology of research. The method of data was the way of survey

method. This is the process where first hand information was collected. The research derives it


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after completing certain activities. This process is highly time consuming and also expensive.

Under the survey method of collecting primary data a detailed examination is carried out to go

get the require data. This was done by personal interview of the respondents. For that,

questionnaire is prepared and the person to be interviewed is questioned on its basis. The

method opted by me in this research was personal interview method. For this very purpose I

had prepared the questionnaire the was directed towards the higher authority of the

organization most of which were managers , technical head , administration and decision

makers.

SECONDARY DATA :

The Secondary Data is readily complied data from statistical statements and reports. The data

can be obtained from either published or non published sources.

LIMITATION

Limitation of the Study

The study was limited to general office environment only.

The study was limited only to know the brand of telecom services used by the firm .

The study was limited to only 45 days so each and every aspect of satisfaction could

not be covered. Some of the management did not disclose the confidential data like

it may be revenue , bills and contact details.


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ANNEXURES

Identification, Understanding and needs of B2B Telecom Market in Bangalore

Company Portfolio

1. Name of the organization:

2. Industry sector:

3. Owners name:

4. Turnover of the organization: (a) Less than 50 L (b) 0.5 -1 Cr (c) 1-5 Cr

(d) 5-10 Cr (e) More than 10 Cr

5. Number of employees: (a) Less than 5 (b) 5-10 (c) 10-20

(d) 20-50 (e) More than 50

6. Year of establishment:

7. Survey filled by: Name:

Designation:

CONTACT DETAILS

ADMIN

IT

DECISION MAKER

CONTACT PERSON

DESIGNATION

EMAIL ID

CONTACT NO

PRODUCTS

MOBILE COCP/COIP


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OPERATOR AIRTEL TATA RELIANCE IDEA VODAFONE AIRCEL OTHERS

NUMBERS

MONTHLY

BILL

DONGLE

OPERATORS NUMBERS

AIRTEL

VODAFONE

AIRCEL

RELIANCE

TATA

OTHERS(SPECIFY)

INTERNET LEASED POST:

ACCESS DSL ILP/LEASED

LINE

2ND

LINK ILP

LEASE LINE

CABLE

BANDWITH

OPERATOR

ANNUAL

EXPENSE

MPLS

OPERATOR NO OF

BRANCHES

ANNUAL

BILLING

HUB LOC

ADDRESS

OTHER DETAILS

LANDLINE

OPERATOR AIRTEL TATA RELIANCE BSNL VODAFONE OTHERS

NUMBERS

MONTHLY


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BILLING

OTHER PRODUCTS

OPERATOR TOLL

FREE

VIDEO

CONFERENCING

AUDIO

CONFERENCING

SAAS OTHERS

AIRTEL

TATA

RELIANCE

IDEA

VODAFONE

AIRCEL

OTHERS

COMMENTS (IF ANY)

EXPANSION PLAN GOING FORWARD

BDM NAME/DATE ADDRESS PHONE NUMBER

REMARKS:

ARE YOU WILLING TO SHIFT TO ANY OF THE OTHER OPERATOR IN ANY OF THE OTHER

SERVICE? WHY SPECIFY ?

Camp opportunity

who is to be contacted

Date

Time


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1. YES2. NO

FROM HOW LONG HAVE YOU BEEN USUNG THE PRODUCT ?

1. LESS THAN 1YEAR2. 1 TO 2 YEAR3. 2 TO 4 YEAR4. MORE THAN 4 YEARS


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TABLE1: Table 1 shows the range of employees in the firm which has been segregated

according to a particular range which is helpful in knowing whether the firm is small scale or a

medium scale firm.

RANGE OF

EMPLOYEE

NO OF COMPANIES

Less than 5 16

5-10 28

10-20 18

20-50 18

More than 50 20

INFERENCE : It can be inferred that the research is conducted with 20% of medium scale firm

and 80% of small scale firm.

16

28

18

18

20

LESS THAN 5

5TO10

10TO20

20TO50

MORE THAN 50


25/38

TABLE 2 : Table 2 contains number of companies using COCP and COIP connections of

different brands. Here most the large scale firm uses COCP connections.

COCP70

COIP30

70

30

NUMBERS

COCP

COIP


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TABLE3 : The table contains the different companies using different services of COCP

connections . It should be noted that 1 company can use 1 or more service operator.

BRAND NO OFCOMPANIES

AIRTEL 39

TATA 5

RELIANCE 9

IDEA 10

VODAFONE 9

AIRCEL 5

OTHERS 5

INFERENCE : Here point to be noted that this graph is only for COCP connections used by the

firm which is company owned and company paid . hence with this we can infer that major for

the firm uses airtel connections to provide mobile facilities to there employees followed by idea,

reliance, Vodafone .

0

5

10

15

20

25

30

35

40

45

Series1


27/38

TABLE3 : contains the percentage of operator vice COIP(company owned individual paid )

connections in b2b market.

OPERATOR COIPCONNECTIONS

AIRTEL 22

TATA 20

IDEA 14

VODAFONE 18

AIRCEL 14

RELIANCE 16

OTHERS 8

INFERENCE : there is a stiff competition between all the operators that is airtel , tata docomo ,

Vodafone , and reliance .

0

5

10

15

20

25

22 20

1418

14 16

8

COIP CONNECTIONS

COIP CONNECTIONS


28/38

TABLE 3 : Table 3 involves companies using dongles . here we can see no of dongles used by

business units of different brand .

OPERATORS NO OFCOMPANIES

AIRTEL 12

VODAFONE 0

AIRCEL 1

RELIANCE 14

TATA 15

BSNL 4

MTS 5

OPERATORS NO OFDONGLES

AIRTEL 61

VODAFONE 0

AIRCEL 1

RELIANCE 149

TATA 90

BSNL 5

MTS 17

INFERENCE : From the table we can see that most number of companies use either airtel ,

reliance or TATA hence there is a huge competition between these 3 companies but if he take the

no of dongles used by each company it can be inferred that reliance is used in a large scale with

0 50 100 150 200

AIRTEL

VODAFONE

AIRCEL

RELIANCE

TATA

BSNL

MTS

Series1


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150 units followed by TATA with 90 , airtel 61 , MTS and BSNL with few numbers. Which may

be for the cost and connectivity factor.

TABLE4 : Involves how many companies are using 3g dongles and how many companies are

using 4G dongles

DONGLE NO OF COMPANIES

3G 60

4G 5

INFERENCE : Airtel is the only company who is providing 4G dongle facility which was

started in 2013 hence the sales are low . therefore 90% of the companies uses 3G dongle and

only 10% of the companies use 4G dongle.

60

5

NO OF COMPANIES

3G

4G


30/38

TABLE 5 : table 4 contains the internet service operators the firms are using which is sub

divided into DSL , ILP(internet leased line) , 2nd

ILP ( leased line). Here 60 companies are using

DSL and 35 firms are using ILP and 5 are using 2nd

IPL.

OPERATOR DSL

ILP/LEASED

LINE

2ND

LEASED

LINE

AIRTEL 38 12 1

BSNL 12 5 0

RELIANCE 1 3 0

TATA 1 4 1

OTHERS 2 8 0

INFERENCE : 70% of the firms use airtel as there internet connection in DSL, ILP, 2nd

ILP.

Hence airtel has the highest no of internet connections in b2b market.

0

5

10

15

20

25

30

35

40

DSL

ILP/LEASED LINE

2ND LEASED LINE


31/38

TABLE 6 : Here the operator and the corresponding number of companies using the particular

operators landline service is being tabulated.

LANDLINEOPERATOR

NUMBER OFCOMPANIES

AIRTEL 54

TATA 8

RELIANCE 4

BSNL 25

INFERENCE : Here 50% of the companies are using airtel for there landline service which is

followed by bsnl and tata , reliance being the least once. of which AIRTEL has 204 connections,

TATA has 50 connections, RELIANCE has 15 connections and BSNL has 78 connections.

54

8

4

25

NUMBER OF COMPANIES

AIRTEL

TATA

RELIANCE

BSNL


32/38

TABLE 7 : Contains all the other products which the firms uses with there corresponding

operators.

OPERATOR TOLLFREE VIDEOCONFERENCING AUDIOCONFERENCING SAAS OTHERS

AIRTEL 4 4 1 0 0

TATA 1 0 0 0 0

RELIANCE 0 0 2 0 0

IDEA 0 0 0 0 0

VODAFONE 0 0 0 0 0

AIRCEL 0 0 0 0 0

OTHERS 1 0 0 0 0

INFERENCE : The above services are rarely used by the small scale and medium scale firmshence the numbers are also low . But these services are very crucial for the firms hence if they

are willing to use these products they only go for the best that is airtel due to its global presence

hence these numbers.


33/38

TABLE8 : Contains the overall Airtel and other operators share in B2B market collected out of

100 SME firms in banglore .

PARTICULARS AIRTEL TATA RELIANCE IDEA VODAFONE BSNL OTHERS

COCP 40% 10% 9% 10% 14% 5% 12%

DONGLE 24% 30% 24% - - 8% 14%

INTERNET 50% 10% 10% - - 20% 10%

MPLS - - - - - - -

LANDLINE 60% 10% 8% - - 22% -

INFERENCE : With this graph we can infer that airtel has nearly 50% of the total shares with

all the products running successfully in the SME sector .

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

AIRTEL TATA RELIANCE IDEA VODAFONE BSNL OTHERS

LANDLINE

MPLS

INTERNET

DONGLE

COCP


34/38

TABLE9 : This table contains the percentage of business units willing to port to other telecom

service operator

PARTICULARS PERCENTAGE

YES 28%

NO 78%

28%

78%

PERCENTAGE

YES

NO


35/38

FINDINGS

Majority of the respondents prefer airtel as there telecom service provide because of its

good service.

Most of the respondents quoted only one reason not to use airtel is the high pricing of the

services . The main strategy behind airtel is the quality of the service provided with technology of

airtel in much more advanced than other operators , hence airtel doesnt compromise on

price advanced services being the main USP.

Airtel provides customised services to firms depending upon the firms requirements in all

types of products .

Airtel has a separate plan called as corporate plan for firms.

Airtel has tough competition from reliance , idea , Vodafone in its COCP and COIP

connections due to lower price offered by other operators.

SME sector has a 30% of COIP connection where company only pay the mobile bills ofthe higher level employees but not of the other employee .

With scenario airtel is trying to promote its COCP connections which will help the

company to get bulk connections .

Most of the higher authorities use either Vodafone or airtel as there mobile operator due

to its connectivity .

Airtel has hubs all parts of the world and trying to expand further which helps in

interational connectivity.

Airtel have a major competition from tata photon and reliance in dongle .

Recently airtel have introduced the 4G service and is being intensively marketed by them

.Airtel has a wide distribution channel through which customer and firms can buy the

service easily .

Lot of business unit praised the airtel service because of its customer service and the

response to the request is also quick.

In the internet service airtel has the highest share in DSL service due to joint landline

service , DSL can be provided as an add on with the landline hence its is mostly used by

all the firms but the internet speed is not so high .

Airtel has a stiff competition from bsnl and reliance in ILP(leased line),

BSNL being the oldest service provider has a lot of old business firms due to the

switching cost they are not willing to switch to other service provider . Where as Reliance is working on marketing plan through which they are able to conquer

a whole building where there are more number of business unit thereby enabling other

operators to enter .

Landline market is also majorly owned by airtel and bsnl , bsnl being the oldest player

has next highest highest users of landline .


36/38

Airtel provide corporate line which has PRI connections upto 28 units for one number

and customised plan for each business unit according to there usage pattern.

During the interview we found a lot of opportunities which was stated from the business

units which was later conveyed to the sales people from airtel .

Eg : one of the companys technical head stated that they were in need of 2nd

ILP

connection which was converted to sale immediately , which infers that airtel is very

quick to convert opportunity to sale.

Plus too many competition in telecom space and revenues of Airtel has saturated in last 3

years.


37/38

SUGGESTIONS

As the survey was conducted it was found out that the respondents awareness

regarding the brand was minimal hence there is a need for increasing promotional

activities which can create brand awareness among the respondents.

The respondents are unanimously apprehensive regarding the price of the

DONGLE and the price of the 4G, as there are a lot cheaper options available

locally.

The company can provide direct B2C services through many electronic retail

outlets, thereby expanding the brand name and influencing the potential consumers

to buy it.

Airtel should try to grab opportunity by explaining the firms about the advantage

over other operators and make the costumer port from other products.

airtel is only trying to promote dongle and mobile connections but lack in

promotion of leased line connections and DSL connections hence lot of business

are not aware of these service .

COIP(company owned individual paid) connections have a very tough competition

from the competitors like docomo , Vodafone , idea , aircel . hence has to offer

attractive offers which to pull in new customers.


38/38

CONCLUSION

The research gave a deep knowledge on the existing b2b market share of not only

AIRTEL but all operators which will give a clear picture of the competition level

which is very high due to too many operators providing service at a very low cost

. but airtel believes at providing standard services which is being a usp of airtel .

Helped us to know why airtel is preferred by most of the firm and knowledge about the

products and its features which makes airtel unique from other operators. This has what

made corporates to go for Airtel whether its Small scale medium scale or large

enterprises go for Airtel, because airtel provides the best Connectivity, affordable rates,

Attractive corporate packages and the Best after sales services than any other Telecom

service provider this is what made Airtel stand apart from its competitors and this is what

had changed the Mindset and mentality of Enterprises to choose Airtel and thats what we

have learnt from this research how the Understanding and needs of Enterprise changes in

the Telecom sector.

Date post:	04-Jun-2018
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Manohar .Airtel Final Report

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