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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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 .
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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.
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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.
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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.