Industry Overview

Worlds Second-largest mobile phone market after china 791.38 million subscribers as of Feb2011 (including CDMA); i.e., approx. 65% of Indian population. 648.08 million GSM subscribers as of January 2012 Maximum GSM Subs addition in the month of January by Uninor - 2.49 million Maximum GSM Subs - Airtel 176.95 Million

Contribution to the Economy

Telecom sector has recorded a growth of 12% during 2010-11 as compared to 7% during 2009-10. Revenue (2010-11) - Rs 119845 crores

SWOT ANALYSIS of the Industry

Strength Huge wireless subscriber potential. Fastest growing mobile market in the world. Consumers are ready to pay for cutting edge services. India possesses cheap labor to attract foreign investments. Telecom software, telecom professionals, telecom infrastructure and telecomservices are the key players in shaping todays economy. Revenue sharing strategies are leading to mergers and acquisitions, helpingcompanies to enter new business opportunities, and generate employment,boosting the countries economy. Government has started relaxing rules for foreign participants Lowest tariff rates in the world

Weakness

Market strongly regulated by government body the t elecom regulatory authority of India. Existence of entry barriers for private companies. High cost of service provision. Low income countries like India cannot afford to replicate expensive telecom infrastructure.

Opportunity
India has Asias third largest economy is adding at least one million new mobile phone users every month Mobile phone users base hitting a saturation point in big cities. Income levels in the rural areas rising due to robust agricultural output. Share of the rural market in the countrys mobile population is, however, less than 15% Cellular phone now being viewed as a common mans phone Rapid growth expected in the telecom and related services Foreign investment in form of equity or technology Increased availability of bandwidth has open doors to new schemes making efficient usage, providing value added services and generating profits. Rural India is the key target market likely to drive the next round of growth, particularly for voice based services. It is anticipated that rural teledensity of 40% would be reached by end of 2014.

Threat

High level of risk uncertainty and cost associated with the cellular sector Weak intellectual property right protection Software and digital content piracy Political instability Cost of handset also deters a lot of buyers from opting for the service Threat from WLL service providers and also from satellite phones Entry of new service providers offering much cheaper rates and other promotions.

Market Share of Mobile service providers

3.66% 6.75%

7.10%
11.98%

24.03%

Bharti Vodafone Idea/Spice

18.87%

Reliance BSNL Aircel Tata

10.77% 16.83%

Others
Others include Uninor, Sistema, S Tel and HFCL

Source: TRAI annual report 2010-11

Latest report
In January, 2012 Bharti Airtel, the largest GSM service provider, added 1.30 million users, taking its total subscriber base to 176.95 million. The company had a 27.30 per cent market share at the end of January. Vodafone Essar, with a 22.93 per cent market share, stood at second place with 0.86 million new subscribers during the month. Its subscriber base reached 148.60 million in January. Idea, saw 1.75 million new additions during the month, taking its total subscriber base to 108.13 million.

Number of Subscribers as of Jan 2012 (in Millions)

200 180 160 140 120 100 80 60 40 20 38.8 5.85 5.49 3.43 3.25 108.13 93.43 62.46 176.95 148.6

1.69

PROJECT SCOPE
AIM:
The aim of this study is to critically analyze the consumers preference and satisfaction levels from the prepaid service provided by the leading cellular operator in India- Airtel. Also to get a close look at various gaps during the service provided.

OBJECTIVES OF THE STUDY

To identify the major service issues faced by customer To analysis the various GAPS between provider and the receiver. To see the service issues from the service providers point of view. To identify if acquiring new customers necessarily mean efficient service to the entire customer base. Should there be any capping limit? To suggest remedial steps which are required to resolve the identified service issues.

Limitations
Survey was done by the team members through their social network and the sample available as- students of XIME College Bangalore. Only prepaid cellular service has been considered for the purpose of survey. Services like postpaid, landline, internet etc are not included in the scope of the survey.

RESEARCH METHODOLOGY
The research is majorly done with primary data collected from a sample of 300 prepaid service users. Secondary data - TRAI (Telecom Regulation Authority of India) & COAI (Cellular Operators Association of India), magazines like Business World and Business India, News Paper- Economic Times. Primary data - a structured questionnaire was prepared keeping in view, the main aim of the survey and was circulated online through social media websites (Facebook, Orkut & Twitter) and hard copies to individuals in the XIME college campus, Bangalore.

Airtel: Brand positioning, promise line and service delivery

Positioned as an inspirational and lifestyle brand. Promises to enrich lives of millions by putting the customer at the heart of everything that they do and meet the customer needs based on deep understanding of their ambitions, wherever they are. Transformed from Express yourelf to Har ek friend zaroori hota hai (HFZ) as it started to put more emphasis on data-based service offerings with the introduction of 3G and the popularity of smart phones in India.