varun kumar- airtel
TRANSCRIPT
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A
REPORT
ON
ORGANIZATION STUDY AT AIRTEL
&
A CONSUMER SURVEY ON AIRTEL ROAMING
Submitted in partial fulfillment of the requirements of
The M.B.A Degree Course of Bangalore University
Submitted
By
M.VARUN KUMAR
O7XQCM6040
Under the Guidance and Supervision
Of
B.SRINIVASAN
PROFESSOR
MPBIM
M.P BIRLA INSTITUTE OF MANAGEMENT
Associate Bharatiya Vidya Bhavan
# 43, Race Course Road, Bangalore-560001
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DECLARATION
I M.VARUN KUMAR, student of Master of Business Administration (MBA),
M.P.Birla Institute of Management , Bangalore hereby declare that this report
‘Organization Study in AIRTEL, Bangalore is a record of independent
work carried out by me, towards partial fulfillment of requirement for Master
Of Business Administration (MBA) Course of Bangalore University at
M.P.Birla Institute of Management.
This has not been submitted in part of full towards any degree or diploma.
M.Varun Kumar
Reg No: 07XQCM6040
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ACKNOWLEDGEMENT
Gratitude takes three forms: “A feeling from heart, an expression in words,
and a giving in turn”. We take this opportunity to express our heartfelt feelings.
This project is thus dedicated to each and every one who has in some way or the other
helped me in the successful completion of this report.
I extend my sincere thanks to my guide Prof B.SRINIVASAN for his expert guidance,
valuable suggestions and everlasting encouragement.
I also take this opportunity to extend my heartfelt thanks to our beloved principal Prof.
N.MALLAVALI for his valuable support.
Finally I am grateful to all the respondents without whose help this project would not
have been possible.
M. Varun Kumar
MBA 3RD
sem
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SL. NO. CONTENTS PAGE
NOS.
1 EXECUTIVE SUMMARY 1
2 PART A- ORGANIZATIONAL STUDY 2
CHAPTER 1: INDIAN CELLULAR INDUSTRY 3
CHAPTER 2: THE BHARTI GROUP 10
CHAPTER 3: AIRTEL 17
CHAPTER 4: ROAMING 28
CHAPTER 5: SWOT ANALYSIS 34
3 PART B- RESEARCH STUDY 38
CHAPTER 1: RESEARCH EXTRATS 39
CHAPTER 2: PROJECT DESIGN AND STUDY 41
CHAPTER 3: ANALYSIS AND INTERPRETATIONS 44
CHAPTER 4: FINDINGS 70
CHAPTER 5: CONCLUSIONS 73
CHAPTER 6: SUGGESTIONS & RECOMMENDATIONS 76
4 BIBLIOGRAPHY 79
5 ANNEXURE 81
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PART A
ORGANIZATIONAL STUDY
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CHAPTER-1
INDIAN CELLULAR INDUSTRY
History of cellular telephony.
Cellular industry in India.
Cellular operators in India.
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History of Cellular Telephony
The technology that gives a person the power to communicate anytime, anywhere -
has spawned an entire industry in mobile telecommunication. Mobile telephones have
become an integral part of the growth, success and efficiency of any business /
economy.
The most prevalent wireless standard in the world today, is GSM. The GSM
Association (Global System for Mobile Communications) was instituted in 1987 to
promote and expedite the adoption, development and deployment and evolution of the
GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement
on the need to adopt common standards suitable for cross border European mobile
communications. Starting off primarily as a European standard, the Group Special
Mobile as it was then called, soon came to represent the Global System for Mobile
Communications as it achieved the status of a world-wide standard. GSM is today, the
world's leading digital standard accounting for 68.5% of the global digital wireless
market.
The Indian Government when considering the introduction of cellular services into
the country, made a landmark decision to introduce the GSM standard, leapfrogging
obsolescent technologies / standards.
Cellular Industry in India
The Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid economic and
social development of the country. It is critical not only for the development of the
Information Technology industry, but also has widespread ramifications on the entire
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economy of the country. It is also anticipated that going forward, a major part of the
GDP of the country would be contributed by this sector. Accordingly, it is of vital
importance to the country that there be a comprehensive and forward looking
telecommunications policy which creates an enabling framework for development of
this industry.
Telecommunications is now universally recognized as one of the prime movers of the
modern economy; hence it's vital importance for a developing country like India. The
availability of adequate infrastructure facilities is critical for acceleration of the
economic development of any country. In fact international studies have established
that for every 1% increase in Tele-density, there is a 3% increase in the growth of
GDP.
Accordingly, the Government of India has accorded the highest priority to investment
and development of the telecommunications sector. Telecom requires very heavy
investment and it was not possible for the Indian Government to organize public
funding of this sector on such a massive scale. In fact the national telecom Policy
1994, estimated a resource gap of Rs. 23,000 crs to meet the telecom targets of the
eighth five-year plan of the Government of India (1992-97).
It was for this reason to bridge the resource gap between government funding and the
total projected funds requirement and to provide the additional resources to achieve
the nation's telecom targets that the telecommunications sector was liberalized in 1992
and the Government invited private sector participation in telecommunications.
Cellular mobile services were one of the first areas to be opened up to private
competition. The whole country was divided into the 4 metropolitan cities of and 19
telecom circles, which were roughly analogous with the States of India. Cellular
Licenses were awarded to the private sector - first in the metropolitan cities of Delhi,
Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.
The first metro cellular network started operating in August 1995 in Calcutta. When
cellular mobile services were first introduced in 1994 it was as a duopoly (that is a
maximum of two cellular mobile operators could be licensed in each telecom circle),
under a fixed license fee regime and for a license period of 10 years. The initialresponse of the private sector was very encouraging.
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The attractiveness of the Indian market - the low Tele-density, the high latent demand
and a burgeoning middle class - brought in some of the largest global telecom players,
foreign institutional investors and the major Indian industrial houses to invest in
telecom, especially the Indian cellular industry. Telecom proved to be a powerful
attractor of foreign investment. The cumulative FDI inflow into telecom since 1993
has exceeded Rs. 43,000 Million. Annual foreign investment in telecom increased
steadily from an insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in
1998.
However, the attractiveness of the Indian market did not last for very long, as by
1997-98, the private cellular operators were confronted with a series of problems that
threatened their very viability and survival. As a result of this, FDI inflow into
telecom dropped sharply, declining by almost 90% to Rs. 2126.7 Million in 1999.
This dropped further in Year 2000 - as until June 2000, only Rs. 918 Million had
flown into the country.
One of the key factors responsible for the critical state of the telecom sector &
consequently also the cellular industry was that liberalization / deregulation was
undertaken in an inverted manner vis-à-vis international practices and generally
accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of
a strong and independent regulator and only then is private sector participation
invited.
Another important factor was the basic approach of the Government towards
liberalization. Consumer benefit was given the go-by and the telecom sector was
viewed as a revenue generator / cash cow for the Government exchequer. Licenses
were granted through an auction process and the enthusiastic private sector deluded
by the seemingly huge potential of the Indian market were lured into bidding
exorbitant sums of money for cellular licenses. The huge license fees paid by the
private operators resulted in a high cost structure leading to un-affordable tariffs and
lower growth of the market.
By end-1998, the cellular industry was on the verge of bankruptcy and at that time it
appeared that the liberalization dream was over & the nightmare had begun. It was
under the above circumstances that the Government undertook a review of telecom
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policy & the role of the regulatory authority. The result was NTP 99, which was
announced in March 1999 & the amendment of the TRAI Act in January 2000.
Cellular tariffs have dropped by over 90% since May 1999 - a feat unparalleled by
any other sector or industry in India. The average airtime tariff in Year 2001 wasprevailing around Rs. 2 per minute as against the peak ceiling tariff of Rs. 16.80 per
minute when NTP 99 was announced.
As a result of improved affordability, there an increased take-up of the service and the
cellular operators were able to venture into more and more cities & towns of the
country. In fact cellular services are now available in almost 1400 cities & towns of
India. With the lower tariffs and increased coverage, there was also a resultant
increase in the number of cellular subscribers. The point of inflexion for subscriber
take-off is clearly post NTP-99. From 1.2 million subscribers in April 1999, to almost
2 million by April 2000, the number of cellular subscriber has grown to almost 6.5
million by the end of March 2002.
By March 2001, the industry had invested nearly Rs. 16,000 crores in cellular
infrastructure and it is estimated that these investments will grow to Rs. 20,000 crores
in the next 4-5 years. As of March 2002, the Indian cellular mobile industry had 42networks on air, serving over 1400 towns and cities and covering thousands of
villages and serving almost 6.5 million subscribers across the country.
The quality of the service is widely accepted to be of international standards and till
date there has been no waiting period involved in availing of this service. The cellular
industry has been growing at an average rate of 85% per annum and it is hoped that
the industry will be able to sustain this growth in the coming years.
The Working Group on the Telecom Sector set up by the Government of India for the
tenth five-year plan, has estimated that over the next five years, around 31.55 million
cellular subscribers would be added all over India. To achieve this growth, the
Working Group has also estimated that resources to the tune of about Rs. 25,240
crores will be required over the next five years.
Most of India's population cannot yet afford a cellular phone. However, there is a
growing middle class who is able and willing to buy cellular phones and services.
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With fewer than 25 million subscribers today, India stands at the beginning of its
cellular growth. The Indian operators anticipate from 150 million to 250 million
subscribers by year-end 2007, a range consistent with our own expectations.
The Indian cellular market is one of extremes - demonstrated by disparities in income
but also by how network operators view the market - from providing low-cost voice
services to data services. It is clear from a recent trip to India that innovation and
differentiation among the operators’ rules. This innovation is helping to drive the
market and can provide lessons for operators elsewhere. Operators aren't focused on
technology for technology's sake, but for the services which it provides.
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THE CELLULAR SERVICE OPERATORS IN INDIA
Aircel Limited
Aircel Digilink India
BSNL
Bharti Cellular
Bharti Mobile
Bharti Mobinet Ltd
Bharti Mobitel Ltd
Bharti TelenetBPL Cellular
BPL Mobile
Escotel Mobile
Fascel
Hexacom India
Hutchison Essar South
Hutchison Essar Telecom
Hutchison Max Telcom
Hutchison Telecom East
Idea Cellular
MTNL
Reliance Telecom
RPG Cellular
Spice Communications
TATA Indicom
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CHAPTER- 2
THE BHARTI GROUP
Introduction
Business strategy
Board of Directors
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INTRODUCTION
Building Telecom... Building Relationships
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting
investments in telecommunications services. Its subsidiaries operate telecom services
across India. Bharti Tele-Ventures is India's leading private sector provider of
telecommunications services based on a strong customer base consisting of nearly
eight million total customers.
“As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer." says Sunil Bharti Mittal
(Chairman and Group Managing Director)
Bharti Tele-Ventures vision for its mobile business is “To make mobile
communications a way of life and be the customers first choice”. The Company’s
strategic objective is to consolidate its leadership position amongst the mobile service
providers in India.
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM servicesin all the twenty-two telecom circles in India. It proposes to consolidate all its
subsidiaries providing mobile services under Bharti Cellular Limited.
As of June 30, 2004, approximately 92% of India's total mobile subscriber market
resided in the Company's sixteen mobile circles, which collectively covered only 56%
of India's land mass. Bharti is largest private sector integrated telecommunications
services group in India in terms of the number of customers. It has largest Mobile
footprint in India, covering 16 of the 22 licensed areas. Bharti was the first and largest
private telecommunications services company offering fixed-line services in India.
Bharti was first off the block to launch fixed-line services in all the four circles of
Delhi, Haryana,Karnataka & Tamil Nadu.
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BUSINESS STRATEGY
Bharti Tele-Ventures' strategic objective is
“to capitalize on the growth opportunities that the Company believes are available in
the Indian telecommunications market and consolidate its position to be the leading
integrated telecommunications services provider in key markets in India, with a focus
on providing mobile services”.
The Company has developed the following strategies to achieve its strategic
objective:
• Focus on maximizing revenues and margins;
• Capture maximum telecommunications revenue potential with minimum
geographical coverage;
• Offer multiple telecommunications services to provide customers with a "one-
stop shop" solution;
• Position itself to tap data transmission opportunities and offer advanced
mobile data services;
• Focus on satisfying and retaining customers by ensuring high level of
customer satisfaction;
• Leverage strengths of its strategic and financial partners; and
• Emphasize on human resource development to achieve operational
efficiencies.
Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom);
Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius;
International Finance Corporation, USA and New York Life International, USA.
Bharti provides a range of telecom services, which include Cellular, Basic, Internet
and recently introduced National Long Distance. Bharti also manufactures and
exports telephone terminals and cordless phones. Apart from being the largest
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manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA.
Bharti is the leading cellular service provider, with a footprint in 15 states covering all
four metros. Mobile services constitute the largest portion of Bharti’s business both in
terms of total revenues and total customers. The company also engaged in fixed-line,
long distance, group data and enterprise services including VSAT and Internet
services.
Bharti Tele-Ventures,its subsidiaries and management have received several awards
and recognitions, including:
• Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in
November 2001 in the Asian edition of the "tele.com" magazine with
analytical inputs from research consultants Frost & Sullivan.
• The leading telecommunications service provider in India in a survey of
Indian companies conducted by Business World in association with Indian
Marketing Research Bureau in September 2001
• The “Techies” award from Information Communications World, an
international business magazine, for four consecutive years (1997 to 2000) for
brand excellence, network quality, customer service and value added service
in our Delhi mobile circle.
• Golden Peacock National Training Award – 1999 to Bharti Cellular for our
Delhi mobile operations from the Institute of Directors, a non-profit
association in India committed to improving the competitiveness of Indian
business by focusing on development of business leaders, for the best human
resources and training practices.
• Ascent – Times of India and Sodexho Pass award in 1999 from the Asia
Pacific HRD conclave to Bharti Cellular for corporate excellence in
the category of most innovative human resource practices.
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BOARD OF DIRECTORS
MR. SUNIL BHARTI MITTAL
MR. RAKESH BHARTI MITTAL
MR. RAJAN BHARTI MITTAL
MR. AKHIL GUPTA
MR. LUNG CHIEN PING
MR. LIM TOON
MS. CHUA SOCK KOONG
MR. DALIP PATHAK
MR. BASHIR ABDULLA CURRIMJEE
MR. DONALD CAMERON
MR. N. KUMAR
MR. PULAK PRASAD
MR. PAUL O'SULLIVAN
PROF. V.S RAJU
MR. KURT HELLSTROM
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The group has been structured to create functional and operational specialization with
a linear vision of business lines and functional areas.
The Company is headed by Chairman and Group Managing Director- Sunil Bharti
Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan
Bharti Mittal. The Company also has two Presidents- President Mobile Services and
President Infotel Services, this responsibility includes Fixed-line, Long Distance and
Broadband Services. The Presidents report to the Group Chairman and Managing
Director. The head of units and SBUs report to the respective business's President.
An apex team of Corporate Directors has been constituted. The corporate directors
have supervisory and strategic responsibilities for functional areas across business
lines. The directors oversee functional areas including Business Development, Human
Resources, Marketing, Corporate Communication, IT & Technology, Finance, Legal,
Corporate Affairs, Corporate Strategy & Planning and Supervisory Director cum
Chief Mentor - mobility.
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THE ORGANIZATION STRUCTURE:
The organization structure is designed to ensure that identical businesses are run along
similar lines and best resources in any functional field, be tapped to serve the best
interests of the entire group.
The structure also defines the role of the Head of the units who are totally empowered
to manage their respective companies and are fully responsible for business
operations to build world-class organizations with a high degree of customer focus.
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CHAPTER-3
AIRTEL
About Airtel
Airtel Karnataka
Products and services
Areas of operation
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AIRTEL’s VISION
"To make mobile communications a way of life and be the customers'
first choice”
AIRTEL’s MISSION
The company will meet the mobile communication needs of its
customers through:
• Error- free service delivery
• Innovative products and services
• Unified messaging Solution
• Cost efficiency
Airtel & Visual Identity
For a brand to be successful, it must build enduring relationships with its different
audiences. Integral to this relationship is the visual image of the brand the consumer
carries in his/her mind. The Airtel brand image is created through the consistent
application of a carefully developed visual identity, which helps Airtel distinguish
itself in a cluttered market. Airtel's visual identity helps create instant brand recall and
strengthens the relationships that its audiences have with it.
Airtel is the flagship that comes from Bharti Cellular Limited - a part of the biggestprivate integrated telecom conglomerate, Bharti Enterprises.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in 1976,
Bharti has been a pioneering force in the telecom sector with many firsts and
innovations to its credit.
Airtel strives hard to make the quality of your life better to its esteem customers. For
them customers are unique, and so are their needs. And because of its customers
individuality they have a set of services pertinent to its them !
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Airtel welcomes its customer to a vibrant world of unlimited opportunities. For them
customers are important and the company endeavor to provide to its customers with
the service that exactly fits their needs.
Experience total cost control, low rentals and easy billing with Airtel postpaid andprepaid services. Explore the world with Airtel roaming services and get absolutely
cool offers and mobile downloads on your Airtel MTV Card!
Airtel’s customer service is number one in the country.
Airtel is all around. Avail of all our services anytime, anywhere.
Right from easily accessible cheque drop boxes and locations of the
shops to means whereby you can be part of the Airtel fraternity.
So come and experience complete freedom. Come experience Airtel!
Airtel Karnataka
Bharti Tele-Ventures through its subsidiary, Bharti Mobile Limited, holds the right to
establish, maintain and operate a cellular mobile telephony system in the Karnataka
circle through a licence that is valid for 20 years from February 15, 1996 under the
brand named Airtel. Bharti Mobile Limited - Karnataka is a part of the mobile
services arm of Bharti Tele-Ventures (BTVL), India’s leading private sector provider
of integrated telecommunications services with an aggregate of 7.0 million mobile
customers across the country & over 9 lakhs customers in Karnataka. AirTel today
provides seamless roaming spanning across 337 networks in 137 countries, 1024
cities across India and covers 151 towns in Karnataka.
Located in southern India, Karnataka is a major business center and several
information technology companies are based in and around its capital, Bangalore. The
Company currently competes with Spice Telecom, Hutchison and BSNL in the
Karnataka circle. As of June 30, 2004 the Company had approximately
890,000 customers in Karnataka, resulting in a market share of approximately 45%.
The Company offers its post-paid and pre-paid mobile services under the AirTel and
AirTel Magic brand names, respectively. In a survey conducted by TRAI in March
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2003 for service quality – AirTel Karnataka has been Ranked BEST Cellular Service
Provider in the country & is also the first operator to be bestowed the ISO
certification for quality standards.
As a socially responsible corporate citizen of Karnataka and the Category leader,AirTel shall always be at the forefront to support social initiatives.
i.e.,
- AirTel confidence plan for the acoustically challenged - a value proposition for the
hearing impaired
- 5 lakhs celebration run in aid of Shakti Foundation
- Installation of road safety products
Bharti Mobile Limited has the largest network in Karnataka covering 76 cities and
towns and a customer base of over 9 lakhs making it the most preferred cellular
service provider in the state. AirTel has consistently led the cellular market through its
innovative packages, value-added services and world class customer service.
AirTel has become the first mobile service provider in the State to introduce bills in
Kannada.
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AIRTEL’S ORGANIZATION STRUCTURE:
Airtel products and services
PRE- PAID
Aisi azadi aur kahaan?
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti
Enterprises, India's leading integrated telecom service provider.
FREEDOM OF SPEECH REDEFINED... Going mobile with Airtel Prepaid is a new
way of life.
COMPLETE CONTROL...
with a host of great features, also simple to use, Airtel Prepaid
makes everything that you dreamt and believed, possible.
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Some of the many advantages that you enjoy with Airtel Pre-Paid...
Total Cost Control
Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much as
you feel the need to! Now that's what we call complete freedom!
No Rentals/Deposits
Buy an Airtel prepaid card without having to pay any rentals and deposits!
STD/ISD facility till the last rupee
Now experience complete freedom like never before with Airtel! The STD/ISD
facility allows you to make long distance calls in India and Overseas from yourcellular phone!
Instant Balance Inquiry
Check your talk-time instantly by calling our toll-free number! 123
60 second pulse
Airtel provides you with a 60-second pulse rate! Freedom for you to experience like
never before!
24-hour recharge facility
With our round-the-clock recharge facility, recharge you Airtel prepaid card anytime,
anywhere!
Caller Line Identification
Call Line Identification gives you the power to know the phone number of the calling
party even before you answer the call, thus giving you the choice to either reject or
take the call. It provides the added advantage of saving the incoming number directly
in the Handset Phone Book. So that the next time you want to call the same person,
you don't need to retype his number, simply use your phone book.
Call Divert, Call Hold and Call Wait Avail of special services like call waiting, call hold and call divert – all with your
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Caller Identification
Call Identification gives you the power to know the phone number of the calling party
even before you answer the call, thus giving you the choice to either reject or take the
call.
Voice Mail
Voice Mail lets you receive messages even when your handset is switched off or
when you are outside the coverage area. You can listen to your messages whenever
you feel like, from anywhere in the world.
STD/ISD Facility
Now experience complete freedom like never before with Airtel! STD/ISD facility
allows you to make long distance calls in India and Overseas from your cellular
phone!
Roaming (National and International)
Airtel's Roaming service allows you to use your mobile phone to make or receive
calls from almost anywhere in India and abroad! Enjoy roaming within the country as
well as across international destinations!
Airtel MTV card
Catch the best offers and the coolest of bargains on the hippest stuff on the
market.
Groove to the hippest tunes from the hottest new tracks
Get the latest wallpapers, ringtones, picture messages and screensavers for ur
phone!
All this and loads more! Only with the MTV Airtel SIM!
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VALUE ADDED SERVICES
E a s y C h a r g e
Recharge as you like!
New Airtel Prepaid brings to the nation a never before 'Azadi'. Giving every Indian
the right to be unconditionally, completely free! Free to never run out of words,
explore every opportunity, reach out to anyone, anywhere and express them. Come
discover the world of New Airtel Prepaid. Discover freedom like never before!
Product Details
AZADI TO RECHARGE FOR ANY VALUE
Introducing Airtel Easy Charge - India's first flexi-value anytime, anywhere recharge.
Now recharge only as much as you need. Starting only Rs.50.
AZADI TO RECHARGE ANYTIME
Now recharge anytime. So no matter what time of day or night, no matter if the shops
are closed, you never run out of talktime.
AZADI TO RECHARGE FOR ANYWHERE
Now recharge while roaming anywhere across the country with India's only National
Recharge Coupon. Available in different denominations.
AZADI TO STAY MOBILE WITH Rs.50
Break free from the shackles of recharge coupons of higher denominations. Now for
the first time, stay mobile for as low as Rs.50!
24 hoursCustomer Support & Feedback
If you need any assistance or want to share your Airtel experience just call the
toll free 24 hours customer care number from your mobile and the customer care
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representatives are there to assist you. You can also forward your queries by filling
the customer feedback form available on Airtel site. At Airtel, customers are theirs
top priority and customer satisfaction means the world to them. They care about what
their subscribers have to say about their products and services.
Airtel Live!
Get the coolest ringtones, wallpapers, games, movie clips and loads more of the latest
blockbusters to hit the silver screen! Only with Airtel Live! The cricket mania
continues on Airtel Live! Check out some of the cool services that Airtel Live! Has in
store for you! Get into the groove with the hippest tones from the hottest tracks!
Check out the hit list and download the coolest new ringtones to hit the scene! You
name it and Airtel have it! Hold on to your seats as Airtel Live! Brings the coolestmobile games to hit the scene! Race dirt roads or fight diabolical villains– Airtel Live!
Games has all that and loads more
Airtel outlets and Shop
Where you can get Airtel connection and recharge cards.
Cheque Drop Boxes & Bill Payment
you can drop your cheque at your nearest drop box for convenient payments!
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Areas of operation
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CHAPTER-4
ROAMING
What is roaming
Airtel roaming
Roaming tariffs
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What is Roaming
Using a wireless phone outside of your service provider's local coverage area or
home calling area is referred to as roaming. Roaming arrangements between service
providers expand the potential area for phone use. Roaming within your home
network, this means that your mobile phone automatically sets up communication
procedures with different radio base stations when on the move. International
roaming means that one can use networks other than theirs own when traveling
abroad.
In connection with mobile telephones, “to roam” means to use the telephone both
nationally and internationally on another mobile operator's network. This is why
roaming agreements are made between the mobile network operators.
Roaming is a service offered by mobile communications a network operator which
allows a subscriber to use his/her mobile phone while in the service area of another
carrier. Roaming requires an agreement between operators of technologically
compatible systems in individual markets to permit customers of either operator to
access the other's systems.
Roaming can also be defined as the ability for cellular phone users to make or receive
calls on other service providers' networks when outside the coverage area of their
own cellular network service provider.
Moving seamlessly from one coverage area to another with no loss in connectivity isa standard feature of the roaming. All you have to do is to keep your number, and all
your services follow you.
Roaming must be requested from your network or airtime provider. The ability of a
wireless node to keep continuous connectivity to the network while moving from one
physical location to another, served by a different Access Point.
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Roaming is technically supported by mobility management, authentication and billing
procedures. Establishing roaming between network operators is based on - and the
commercial terms are contained in - Roaming Agreements.
GSM Roaming, which involves roaming between GSM networks, offers theconvenience of a single number, a single bill and a single phone with worldwide
access to over 205 countries. The convenience of GSM Roaming has been a key
driver behind the global success of the GSM Platform.
AIRTEL ROAMING.
Airtel roaming involves roaming between GSM networks, offers the convenience of a
single number, a single bill and a single phone with worldwide access to over 100
countries. The convenience of GSM Roaming has been a key driver behind the
success of the Airtel on GSM Platform. AirTel's roaming service allows you to use
your mobile phone to make or receive calls from almost anywhere in India and abroad
(over 137 countries).
AirTel Roaming gives you two great options:
AirTel Roaming National (46 partner networks)
AirTel Roaming International roaming - 337 networks and 137 countries.
Airtel became India’s first mobile service to extend roaming service in Pakistan by
signing a first ever bilateral roaming agreement with Mobilink, cellular service
provider of Pakistan on March14, 2004. With this agreement in place, AirTel will be
able to extend roaming facility to all its customers traveling to Pakistan with
immediate effect.
Airtel, encourage its customers to explore the world. With Airtel Roaming Services
and the world as your canvas, you never have to really have to be as far away from
home as the miles define. After all, home is just a phone call away...
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Different types of roaming
Roaming [National]
Airtel’s Roaming service allows you to use your mobile phone to make or receive
calls from almost anywhere in India.
Roaming [International]
Airtel's Roaming service gives you the complete freedom to you to use your mobile
phone anywhere in India and abroad.
Roaming [Regional]
Now enjoy regional roaming with Airtel! Have the freedom to roam within your
specific location!
Prepaid Roaming
You have the freedom to enjoy the luxury of Airtel’s roaming facility now even with
your prepaid connection!
Inroaming [National]
Now roam nationally with the coolest incoming charges!
Inroaming [International]
Roaming internationally was never this easy with Airtel!
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SERVICES AVAILABLE WHILE ROAMING
Services offered depend on the visited Network:
For Out Roamers
• All the services subscribed by them in AirTel will be available while roaming
if supported by the partner network
• Voice mail service is also available
• AirTel information Services (600 series of services) are not available while
roaming
For In Roamers
• Fax and Data Service
• CLIP and CLIR
• Call Hold and Call Wait
• Call Forwarding (Unconditional)
• AirTel information Services (Dial a Service)
Conditional divert options (divert on busy, unanswered, unreachable) are also
available.
Benefits of Smart Roam
• Ever Widening Coverage
• Single number throughout the world
• Easy Accessibility
• Convenient Billing
• Payment in Indian Rupees
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ROAMING CHARGES
SERVICE NAME PREPAID POSTPAID Monthly Rents
National Roaming - -
International Roaming 25 149
National Roaming Call Tariffs
Outgoing Calls while National RoamingLocal Calls
Mobile to ANY(within visiting state) 1 1
Mobile to ANY(outside visiting state) 1.5 1.5
Incoming calls
From anywhere 1 1
International Calls while National Roaming
America,Europe,Asia,Oceania&
SAARC20.44 19.44
Gulf countries and Africa 23.44 22.44
Remaining Countries 43.45 43.45
International Roaming Tariffs
Incoming calls in visiting network Rs.50 As per foreign operator
Incoming/outgoing calls in Karnataka
region
Rs.75 Rs.75
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CHAPTER 5
SWOT ANALYSIS
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STRENGTHS
• Airtel has more than 65 million customers (as on July 2008). It is the largest
cellular provider in India.
• It provides broadband and telephone services along with telecommunication
services- both domestic and abroad.
• The stakeholders of Airtel include Sony-Ericsson, Nokia and Sing Tel, with
whom they hold a strategic alliance. This means that the business has access to
knowledge and technology from other parts of the telecommunications world.
• The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.
WEAKNESS
• The company has out-sourced the best of experts in this field.
• Until recently, Airtel did not own its own towers, which was a particular
strength of some of its competitors such as Hutchison Essar. Towers are
important if the company wishes to provide wide coverage nationally.
• The fact that the Airtel has not pulled off a deal with South Africa's MTN
could signal the lack of any real emerging market investment opportunity for
the business once the Indian market has become mature.
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OPPORTUNITIES
• The company possesses a customized version of the Google search engine
which will enhance broadband services to customers. The tie-up with Google
can only enhance the Airtel brand, and also provides advertising opportunities
in Indian for Google.
• Global telecommunications and new technology brands see Airtel as a key
strategic player in the Indian market. The new iPhone will be launched in
India via an Airtel distributorship. Another strategic partnership is held with
BlackBerry Wireless Solutions.
• The company is investing in its operation in 120,000 to 160,000 small villages
every year. It sees that less well-off consumers may only be able to afford a
few tens of Rupees per call
• Bharti Airtel is embarking on another joint venture with Vodafone Essar and
Idea Cellular to create a new independent tower company called Indus
Towers. This new business will control more than 60% of India's network
towers. IPTV is another potential new service that
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THREATS
• Airtel and Vodafone seem to be having an on/off relationship. Vodafone
which owned a 5.6% stake in the Airtel business sold it back to Airtel, and
instead invested in its rival Hutchison Essar. Knowledge and technology
previously available to Airtel now moves into the hands of one of its competitors.
• The quickly changing pace of the global telecommunications industry could
tempt Airtel to go along the acquisition trail which may make it vulnerable if the
world goes into recession. Perhaps this was an impact upon the decision not to
proceed with talks about the potential purchase of South Africa's MTN in May
2008. This opened the door for talks between Reliance Communication's Anil
Ambani and MTN, allowing a competing Indian industrialist to invest in the new
emerging African telecommunications market.
• Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.
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PART B
RESEARCH STUDY
“CONSUMER SURVEY ON AIRTEL ROAMING”
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CHAPTER -1
Research Extracts
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This report entitled “A CONSUMER SURVEY ON AIRTEL ROAMING” has been
prepared towards the partial fulfillment of the Master in Business Administration degree,
and is submitted to Bangalore University.
The main objective of the study was to know about the Airtel customers who use roaming
service while they are out of state.
The primary data required for the study was obtained by directly contacting the Airtel
customers with the help of telephonic interview. The tool used here was structured
questionnaire with the help of which the Airtel customers (both pre-paid and post-paid)
were randomly interviewed. Only those respondents who have used the roaming service
for at least once in the past six months (between Jan-June 2008) were considered for the
purpose of the study. A total of 100 roaming respondents were selected.
The data’s obtained from the respondents were recorded and are displayed with the help
of tables and graphs in the analysis and interpretation part of this report. The findings
were drawn from the interpretations.
The report also covers the following aspects:
• History of cellular telephony in India.
• Profiles of the Bharti Televenture Ltd, Airtel and its overall prospects.
• Products/ services offered by Airtel.
• Roaming and its types
During the study it was inferred that there is need for the Airtel mobile company toimprove the standard of roaming service and to lower the deposit/rental charges and the
per minute call charges. It was also inferred that most of the respondents are ready to use
the roaming service more often if they are able to receive free incoming calls.
The study was concluded with the help of conclusion and suggestions/ recommendation at
the end of the report.
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CHAPTER-2
PROJECT DESIGN AND STUDY
Objective of study
Research Methodology
Limitation of study
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OBJECTIVE OF STUDY
The prime objective of the study was to know about the Airtel customers who use the
roaming service while they are out of the state.
The other objectives of the study are as follows:
• To know the reasons and purpose of using the roaming service.
• To know whether the customers are aware of the roaming tariffs/charges
• To know the factors that will motivate the customers to start using roaming
service.
• To know about the operators that the respondents thinks are cheaper to use while
on roaming.
RESEARCH METHODOLOGY
Research Methodology is the way to systematically solve the research problem. It may be
understood as a science of studying how the research is done. It includes overall research
design-the sample procedure, the data collection method and analysis procedure.
Sample Design:
When doing a research it is not always feasible to conduct a census survey and interview
everyone in the target market. Therefore samples were designed, which represent the
segment of the population that we wish to survey. Sample denotes the representative
items of the population. Since it was difficult to make the study of all the Airtel roaming
customers, samples were drawn from the population randomly and study was conducted.
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Sample size:
A total of 100 roaming Airtel customers who were on to roaming at least once in the past
six months i.e. between Jan2008- June2008 were selected from the given sample.
Data sources and method of collection:
The report has been prepared as per the information from two sources of data i.e. primary
and secondary sources of data.
Primary data includes data collected by directly contacting the Airtel customers through
telephone and interviewing them with the help of structured questionnaire which was
prepared based on the objective of study.Secondary data includes the data collected from Newspaper, magazines and from the
Internet.
Interview method:
The telephonic interview method for data collection seemed to be much appropriate for
the study, as the study was more sensitive in nature. The respondents were interviewed
with the help of a structured questionnaire and their responses were recorded in the
questionnaire.
LIMITATION OF STUDY
Time was the major limiting factor of the study. The other factor was that the study was
restricted only to the Airtel roaming users who were on to roaming at least once in the
past six months. Finally the study was confined only to the Airtel mobile phone users of
Karnataka state.
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CHAPTER-3
ANALYSIS
AND
INTERPRETATIONS
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Table showing the places /destination travelled by the Airtel roaming
users in the past six month.
Places/Destination traveled Percentage of respondents
South Indian region 72
Other region in India (MH, Goa, Delhi,
Gujarat, WB, Punjab etc...)12
To neighboring countries like Nepal,
Bangladesh, Pakistan, and Sri Lanka
etc…
05
To South Asian countries like
Singapore, Thailand, Malaysia,
Indonesia etc….
03
To Middle-East countries like UAE,
Saudi Arabia, Kuwait etc…04
To European countries like UK,
France, Germany, Italy etc…02
To US/ Canada and other countries 02
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From the above table it is clear that most of the Airtel roaming users have use the
roaming service in the south Indian region i.e. 72 out of the 100 respondent has used
this regional roaming service. The south Indian or the regional roaming region
includes the state like Kerala, Tamil Nadu, Andhra Pradesh and Pondicherry. In
addition to this, 12 of the 100 respondents had been on to national roaming travelling
across the country. National roaming region covers other states of the country. When
it comes to international roaming on a handful of respondents had been on to
international roaming. When it comes to international roaming only a handful of
customer has availed this facility.
Chart showing the places/destination travelled by respondents in the
past six month.
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Table showing frequency of visit in the above mentioned places.
Frequency of visit No: of respondents
Once a week or more often 10
Once in two weeks 13
Once a month 32
Once in 2-3 months 28
Once in 6 months 11
Less often then once a year 06
Total 100
The data of the above table states that out of the 100 respondents, around 32 of them
goes on roaming once in a month and 28 of the respondents goes on roaming once in
2-3 months. 10 of them are on roaming once a week or more often and 13 of them are
on roaming once in two weeks. 11 of the respondents uses roaming once in six
months and the remaining six of them are on to roaming less often then once a year.
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Graph showing the frequency of visit made by respondents to the
above mentioned palces.
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Table showing the reason of travel to the earlier mentioned places
The above data indicates that out of the 100 respondents, 40 of them travel outside the
state for personal reasons and another 24 of them travels out of karnataka on an
official visit. The rest 36 of the respondents leaves the state for both personal and
official reasons
Chart showing the reason for travel by the respondents.
Reason for Travelling No: of respondents
Personal 40
Official 24
Both Personal & official 36
Total 100
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Table showing the telecom services that are used by the respondent
to make call while on roaming
Telecom services used while on roaming No: of respondents
Own cell phone 55
Cell connection of the local operator in the city in
which traveling04
Landline 10
STD/ISD, Net to phone card 28
Others 03
Total 100
From the above data it can be grasped that out of the 100 respondents, 55 of
them use their own cell phone to make outgoing call while on roaming. 28%
and 10% of the respondents uses STD/ISD and landline service respectively.
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Table showing the important reasons because of which the
respondents decided to use the roaming services
Reasons Percentage of respondents
Very convenient 24
Travel a lot 40
Family should reach while traveling 10
Office/client/business should be able
to reach while on travelling10
Its cheaper than using hotel
phone/Std phone 8
Others 8
From the data obtained from the above table it is clear that 40% of the
respondents access to the roaming service because they travel very
frequently out of the state. Another 10% and 10% log on to roaming service to
stay connected with their family/friends and business/client respectively. 8%
of them have the opinion that use of roaming service is cheaper than the use
of STD/ hotel phone. 24% uses this service as it is very convenient.
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Chart showing the reasons for using roaming service
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Table showing the facilities used by the respondents when they are on
roaming
Facilities used Percentage of respondent
Receive call 25
Make call 10
Receive sms 45
Send sms 9
To download tones/location service 1
Others 10
The figures of the above table indicate the facilities that are used by the
customer while on roaming. 25% of the respondents receive the incoming
calls while they are on roaming and 10% of the make outgoing call from their
mobile. About 45% of them use the roaming service for receiving the Sms
while 9% send messages while on roaming. 1% of the respondents uses
roaming facility for identification of the location and downloads ringtones while
on roaming.
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Chart showing the facilities used by the respondents while on
roaming.
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Table showing the facilities that are widely used while on roaming
Mostly used facility No: of respondents
Receive call 32
Make call 22
Receive sms 46
Total 100
From the study it was reveled that there where three most important facilites
that were used by the respondents while on roaming. These facilities were
receiving incoming call, making outgoing call and receiving sms. Among these
three the most widely used facility was receiving of sms(46%) followed by
receiving call(32%) and making of outgoing call(22%).
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Chart showing the facilities that are widely used by respondents
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Table showing the number of respondents that are aware about the
deposit/ rental charges.
Awareness about deposits/ rentalNo: of respondents
Yes 15
No 23
Not sure 62
Total 100
Above table shows that only 15% of the respondents are aware of the deposit
charged that one has to pay for activating the roaming service and the rent
they have to pay for that particular roaming month. Nearly 23% doesn’t know
about the deposit /rental charges. Most of the respondents i.e. around 62%
are not sure about how much they to pay as a rent for using roaming service.
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Chart showing the number of respondents that are aware about the
deposit/rental charges that one has to pay for using roaming service
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Chart showing number of respondents that are aware of the per
minute call charges
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Table showing the average spent per month on roaming services
used.
Amount No: of respondents
0-50 40
51-100 35
101-150 13
151-200 08
>200 04
Total 100
This table shows the average spending made by the respondents per month
while they are on roaming. Nearly 40% of the respondents use to spent up to
Rs 50 per month while on roaming. Another 35% likes to spend somewherebetween Rs 51-100. Only 4% of the respondents spend more than Rs 200 or
above while on roaming.
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Chart showing average spending per month on roaming service
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Table showing the steps taken by Airtel, that would make to use the
roaming service more often.
Steps taken by Airtel Percentage of respondents
Lower call charges 20
No monthly charges to be paid 20
Receive incoming call free when on
roaming50
Others 10
From the above table almost 50% of the roaming users want Airtel to make
incoming free while they are on roaming so that it will motivate them to use
roaming service more often. About 20% wants Airtel to lower the call charges
lower and 20% feels that they will use roaming service more often if no
monthly charges are to be paid.
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Chart showing the steps taken by Airtel which would make the
respondents to use roaming service more often
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Table showing the type of connection cheaper to use roaming service
Type of connection No: of respondents
Pre-paid 32
Postpaid 18
Same on both 30
Don’t know 20
Total 100
From the above figures, about 32% of the respondents feels that pre-paid
connection is cheaper to use while on roaming. Only 18% feels that it is
cheaper to use post-paid connection for roaming. 30% thinks that its same on
both the connection and 20% respondents have no idea about which is the
cheaper connection while on roaming.
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Chart showing the type of connection that the respondents thinks is
cheaper to use for roaming
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CHAPTER-4
FINDINGS
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Based on the feedback obtained from the respondents the findings were as
follows:
Most of the respondents use roaming service either for regional roaming or for
national roaming. Only a negligible amount of respondents use international
roaming service.
The purpose for using the roaming service are either personal or for official
reasons. But is widely used for personal reason.
It was inferred that around 55% of the respondents use their own cell phone for
making outgoing call while on roaming.
Most of the respondents use the roaming service because they travel out of state
frequently. Some uses this service as they find this service very convenient and
want to stay connected with their family and clients while on roaming.
The facilities that are widely use by the respondents while on roaming are
receiving call, making outgoing call and to receive Sms.
The study reveled that around 62% of the respondents are not sure about the
deposit/rental charges that one has to pay for availing the roaming service and
23% doesn’t know about this.
Only 26% of the respondents are aware of the per minute call charges charged by
Airtel while they are on roaming.
The study also reveled that about 75% of the customers spends up to Rs100 per
month in an average for the roaming service used and only 4% more than Rs 200.
When asked about what steps taken by Airtel would make them to use roaming
service more often it was found that nearly 50% of the respondents wants the
incoming calls to be made free, 20% wants reduction in call charges.
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When asked about which connection is cheaper to use roaming service, 32% felt
that Pre-paid connection is cheaper while 30% are with the opinion that it’s the
same on Pre-paid and Post-paid connections.
When asked regarding which mobile operator is charging the lowest fares for the
roaming service, around 26% are with the view that all the cellular operators are
charging the same fares. 18% fells that Airtel is cheaper and 20% feels that
Reliance is cheaper to use while on roaming.
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CHAPTER-5
CONCLUSION
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AirTel comes from Bharti Cellular Limited - a part of the biggest private integrated
telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service
provider, with a footprint in 15 states covering all four metros. It has over eight
million satisfied customers.
Bharti, 28-percent-owned by Singapore Telecommunications Ltd., is India's market
leader for services using the GSM (Global System of Mobile Communications)
standard.
Its India’s leading private sector provider of integrated telecommunications services
with an aggregate of 8.0 million mobile customers across the country & over 10 lakhs
customers in Karnataka. It is also the leading cellular service provider in Karnataka
leaving behind all the other operators.
Today, AirTel offers its customers choice and superior value for money with a range
of innovative value-added services backed by excellent customer service. The
customers can either opt for Pre-paid scheme or the Post-paid scheme.
As a socially responsible corporate citizen of Karnataka and the Category leader,AirTel shall always be at the forefront to support social initiavites.
In a survey conducted by TRAI in March 2003 for service quality – AirTel Karnataka
has been Ranked BEST Cellular Service Provider in the country & is also the first
operator to be bestowed the ISO certification for quality standards
The subscribers base for GSM-based operator Bharti Tele-Ventures Ltd, rose 4.3% to
8 million in July from 7.67 million the previous month.
Consecutively for four years 1997,1998, 1999 and 2000, AirTel has been voted as the
Best Cellular Service in the country and won the coveted Techies award
Roaming is defined as the ability for a cellular customer to automatically make &
receive voice calls, send & receive data, or access other services when travelling
outside the geographical coverage area of the home network, by means of using a
visited network.
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CHAPTER-6
SUGGESTIONS
ANDRECOMMENDATIONS
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Airtel should continuously improve the standards and competitiveness of the Cellular
service and should try to attain the status of world class infrastructure and deliver the
benefits of affordable mobile telephony services to the people of India.
It should maintain and upgrade the quality of services in terms of speech transmission,
ability to access services, coverage, security etc., to facilitate the expansion of cellular
services.
Airtel should take more aggressive stand to safeguard its position as number one
cellular operator in Karnataka and also should attempt to strengthen its position in the
entire country.
Airtel should undertake continuous efforts to ensure customer satisfaction.
Airtel should strengthen - strong marketing, huge nationwide reach and financial
stability - to edge out its rivals in the western belt in the coming months.
They should come within the scenario of attractive packages, what will actually
benefit the customer.
Airtel should start its operations in North-eastern states and in the state of Jammu &
Kashmir as this region are backward in Tele-communication.
They should spread its network to the entire parts of rural Karnataka and should
install few more towers in the urban regions to improve its connectivity.
The company should come up attractive offers and schemes in order to maintain its
existing customer and to attract its rival’s customers.
AirTel should add more countries under its belt to provide seamless international
roaming.
Airtel should lower the call charges to its roaming customers.
The roaming tariff should be clearly communicated to the customers.
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The rental and deposit charges that one has to pay for activating the roaming or using
the roaming services should be lowered and stated clearly to its customers.
Airtel should make incoming free to its customers while on roaming as this will
induce more and more customers to use roaming service.
Airtel should keep the roaming tariff lower than that of its competitors.
Airtel per minute call charges charged for roaming customer are not uniform. This is
creating great confusion. So Airtel must take necessary measure to bring uniformity in
the per minute call charges.
The international roaming tariff should be revisited.
The customers should be informed through sms regarding the network that they have
to select while they are on to roaming.
The customers should be able to get access to the Airtel customer care of Karnataka
while they are on roaming for getting their queries solved.
The state of Maharashtra and Goa should be included under the zonal roaming area.
The company should come with attractive roaming package, what will actually benefit
its roaming customers, and would make more customers to use the roaming service.
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BIBLIOGRAPHY
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News paper:
The times of India
Websites:
www.airtelworld.com
www.google.com
Reference book:
Research methodology by C R Kothari
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ANNEXURE
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QUESTIONARE
1.NAME__________________
2. Destination traveled?
Southern India
Other region
Neighboring countries
South eastern Asia
Middle east Europe
Canada/ US
3. Frequency of visit?
Once a week
Once in two week
Once a month Once in 2-3 months
Once in 6 months
Once a year
4. Reason of travel?
Personal
Official Both
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5. What telecom services do you use to make call while on
roaming?
Own cell phone
Connection of local operator
Landline
STD/ISD
Others
6. What are the reasons of using roaming service?
Convenient
Travel a lot Family should reach while traveling
Office/client should reach while traveling
Cheaper than hotel phones
Others
7. What facility do you use while on roaming?
Receive calls
Make calls
Receive SMS
Send SMS
Download tones/location service
Others
8. Which facility do you widely use?
Receive calls
Make calls
Receive SMS
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9. Are you aware of deposits and rental charges?
Yes
No Not sure
10. Are you aware of per minute charges?
Yes
No
Not sure
11. On an average how much do you spend on roaming?
0-50
51-100
101-150
151-200
more than 200
12. What service of AIRTEL makes you use more roaming service?
Low call charges
No monthly charges
Receive incoming call free
Others
13. What type of connection do you have?
Pre-paid
Post-paid
Same on both
Don’t know
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14. Which service operator is cheaper on roaming?
AIRTEL RELIANCE
HUTCH/SPICE/BSNL
ALL ARE SAME
DON’T KNOW