MAJOR PROJECT REPORT on “IMPACT of AIRCEL on the OTHER COMPETITORS of TELECOM INDUSTRY”

MAJOR PROJECT REPORT On “IMPACT OF AIRCEL ON THE OTHER COMPETITORS OF TELECOM INDUSTRY”

Submitted in the partial fulfillment of degree of Bachelor of Business Administration (2010-2013) Under the guidance of Mr. ANIL (Assistant Professor, FIMT) SUBMITTED BY AKASH Enrolment No.-05290101710 BBA (G) 5Semester

DECEMBER, 2012 Fairfield Institution of Management and Technology, Kapashera New Delhi-37 (Affiliated to Guru Gobind Singh Indraprastha University)

STUDENT’S DECLARATION

I hereby declare that the project entitled “IMPACT OF AIRCEL ON THE OTHER COMPETITORS OF TELECOM INDUSTRY” under the guidance of “Mr. ANIL” submitted to the department of management in the partial fulfillment of the degree of Bachelor of Business Administration (General) from “Fairfield Institute of Management and Technology, New Delhi” This my original work and this project has not formed this basis for award of any degree to the best of my belief and knowledge.

AKASH (05290101710) SIGNATURE OF STUDENT PLACE: NEW DELHI DATE:

CERTIFICATE BY THE GUIDE

This is to certify that the project entitled “IMPACT OF AIRCEL ON THE OTHER COMPETITORS OF TELECOM INDUSTRY” is an original work of AKASH of Bachelors of Business Administration (General), 6th semester and has been duly completed under my guidance and supervision. This work has been done in partial fulfillment of the requirement for the award of the degree of BBA from “Fairfield Institute Of Management and Technology (affiliated to Guru Gobind Singh Indraprastha University) Delhi” and has not been submitted anywhere in any other university for the award of any degree to the best of my knowledge.

(Mr. ANIL) Signature of the guide Department of Management FIMT, Kapashera, New Delhi.

ACKNOWLEDGEMENT

It is a pleasure to acknowledge many people who knowingly and unwittingly helped me, to complete my project. First of all let me praise god for all the meanings which carried me through all those years I am particularly indebted to Dr. R. k. Garg, Director of College, which included in me utmost respect for human values and groomed me up in the field of management to take on the challenges of the competitive world. First and foremost, I would like to express my regards to Mr. Anil (Assistant Professor), for her constant encouragement and support. I would also like to express my immense gratitude towards all the lecturers of our collage for providing the invaluable knowledge, guidance, encouragement extended during the completion of this project. I extent my sincere gratitude to all my teachers and guide who make unforgettable contribution. Due to their sincere efforts I was able to excel in the work entrusted upon me. Last but not the least I am grateful to my Parents, my siblings, my friends and all well wishers for their moral support and encouragement during the entire period of my time.

AKASH (05290101710)

TABLE OF CONTENTS Student declaration 2 Certificate by the guide 3 Acknowledgement CHAPTER-1 6 -7 Objective of the study CHAPTER- 2 8-11 Research methodology CHAPTER-3 12-17 Introduction of the industry 1. Introduction of the telecommunication 13 2. Telecom industry in India 14 3. History of the India telecommunication 16

CHAPTER-4 18-45 Company profile

1. Company profile 19 2. SWOT analysis 30 3. Milestones of aircel 32 CHAPTER-5 46-67 Data analysis & interpretation CHAPTER-6 68-70 Conclusion CHAPTER-7 72-73 Limitation & suggestion CHAPTER-8 74-75 Recommendation CHAPTER-9 76-79 References & questionnaire

CHAPTER-1

OBJECTIVES OF THE STUDY

The major objectives of my research projects are as follows:  To analyze the impact of Aircel on the other telecom industry.  To analyze the satisfaction level of customers from Aircel.  To study the factors which influence the customer to use Aircel.  To identify the major problems faced by users of Aircel in Delhi.  To study the features of different brands that gives a good idea of various products and services offered by the company.  To understand the competitive environment in which the company is operating and is desired to meet customer need and satisfaction.  To provide useful information to the company about the product features of various competing companies. I have tried to take a view on the topic in a practical manner, so that the feedback can be provided to the organization

CHAPTER-2 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

MEANING OF RESEARCH & DEFINITION Research refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic.  Research is an art of scientific investigation.  Systematized effort to gain new knowledge [Redman and Mary]  It is a voyage of discovery

METHODOLOGY Methodology can be defined as-  “The analysis of the principles of methods, rules, and postulates employed by a discipline”.  “The systematic study of methods that are, can be or have been applied within a discipline”.  “A particular procedure or set of procedures”.

Methodology includes a collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry: Methodology refers to more than a simple set of methods; ] rather it refers to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method. This is why scholarly literature often includes a section on the methodology of the researchers. This section does more than outline the researchers‟ methods might explain what the researchers‟ ontological or epistemological views are.

Another key (though arguably imprecise) usage for methodology does not refer to research or to the specific analysis techniques. This often refers to anything and everything that can be encapsulated for a discipline or a series of processes, activities and tasks. Examples of this are found in software development, project management and business process fields. This use of the term is typified by the outline who, what, where, when, and why. In the documentation of the processes that make up the discipline that is

being supported by “this” methodology that is where we would find the "methods" or processes. The processes themselves are only part of the methodology along with the identification and usage of the standards, policies, rules, etc.

Researchers acknowledge the need for rigor, logic, and coherence in their methodologies, which are subject to peer review.

RESEARCH METHODOLOGY Marketing research is the process of collecting and analyzing marketing information and ultimately arrived at certain conclusion. Management in any organization needs information about potential marketing plans and to change in the market place. Marketing research includes all the activities that enable an organization to obtain the information. This research is very important in strategy formulation and feedback of any organizational plan.

RESEARCH DESIGN:

The research design which has been used in the project report is descriptive research. This is right in nature & focuses attention on the following: Formulating the objectives of the study. Designing the method of Data collection. Selecting the data. Collecting the data. Processing & analyzing the data. Reporting the findings. Suggestions & modification if any. Conclusion.

DATA COLLECTION:

METHOD OF DATA CIICOLLECTION

Primary data was collected through

 Questionnaires

 Personal observations

Secondary data was collected through

 Newspapers

 Magazines

 Internet

RESEARCH LIMITATIONS  Time and cost constraints dictated the size of the sample selected. A large sample would have been more representative of the population..  Some of the interviews may not have led to accurate responses.  Interviewers‟ biasness could have been introduced during personal interviews.  Sometimes the respondent was unwilling to reveal some data (e.g. frequency of changing connection in a year)  Many of respondents did not agree to personal interviews because of lack of time.

Chapter 3 Introduction of the Industry

INTRODUCTION OF TELECOMMUNICATION

TELE COMMUNICATION - The word telecommunication was adapted from the French word telecommunication. It is a compound of the Greek prefix tele, meaning 'far off', and the Latin communicates, meaning 'to share'. Telecommunication is the transmission of signals over a distance for the purpose of communication. In modern times, this process almost always involves the sending of electromagnetic waves by electronic transmitters but in earlier years it may have involved the use of smoke signals, drums or semaphore. Today, telecommunication is widespread and devices that assist the process, such as the television, radio and telephone, are common in many parts of the world. There is also a vast array of networks that connect these devices, including computer networks, public telephone networks, radio networks and television networks. Computer communication across the Internet, such as e-mail and instant messaging, is just one of many examples of telecommunication. The basic elements of a telecommunication system are:  A transmitter that takes information and converts it to a signal for transmission.  A transmission medium over which the signal is transmitted.  A receiver that receives and converts the signal back into usable information.

Often telecommunication system are two-way and devices act as both a transmitter and receiver or transceiver. For example, a mobile phone is a transceiver. Telecommunication over a phone line is called point to point communication one transmitter and one receiver, telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter and numero or receivers. A collection of transmitters, receivers or transceivers that communicate with each other is known as a network. Digital networks may consist of one or more router that route data to the correct user. An analogue network may consist of one or more switches that establish a connection between two or more users. For both types of network, a repeater may be necessary to amplify or recreate the signal when it is being transmitted over long

distances. This is to combat attenuation that can render the signal indistinguishable from noise.

The shaping of a signal to convey information is known as modulation. Modulation is a key concept in telecommunications and is frequently used to impose the information of one signal to another. Modulation is used to represent a digital message as an analogue waveform. This is known as keying and several keying techniques exist these include phase-shift keying, frequency-shift keying, amplitude-shift keying and minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges between devices.

TELECOM INDUSTRY IN INDIA The telecom industry is one of the fastest growing industries in India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growing rate of 45%, India telecom industry has the highest growth rate in the world. Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China.  India‟s mobile phone subscriber base is growing at a rate of 82.2%.  China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India‟s share in Asia Pacific Mobile Phone market is 6.4%. Considering the fact that India And China have almost comparable populations, India‟s low mobile penetration offers huge scope for growth.

MILESTONE IN TELECOM REFORMS

 1984 Manufacturing of subscriber terminal equipment opened to private sector.  1985 Telecom was constituted into a separate department with a separate board.  1986 MTNL and VSNL created as corporations.  1988 Government introduces in-dialing scheme. PABX services only within a building, or in adjoining buildings.  1989 Telecom commission formed.

 1992 VAS sector opened for private competition.  1993 Private networks allowed n industrial areas.  1994 Licenses for radio paging (27 cities) issued.  May 1994 New Telecom Policy announced.  September 1994 Board guidelines for private operator entry into basic services announced.  November 1994 Licenses for cellular mobiles for four metros issued.  December 1994 Tender floated for bids in cellular mobile services in 19 circles, excluding the four metros, on a duopoly basis.  January 1995 Tenders floated for second operator in basic services on a circle basis.  July 1995 Cellular tender bid opened.  August 1995 Basic service tender bid opened; the bids caused lot of controversy. A majority of bids were considered low.  December 1995 LOIs issued to some operators for cellular mobile operations in circles.  January 1996 Rebidding takes place for basic services in thirteen circles.  The Telecom Regulatory Authority of India (TRAI) formed by ordinance.  October 1996 LOIs being issued for basic services.  March 1997 The TRAI Act passed in Parliament.  June 1998 Several VASs available through private operators. The first private basic service becomes operational.  March 1999 Announcement of National Telecom Policy.  January 2000 Amendment to the TRAI Act.  August 2000 Announcement of Domestic Long Distance Competition Policy.  October 2000 Planned Corporatization of DoT.

HISTORY OF INDIA TELECOMMUNICATION Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegrams (PTT), a monopoly run by the governments, Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under states control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, to wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policymakers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was first attempt to give comprehensive roadmap for the India telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance Services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services

focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and video conferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

CHAPTER 4 COMPANY PROFILE

COMPANY PROFILE

AIRCEL LIMITED

Type Joint venture Founded 1999 Head quarter Chennai, Tamilnadu India Key people Sandip Das, Director Kaizad Heerjee,COO Anup vikal, CFO Jean Pascal, Head operating division Industry Telecommunication Products Mobile telephony, Wireless broadband services Revenue US$ 1.159 billion (2012) Parent Maxis Communications (74%) Website http://www.aircel.com/

Aircel group is an Indian mobile network operator headquartered in Chennai, that provides wireless voice, messaging and data services in India. It is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%. Maxis Communications, Malaysia's leading mobile phone company and the Reddy family, which owns Apollo Hospitals; have agreed to buy mobile-phone operator, Aircel for USD1.08 billion. Maxis purchase 65% of Aircel. Aircel is a regional operator with 2.2 million subscribers. According to reports in Bloomberg, Aircel gives Maxis access to a market where less than 10% of the nation's 1.1 billion people own a mobile phone, compared with about 60% in Malaysia.

Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established. Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular phone coverage throughout Kerala, TamilNadu (including Chennai), Andhra Prades, Assam , North East India, Orissa , West Bengal (including Kolkata), Jammu & Kashmir, Bihar, Himachal Pradesh & Mumbai. Aircel was founded by NRI businessman C Sivasankarans. It is India‟s fifth largest GSM mobile service provider and seventh largest mobile service provider (both GSM and CDMA) with a subscriber base of over 63.35 million, as of December 2012 with 62.24% of them being active. It has a market share of 7.33% among wireless operators (includes GSM, CDMA, and FWP operators) in the country. As on date, Aircel is present in 11 telecom circles (Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Kerala, North East, Orissa, Tamil Nadu, Karnataka, West Bengal, Delhi) and with licenses secured for the remaining 10 of the 23 telecom circles, the company plans to become a pan-India operator by 2009. Additionally, Aircel has also obtained permission from Department of Telecommunications (DoT) to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services. It is also a category AISP Aircel Business Solutions (ABS), part of Aircel, is an ISO 9000 certified company. ABS is a registered member of WiMAX forum – both in the Indian and International Chapters. ABS‟ product range includes ente rprise solutions such as Multi-Protocol Label Switching Virtual Private Networks (MPLS VPNs). Voice over Internet Protocol(VoIP) and Managed Video Services on wireless platform including WiMAX. Aircel was rated as the top mid-size utility company in Business world‟s „List of Best Mid-Size Companies‟ in 2007. Moreover, Aircel has been

selected as the best regional operator in 2008 by Tele net. Aircel is headed by shahid mustafa who was asked to leave Hutchinson Essar Ltd - Mumbai. Aircel are one of the sponsors of the Indian Premier League Cricket Team Chennai Super kings captained by Mahendra Singh Dhoni . It is also the sponsor for Professional Golf Tour of India from 2009 onwards. In 2010, the company bought 3G and wireless broadband (BWA) spectrum in 13 and 8 circles respectively in the 2010 spectrum auction. It paid US$ 1.44 billion ( 79.1 billion) for the 3G spectrum and US$ 0.76 billion ( 49.76 billion) for BWA. Of this, the company raised $0.88 billion ( 48.3 billion) from Deutsche Bank, Standard Chartered Bank, HSBC and Barclays. It also took a $0.44 billion ( 24.2 billion) one-year bridge loan from HSBC, Punjab National Bank and Axis Bank. The company, as of November 2012, has around 1 million 3G customers. It is yet to launch its LTE network, although it is conducting trials at its center in Hyderabad. Aircel expects to launch it in the first quarter of 2013.

On 19 May 2010, the 3G spectrum auction in India ended. Aircel paid 6499.46 crores for spectrum in 13 circles – the least cost per circle compared to other operators. The circles it will provide 3G in are Andhra Pradesh, Assam, Bihar, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh and Chhattisgarh, North East, Orissa, Punjab, Tamil Nadu, Uttar Pradesh (East) & Uttarakhand and West Bengal. On 11 June 2010, the broadband wireless access (BWA) spectrum auction in India ended. Aircel paid 3438.01 crores for spectrum in eight circles, the second highest wins overall - after Mukesh Ambani led Reliance Infotel. The circles it has won spectrum are Andhra Pradesh, Assam, Bihar, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal. It also has 3G spectrum in all these circles. Aircel has introduced new price plans for its consumers and are termed to be the cheapest in the country. Following the key players in 3G, Aircel also slashed its 3G tariff.

VISION

By 2010 Airtel will be most admired brand in India:  Loved by more customer  Targeted by top talent  Benchmarked by more talented people.  Maxis Communications Berhad‟s progressive brands in Malaysia, India and Indonesia represent its vision of bringing leading-edge technology and advanced communications services to the enrichment of customers‟ lives and businesses.,  Aircel is a full-fledged national operator with over 48 million happy customers, adding approximately 1.8 million subscribers each month. Aircel is a leader in 4 operating circles of Tamil Nadu, Chennai, Assam, North East and has 3G spectrums and broadband wireless access (BWA) in 13 out of India‟s 22 telecom circles.

MISSION

 Customer Service Focus  Empowered Employees  Innovative Services  Cost Efficiency  The group continues to develop the field of communications by taking strong steps today towards creating a well-connected future.  Delhi is where it all began. An acid test which gave the motivation and inspiration to give service that compares with the very best in the world.  This is what has made Airtel one of the top 5 operators in the world in terms of population covered.  The growth, to put it modestly, has been phenomenal in terms of subscribers, coverage and the milestones.

RECHARGES IN AIRCEL

E Recharge TOP UPS Denomination (Rs.) Talk Value(Rs.) Validity (Days) 10 7.90 0 20 15.80 0 30 23.70 0 40 32.60 0 50 41.30 0 70 59.30 0 100 90.66 0 150 150 0 180 180 0 300 300 0

500 500 0 1000 1100 0 3000 3300 0

National Recharge Denomination (Rs.) Talk Value(Rs.) Additional benefit 83 70.87 5 Local Aircel to Aircel Minutes for 1 Day 209 209 5 Local Aircel to Aircel Minutes for 1 Day

RATE CUTTERS MRP Talkvalue Validity Benefits (Rs.) (Rs.) (Days)

1* 1 0 Local A-A@ 1.2p/2sec, Local A-O@ 1.2p/2sec Activation code–*122*100#

6 90 0 Local A-A@ 1.2p/sec ,Local A-O@ 1.2p/sec ,STD@ 1.2p/sec. 18 30 0 ISD Calls US( Except Alaska, Guam, Hawai ) @ Rs0.50/Min, Canada (Except the high cost area)@ Rs0.50/Min, U.K(Fixed) @ Rs0.50/Min, UAE@ Rs8/Min, Saudi Arabia(Mobile)@ Rs6.50/Min, Saudi Arabia(Fixed)@ Rs3.99/Min, Pakistan @ Rs6/Min, Singapore @ Rs1.10/Min, Malaysia@ Rs1.80/Min, SriLanka @ Rs6/Min, Nepal@ Rs5.50/Min, Kuwait@ Rs5.50/Min 21 28 0 Local Aircel to Aircel [email protected]/2Sec Local Aircel to Other Cals @1.2p/2Sec

27 30 0 All STD calls@ Rs1.20/3Minutes

28 30 0 STD STD Calls @ 40p/Min for first 500 STD Mins, there after 50p/Min 38 30 0 Local Calls

Local Calls @ 40paisa/Min STD Calls Calls@ 40paisa/Min ISD Calls ISD calls toUS, Canada & UK Fixed @ 50paisa/Min 46 90 0 Local Calls Local Aircel to Aircel Calls @ 10paisa/Min Local Aircel to Other Calls @ 50paisa/Min STD Calls STD Calls@ 50paisa/Min GPRS Usage 1p/10kb 54 90 0 Calls at 40p/Min to UP & Bihar for 90days*, FTT on any recharge above Rs30/- on every Talk time recharge. 62 90 0 Call Rates Local A2A 1p/3sec Local A2O 2p/3sec STD 1p/sec ISD As per existing base tariff SMS Rates Local Rs.1 STD Rs.1.5 ISD Rs.5 Other Benefits FTT on any talk time recharge above Rs50/-. 75 local/national mins.

SMS PACKS IN AIRCEL SMS

MRP (Rs.) Talkvalue (Rs.) Special Benefits for 30 days

150 local & National SMS 9 0 300 local & National SMS 19 0 Night local (11am-7am)@10p/mint.

400 local & National SMS 35 0 600 local & National SMS 49 0 750 local & National SMS 59 0 1000 local & National SMS 79 0 1100 local & National SMS 89 0

 The call duration is measured with accuracy up to +/- 1 second as per TRAI Regulations.  Call charges are calculated based on the call units which are calculated by dividing call duration by the pulse rate defined in the Tariff Plan.

AIRCEL SERVICES

SERVICES

PRE- PAID POST- PAID

Any mobile service provider companies provide two types of facility for the usages.

1. PRE-PAID 2. POST-PAID

PRE- PAID: PRE-PAID Define as a prepaid and then use. In this type customer purchases the recharge coupons and other value added services card from retail shops and then that can use. In the PRE-PAID if we have no sufficient balance then we cannot make a call.

POST-PAID: POST-PAID Define as a post means first use and then paid. In this type of facility we can make a call unlimited till the credit limit. There are many types of facility who divert my opinion to use the Post-paid Facility.

VALUE ADDED SERVICES  Colour sms  Caller ring back tone  Aircel55555 service  Music stations:  Astrology  Jokes  Bollywood  News  Tips  AIRCEL HEALTH SERVICES  RAILWAY SERVICES  PLAY SCRABBLE  Search your favourite Ring tone  Bengali Ring tones  Voice Mail Service  Save Your Contact  Healthy Living Tips  SIM browser services  Dictionary  Funny Logos and Pictures  Regional Ring tones  Jokes  Hollywood/English Ringtones, Picture Messages and Logos

Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic Ringtones, MP3 tones, True tones, Music Videos, Movie videos, Themes, Movie Themes and Mobile games only on Aircel pocket internet.

What‟s more, activating this service is free and browsing the portal is charged just @10p/10Kb. Charges:  SMS sent to 121 will be Free.  Browsing charges 10paisa/10 Kb.  Classification of Telecommunication services.

COMPANY PRODUCTS  AIRCEL SIM Cards  AIRCEL VOUCHER  AIRCEL E-Recharge  AIRCEL INQ Mobile  AIRCEL Pocket Internet

SWOT ANALYSIS

SWOT ANALYSIS OF AIRCEL COMMUNICATION

SWOT analysis is done to know about the factors, which are helpful for company to know about their current position in the existing market. It helps company to know about their strength on which success of the firm relies, it helps the company to know abou t their trailing point which are the basic cause for company degradation. It also enables to suggest new areas where company can flourish and can serve its purpose of marketing profit. Whereas it also speaks about the prevailing threats which can prove itself as abstracts in the pathway of success of company.

STRENGTHS

 Cost advantage  Current leaders in quality service  Largest distribution network  Ability to constantly innovate  Highly skilled workforce  Entrepreneurial zeal  Aircel‟s increased equity and market cap.

WEAKNESSES

 Poor network coverage on highways  Billing problem  Price pressure

 Need for Government support  Sales and Marketing  Limited product portfolio-Only Mobile  Lack of Competitive Strength  Limited Budget

OPPORTUNITIES

 Increasing coverage at wide network  Developing new sectors  New tariff plans  Distribution channel maintained  Aircel‟s market share increasing at other service provider expense. Thus opportunity to wipe it out  Collaborative business needs to be explored  Vertical repeatable solutions.  Specialist Application

THREATS

 Increased no. of competitors  Loosing customer faith  Customer dissatisfaction due to poor customer survives  Foreign investment  Other competition  IT Development  Market Demand  New Entrants

 Seasonality Weather Effects

THE MILESTONES OF AIRCEL

In the year 2006 aircel has done many things which has given below:

MALAYSIA

January Maxis launched the FIRST in Malaysia “Push To Talk” service that enables mobile users to communicate with one or more Parties , simply by pushing a button on their handsets.

February Maxis was the FIRST to launch „Background Music‟ for mobile phones. This service allows personalized background music to be played during a conversation between mobile users. March Maxis completed its USD 1.08 billion acquisition of a 74% stake in Aircel Limited (“Aircel”).

April Coverage of the Maxis 3G service was expande d to Johor Bahru, Johor.

May Maxis became the main broadcast sponsor in Malaysia for the FIFA World Cup 2006. Maxis provided an unprecedented World Cup experience to Malaysians by bringing for the FIRST time all 64 matches LIVE on TV and offering customers free daily World Cup result alerts.

Main broadcast sponsor for FIFA World Cup 2006 First to launch “Background Music” 26 Annual Report2006 June The Company‟s 19th Annual General Meeting was held in Kuala Lumpur on 1 June 2006. The Maxis Scholarship for Excellence was presented to 3 scholars – Ms Ananthi Ramiah, Mr Boo Kian Seng and En Abdul Aziz Abu Bakar.

July „Ultimate Phone Backup‟ service was launched, enabling subscribers to back-up and restore their phonebook as well as SMS and MMS messages in our secure virtual safety box. Maxis launched the Industry Development Programmed (“IDP”). An initial investment of over RM0.7 million was made on 3 Research projects – 2 with Malaysian Multimedia University and another with University of Malaya. August Hotlink brand was refreshed and repositioned as the defacto infotainment channel for youths and young professionals. „Music Unlimited‟, a fully-integrated music portal, was launched offering more than 100,000 mobile tunes, making Maxis one of the leading music retailers in Malaysia.

September UniFun, the 1st one stop Mandarin WAP portal and website, was launched offering services ranging from news, and entertainment to music, games, blogs and jokes. Maxis became one of the first in the world to use HSDPA (“High Speed Downlink Packet Access”), a high-speed Upgrade of the 3G network, for a large scale roll-out of residential broadband services.

October Hotlink introduced two new rate plans, Total Plan and Easy Plan to better serve customer needs and requirements. Maxis joined the Fixed-Mobile Convergence Alliance to steer towards realizing its vision of convergence and Seamless communications services between fixed and mobile networks. Maxis was voted “Malaysia‟s Most Admired Compan y” in a survey by Wall Street Journal Asia.

Milestones 2006 One of the First in the world To provide residential HSDPA broadband Services.

November

3G service coverage was expanded to Kuantan, Pahang and the entire Penang island. Residential broadband service was launched in selected areas in Penang. It launched “Maxis TV”, a mobile TV service that now offers more than 30 TV channels ranging from news and Entertainment to sports and radio. Maxis was also the FIRST to introduce an electronic pr ogramming guide and Channel switching capability, Easy Switch. Maxis partnered with CIMB Bank, May bank and RHB Bank to offer prepaid registration to customers via the Respective banks‟ internet banking portal. Maxis‟ Network Engineering and Operations and Information Services

divisions moved to their new offices at Plaza Sentral, Kuala Lumpur.

December The mandatory prepaid registration exercise was completed with the Company achieving a total of 84% Registered subscribers. The Six Sigma program was launched company-wide for quality enhancements, cost reduction and continuous Improvements.

Maxis 3G service was expanded to Kuantan and the entire Penang Island Aircel crosses half-million subscriber mark in North East.

IN INDIA Aircel has won many awards for its services. Aircel got the highest rating for overall customer satisfaction and network quality in 2006 by Voice and Data.

October Aircel became the FIRST cellular operator in Tamil Nadu to cross the 3 million subscriber mark. Aircel Business Solutions became the first operator in India and one of 5 global operators to launch WiMAX technology in Chennai. Chennai operations moved into its new and bigger office at the Poona malle High Road as part of its plan to provide better service to customers. North East region crossed the half-million subscriber mark in its first year of operations

November Club Grand, a FIRST of its kind loyalty programme in India, was launched. It offers retailers personal accident coverage.

Medi-claim and theft insurance in addition to a host of performance-based incentives. December Aircel received 14 new Unified Access Service Licenses from the Department of Telecommunications (“DoT”). Republic of India and can now operate in all 23 telecom circles in the country. Chennai operations surpassed the 1 million subscriber mark. Aircel obtained approval from DoT, to provide International Long Distance and National Long Distance telephony services. GSM cellular services were rolled-out in Himachal Pradesh and Bihar circles IN INDONESIA

January NTS signed multi-year contracts with Ericsson, Huawei and LogicaCMG for deployment of the company‟s 3G and 2G GSM network.

November NTS made its fi rst voice and video call on Maxis 3G network.

December The company completed its 2G/3G inter-connection trial to all 2G/3G operators in Indonesia (Telkom, Telkomsel, Indosat, XL and HCPT). NTS obtained the Operational Feasibility Test known as “Uji Layak Operasi” (“ULO”)certification for Surabaya and Bandung. NTS successfully obtained legal certainty for its mobile licences and spectrum

BUSINESS STRATEGY

Aircel Limited‟s strategic objective is “To capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market. 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 .

Mobile Division Aircel Limited vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company‟s strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 2009 to approximately 08.65 million subscribers as of January 31, 2010. Despite this rapid growth, the mobile penetration rate in India, at approximately 3.8% as of January 31, 2010, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. It is projected at 10 million by COAI and 14 million by Gartner. Aircel Limited believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: . Lower tariffs and handset prices over time; . Growth in pre-paid customer category; . Greater economic growth and continued development of India's economy. Higher quality mobile networks and services; and Greater variety and usage of value added services. Aircel Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services

under Aircel Cellular Limited.

CO-LOCATION

Customers can make use of our state-of-the-art infrastructure by co- locating their server at our Internet Data Centre. With our co-location services, you not only rent space at one of the best data centers but avail 24x7 monitoring, maintenance and administrative support as well. Our co-location services have the flexibility to grow in accordance with growth in your online business.

SATELLITE SERVICE

Aircel Enterprise Services provides you connectivity where ever you take your business Our Satellite Services bring you the benefits of access in remote locations. Aircel Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. Our solutions support audio, video and voice applications on demand.

This is to help you run your business @ ease. Satellite Services include PAMA/DAMA BIT – Internet VPN Satellite based IPLCs for redundancy reasons

NETWORK QUALITY AND ADVANTAGE

Aircel has introduced India's first Dual Band Network. This means now it has two bands (900 MHz and 1800 MHz) to carry calls. Thus minimizing network congestion even during peak hours and in high traffic areas. The Dual Band Network optimizes Aircel‟s current sp ectrum, thus offering:  Enhanced capacity to ensure better connectivity  Quick call set up  Seamless coverage  Improved indoor coverage  Voice quality enhancement  No call drops Aircel has also been among the pioneers in launching Enhanced Data Rates for Global Evolution (EDGE*). EDGE* is a 3G technology that delivers broadband -like data speeds to mobile devices. It allows consumers to connect to the Internet and send and receive data. Including digital images, web pages and photographs, three times faster than possible with a GSM/GPRS network.

BUSSINESS TOOLS AND SOLUTION

Aircel Mobile Services brings the advantage of customized Business Tools and Solutions tailor-made to the requirements of the Enterprise customer. This gives Enterprises the convenience of being connected to the world, both for work as well as their personal requirements.

MOBILE OFFICE

 Staying in touch when on the move with Mobile Office.  Access e-mails on handsets or laptop/ PDA while on the move.  Secure connectivity to e-mail accounts without backend configurations.  Available across all Aircel circles.  Indispensable asset for traveling executives as it enables them to be in touch anytime and anywhere while roaming.  Possible with a GPRS handset and an Aircel connection.

MULTI MEDIA MESSAGING (MMS)

Aircel has also made sending and receiving multimedia message possible. Just like SMS, subscribers can send and receive MMS on their GPRS enabled phone, from anyone anywhere in the world. They can also receive Multimedia Messages even if they do not have a GPRS/MMS enabled phone by simply logging on to www.aircelworld.com.

SMS DIRECTORY

Aircel has introduced the smart corporate way of communicating with colleagues and close business associates. Now there‟s no need to remember the mobile numbers/landline numbers of colleagues while on the move. By simply typing and sending their names to a specially defined short code they can get their contact numbers, instantly.

SALES AUTOMATION TOOLS

Aircel presents Sales Force Automation Solution - a customized menu based service. With this Enterprises can now manage their sales force operations through the click of a button. They can keep track of their sales force/their performance/and their requirements at any given point of time. What‟s more? Even the sales force need not visit the office to send reports or provide market updates; they can simply do all these via their Airtel mobiles.

OTHER EFFECTIVE BUSINESS TOOLS

CORPORATE GROUP MESSAGING

This feature allows users to send one SMS to multiple contacts, anywhere in the world. Users can create their own groups, communities in order to SMS all of them at the same time with reduced rates per SMS. DIAL IN CONCIERGE SERVICE A new Aircel connection comes with special numbers. By simply dialing the relevant number from their phone book memory. Users can get information on Travel, Stocks, Restaurants, Florists, Car Helpline etc.

CALL CONFERENCING This service enables users to talk simultaneously with up to 5 other people

at the same time. It‟s a great way to conduct business on the move.

ENTERPRISE INTERNET A Class - An ISP in India, Aircel Enterprise Services has got Points of Presence (PoPs) in all the major business locations of the country. With thirty-four PoPs in Strategic business locations, Aircel Enterprise Services has been providing its customers with ubiquitous connectivity to the Internet. Aircel Enterprise Services has established a high speed Internet backbone of nxSTM-1 bandwidth across the country in a redundant mode. The Backbone is designed in two-tiers. Tier-1 consists of six Core PoPs which connect to the Undersea Fiber Gateway at Chennai. Tier -2 consists of twenty-eight PoPs which in turn connect to the Tier -1 Backbone. The undersea Fiber Gateway on Network i2i at Chennai peers with SingTel at the SingTel Internet Exchange (STIX) in Singapore and USA at nxSTM-1 levels. STIX has extensive peering arrangements with Tier 1 ISPs in USA. Domestically, Aircel Enterprise Services peers at the National Internet Exchange of India (NIXI) at Delhi and Mumbai. To offer value to its customers, Aircel Enterprise Services also has a limited peering with the other ISPs in India.

COMPETITIVE STRENGTHS Aircel Limited believes that the followin g elements will contribute to the Company's success. As an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: Nationwide Footprint - As of January 31, 2005, approximately 99% of India's total mobile subscribers resided in the Company's twenty three mobile circles.

These 23 circles collectively accounted for approximately 65% of India's land mass; Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications -related business opportunities; The strong brand name recognition and a reputation for offering high quality service to its customers; Quality management team with vision and proven execution skills ; and The Company's strong relationships with international st rategic and financial investors such as SingTel, Warburg Pincus, International.

AIRCEL OPERATION CIRCLE IN INDIA

1. DELHI & NCR (properly working) 2 ASSAM 3. BIHAR 4. CHENNAI 5. ANDRA PRADESH 6. GUJRAT 7. HARYANA 8. HIMACHAL PRADESH 9. JAMMU & KASHMIR 10. KARNATAKA 11. KERALA 12. KOLKATA 13. MADHYA PRADESH 14. MAHARASHTRA 15. MUMBAI 16. ORRISA 17. PUNJAB

18. RAJASTHAN 19. SHILONG 20. TAMILNADU 21. UTTARPRADESH (EAST) 22. WEST BENGAL 23. UTTAR PRADESH (WEST)

Metro Districts

1.Kolkata Telecom District 2.Chennai Telecom District

Telecom Circles & Metro districts are responsible for providing service to the customers. There are 23 Telecom Circles and 2 Metro districts.

HOLDING COMPANY 1. DISHNET WIRELESS LIMITED 2. AIRCEL CELLULAR LIMITED 3. AIRCEL BUSINESS SOLUTIONS

 DISHNET WIRELESS LIMITED-This Company provides broadband services in different circles & it is one of the company which uses WIMAX technology.

 AIRCEL CELLULAR LIMITED-This Company provides mobile services in different circles.

 AIRCEL BUSINESS SOLUTIONS-This is the sub part of aircel cellular limited which executes the ILD,NLD, WIMAX operations for aircel cellular.

CHAPTER-5

DATA ANALYSIS & INTERPRETATION

SAMPLING PLAN

SAMPLE UNIT: Delhi SAMPLE SIZE: 80 persons SAMPLE SELECTION: Random, convenient

DATA ANALYSIS & INTERPRETATION With an eye on the objective of the project a number of people that , I was interacted from people and the relevant data were collected. On the basis of the generated data our findings are as follows:

1. Market share of Aircel in Delhi.

Market share

Aircel

Other

Inference:

Market share of aircel in Delhi is approx 5%

2. Market share of pre-paid users and the post-paid users.

users

Prepaid Postpaid

Inference: I found that 70% people were using the pre-paid service and on the other hand only 30% people were using the post-paid service.

3. Major problems face by the consumers.

60%

50%

40%

30%

20%

10%

0% High price Network Roaming Connectivity cust. Care poor gprs

Inference: 53% people were said that high price is the main drawback, while 27% people were said network, 3% said about the roaming, 10% said about the connectivity, 5% said about the customer care and remaining 2% face the poor GPRS accessibility.

4. How long people are using the mobile?

Using mobile

1 year 6 months 2 year 2 months

Inference: 50% were using the mobile from past 1 year, 27% were using from past 6 months, 20% were using from past 2 years and above and only 3% were using from past 2 months.

5. Which one is the most powerful media in terms of advertisement is concerned.

Series 1

television newspaper hoardings magazines

Inference: 51% people were said that Television is the best medium of advertisement, 33% people said about the news paper, 13% people said about the hoardings and only 3% said about the magazines.

6. Factors which constitute the good service provider.

60%

50%

40%

30%

20%

10%

0% network price customer post sale VAS GLOBAL care POCKET

Inference: 57% people were said that network is the main factor for a good service, 23% said about the reasonable price, 8% said about the customer care, 5% said about the post sale service, 3% said about the value added service (VAS), 2% said about the Global Pocket Radio System, and 2% said about the roaming.

7. What people said about the network?

Excellent poor fair good very poor

Inference: 50% people said that network is excellent, while 27% said tgat it is poor 10% said that it is fair and 10% also said that it is good, only 3% said that it is very poor.

8. People opinion about the roaming.

Roaming

fair good excellent poor very poor

Inference: 25 people said that it is fair, 15 people said , it is good followed by 8 people said that it is excellent, 10 said it is poor and only 2 people said hat it is very poor.

9. People opinion about the customer care service.

customer care service

good happy fair poor very poor

Inference: 10 people said that is good, while 35 people were happy with it and said well (good), 5 people said fair, 9 people said poor and only one person said that it is very poor.

10. People opinion about the Global Pocket Radio System (GPRS).

GPRS

Good fair poor very poor

Inference: 23 people said that it is good, 27 people said that it is fair, 6 people said that it is poor, 4 people said that it is very poor and no one said that it is excellent.

11. People opinion about the Value Added Service (VAS).

VAS

Excellent good fair poor

Inference: 10 people said that value added service is excellent, 20 people said that good, 26 people said fair, 4 people said poor and no one said very poor about it.

I collected data from about 300 respondents and from the response of different people I found the following trend regarding AIRCEL services.

Ques. Do you have mobile connection?

Interpretation- From the following graph it is clearly understood that the 99% subscribers who had mobile connection.

Ques. If you have then which company.

No. of companies and it subscribers.

Interpretation- The following graph shows percentage of subscribers from the all company.

Ques: Do know AIRCEL product.

Interpretation- The following graph shows the percentage of subscribers who had knows about AIRCEL schemes.

Ques: Do you know AIRCEL VAS services.

Interpretations- The following graph shows the percentage of subscribers who has known VAS services.

Ques; If u gets 98 monthly rental for unlimited downloading then would you like it

Interpretations- the following graph has been shows the percentage of subscribers who has interested using mobile net if provided only 98 Rupees Unlimited down loading and surfing.

Ques : Do you like downloading surfing through the net or GPRS

Interpretations- the following graph will be shows percentage of subscribers who has interested using mobile net.

Ques: Do you like AIRCEL services compression to other?

Interpretations- the following graph shows percentage of subscriber who has like AIRCEL compression to other.

Ques: Which companies provide very cheap internet services?

Interpretation- the following graph shows which company provided cheep internet services.

Ques: Do you like an advertisement of AIRCEL?

Interpretations- the following graph has shows percentage of subscribers who has like advertisement of AIRCEL.

Ques: How Can AIRCEL satisfied your needs?

Interpretations-the following graph has shows percentage of subscriber‟s satisfactions.

CHAPTER-6 CONCLUSION

CONCLUSION

The conclusion is drawn from my research report in Aircel with the help of respondents‟ feedback. It is apparent through the study that to achieve the desired target, the mobile companies have formulated various marketing strategies to meet their specific targets. Even though AIRCEL plans are costing high as compared to Vodafone, Idea, Reliance,Airtel, Tata Indicom & B.S.N.L. it has still made its good market value. Each player has a unique set of strengths and weaknesses. Through the market survey it has become apparent that AIRCEL is leading the chart of providing services. While others have concentrated on price-cutting, improving distribution & providing margin to the retailers

The conclusions are:- Aircel provide quality service due to which it is steadily capturing the market.

Due to the brand name „Aircel‟, its connections plans are giving a tough challenge to other. Another good thing about Aircel is its customer care department, which is responsible and prompt towards customer. Aircel is preferred due to its strong network coverage. All Aircel users are happy with its coverage but they want its call rate to be cheaper. They have only one complain that the call rates are very high as compared to other cellular service provider. The status of Youth pack that company has launched recently is that it is not doing well in market as it gives 1500 free sms only for

Aircel to Aircel. It also does not give the option of choosing five friends' number on which they can call on cheaper call rate. This facility is being provided by Idea as well as Hutch. That‟s why new users prefer Hutch and Idea to Aircel. On the whole Aircel cares for its customer and is becoming a benchmark in telecom services. It is gaining popularity among telephone users.

If all goes well then in near future Aircel will h ave the lion‟s share in telecom industry.

CHAPTER-7 LIMITATION & SUGGESTION

LIMITATIONS

As the time was less. So the survey couldn't be conducted in a larger area so there was a time constraint. All the findings are based on the response given by the respondent, so any false information given by respondent could make the result wrong. Some people didn't have enough time to fill up questionnaire. Some people were tolerating to fill questionnaire and they were reacting as the survey is conducting for false purpose. There was also a language problem. All the q uestionnaire was in English and many people didn't understand English as still in India only 67% persons are literate.

SUGGESTIONS Reduce Ca11 Rates. Provide customers update information about tariff plans and schemes. Emphasis on Customer Care. Attention to rural market. Increase coverage on highways and rural areas. Proper contact with customer through the help of trade fairs, mega event and-road shows. Complains should be handled quickly.

CHAPTER-8 RECOMMENDATION

RECOMMENDATIONS

Company should be emphasis on more effective advertisement The most important task is that company should give its priority to coverage. If the company could cover home towns, cities and villages as mentioned in the brochure, the demand of the Reliance India Mobile would get increased by day. The company should enhance its awareness among many people by mobile road shows: outdoor advertising in local and national newspapers as well as more type of ads on prime time on television channels for different uses segments. So that many people may come to know about the service and can become a subscriber of the company. The policy or company should be simple. and bring more transparency. The company should up date marketing department in town offices for the benefit of the subscribers as well for the company. Company should appoint some executives to make strong relationship with customer.

CHAPTER-9 REFRENCES & ANEXZIRE

BIBLIOGRAPHY

BOOKS: Kotler Philip; Marketing Management Kothari, C.R.; Research Methodology

INTERNET:

 www.ibef.com  Department documents  www..scribd.com  www.google.com  www.aircel.com  www.trai.gov.in  www.wikipedia.org  www.answeres.com

MAGAZINES & NEWS PAPERS:

Business today Business India The Times of India Company catalogue

QUESTIONNAIRE Name: Address: Sir/mam you are requested to give the answers: 1. Do you use any mobile services connection? (i) Yes (ii) No

2. Which Company's service do you use? (i) Aircel (ii) BSNL (iii) vodafone (iv) Reliance (v) Airtel

3. What Type of connection do you have? (i) Pre-paid (ii) Post-Paid

4. Duration of using this connection? (i) 0-6 Month (ii) 6-12 Month (iii) 1-2 Year (iv)Above 2 Years

5. For what purpose you are using your mobile? (i) Taking (ii) Messaging (iii) Internet (iv)Others

6. Connectivity? (i) Excellent (ii) Good (iii) Average (iv) Poor

7. Coverage in the City? (i) Excellent (ii) Good (iii) Average (iv) Poor

8. SMS services? (i) Excellent (ii) Good (iii) Average (iv) Poor

9. Tariff Plans? (i) Excellent (ii) Good (iii) Average (iv) Poor

10. Billing? (i) Excellent (ii) Good (iii) Average (iv) Poor

11. Customer‟s Service? (ii) Excellent (ii) Good (iii) Average (iv)Poor

12. Voice Quality? (ii) Excellent (ii) Good (iii) Average (iv)Poor

13. Internet Services? (ii) Excellent (ii) Good (iii) Average (iv)Poor

14. Any suggestion for Aircel? ------