project report on airtel
Content
“TO FIND OUT MARKET POTENTIAL FOR DATA PRODUCTS IN PUNE”
BY Wilson ‘d’ aranjo Soumya kangsabanik Sutirtha datta Abhishek singh Vikash tiwari
Group-6
Batch: 2012-2014
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) SPECIALIZATION: MARKETING
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EXECUTIVE SUMMARY
The project report is all about finding the market potential for data products i.e. ILL, MPLS, VPN etc and also to know about the customer perceptions and attitudes towards their current service provider. Satisfaction level of the customers was also judged. The study was strictly based on B2B. The customer expectations were analysed thoroughly. Major factors considered in research are: what are the needs of the companies based on the data services usage, major player in internet services, and support to customers. It is clear from the survey done that Airtel is facing stiff competition from Tata, Tulip, and Reliance in terms of Internet services and products like ILL etc to the corporate end users. The bandwidth most preferred was 1MBPS-4MBPS. Most of the companies are having good perception about Airtel and are willing to switch to it from their current service provider. The contribution included a detailed study of ‘To Find out the Market Potential for Data Products in Pune’ of ILL MPLS users. Bharti Airtel limited (Pune) mostly concentrates on the need of the large enterprises as compared to the medium as well as small enterprises.
NATURE AND SCOPE OF STUDY
1.1 INTRODUCTION:
TITLE: “A STUDY OF MARKET POTENTIAL OF INTERNET SERVICES FOR AIRTEL”
The description for the above title statement is as follows: The present research deals with finding out market potential of Internet Services product i.e. ILL (Internet Lease Line) for AIRTEL. The reason of study here is to find the potential of the company in market. What are the needs and expectations of customers using ILL whether of Airtel or any other company? What is their feedback etc?
1.2 AIMS AND OBJECTIVES:
The aim and objectives of the project are as mentioned below:1. To find out the market potential for AIRTEL product i.e. ILL and MPLS. 2. To find out the customer satisfaction level with their existing ISP.
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3. To find out the percentage of people using other company’s ILL services. 4. To identify the problems of customers who using AIRTEL’S service. 5. To know the strategies of other companies.
1.3 RATIONAL STUDY:
The particular topic was chosen as my research project so as to find out the market potential of data products i.e. ILL, MPLS,VPN etc. and to pass on the valuable information to Airtel so that their technical team can work on it. The various pricing strategies were also formulated to know more about the products and customer perceptions on it.
1.4 SCOPE OF THE RESEARCH
Here the scope of the research was geographical study which means the areas or cities targeted for the research. The research was restricted to Pune city only. The areas covered were: Baner, Kothrud, S.B road, Model colony, Kharari, Wakadwadi, Hinjwadi and many more. The research was restricted to a particular segment of service and for a particular segment of potential customers. The study was restricted to specifically Internet Lease line and mostly IT companies were targeted.
PROFILE OF THE COMPANY AND INDUSTRY OVERVIEW
1.5 INDUSTRY OVERVIEW
1.5 TELECOM INDUSTRY- INTRODUCTION The 21st century, belongs to the service sector. The development in technology has given boost to information technology and telecommunication growth. Not long ago, business communication only meant voice telephone service. Today, voice, internet, data and application access are now combined as a single service over globally connected IP (Internet Protocol) network. These products are also known as next generation voice and data solutions that run over an IP network which offers significant advantages including lower cost, higher quality, greater reliability and exceptional flexibility. Telecommunication is the transmission of messages, over significant distances, for the purpose of communication. In earlier times, telecommunication involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lungblown horns, or sent by loud whistles.
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The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 653.92 million as on May 31 2010, an increase of 2.49 per cent from 638.05 million in April 2010. With this the overall Tele-density (telephones per 100 people) has touched 55.38. The wireless subscriber base has increased to 617.53 million at the end of May 2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent. 1.6 POLICY AND INITIATIVES Regulatory Framework The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a regulator for Telecom sector. The TRAI’s functions are recommendatory, regulatory and tariff setting in telecom sector. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in May, 2000. TDSAT has been empowered to adjudicate any dispute – • Between a licensor and a licensee • Between two or more service providers • Between a service provider and a group of consumers • hear and dispose of appeal against any direction, decision or order of TRAI Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service Obligation was established in April, 2002. The Universal Service Levy is presently 5 per cent of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. With the introduction of the Unified Access Licensing Regime, operators can offer telecom access services to consumers in a technology neutral manner, subject to fulfilling certain conditions. Introduction of this regime has also broken the legal/regulatory impasse between the cellular and basic service providers.
1.7 ADVANTAGES OF INTERNET PRODUCTS 1. Exchange of information across the world. 2. Provides efficient and effective communication between parties. 3. Data transfer and sharing between various branches of company. 4. Serving access points. 5. Simplify various crucial businesses. 6. Dedicated, secured and fast services of various products to the corporate end user.
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1.8 INDIAN TELECOM SCENARIO 1. 2. One of the fastest growing telecom markets in the world. Second largest telecommunication network in the world in terms of number of wireless connections
after china with 525.1 million connections. 3. 4. 5. 6. Third largest telecom network in the world. World’s second-largest mobile phone user base with over 929.37 million users as of May 2012. It has the world's third-largest Internet user-base with over 121 million as of December 2011. The industry is expected to reach a size of 344,921 crore (US$62.43 billion) by 2012 at a growth rate
of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. 7. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$51.26 billion) for 117,039 crore 2010–11 financial year, while revenues from telecom equipment segment stood at (US$21.18 billion). 8. 1.9 COMPANY PROFILE
Bharti Airtel Limited
ABOUT Bharti Airtel Limited Bharti Airtel was formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest GSM mobile operator with more than 100 million mobile subscribers as of May15 2009. It also offers fixed line services and broadband services. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. It also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fiber on its national long distance network. For international connectivity to east, it has a submarine cable landing station for international connectivity to the west; the Company is a member of the South East AsiaMiddle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators. Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and
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provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications consulting for corporate). The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers and all these services are provided under the Airtel.
1.10 Organisation Structure: F2
1.11 PRODUCT PORTFOLIO
INTERNET LEASED LINE (ILL) :A leased line is a systematic telecommunications line connecting two locations. It is sometimes known as ‘private circuit’ or ‘data line’. Unlike traditional PSTN lines it does not have a telephone number, each side of the line being permanently connected to other. Leased lines can be used for telephone, data or internet services. Leased lines are usually available at speed of 512 kbps, 1 mbps, and 2 mbps and so on. MULTI PROTOCAL LABEL SWITCHING (MPLS):MPLS is a high performance method for forwarding packets through a network. It enables routers at the edge of a network to apply simple labels of packet. ATM switches or existing routes in the network core can
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switch packets according to the labels with minimal lookup overhead. MPLS networks deliver enterprise scale connectivity deployed on a shared infrastructure with the same policies enjoyed in a private network. VIRTUAL PRIVATE NETWORK (VPN):VPN is a network that uses a public telecommunication infrastructure, such as the Internet, to provide remote offices or individual users with secure access to their organization’s network. Instead of using dedicated connection, such as leased-line direct circuits, the VPN option uses tunnels routed over the Internet from the company’s private network to another location on the company’s network. While relatively secure, VPNs are subject to latency and security issues inherent in using the public Internet as a transport device for private data. 1.12 INTERNATIONAL PRIVATE LEASED CIRCUIT (IPLC):An IPLC is a point-to-point private line used by an organization to provide state-of-the-art connectivity between offices that are located across various countries. It provides dedicated bandwidth for data transmission in India and abroad. Connectivity is providing cable systems like i2i, TIC, SMW4 and SMW3. 1.13 VERY SMALL APERATURE TECHNOLOGY (VSAT):VSAT enables telecommunications amongst offices situated at distant and remote places via satellites. It provides maximum transponder bandwidth space from multiple satellites. VSAT has multiple operational hubs in India on multiple technology platforms. Mobile Experience total cost control, no rentals and easy billing with our post-paid and prepaid services. Explore the world with our roaming services and get absolutely cool offers with Airtel Live. Prepaid Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you give words to every feeling, an expression to every emotion. Post-paid Life becomes much simpler with your Airtel Postpaid. It gives you the unlimited freedom to reach out to people in your special way. Home Phones
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Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel
Fixed Line Airtel welcomes you to its world of telephony services, which offers you world class services with its cutting edge technology. Fixed Wireless Phone Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing the ambience of your living room! Broadband and Internet Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel.
Wi-Fi
One Airtel Offer Power of 16 Mbps, IPTV Airtel Net PC, Airtel PC Security.
1.14 Competitors
(a) Aircel Aircel Business Solutions (ABS), one of India's pioneers of WiMAX based services is constantly changing the connectivity landscape to take India to another digital crescendo from where growth, productivity and improved quality are only inevitable.
(b) Spectrum
Spectrum Communications Services Ltd. is a Nigerian based Company, with a strong reputation in the Oil Companies, Financial Institutions, embassies and World Bank sponsored programmes. The company is run by a team of highly qualified engineers and administrators.
(c) Tulip
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With a rapidly changing business landscape in communication services, it is necessary for Telecom service providers to establish their brand as best in the market and at the same time transform their processes to support and launch new services continuously across multiple channels of communication.
(d) Reliance
The most efficient and cost-effective way to connect two offices is a leased line; it provides a clear and continuous channel between two end points. Little wonder that most large enterprises use leased lines for connectivity. Reliance's 'end-to-end leased line' is delivered through its state-of-the-art optic fiber network with its unique self-healing survivable architecture .With its 'fiber-to-building' approach, Reliance has reduced the last mile to just a few meters of in-building copper cabling. Being mostly optic fiber-based, our network can offer reliable and scalable services with a high degree of availability to our customers.
(e) CJ Online
CJ Online is offering its services on a digital platform. The advantages of which are manifold. It is commonly known that a major part of the cost of surfing the Internet is telephone usage. On a digital connection, the same things take much less time to be done by way of faster downloads of images, sound, animations & video, thereby reducing your online time & telephonic usage. Digital links are also less susceptible to disturbances and noise thereby ensuring longer connections without unwanted dropping of lines.
Customers
Airtel has huge customers in Pune and all over the world. Airtel has not provided us all the details about their customers as they are confidential for them.
Stake Holders With talks for the BHARTI-MTN merger underway since 25 May, SingTel could see its stake fall to a significant extent after the merger. Singapore Telecommunications (SingTel), is one of the major stakeholders in Bharti Airtel as per a Citigroup report, “SingTel, which operates in Singapore and Australia, has no direct involvement in the deal but its current 30.5 per cent stake in Bharti (will) get diluted to 19.4 per cent.
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TABLE 2.1 MARKET SHARE OF AIRTEL (INDIA)
GSM Operator Bharti Airtel Tulip Vodafone Essar IDEA Cellular BSNL Aircel Uninor
Market Share 45% 33% 22.88% 15.14% 15.02% 9.31% 3.65%
No. of customers
501087 323475 288489 126339 112623 56082 25032
F2.1
Market Share
9.31% 3.65% Bharti Airtel 15.02% 15.14% 22.88% 33% 45% Tulip Vodafone Essar IDEA Cellular BSNL Aircel Uninor
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LITERATURE REVIEW
It is all about knowing about the customer satisfaction level and perception and also to know about the overall economic scenario regarding the telecom industry.
OBJECTIVES: To know about the customer perception towards Airtel Airtel is providing various Value Added Services to its customers and hence to know how much the customers are availing those services.
1.16 VALUE ADDED SERVICES PROVIDED BY AIRTEL: Co-ordination: Professionally skilled conference coordinators are available to ensure smooth management of the conference Roll call: Roll Call could be done of all the participants in the conference Recording: Proceedings of the entire conference can be recorded and a CD can be provided within 48 hours of the conference anywhere in India Transcription: The recorded conference could be provided in a word format to the user organization Playback: Real-time recording is conducted on the bridge for listening to the conference at a later time which allows participants to listen to a previous conference that they may have missed or not attended Question and Answer Session: Complete Q & A sessions could be organized with the participants across the globe. 1.17 CUSTOMER PERCEPTION: The existing customers were satisfied with the internet services apart from the areas where there were low feasibility. Many people using other internet services are keen to change to Airtel. 1.18 SATISFACTION: The existing customers of Airtel were extremely satisfied with the services.
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THE MAIN SERVICES USED BY CUSTOMERS ARE: 1.19 INTERNET LEASED LINE (ILL) :A leased line is a systematic telecommunications line connecting two locations. It is sometimes known as ‘private circuit’ or ‘data line’. Unlike traditional PSTN lines it does not have a telephone number, each side of the line being permanently connected to other. 1.20 MULTI PROTOCAL LABEL SWITCHING (MPLS):MPLS is a high performance method for forwarding packets through a network. It enables routers at the edge of a network to apply simple labels of packet. MPLS networks deliver enterprise scale connectivity deployed on a shared infrastructure with the same policies enjoyed in a private network Dial MPLS provides uninterrupted communication anywhere, anytime. Also the multicast services for video streaming. 1.21 VIRTUAL PRIVATE NETWORK (VPN):VPN is a network that uses a public telecommunication infrastructure, such as the Internet, to provide remote offices or individual users with secure access to their organization’s network. Instead of using dedicated connection, such as leased-line direct circuits, the VPN option uses tunnels routed over the Internet from the company’s private network to another location on the company’s network 1.22 Economic Environment & Industry Indian Economic Environment - Developments in Indian Capital Markets 1.23 INDIAN CELLULAR MARKET The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2007, displacing Vodafone from the second position. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market."Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst. Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 7.92% growth, the highest growth in any month so far, during March 2005. Year-on-year, the cellular subscriber base in the country has almost
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doubled in March 2005, and is expanding at the rate of 25% per year thereafter. The cellular subscriber club expanded by 21.31 lakh last month. OBSERVATIONS:
The particular research shows that the Airtel customers are quite content with the services. The ILL and other data products are useful to them and not causing much error. The customer’s perception towards Airtel is improving day by day. Since, Tata leads in terms of ILL still people are willing to switch to Airtel. The economic scenario of our country seems good and many opportunities are there regarding the telecom industry.
RESEARCH METHODOLOGY
RESEARCH METHODS
QUANTITATIVE RESEARCH- It is about asking people for their opinions in a structured way so that one can produce hard facts and statistics for guidance. To get reliable statistics results,its important to survey people in fairly large numbers and to make sure they are a representative sample of a target my target market.
QUALITATIVE RESEARCH- Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many approaches that are used, but qualitative research in its most basic form involves the analysis of any unstructured data, including: open-ended survey responses, literature reviews, audio recordings, pictures and web pages.
1.24 RESEARCH DESIGNS: EXPLORATORY RESEARCH DESIGN: Flexibility and creativity characterise exploratory research study since the aim of its investigation is to find new hypothesis. Hence, formal design is rare in this type of research and much is left to the creative imagination of the market researcher. DESCRIPTIVE RESEARCH DESIGN: When a marketing manager has to select one course of action among a number of alternatives,conclusive research provides him information that helps him to evaluate various alternatives and select among them a course of action.
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Collection of data: Primary data- through questionnaire and personal interview of different companies in Pune Secondary data- through internal system & software, internet, magazines and newspaper etc.
OVERALL RESEARCH PROCESS:
IDENTIFYING THE MARKETING PROBLEMS
DEVELOPING A MARKETING PLAN
RESEARCH DESIGN
SOURCES OF DATA COLLECTION
SELECTION OF SAMPLE SIZE
DATA COLLECTION
ANALYSING THE COLLECTED DATA
FINDINGS AND SUGGESTIONS
CONCLUSION
1.25
SOURCES & METHODS OF DATA COLLECTION
There are two method of data collection Primary and Secondary method. Primary Data is known as the data collected for the first time through survey by the researcher. Survey/questionnaire, Interview and Telephonic method are some of the instrument used for collecting primary data. Secondary Data are data that already been collected for the purpose other than the problem at hand. Magazines, Internet, Company in house broacher are used for collecting secondary data information.
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In this project primary data for data collection & secondary data for gathering of information such as company profile and company businesses etc. have been used. SURVEY PROCEDURE 1.26 SAMPLING
Sampling is the process of drawing a small representative’s number of units from the whole of the universe for the reason of economy in time, resource, and manpower FEATURES OF SAMPLING METHOD: Economy- It is less expensive, much less time consuming than the cencus technique. Scientific Base- This is a scientific technique because the conclusion derived from the study of certain units can be verified from other units. TYPES OF SAMPLING: Probability Sampling Method Non-probability Sampling Methods.
1.27 Sampling Techniques: PROBABILITY Simple Random Sampling- A random sample is known as probability sample. Under this method the selection of items for a sample depends on chance. Stratified Random Sampling- The population is divided into several groups known as strata. If a given population has distinct characters,it is represented as a heterogeneous population. The other major sampling techniques are: Systematic Sampling Cluster Sampling Multistage Sampling
NON-PROBABILITY Deliberate Sampling Quota Sampling Convenience Sampling
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In this project Simple Random Sampling have been used. QUESTIONNAIRE: It is a structured source of data collection from the customers to know more about what data products they are using and if they need any sort of up gradation in their current service. A QUESTIONNAIRE HAS BEEN ATTACHED IN THE ANNEXURE. RESEARCH SCALE: During my survey I have used ‘Interval Scale’ as I have asked the prospects and the existing customers that what are their point of view regarding Airtel and if they are satisfied or dissatisfied with the service. RESEARCH LIMITATIONS: Following are the limitations of my research: The research was conducted in Pune city so the views and perception is limited to this region only.
Data collected from the companies from various Industries but majority of them are from IT/Software.
Time limit was also there as summer internship was for 2 months only.
Annexure about Work Done and Inferences
1. 2.
Basic Concept of Telecom, and internet. Products of Company Lease lines
i) ii) iii) iv)
Internet MPLS (multi protocol label switching) solutions. VSAT Data Centers
3. Airtel Infrastructure. 4. What is Service Label Agreement?
I was allotted a project to go to the IT parks and meet with IT heads of different companies and find out the requirements of the new product MPLS in the companies. Take down the requirements and which network they are using currently in the company.
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QUESTIONNAIRE
1. Which all data products you use as of now? a) Internet lease line b) MPLS d) Others (please specify) –
c) Data center
1. Do you use any Airtel product as of now? (please specify) – 2. Have you used an Airtel product before? 3. What is your satisfaction level with your existing service provider? a) Extremely satisfied b) Satisfied c) Disappointed 4. Please give 1 – 5 numbers to these parameters in order of importance for your company, when you are placing order to a service provider. (1 being the most important) a) Better technology b) Better services c) Better price d) Better brand e) Any other (please specify) – 5. What approximately is your company’s telecom expenditure as of now? a) Voice (fixed line phones and broadband) b) Mobile connections (company paid) c) Data products (internet lease line, MPLS, ERP etc) – 6. How many offices does your company have in India? – 7. Do you have any office in abroad? – 8. In case of having a branch abroad, do you use IPLC or IMPLS? – 9. Do you have any plans of hosting your critical servers in a data center? –
10. Do you use any ERP as of now? (Please specify in case ‘yes’) – 11. In case of non Airtel customer, what is your perception about brand Airtel? a) Extremely powerful brand b) Good brand b) Somewhat OK brand d) Not a good brand 12. Do you have any immediate plans of buying a telecom product? (Please specify, if ‘yes’) 13. Who is the decision maker in your organization? 14. Would you like to give any suggestions to Airtel?
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MAJOR FINDINGS
It is clear from the survey done, that Airtel is facing competition from Tata i.e. of about 36%, Tulip Telecom, Reliance and BSNL in terms of Internet service and product like ILL to the corporate end user. But then the market share of Airtel is leading, 46%
For Internet Lease Line, Market is dominated by TATA followed by Airtel, Reliance and BSNL follow it while very small market is captured by Tulip Telecom. Research shows that the companies on which research was conducted were mainly using data services than voice services. The Bandwidth of ILL (Internet Lease Line) of 2MBPS most preferred by companies followed by 4MBPS & 1MBPS. 162 companies were satisfied with support and services provided by their Internet Service Provider.
CONCLUSION.
1.28 To conclude I would like to say that this was a great learning experience and has give us a peek into how a Telecom organization works. Right form field work to and planning to strategizing and client meetings the whole journey was enriching and knowledgeable experience. This industry exposure has developed new skills and personality into me. It has build confidence and has taught us how to work in a team & professionalism to a great extent on any project. Some of the points I was finding during my visit to the companies: Bharti Airtel limited (Pune) mostly concentrates on the need of the large enterprises as compared to the medium as well as small enterprises. Some of the existing customers are not satisfied with their after sales services corporate offices in IT parks Pune customers.
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SUGGESTIONS:
There is a huge scope in the small enterprises segment
Improve service after sales which is the key point for any organization
Bharti Airtel Limited must need to concentrate on Customer’s satisfaction.
Finally I would say, the guidance received from my mentor Mr. Manish Mishra sir has been a major motivating factor to continuously contribute and give ones best. Though there have been my points of ups and downs, it has only taught me to be a confident person and has added a lot of personal learning apart from professional ones.
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BY Wilson ‘d’ aranjo Soumya kangsabanik Sutirtha datta Abhishek singh Vikash tiwari
Group-6
Batch: 2012-2014
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) SPECIALIZATION: MARKETING
1
EXECUTIVE SUMMARY
The project report is all about finding the market potential for data products i.e. ILL, MPLS, VPN etc and also to know about the customer perceptions and attitudes towards their current service provider. Satisfaction level of the customers was also judged. The study was strictly based on B2B. The customer expectations were analysed thoroughly. Major factors considered in research are: what are the needs of the companies based on the data services usage, major player in internet services, and support to customers. It is clear from the survey done that Airtel is facing stiff competition from Tata, Tulip, and Reliance in terms of Internet services and products like ILL etc to the corporate end users. The bandwidth most preferred was 1MBPS-4MBPS. Most of the companies are having good perception about Airtel and are willing to switch to it from their current service provider. The contribution included a detailed study of ‘To Find out the Market Potential for Data Products in Pune’ of ILL MPLS users. Bharti Airtel limited (Pune) mostly concentrates on the need of the large enterprises as compared to the medium as well as small enterprises.
NATURE AND SCOPE OF STUDY
1.1 INTRODUCTION:
TITLE: “A STUDY OF MARKET POTENTIAL OF INTERNET SERVICES FOR AIRTEL”
The description for the above title statement is as follows: The present research deals with finding out market potential of Internet Services product i.e. ILL (Internet Lease Line) for AIRTEL. The reason of study here is to find the potential of the company in market. What are the needs and expectations of customers using ILL whether of Airtel or any other company? What is their feedback etc?
1.2 AIMS AND OBJECTIVES:
The aim and objectives of the project are as mentioned below:1. To find out the market potential for AIRTEL product i.e. ILL and MPLS. 2. To find out the customer satisfaction level with their existing ISP.
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3. To find out the percentage of people using other company’s ILL services. 4. To identify the problems of customers who using AIRTEL’S service. 5. To know the strategies of other companies.
1.3 RATIONAL STUDY:
The particular topic was chosen as my research project so as to find out the market potential of data products i.e. ILL, MPLS,VPN etc. and to pass on the valuable information to Airtel so that their technical team can work on it. The various pricing strategies were also formulated to know more about the products and customer perceptions on it.
1.4 SCOPE OF THE RESEARCH
Here the scope of the research was geographical study which means the areas or cities targeted for the research. The research was restricted to Pune city only. The areas covered were: Baner, Kothrud, S.B road, Model colony, Kharari, Wakadwadi, Hinjwadi and many more. The research was restricted to a particular segment of service and for a particular segment of potential customers. The study was restricted to specifically Internet Lease line and mostly IT companies were targeted.
PROFILE OF THE COMPANY AND INDUSTRY OVERVIEW
1.5 INDUSTRY OVERVIEW
1.5 TELECOM INDUSTRY- INTRODUCTION The 21st century, belongs to the service sector. The development in technology has given boost to information technology and telecommunication growth. Not long ago, business communication only meant voice telephone service. Today, voice, internet, data and application access are now combined as a single service over globally connected IP (Internet Protocol) network. These products are also known as next generation voice and data solutions that run over an IP network which offers significant advantages including lower cost, higher quality, greater reliability and exceptional flexibility. Telecommunication is the transmission of messages, over significant distances, for the purpose of communication. In earlier times, telecommunication involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lungblown horns, or sent by loud whistles.
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The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 653.92 million as on May 31 2010, an increase of 2.49 per cent from 638.05 million in April 2010. With this the overall Tele-density (telephones per 100 people) has touched 55.38. The wireless subscriber base has increased to 617.53 million at the end of May 2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent. 1.6 POLICY AND INITIATIVES Regulatory Framework The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a regulator for Telecom sector. The TRAI’s functions are recommendatory, regulatory and tariff setting in telecom sector. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in May, 2000. TDSAT has been empowered to adjudicate any dispute – • Between a licensor and a licensee • Between two or more service providers • Between a service provider and a group of consumers • hear and dispose of appeal against any direction, decision or order of TRAI Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service Obligation was established in April, 2002. The Universal Service Levy is presently 5 per cent of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. With the introduction of the Unified Access Licensing Regime, operators can offer telecom access services to consumers in a technology neutral manner, subject to fulfilling certain conditions. Introduction of this regime has also broken the legal/regulatory impasse between the cellular and basic service providers.
1.7 ADVANTAGES OF INTERNET PRODUCTS 1. Exchange of information across the world. 2. Provides efficient and effective communication between parties. 3. Data transfer and sharing between various branches of company. 4. Serving access points. 5. Simplify various crucial businesses. 6. Dedicated, secured and fast services of various products to the corporate end user.
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1.8 INDIAN TELECOM SCENARIO 1. 2. One of the fastest growing telecom markets in the world. Second largest telecommunication network in the world in terms of number of wireless connections
after china with 525.1 million connections. 3. 4. 5. 6. Third largest telecom network in the world. World’s second-largest mobile phone user base with over 929.37 million users as of May 2012. It has the world's third-largest Internet user-base with over 121 million as of December 2011. The industry is expected to reach a size of 344,921 crore (US$62.43 billion) by 2012 at a growth rate
of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. 7. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$51.26 billion) for 117,039 crore 2010–11 financial year, while revenues from telecom equipment segment stood at (US$21.18 billion). 8. 1.9 COMPANY PROFILE
Bharti Airtel Limited
ABOUT Bharti Airtel Limited Bharti Airtel was formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest GSM mobile operator with more than 100 million mobile subscribers as of May15 2009. It also offers fixed line services and broadband services. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. It also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fiber on its national long distance network. For international connectivity to east, it has a submarine cable landing station for international connectivity to the west; the Company is a member of the South East AsiaMiddle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators. Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and
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provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications consulting for corporate). The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers and all these services are provided under the Airtel.
1.10 Organisation Structure: F2
1.11 PRODUCT PORTFOLIO
INTERNET LEASED LINE (ILL) :A leased line is a systematic telecommunications line connecting two locations. It is sometimes known as ‘private circuit’ or ‘data line’. Unlike traditional PSTN lines it does not have a telephone number, each side of the line being permanently connected to other. Leased lines can be used for telephone, data or internet services. Leased lines are usually available at speed of 512 kbps, 1 mbps, and 2 mbps and so on. MULTI PROTOCAL LABEL SWITCHING (MPLS):MPLS is a high performance method for forwarding packets through a network. It enables routers at the edge of a network to apply simple labels of packet. ATM switches or existing routes in the network core can
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switch packets according to the labels with minimal lookup overhead. MPLS networks deliver enterprise scale connectivity deployed on a shared infrastructure with the same policies enjoyed in a private network. VIRTUAL PRIVATE NETWORK (VPN):VPN is a network that uses a public telecommunication infrastructure, such as the Internet, to provide remote offices or individual users with secure access to their organization’s network. Instead of using dedicated connection, such as leased-line direct circuits, the VPN option uses tunnels routed over the Internet from the company’s private network to another location on the company’s network. While relatively secure, VPNs are subject to latency and security issues inherent in using the public Internet as a transport device for private data. 1.12 INTERNATIONAL PRIVATE LEASED CIRCUIT (IPLC):An IPLC is a point-to-point private line used by an organization to provide state-of-the-art connectivity between offices that are located across various countries. It provides dedicated bandwidth for data transmission in India and abroad. Connectivity is providing cable systems like i2i, TIC, SMW4 and SMW3. 1.13 VERY SMALL APERATURE TECHNOLOGY (VSAT):VSAT enables telecommunications amongst offices situated at distant and remote places via satellites. It provides maximum transponder bandwidth space from multiple satellites. VSAT has multiple operational hubs in India on multiple technology platforms. Mobile Experience total cost control, no rentals and easy billing with our post-paid and prepaid services. Explore the world with our roaming services and get absolutely cool offers with Airtel Live. Prepaid Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you give words to every feeling, an expression to every emotion. Post-paid Life becomes much simpler with your Airtel Postpaid. It gives you the unlimited freedom to reach out to people in your special way. Home Phones
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Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel
Fixed Line Airtel welcomes you to its world of telephony services, which offers you world class services with its cutting edge technology. Fixed Wireless Phone Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing the ambience of your living room! Broadband and Internet Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel.
Wi-Fi
One Airtel Offer Power of 16 Mbps, IPTV Airtel Net PC, Airtel PC Security.
1.14 Competitors
(a) Aircel Aircel Business Solutions (ABS), one of India's pioneers of WiMAX based services is constantly changing the connectivity landscape to take India to another digital crescendo from where growth, productivity and improved quality are only inevitable.
(b) Spectrum
Spectrum Communications Services Ltd. is a Nigerian based Company, with a strong reputation in the Oil Companies, Financial Institutions, embassies and World Bank sponsored programmes. The company is run by a team of highly qualified engineers and administrators.
(c) Tulip
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With a rapidly changing business landscape in communication services, it is necessary for Telecom service providers to establish their brand as best in the market and at the same time transform their processes to support and launch new services continuously across multiple channels of communication.
(d) Reliance
The most efficient and cost-effective way to connect two offices is a leased line; it provides a clear and continuous channel between two end points. Little wonder that most large enterprises use leased lines for connectivity. Reliance's 'end-to-end leased line' is delivered through its state-of-the-art optic fiber network with its unique self-healing survivable architecture .With its 'fiber-to-building' approach, Reliance has reduced the last mile to just a few meters of in-building copper cabling. Being mostly optic fiber-based, our network can offer reliable and scalable services with a high degree of availability to our customers.
(e) CJ Online
CJ Online is offering its services on a digital platform. The advantages of which are manifold. It is commonly known that a major part of the cost of surfing the Internet is telephone usage. On a digital connection, the same things take much less time to be done by way of faster downloads of images, sound, animations & video, thereby reducing your online time & telephonic usage. Digital links are also less susceptible to disturbances and noise thereby ensuring longer connections without unwanted dropping of lines.
Customers
Airtel has huge customers in Pune and all over the world. Airtel has not provided us all the details about their customers as they are confidential for them.
Stake Holders With talks for the BHARTI-MTN merger underway since 25 May, SingTel could see its stake fall to a significant extent after the merger. Singapore Telecommunications (SingTel), is one of the major stakeholders in Bharti Airtel as per a Citigroup report, “SingTel, which operates in Singapore and Australia, has no direct involvement in the deal but its current 30.5 per cent stake in Bharti (will) get diluted to 19.4 per cent.
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TABLE 2.1 MARKET SHARE OF AIRTEL (INDIA)
GSM Operator Bharti Airtel Tulip Vodafone Essar IDEA Cellular BSNL Aircel Uninor
Market Share 45% 33% 22.88% 15.14% 15.02% 9.31% 3.65%
No. of customers
501087 323475 288489 126339 112623 56082 25032
F2.1
Market Share
9.31% 3.65% Bharti Airtel 15.02% 15.14% 22.88% 33% 45% Tulip Vodafone Essar IDEA Cellular BSNL Aircel Uninor
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LITERATURE REVIEW
It is all about knowing about the customer satisfaction level and perception and also to know about the overall economic scenario regarding the telecom industry.
OBJECTIVES: To know about the customer perception towards Airtel Airtel is providing various Value Added Services to its customers and hence to know how much the customers are availing those services.
1.16 VALUE ADDED SERVICES PROVIDED BY AIRTEL: Co-ordination: Professionally skilled conference coordinators are available to ensure smooth management of the conference Roll call: Roll Call could be done of all the participants in the conference Recording: Proceedings of the entire conference can be recorded and a CD can be provided within 48 hours of the conference anywhere in India Transcription: The recorded conference could be provided in a word format to the user organization Playback: Real-time recording is conducted on the bridge for listening to the conference at a later time which allows participants to listen to a previous conference that they may have missed or not attended Question and Answer Session: Complete Q & A sessions could be organized with the participants across the globe. 1.17 CUSTOMER PERCEPTION: The existing customers were satisfied with the internet services apart from the areas where there were low feasibility. Many people using other internet services are keen to change to Airtel. 1.18 SATISFACTION: The existing customers of Airtel were extremely satisfied with the services.
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THE MAIN SERVICES USED BY CUSTOMERS ARE: 1.19 INTERNET LEASED LINE (ILL) :A leased line is a systematic telecommunications line connecting two locations. It is sometimes known as ‘private circuit’ or ‘data line’. Unlike traditional PSTN lines it does not have a telephone number, each side of the line being permanently connected to other. 1.20 MULTI PROTOCAL LABEL SWITCHING (MPLS):MPLS is a high performance method for forwarding packets through a network. It enables routers at the edge of a network to apply simple labels of packet. MPLS networks deliver enterprise scale connectivity deployed on a shared infrastructure with the same policies enjoyed in a private network Dial MPLS provides uninterrupted communication anywhere, anytime. Also the multicast services for video streaming. 1.21 VIRTUAL PRIVATE NETWORK (VPN):VPN is a network that uses a public telecommunication infrastructure, such as the Internet, to provide remote offices or individual users with secure access to their organization’s network. Instead of using dedicated connection, such as leased-line direct circuits, the VPN option uses tunnels routed over the Internet from the company’s private network to another location on the company’s network 1.22 Economic Environment & Industry Indian Economic Environment - Developments in Indian Capital Markets 1.23 INDIAN CELLULAR MARKET The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2007, displacing Vodafone from the second position. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market."Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst. Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 7.92% growth, the highest growth in any month so far, during March 2005. Year-on-year, the cellular subscriber base in the country has almost
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doubled in March 2005, and is expanding at the rate of 25% per year thereafter. The cellular subscriber club expanded by 21.31 lakh last month. OBSERVATIONS:
The particular research shows that the Airtel customers are quite content with the services. The ILL and other data products are useful to them and not causing much error. The customer’s perception towards Airtel is improving day by day. Since, Tata leads in terms of ILL still people are willing to switch to Airtel. The economic scenario of our country seems good and many opportunities are there regarding the telecom industry.
RESEARCH METHODOLOGY
RESEARCH METHODS
QUANTITATIVE RESEARCH- It is about asking people for their opinions in a structured way so that one can produce hard facts and statistics for guidance. To get reliable statistics results,its important to survey people in fairly large numbers and to make sure they are a representative sample of a target my target market.
QUALITATIVE RESEARCH- Focus groups, in-depth interviews, content analysis, ethnography, evaluation and semiotics are among the many approaches that are used, but qualitative research in its most basic form involves the analysis of any unstructured data, including: open-ended survey responses, literature reviews, audio recordings, pictures and web pages.
1.24 RESEARCH DESIGNS: EXPLORATORY RESEARCH DESIGN: Flexibility and creativity characterise exploratory research study since the aim of its investigation is to find new hypothesis. Hence, formal design is rare in this type of research and much is left to the creative imagination of the market researcher. DESCRIPTIVE RESEARCH DESIGN: When a marketing manager has to select one course of action among a number of alternatives,conclusive research provides him information that helps him to evaluate various alternatives and select among them a course of action.
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Collection of data: Primary data- through questionnaire and personal interview of different companies in Pune Secondary data- through internal system & software, internet, magazines and newspaper etc.
OVERALL RESEARCH PROCESS:
IDENTIFYING THE MARKETING PROBLEMS
DEVELOPING A MARKETING PLAN
RESEARCH DESIGN
SOURCES OF DATA COLLECTION
SELECTION OF SAMPLE SIZE
DATA COLLECTION
ANALYSING THE COLLECTED DATA
FINDINGS AND SUGGESTIONS
CONCLUSION
1.25
SOURCES & METHODS OF DATA COLLECTION
There are two method of data collection Primary and Secondary method. Primary Data is known as the data collected for the first time through survey by the researcher. Survey/questionnaire, Interview and Telephonic method are some of the instrument used for collecting primary data. Secondary Data are data that already been collected for the purpose other than the problem at hand. Magazines, Internet, Company in house broacher are used for collecting secondary data information.
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In this project primary data for data collection & secondary data for gathering of information such as company profile and company businesses etc. have been used. SURVEY PROCEDURE 1.26 SAMPLING
Sampling is the process of drawing a small representative’s number of units from the whole of the universe for the reason of economy in time, resource, and manpower FEATURES OF SAMPLING METHOD: Economy- It is less expensive, much less time consuming than the cencus technique. Scientific Base- This is a scientific technique because the conclusion derived from the study of certain units can be verified from other units. TYPES OF SAMPLING: Probability Sampling Method Non-probability Sampling Methods.
1.27 Sampling Techniques: PROBABILITY Simple Random Sampling- A random sample is known as probability sample. Under this method the selection of items for a sample depends on chance. Stratified Random Sampling- The population is divided into several groups known as strata. If a given population has distinct characters,it is represented as a heterogeneous population. The other major sampling techniques are: Systematic Sampling Cluster Sampling Multistage Sampling
NON-PROBABILITY Deliberate Sampling Quota Sampling Convenience Sampling
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In this project Simple Random Sampling have been used. QUESTIONNAIRE: It is a structured source of data collection from the customers to know more about what data products they are using and if they need any sort of up gradation in their current service. A QUESTIONNAIRE HAS BEEN ATTACHED IN THE ANNEXURE. RESEARCH SCALE: During my survey I have used ‘Interval Scale’ as I have asked the prospects and the existing customers that what are their point of view regarding Airtel and if they are satisfied or dissatisfied with the service. RESEARCH LIMITATIONS: Following are the limitations of my research: The research was conducted in Pune city so the views and perception is limited to this region only.
Data collected from the companies from various Industries but majority of them are from IT/Software.
Time limit was also there as summer internship was for 2 months only.
Annexure about Work Done and Inferences
1. 2.
Basic Concept of Telecom, and internet. Products of Company Lease lines
i) ii) iii) iv)
Internet MPLS (multi protocol label switching) solutions. VSAT Data Centers
3. Airtel Infrastructure. 4. What is Service Label Agreement?
I was allotted a project to go to the IT parks and meet with IT heads of different companies and find out the requirements of the new product MPLS in the companies. Take down the requirements and which network they are using currently in the company.
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QUESTIONNAIRE
1. Which all data products you use as of now? a) Internet lease line b) MPLS d) Others (please specify) –
c) Data center
1. Do you use any Airtel product as of now? (please specify) – 2. Have you used an Airtel product before? 3. What is your satisfaction level with your existing service provider? a) Extremely satisfied b) Satisfied c) Disappointed 4. Please give 1 – 5 numbers to these parameters in order of importance for your company, when you are placing order to a service provider. (1 being the most important) a) Better technology b) Better services c) Better price d) Better brand e) Any other (please specify) – 5. What approximately is your company’s telecom expenditure as of now? a) Voice (fixed line phones and broadband) b) Mobile connections (company paid) c) Data products (internet lease line, MPLS, ERP etc) – 6. How many offices does your company have in India? – 7. Do you have any office in abroad? – 8. In case of having a branch abroad, do you use IPLC or IMPLS? – 9. Do you have any plans of hosting your critical servers in a data center? –
10. Do you use any ERP as of now? (Please specify in case ‘yes’) – 11. In case of non Airtel customer, what is your perception about brand Airtel? a) Extremely powerful brand b) Good brand b) Somewhat OK brand d) Not a good brand 12. Do you have any immediate plans of buying a telecom product? (Please specify, if ‘yes’) 13. Who is the decision maker in your organization? 14. Would you like to give any suggestions to Airtel?
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MAJOR FINDINGS
It is clear from the survey done, that Airtel is facing competition from Tata i.e. of about 36%, Tulip Telecom, Reliance and BSNL in terms of Internet service and product like ILL to the corporate end user. But then the market share of Airtel is leading, 46%
For Internet Lease Line, Market is dominated by TATA followed by Airtel, Reliance and BSNL follow it while very small market is captured by Tulip Telecom. Research shows that the companies on which research was conducted were mainly using data services than voice services. The Bandwidth of ILL (Internet Lease Line) of 2MBPS most preferred by companies followed by 4MBPS & 1MBPS. 162 companies were satisfied with support and services provided by their Internet Service Provider.
CONCLUSION.
1.28 To conclude I would like to say that this was a great learning experience and has give us a peek into how a Telecom organization works. Right form field work to and planning to strategizing and client meetings the whole journey was enriching and knowledgeable experience. This industry exposure has developed new skills and personality into me. It has build confidence and has taught us how to work in a team & professionalism to a great extent on any project. Some of the points I was finding during my visit to the companies: Bharti Airtel limited (Pune) mostly concentrates on the need of the large enterprises as compared to the medium as well as small enterprises. Some of the existing customers are not satisfied with their after sales services corporate offices in IT parks Pune customers.
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SUGGESTIONS:
There is a huge scope in the small enterprises segment
Improve service after sales which is the key point for any organization
Bharti Airtel Limited must need to concentrate on Customer’s satisfaction.
Finally I would say, the guidance received from my mentor Mr. Manish Mishra sir has been a major motivating factor to continuously contribute and give ones best. Though there have been my points of ups and downs, it has only taught me to be a confident person and has added a lot of personal learning apart from professional ones.
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