Comparative analysis of marketing strategies and consumer

preference for services of marketing of Vodafone and Airtel

RESEARCH PROJECT REPORT
Submitted to

Veer Bahadur Singh Purvanchal University, Jaunpur

In partial fulfillment of the requirements of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Submitted by:

Under the Supervision of:

Avinish Pandey
B.B.A. 6th Semester
Roll Number - 8010
Enrollment No. - PU011/080

Mr. Jatindar Kumar

Assistant professor,
Department of Business Administration

2014

Technical Education & Research Institute

Post-Graduate College, Ravindrapuri
Ghazipur-233001
1

Certificate
This is to certify that Avinish Pandey Pursuing BBA6th Semester from this institute, has
prepared the research project report entitled Comparative analysis of marketing
strategies and consumer preference for services of marketing of Vodafone and
Airtel in partial fulfillment of the requirements of the degree of Bachelor of Business
Administration from Veer Bahadur Singh Purvanchal University, Jaunpur during the
session 2013-2014.
This report is based on research project undertaken by Avinish Pandey, under my
supervision during the course of sixth semester and fulfills the requirements of
regulations relating to the nature and standard of BBA course of V.B.S.Purvanchal
University.
I recommend that this project report may be sent for evaluation.

Rahul Anand Singh

Mr. Jatinder Kumar

Associate Professor &Head ,

Assistant professor,

Dept. of Business Administration

Dept. of Business Administration

Declaration
I, Avinish Pandey, hereby declare that this research project report entitled
Comparative analysis of marketing strategies and consumer preference for services
of marketing of Vodafone and Airtel has been prepared by me on the basis of research
done during the course of my sixth semester of B.B.A programmeunder the supervision
of Mr. Jatindar Kumar, Assistant Professor, Department of Business Administration,
TERI, Ghazipur.

This research project report is my bonafide work and has not been submitted in any
form to any University or Institute for the award of any degree or diploma prior to the
under mentioned date. I bear the entire responsibility of submission of this project report.

15thNovermber 2014
Avinish Pandey
BBA 6th semester
Department of Business Administration
Technical Education & Research Institute
P.G. College, Ghazipur

INDEX OF CONTENTS
Preface
Acknowledgement
CHAPTER -1
Introduction to the topic.
Objective
Scope.
CHAPTER-2
Research Methodology
CHAPTER-3
Data Analysis & Interpretation ..
CHAPTER-4
Finding
Recommendations & Suggestions
CHAPTER-5
Conclusion.
Limitation
Bibliography

Preface
The first real insight of an organization for management student comes only during his
preparation of project work because student first interacts with real practical work. This is first
introduction to industry and its working. This project work synthesize the theoretical concept learn in the
class room and its practical orientation in organization.
In my project I have studied the Comparative analysis of marketing strategies and consumer
preference for services of marketing of Vodafone and Airtel.
The First chapter deals with the introduction of the topic, It also describes the profile and history
of telecom industry.

FIRST CHAPTER :The Introductory stage of this survey report is based on introduction of the comparative study of
General Insurance service provided, , company profile and history of these Insurers.

SECOND CHAPTER:Second chapter is objective and importance.

THIRD CHAPTER:Dealt with Research Methodology. The process of carrying out the whole research is defined in
it. It constrains information about the methods of data collection, sampling, sample designI

FOUR CHAPTER:Data analysis & interpretation. Table, Graph and chart also included in this chapter

Is finding and recommendation.Contains the findings and recommendation of the study. This
based on the data analyzed and interrelated in previous chapters. This is the most important section of
the report, for repot is evaluated on the validity and correctness of its findings.
depicted recommendation which concludes the whole repot, that is, gives a brief description of the
process employed so far. It also showed annexure which contains a format of the questionnaire used for
the purpose of data collection.

FIVE CHAPTER:One title conclusion contains the list of sources from where the matter and information is
collected this chapter is Bibliography. It contains the list of books, author, volume number, issue year,
publisher etc.

Avinish Pandey
BBA 6th Semster

Acknowledgement
Completing the work assigned by a single hand is not always possible. The same was here and this is an
opportunity to thank all of them who directly or indirectly shared their efforts to complete task give to
me.
I would like to express my heart felt thank to Mr. Rahul Anand Singh (HOD Department of Business
Administration), Ghazipur.
This research report could not have been taken shape without the able guidance given by Mr. Jatindar
Kumar Assistant Professor, T.E.R.I. P.G College Ghazipur.
Lastly, I would like to express my thanks to my parents & friends for their encouragement & support
through out the duration of Research.

Avinish Pandey
BBA 6th semester

Chapter-1
Introduction

INTRODUCTION
8

Telecom Industry in India

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million
telephone lines making it the third largest network in the world after China and USA. With a growth rate
of 45%, Indian telecom industry has the highest growthrate 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.Indias 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 MobilePhone market is 6.4%.
Considering the fact that India and China have almost comparable populations, Indias low
mobile penetration offers huge scope for growth.

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. In1883 telephone services were
merged with the postal system. Indian 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 Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
Telecom sector was considered as a strategic service and the government considered it best to bring
under state's 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, two
wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in
9

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 policy makers to initiate a change process finally resulting in
opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was
the first attempt to give a comprehensive roadmap for the Indian 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 in 1999 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 45
per cent of revenues from basic services. Private sector services are presently available in selective
urban areas, and collectively account for less than 55 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 videoconferencing. 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 airtime, which
along with rental was the main source of revenue. The reduction in tariffs for airtime, national long
distance, international long distance,

10

and handset prices has driven demand.

INTRODUCTION OF BHARTI AIRTEL:

Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile
phone and Fixed Network operators. With more than 60 million subscriptions as of 13th February 2008.
[2] 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. The
company also has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise
services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the
gateways and landing station.
Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel
owns the Airtel brand and 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). Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications
license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In
September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile
telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a
11

relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed an MoU
with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network.[3] In August
2007, the company announced it will be launching a customized version of Google search engine that
will provide an 'array of services' to its broadband customer.

Life time plans of the cellular companies

12

The Life Time Plan of Airtel

Airtel Presents Rs. 10 Lifetime Prepaid with 1/ S Outgoing Local Tariff
Slashes local outgoing call rate by 50% for Rs. 10/- Lifetime Prepaid users
Local outgoing tariff reduced to 50 paise for life to all networks (mobile & landline).
All existing customers of lifetime Prepaid to be migrated to call rates, without any extra charges. Bharti
Airtel, Indias leading telecom service provider, today announced the Rs. lifetime Prepaid offer for its
customers in Delhi & NCR circle and slashed all local outgoing calls (mobile and landline) to 50 paise
from the existing 50 paise per minute call rate. Bharti Airtel, which was also the first service provider to
introduce the Lifetime Prepaid in India, announced this revolutionary tariff cut for customers that was
earlier applicable to
only the Rs. 10/- Lifetime customers. With effect from December 15, 2009, all Rs. 10/- Lifetime Prepaid
customers will be able to make local outgoing calls (Mobile & Landline) at 50 paise per minute and all
existing customers will be migrated to the revised tariff plan without any extra charges. Customers will
have to recharge with a minimum amount of Rs. 200/- at least once in every 180 days to enjoy the
lifetime validity and tariff benefits.

TRAI on Lifetime validity plans

13

TRAI asks mobile operators to disclose key issues of lifetime plans

TRAI has asked the mobile operators offering lifetime connectivity plans to
Disclose 'risk factors', like change in tariff plans and their remaining license
Period duration, in their announcement.
The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguards to protect
consumer interest in the lifetime validity tariff schemes being offered by phone companies. These
include a restriction on the companies from hiking the tariff on any item specified in the plans and an
obligation to inform the subscribers of the month and year of the expiry of current license.
The amendment to the Telecommunication Tariff Order thus addresses a moral issue that had arisen after
phone companies began promoting lifetime schemes their licenses are for a limited span ranging
from seven to 15 years while they were offering an tariff that went well beyond the license period. It
also answered a question in the minds of the subscribers whether there would be subsequent demands
from phone companies after the initial upfront payment. TRAI made it clear that in the case of tariff
plans offered or marketed as having lifetime or unlimited validity, the subscribers should get the service
as long as the phone company is permitted to provide such telecom service under the current license or
renewed license. TRAI has also reiterated the right of the subscribers to choose any tariff plan at any
point of time.
TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy.' With no
stakeholder replying to the consultation paper on billing issues that also contained a code of practice for
metering and billing accuracy, TRAI decided to issue the regulation. It has directed companies before
enrolling a customer to inform in writing, within a week of activation of service, the complete details of
the tariff plan. Charges for a value added service (download of film clip, ring tone and the like) or entry

14

to an interactive service (such as a game) must be provided before the customer commits to use the
service.

Bharti Airtel LimitedBharti

Airtel

Limited,

commonly

known

as Airtel,

is

an

Indian

multinational telecommunications services company headquartered in New Delhi, India. It operates in

20 countries across South Asia, Africa, and the Channel Islands. Airtel has a GSM network in all
countries in which it operates, providing 2G, 3G and 4G services depending upon the country of
operation. Airtel is the world's third largest mobile telecommunications company by subscribers, with
over 275 million subscribers across 20 countries as of July 2013. It is the largest cellular service
provider in India, with 192.22 million subscribers as of August 2013. Airtel is the Second largest AsiaPacific mobile operator by subscriber base, behind China Mobile.
Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India,
and is also a provider ofbroadband and subscription television services. It offers its telecom services
under the "airtel" brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom
service provider to achieve Cisco Gold Certification.[8] It also acts as a carrier for national and
international long distance communication services. The company has a submarine cable landing station
at Chennai, which connects the submarine cable connecting Chennai and Singapore.
Bharti Airtel added 5.10 lakh subscribers to take its base to 20.97 crore at the end of July,2014. Its
market share in India is highest with a value of 28.41%.
Airtel is credited with pioneering the business strategy of outsourcing all of its business operations
except marketing, sales and finance and building the 'minutes factory' model of low cost and high
15

volumes. The strategy has since been adopted by several operators. Its networkbase stations,
microwave links, etc.is maintained by Ericsson and Nokia Siemens Network[10] whereas IT support is
provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in
India). Ericsson agreed for the first time to be paid by the minute for installation and maintenance of

their equipment rather than being paid up front, which allowed Airtel to provide low call rates of

1/minute (US$0.02/minute)

Airtel History
Sunil Bharti Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's
Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal
incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer pushbutton telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also
launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to
build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti
Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal
Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to
Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in
Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went
public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange
of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004,
Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to
Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel
16

launched its first international mobile network in Sri Lanka. In 2010, Airtel acquired the African
operations of the Kuwait-based Zain Telecom. In March 2012, Airtel launched a mobile operation in
Rwanda.

Corporate Structure

Airtel launched "Hello Tunes", a Caller ring back tone service (CRBT), in July 2004 becoming to the
first operator in India to do so. The Airtel theme song, composed by A.R. Rahman, was the most popular
tune on that year.
During the 200910 financial year, Bharti negotiated for its strategic partner Alcatel-Lucent to manage
the network infrastructure for the tele-media business. On 31 May 2012, Bharti Airtel awarded the threeyear contract to Alcatel-Lucent for setting up an Internet Protocolaccess network (mobile backhaul)
across the country. This would help consumers access internet at faster speed and high quality internet
browsing on mobile handsets.
In May 2013, Bharti Infotel paid Rs 50,000 as compensation to a customer "for unfair trade practices".
The customer alleged that the company continued to aggressively demand payment despite customer
requests for disconnection of service.
irtel's initial corporate structure concentrated on the hierarchy of the operations inside the company as a
whole. The structure depicted the corresponding operation/region of different in-charges and it didn't
hold anyone responsible for each of its services. So, the company found it better to restructure its
corporate hierarchy. The transformed organisational structure has two distinct Customer Business Units
(CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments.
17

Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small
offices, by combining the erstwhile business units Mobile, Telemedia, Digital TV, and other emerging
businesses (like M-commerce, M-health, M-advertising etc.). The B2C organisation will consist of
Consumer Business and Market Operations.

Worldwide presence
Airtel is the one of the largest mobile operator in the world in terms of subscriber base and has a
commercial presence in 20 countries and the Channel Islands.

Its area of operations include:

The Indian Subcontinent:

Airtel Bangladesh, in Bangladesh

Airtel, in India

Airtel Sri Lanka, in Sri Lanka

Airtel Africa, which operates in 17 African countries:

Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon,
Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone,
Tanzania, Uganda and Zambia.

18

The British Crown Dependency islands of Jersey and Guernsey, under the brand name AirtelVodafone, through an agreement with Vodafone.

Coverage map of Bharti Airtel across 20 countries.

19

Airtel operates in the following countries:

Country

Site

Remarks

Bangladesh

Airtel Bangladesh

Airtel Bangladesh had about

8 million customers as on Sep 2013.

Burkina Faso

Airtel Burkina Faso

Airtel Burkina Faso is the dominant

player with 1,433,000 customers
representing 50% market share.

Chad

Airtel Chad

Airtel Chad is the No. 1 operator

with 69% market share.

Democratic
Republic of the
Congo

Airtel DRC

Airtel is the market leader with

almost 5 million customers at the end
of 2010.

Gabon

Airtel Gabon

Airtel Gabon has 829,000 customers

20

and its market share stood at 61%.

Airtel Ghana

Airtel Ghana had about 1.76 million

customers at the end of 2010

Airtel

Airtel is the market leader with

almost 193.4 million customers as on
30 Sep 2013.

Airtel Kenya

Airtel Kenya is the second largest

operator and has 4 million
customers.

Madagascar

Airtel Madagascar

Airtel is the market leader in

Madagascar with 39% market share
and 2.5 million customers.

Malawi

Airtel Malawi

Airtel Malawi is the market leader

with a market share of 72%.

Niger

Airtel Niger

Airtel Niger is the market leader with

a 68% market share.

Nigeria

Airtel Nigeria

Republic of the
Congo

Airtel Congo B

Airtel Congo is the market leader

with a 55% market share.

Rwanda

Airtel Rwanda

Airtel launched services in Rwanda

on 30 March 2012.

Ghana

India

Kenya

21

Airtel is the leading comprehensive

telecommunications services
providers with over 55% market
share of mobile market in
Seychelles.

Seychelles

Airtel Seychelles

Sierra Leone

Airtel Sierra Leone

Sri Lanka

Airtel Sri Lanka

Airtel Sri Lanka commenced

operations on 12 January 2009. It
had about 1.8 million mobile
customers at the end of 2010.

Tanzania

Airtel Tanzania

Airtel Tanzania is the market leader

with a 38% market share.

Uganda

Airtel Uganda

Airtel Uganda stands as the No. 2

operator with a market share of 38%.

Zambia

Airtel Zambia

Airtel Zambia is the market leader

with 69% market share.

Airtel Jersey and Guernsey

Airtel operates in the Channel

Islands under the brand name Airtel
Vodafone through an agreement with
Vodafone.

Channel
Islands : Jersey
Guernsey

Jersey and Guernsey are British Crown Dependencies. They are not
independent countries. Therefore, Airtel's countries of operation is
considered to be 20.
22

Mobile services
Airtel operates in all telecom circles of India. Airtel is the largest operator in rural India, with 83.82
million subscribers as of April 2013.
Airtel was the 6th most valued brand according to an annual survey conducted by Brand
Finance and The Economic Times in 2010.

3GOn 18 May 2010, the 3G spectrum auction was completed and Airtel paid the Indian government

122.95 billion (US$2.0 billion) for spectrum in 13 circles, the most amount spent by an operator in that
auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra
Pradesh, Karnataka,

Tamil

Nadu, Uttar

Pradesh
23

(West),

Rajasthan, West

Bengal,

Himachal

Pradesh, Bihar, Assam, North East, and Jammu & Kashmir.[29] Airtel also operates 3G services
in Maharastra & Goa and Kolkata circles through an agreement with Vodafone and in Gujarat through
an agreement with Idea. This gives Airtel a 3G presence in 15 out of 22 circles in India. Airtel is fined by
DoT 3.50 billion for not stopping offering 3G Services through Roaming Pacts outside its Licensed
Zones in Seven Circles.
On 20 September 2010, Bharti Airtel said that it had given contracts to Ericsson India, Nokia Siemens
Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in the
country. These vendors would plan, design, deploy and maintain 3GHSPA (third-generation, highspeed packet access) networks in 13 telecom circles where the company had won 3G licences. While
Airtel awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks
in three circles. Chinese telecom equipment vendor Huawei Technologies was introduced as the third
partner for three circles.
Airtel launched 3G services in Bangalore on 24 January 2011.[31] On 27 January 2011, Airtel launched
3G in Chennai and Coimbatore in Tamil Nadu. On 27 July 2011, 3G services were launched in Kerala's
3 largest cities Kochi, Kozhikode and Thiruvananthapuram.
Airtel 3G services are available in 200 cities through its network and in 500 cities through intra-circle
roaming arrangements with other operators. Airtel had about 5.4 million 3G customers of which 4
million are 3G data customers as of September 2012.

24

4GOn 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtel
paid
33.1436 billion (US$540 million) for spectrum in 4 circles: Maharashtra and Goa,

Karnataka, Punjab andKolkata.[34] The company was allocated 20 MHz of BWA spectrum in 2.3 GHz
frequency

band.

Airtel's TD-LTE network

is

built

and

operated

by ZTE in Kolkata and Punjab, Huawei in Karnataka, and Nokia Siemens Networks in Maharashtra and
Goa.[35] On 10 April 2012, Airtel launched 4G services through dongles and modems using TDLTE technology in Kolkata, becoming the first company in India to offer 4G services. The Kolkata
launch

was

followed

by

launches

in Bangalore (7

May

2012),

Pune (18

October

2012), and Chandigarh, Mohali and Panchkula(Tricity)(Airtel broadband authorized Distributor in

chandigarh) (25 March 2013). Airtel obtained 4G licences and spectrum in the telecom circles of Delhi,
Haryana, Kerala and Mumbai after acquiring Wireless Business Services Private Limited, a joint venture
founded by Qualcomm, which had won BWA spectrum in those circles in the 4G spectrum auction.
Airtel launched 4G services on mobile from February 2014. The first city to get the service was
Bangalore.
Airtel had 100,000 4G subscribers as of January 2014.

WiFiAirtel has plans to launch WiFi services, initially in Delhi NCR, Mumbai and Bangalore. Users can use
the service by finding a hotspot and selecting the 'airtel WiFi Zone'.

25

Airtel MoneyAirtel has started a new mCommerce platform called Airtel Money in collaboration with Infosys and
SmartTrust (now Giesecke & Devrient). The platform was launched on 5 April 2012, at Infosys'
headquarters in Bangalore. Using Airtel Money, users can transfer money, pay bills and perform other
financial transactions directly on the mobile phone. It has an all-India presence. Certain charges are
levied per Airtel Money transaction.

Smart DriveSmart Drive is navigation app exclusive to Airtel customers. The app features voice-based turn by turn
navigation, traffic updates, and approximate travel time based on current conditions.
The app was launched on 12 September 2012. At the time of launch, it was available only
in Bangalore, Mumbai and NCR. Services are currently available in Chennai. Service will be expanded
to Pune and Hyderabad by December 2012.

iPhoneThe iPhone 3G was rolled out in India in 2008 by Airtel. However, high prices and contract bonds
discouraged consumers and it was not as successful as the iPhone is in other markets of the world. Airtel
introduced the iPhone 4 on 27 May 2011 and the iPhone 5 on 2 November 2012.

26

TelemediaAirtel Broadband Blocking TPBUnder the Telemedia segment, Airtel provides broadband internet access through DSL, internet leased
lines as well as MPLS (multiprotocol label switching) solutions, as well as IPTV and fixed line
telephone services. Until 18 September 2004, Bharti provided fixed line telephony and broadband
services under the Touchtel brand. Bharti now provides all telecom services including fixed line services
under a common brand airtel. As of September 2012, Airtel provides Telemedia services to 3.3 million
customers in 87 cities.[33] As on 30 November 2012, Airtel had 1.39 million broadband subscribers.
Airtel Broadband provides broadband and IPTV services. Airtel provides both capped as well as
unlimited download plans. However, Airtel's unlimited plans are subject to free usage policy (FUP),
which reduces speed after the customer crosses a certain data usage limit. In some plans, Airtel provides
only 256kbit/s beyond FUP, which is lower than the TRAI specified limit of half the subscriber's original
speed. The maximum speed available for home users is 16Mbit/s.
In May 2012, Airtel Broadband and some other Indian ISPs temporarily blocked file sharing websites
such as vimeo.com megavideo.com, thepiratebay.se etc. with out giving any legal information to the
customers.

Digital television
Airtel digital TV

27

The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand
name Airtel digital TV. It started services on 9 October 2008 and had about 7.9 million customers at the
end of December 2012.
Enterprise-

The Enterprise business provides end-to-end telecom solutions to corporate customers and national and
international long-distance services to telcos through its nationwide fibre optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the
gateways and landing stations. It has two sections under it.
Mobile data serviceThe different services under mobile data are BlackBerry services, a web-enabled mobile email solution
working on 'Push Technology', USB modem that helps in getting instant access to Internet and corporate
applications, Airtel Data Card that gives the liberty to access the internet anytime, Easy Mail is a
platform that provides access to personal/corporate e-mails independent of handset operating system and
application services that shorten the queues at the billing section, off-load the pressure on the billing
staff and bring convenience to the user.
Enterprise business solutionsThere are two kind of solutions offered by Airtel. One is GPRS Based Solutions like mobile applications
tools for enterprise, TrackMate, automatic meter reading solutions etc. and the other is SMS Based
Solutions like interactive sms, bulk sms, inbound call center solutions.

28

Android-based tabletBeetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18 August launched a

9,999 ($220) 7-inch

tablet in India based on Google Inc.'s Android operating system. The offering is intended to capitalise on
the expected demand for cheap computing devices in the world's fastest-growing and second-largest
mobile phone market.

International operationsAfrica
Airtel Africa
Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that operates in 17 countries
across Africa. It operates a GSM network in all countries, providing 2G or 3G depending upon the
country of operation.
In March 2010, Bharti purchased mobile operations in 15 African countries from Zain, a Kuwaiti
operator.
On 11 August 2010, Bharti Airtel announced that it would acquire Telecom Seychelles for US$62
million.
Bangladesh
Airtel Bangladesh

29

Airtel Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh. Airtel is the sixth mobile
phone carrier to enter the Bangladesh market, and originally launched commercial operations under the
brand name "Warid Telecom" on 10 May 2007. Warid Telecom International LLC, an Abu Dhabi
based consortium, sold a majority 70% stake in the company to India's Bharti Airtel Limited for US$300
million.
Sri Lanka
Airtel (Sri Lanka)Bharti Airtel Lanka (Pvt) Ltd is a subsidiary of Bharti Airtel Limited, the third largest mobile operator
in the world, with over 240 million mobile customers as of December 2011. Bharti Airtel has been
featured in Forbes Asia's Fab 50 list, rated amongst the best performing companies in the world in the
Business Week IT 100 list 2007, and voted as India's most innovative company in a survey by The Wall
Street Journal
Airtel Lanka commenced commercial operations of services on 13 January 2009. Granted a licence in
2007 in accordance with the Sri Lanka Telecommunications Act No. 25 of 1991, it is also a registered
company under the Board of Investment Sri Lanka. Under the license, the company provides digital
mobile services to Sri Lanka. This is inclusive of voice telephony, voice mail, data services and GSMbased services. All of these services are provided under the airtel brand.

Channel Islands: Jersey and Guernsey

Airtel-Vodafone

30

On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of the Bharti Group,
announced

they would

of Jersey andGuernsey

launch

under

the

mobile
brand

services

in

the

British Crown

name Airtel-Vodafone after

Dependency islands

signing

an

agreement

with Vodafone. Airtel-Vodafone operates a 3G network in Jersey and Guernsey.

Subscriber Base-

Bharti Airtel has about 243.336 million subscribers worldwide232.95 million in India and South Asia
and 50.949 million in Africa as of the end of December 2011. The numbers include mobile services
subscribers in 19 countries and Indian Telemedia services and Digital services subscribers.
India[edit]
The Airtel wireless subscriber base according to Telecom Regulatory Authority of India (TRAI) as of
November 2012 was:
Metros

Delhi 9,105,718

Mumbai 3,58,7060

Kolkata 3,606,616

Chennai 3,428,293

31

"A" Circle

Andhra Pradesh 18,041,904

Gujarat 6,927,459

Karnataka 16,044,964

Maharashtra 9,849,973

Tamil Nadu 10,094,293

"B" Circle

Haryana 2,267,166

Kerala 3,393,868

Madhya Pradesh 9,675,239

Punjab 6,851,338

Rajasthan 14,385,762

Uttar Pradesh (East) 15,105,455

Uttar Pradesh (West) 6,556,052

West Bengal 9,084,371

"C" Circle
32

Assam 3,809,218

Bihar 18,527,460

Himachal Pradesh 1,915,405

Jammu and Kashmir 2,300,268

North East India (excluding Assam) 2,551,134

Orissa 6,696,681

Airtel is the market leader in India with about 183 million wireless subscribers in India or about 20.62%
market share at the end of November 2012. In 2013 version of the The Brand Trust Report published by
Trust Research Advisory, Airtel is placed as the most trusted mobile operator brand in India.
One Network-

One Network is a mobile phone network that allows Airtel customers to use the service in a number of
countries at the same price as their home network. Customers can place outgoing calls at the same rate
as their local network, and incoming calls are free.[63] As of 2014, the service is available in Bangladesh,
Burkina Faso, Chad, Democratic Republic of Congo, Congo Brazzaville, Gabon, Ghana, India, Kenya,
Madagascar, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone, Sri Lanka, Tanzania, Uganda, and
Zambia.

33

Acquisitions and mergersMTN Group merger negotiationsIn May 2008, it emerged that Airtel was exploring the possibility of buying the MTN Group, a South
Africa-based telecommunications company with operations in 21 countries in Africa and the Middle
East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake
in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides
emphasised the tentative nature of the talks. The Economist magazine noted, "If anything, Bharti would
be marrying up", as MTN had more subscribers, higher revenues and broader geographic
coverage. However, the talks fell apart as MTN Group tried to reverse the negotiations by making Bharti
almost a subsidiary of the new company.
In May 2009, Airtel confirmed that it was again in talks with MTN and both companies agreed to
discuss the potential transaction exclusively by 31 July 2009. Airtel said in a statement "Bharti Airtel
Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN
Group". The exclusivity period was extended twice up to 30 September 2009. Talks eventually ended
without agreement.
A solution was proposed where the new company would be listed on 2 stock exchanges, one in South
Africa and one in India. However, dual-listing of companies is not permitted by Indian law.
ZainIn March 2010, Bharti struck a deal to buy Zain's mobile operations in 15 African countries, in India's
second biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007. Bharti Airtel
34

completed its $10.7 billion acquisition of African operations from Kuwaiti firm, making the Airtel the
world's fifth largest wireless carrier by subscriber base. Airtel has reported that its revenues for the
fourth quarter of 2010 grew by 53% to US$3.2 billion compared to the previous year, newly acquired
Zain Africa division contributed US$911 million to the total. However, net profits dropped by 41% from
US$470 million in 2009 to US$291 million 2010 due to a US$188 million increase in radio spectrum
charges in India and an increase of US$106 million in debt interest.
Telecom SeychellesOn 11 August 2010, Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for
US$62 million taking its global presence to 19 countries. Telecom Seychelles began operations in 1998
and operates 3G, Fixed Line, ship to shore services satellite telephony, among value added services like
VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. The company
has over 57% share of the mobile market of Seychelles. [58] Airtel announced plans to invest US$10
million in its fixed and mobile telecoms network in the Seychelles over three years, whilst also
participating in the Seychelles East Africa submarine cable (SEAS) project. The US$34 million SEAS
project is aimed at improving the Seychelles' global connectivity by building a 2,000 km undersea highspeed link to Dar es Salaam in Tanzania
Wireless Business Services Private LimitedOn 24 May 2012, Airtel announced an agreement to acquire a 49% stake in Wireless Business Services

Private Limited (WBSPL) at an investment of

907 crore (US$165 million). WBSPL was a joint

venture founded by Qualcomm, and held BWA spectrum in the telecom circles of Delhi,
35

Haryana, Kerala and Mumbai. Qualcomm had spent US$1 billion to acquire BWA spectrum in those 4
circles.[74] The deal gave Airtel a 4G presence in 18 circles. On 4 July 2013, Airtel announced that it had
acquired an additional 2% equity share capital (making its stake 51%) in all the four BWA entities of
Qualcomm, thereby making them its subsidiaries. [76] On 18 October 2013, Airtel announced that it had
acquired 100 percent equity shares of WBSPL for an undisclosed sum, making it a wholly owned
subsidiary.

Joint venturesAirtel-EricssonAs per a five-year managed services agreement signed recently, Ericsson will manage and optimise
Airtel's mobile networks in Africa. Ericsson will modernise and upgrade Airtel's mobile networks in
Africa with the latest technology including its multi standard RBS 6000 base station. As part of the
modernisation, Ericsson will also provide technology consulting, network planning & design and
network deployment. Ericsson has been the managed services and network technology partner in the
Asian operations.
RebrandingAirtel till November 2010

36

On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding strategy.
The company unveiled a new logo with 'airtel' written in lower case. Designed by London-based brand
agency, The Brand Union, the new logo is the letter 'a' in lowercase, with 'airtel' written in lowercase
under the logo.[81] On 23 November 2010, Airtel's Africa operations were rebranded to 'airtel'. Sri Lanka
followed on 28 November 2010 and on 20 December 2010, Warid Telecom rebranded to 'airtel' in
Bangladesh.
Sponsorship-

On 9 May 2009 Airtel signed a major deal with Manchester United. As a result of the deal, Airtel gets
the rights to broadcast the matches played by the team to its customers.
Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of
the Champions League Twenty20 cricket tournament. But now the deal is terminated and Karbonn
Mobiles is sponsoringChampions League Twenty20 cricket.
Airtel, also signed a deal to be title sponsor the inaugural Formula One Indian Grand Prix during
the 2011 season.
Airtel, signed a deal to be title sponsor the I-League for 201314 I-League.

Signature tune-

The signature tune of Airtel is composed by Indian musician A. R. Rahman. The tune became hugely
popular and is the world's most downloaded mobile music with over 150 million downloads. A. R.

37

Rahmanalong with Anu Malik has re-used the same tune in Kannada movie titled Love. A new version
of the song was released on 18 November 2010, as part of the rebranding of the company. This version
too was composed by Rahman himself.
Green initiative

GreenTowers P7 program
Bharti Infratel is the only telecom tower company, which has installed almost 3 MWT of solar capacity
on their network, generating more than 5 million units of electricity every year. The Green Towers P7
program is scoped for 22,000 tower sites (primarily rural areas having low or no Grid
Power availability) out of which 5,500 sites have already been implemented in the first year as a part of
this 3-year program.[87][88][89] Once completed, the initiative will reduce diesel consumption by 66 million
litres per year with a significant carbon dioxide reduction of around 150,000 MT per year. Bharti Infratel
bagged the 2011 'Green Mobile Award ' at the GSMA Mobile World Congress at Barcelona and was also
awarded the 2010 innovative infrastructure company of the year award at the CNBC Infrastructure
Awards for this groundbreaking initiative. Bharti remains the first company in the world to introduce the
practice of sharing of passive infrastructure by collaborating with their competition to share mobile
towers and to reduce the collective carbon footprint of the industry. This has become a subject of case
studies in institutions including the Harvard Business School.
Energy Conservation
The company has installed solar hot water generator at its main campus in Gurgaon for fulfilling the hot
water requirement in the cafeteria. Majority of its facilities across NCR region are now equipped with
38

LES (Lighting Energy Savers) which have reduced energy consumption in the lighting system to the
tune of 1025%. Variable Frequency Drives installed in AHU (Air Handling Unit) at its campus have
helped in enhancing the efficiency of cooling system by 10%. These measures have resulted in a total
saving of 850,000 units of electricity per year.
Airtel has embarked upon technology related initiatives like virtualization of servers that has helped it
release over 500 CPUs. Also the drive of sending e-bills to the post-paid customers is helping save
12,840 trees annually. Within its campus the 'Secure Print Solution' an automated queue management
based secured printing solution has led to an annualized saving of about 8 metric tonnes of paper.
Alternative energy sources such as solar energy used at 1050 sites saving 6.9 mn litres of diesel

and approximately

280 million.

Energy efficiency measures such as Integrated Power Management Systems and variable speed

DC generators have resulted in reduction in the rate of diesel consumption by 1.2 million litres,
leading to savings of

47 million across 900 sites.

Demand side management like Free cooling Units (FCU) instead of air conditioners has been

implemented across 3400+ sites, saving consumption of 4.1 million litres of diesel.
Timeline-

The chronology of events since Bharti Tele-Ventures was incorporated in 1995:

1995

39

Bharti Cellular launched cellular services as "AirTel" in Delhi.

2004
On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India.

The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research in
Motion (RIM).
2010

On 18 May 2010, Airtel won 3G spectrum in 13 circles: Delhi, Mumbai, Andhra

Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal
Pradesh, Bihar, Assam, North East,Jammu & Kashmir for

Bharti Airtel wins broadband spectrum in four circles: Maharashtra, Karnataka, Punjab and
Kolkata for

122.95 billion.

33.14 billion.

On 18 November 2010, Bharti Airtel announced a re-branding campaign wherein, they would be
referred as airtel, with a new logo.

On 20 December 2010, Airtel launched its new identity for Bangladesh subscribers.

On 23 December 2010, Airtel opened its first underground terrestrial fibre optic cable built in
alliance with China Telecom.

40

2011

On 24 January 2011, Airtel announced the launch of its 3G services in India.

On 31 January 2011, Airtel launched wallet service Airtel Money in the millennium city of
Gurgaon.

On 18 February 2011, Airtel Digital TV brings cricket world cup in High Definition.

On 14 March 2011, Bharti Airtel announced the launch of 'Airtel Broadband TV'.

On 11 April 2011, Bharti Airtel and Apple bring the iPhone 4 to India.

On 18 April 2011, Bharti Airtel enters into a partnership with photo service Zoomin.com.

On 17 May 2011, Airtel launches the worlds first USSD-based Facebook access service in India
Facebook by Fonetwish.

On 2 June 2011, Bharti Airtel offers on-demand online movie viewing services launches 'Airtel
Movies'

On 16 June 2011, Airtel digital TV launches iKisaan the world's first interactive service in
Hindi.

On 27 June 2011, Airtel 3G launches international video calling services.

On 7 July 2011, Bharti Airtel announces new organisation structure for its India and South Asia
operations.

41

On 18 July 2011, Airtel digital TV adds 41 new channels.

On 25 July 2011, Bharti Airtel Launches Facebook For Every Phone.

On 16 August 2011, Wide availability of Airtel Service Centers in Rajasthan creates easy touch
points for customer service.

On 19 September 2011, Bharti Airtel announces GO! GO! GOAL Contest 2011.

On 22 September 2011, Airtel digital TV brings the TV series "Johnny Test" to India.

On 26 September 2011, Airtel Youth Star kicks off 'Friends Dance Carnival' in Andhra Pradesh.

On 28 October 2011, 2011 Formula 1 Airtel Grand Prix of India Winner's Trophy Revealed.

On 1 November 2011, Airtel digital TV now has 11 True HD channels, Expands total channel
count to 262.

On 11 November 2011, Bharti Airtel named amongst the top 25 companies for leaders globally.

On 25 November 2011, Mr. Sharlin Thayil, CEO Bharti Airtel, AP launches iPhone 4S in
Hyderabad.

On 1 December 2011, Airtel introduces India's first free mobile access to Twitter.

On 12 December 2011, Bharti Airtel recognised for the delivery of best network services with
customer focus at Telecom Centre of Excellence Awards.

42

On 21 December 2011, Airtel launches exciting recharge offers for mobile customers in

Rajasthan.
2012

1.

On 11 January 2012, Airtel launched Comedy FM on Airtel Mobile.

2.

On 12 January 2012, Airtel launches all new "BBM Plan" for its postpaid mobile customers on
BlackBerry.

3.

On 23 January 2012, Airtel prepaid mobile recharge made easier with netbanking at
www.airtel.in

4.

On 30 January 2012, Airtel digital TV launches iKidsworld.

5.

On 2 February 2012, Airtel launched Vh1 Radio GAGA powered by Hungama on Airtel Mobile.

6.

On 3 February 2012, India's largest collection of Hello Tunes is now available online for Airtel
mobile customers.

7.

On 4 February 2012, Bharti Airtel announces consolidated IFRS results for the third quarter and
nine months ended 31 December 2011.

8.

On 10 February 2012, Bharti Airtel launched 3 Pack Education Portal for its mobile customers
across India.

9.

On 27 February 2012, Bharti Airtel selects Infosys as its technology partner for airtel money.

43

On 29 February 2012, Bharti Airtel appoints Nokia Siemens Networks to supply, manage 4G

10.

network in Maharashtra.
On 27 May 2012, Bharti Airtel announced its strategic foray into the mobile advertising (m-

11.

Advertising) segment, in India.

In 2012, Bharti Airtel signed a pact with Opera Software, to provide its customers with Opera

12.

Mini browsers.
On 24 October 2012, Bharti Airtel's mobile user base in Africa crosses 60 million.

13.

2013

On 4 February 2013, Bharti Airtel launches its emergency alert service in eastern region. In 2013
the department of telecommunications (DoT) was investigating Bharti Airtel for violations of a
license agreement the company violated between 2003 and 2005.

44

VODAFONE

45

IntroductionVodafone

Group

plc /vodfon

/ is

British multinational telecommunications company

headquartered in London and with its registered office in Newbury, Berkshire. It is the world's 2ndlargest mobile telecommunications company measured by both subscribers and 2013 revenues (in each
case behind China Mobile), and had 434 million subscribers as of 31 March 2014.

Vodafone owns and operates networks in 21 countries and has partner networks in over 40 additional
countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to
corporate clients in over 65 countries.

Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100
Index. It had a market capitalisation of approximately 89.1 billion as of 6 July 2012, the third-largest of
any company listed on the London Stock Exchange. It has a secondary listing on NASDAQ.

46

History
The evolution of 'Vodafone' brand started in 1982 with the establishment of 'Racal Strategic Radio Ltd'
subsidiary of Racal Electronics plc UK's largest maker of military radio technology. By initiative
of Jan Stenbeck[7] Racal Strategic Radio Ltd formed a joint venture with Millicom called 'Racal
Vodafone', which would later evolve into the present day Vodafone.

Evolution as a Racal Telecom brand: 1980 to 1991.

Vodafone's original logo, used until the introduction of the speechmark logo in 1997

In 1980, Sir Ernest Harrison OBE, the then chairman of Racal Electronics plc. agreed to a deal
with Lord Weinstock of General Electric Company plc to allow Racal to access some of GEC's tactical
battle field radio technology. The head of Racal's military radio division Gerry Whent was briefed by
Ernest Harrison to drive the company into commercial mobile radio. Whent visited GEs mobile radio
factory in Virginia, USA the same year to understand the commercial use of military radio technology.

47

Previously in 1979, Jan Stenbeck, a head of a growing Swedish conglomerate, set up an American
company, Millicom, Inc., to pursue mobile communications by applying for licences in the United
States.

In the summer of 1982, Stenbeck approached Racals Whent about bidding jointly for the UKs second
cellular radio licence, soon to be awarded, the first going by prior arrangement to British Telecom.
[12]

The two struck a deal giving Racal 60% of the new company, Racal-Millicom, Ltd, and Millicom

40%. Due to UK concerns about foreign ownership, the terms were revised, and in December 1982, the
Racal-Milicom partnership was awarded the second UK mobile phone network license. [12] Final
ownership of Racal-Millicom, Ltd was 80% Racal, with Millicom holding 15% plus royalties and
venture firm Hambros Technology Trust holding 5%. According to the UK Secretary of State for
Industry, "the bid submitted by Racal-Millicom Ltd provided the best prospect for early national
coverage by cellular radio."

Vodafone was launched on 1 January 1985 under the new name, Racal-Vodafone (Holdings) Ltd, [14] with
its first office based in the Courtyard in Newbury, Berkshire, and[15] shorty thereafter Racal Strategic
Radio was renamed Racal Telecommunications Group Limited. [16] On 29 December 1986, Racal
Electronics bought out the minority shareholders of Vodafone for GB110 million;[17] and Vodafone
became a fully owned brand of Racal.

In September 1988, the company was again renamed Racal Telecom. On 26 October 1988, Racal
Telecom, majority held by Racal Electronics; went public on the London Stock Exchange with 20% of
48

its stock floated. The successful flotation led to a situation where the Racal's stake in Racal Telecom was
valued more than the whole of Racal Electronics. Under stock market pressure to realise full value for
shareholders of Racal, Harrison decides in 1991 to demerge Racal Telecom.
Vodafone Group, then Vodafone Airtouch plc: 1991 to 2000

On 16 September 1991, Racal Telecom was demerged from Racal Electronics as Vodafone Group,
[20]

with Gerry Whent as its CEO.

In July 1996, Vodafone acquired the two thirds of Talkland it did not already own for 30.6 million.
[21]

On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for 77 million, a

181 store chain whose customers were overwhelmingly using Vodafone's network. [22] In a similar move
the company acquired the 80% of Astec Communications that it did not own, a service provider with 21
stores.

In January 1997, Gerald Whent retired and Christopher Gent took over as the CEO. The same year,
Vodafone introduced its Speechmark logo, composed of a quotation mark in a circle, with the O's in the
Vodafone logotype representing opening and closing quotation marks and suggesting conversation.

On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and changed its
name to Vodafone Airtouch plc. The merged company commenced trading on 30 June 1999. [24] In order
to gain anti-trust approval for the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk. The
acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network.

49

On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic
Corp to form Verizon Wireless.[26] The merger was completed on 4 April 2000, just a few months prior to
Bell Atlantic's merger with GTE to form Verizon Communications, Inc.

In November 1999, Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone's
interest in Mannesmann had been increased by the latter purchase of Orange, the UK mobile operator.
[27]

Chris Gent would later say Mannesmann's move into the UK broke a "gentleman's agreement" not to

compete in each other's home territory. The hostile takeover provoked strong protest in Germany, and a
"titanic struggle" which saw Mannesmann resist Vodafone's efforts. However, on 3 February 2000, the
Mannesmann board agreed to an increased offer of 112 billion, then the largest corporate merger ever.
[28]

TheEU approved the merger in April 2000 when Vodafone agreed to divest the 'Orange' brand, which

was acquired in May 2000 by France Tlcom. The conglomerate was subsequently broken up and all
manufacturing related operations sold off.

50

Vodafone Group plc: 2000 to present[edit]

The headquarters ofVodafone Romania in Bucharest

On 28 July 2000, the Company reverted to its former name, Vodafone Group plc.

In 2001, the Company acquired Eircell, the largest wireless communications company in Ireland,
from eircom. Eircell was subsequently rebranded as Vodafone Ireland. Vodafone then went on to acquire
Japan's third-largest mobile operator J-Phone, which had introduced camera phones first in Japan.

On 17 December 2001, Vodafone introduced the concept of "Partner Networks", by signing TDC Mobil
of Denmark. The new concept involved the introduction of Vodafone international services to the local
market, without the need of investment by Vodafone. The concept would be used to extend the Vodafone
brand and services into markets where it does not have stakes in local operators. Vodafone services
would be marketed under the dual-brand scheme, where the Vodafone brand is added at the end of the
local brand. (i.e., TDC Mobil-Vodafone etc.)

51

In 2007, Vodafone entered into a title sponsorship deal with the McLaren Formula One team, which
traded as "Vodafone McLaren Mercedes" until the sponsorship ended at the end of the 2013 season.

In May 2011, Vodafone Group Plc bought the remaining shares of Vodafone Essar from Essar Group Ltd
for $5 billion.

On

December

2011,

it

acquired

the Reading based

Bluefish

Communications

Ltd

an ICT consultancy company.The acquired operations formed the nucleus of a new Unified
Communications and Collaboration practice within its subsidiary Vodafone Global Enterprise, which
will focus on implementing strategies and solutions in cloud computing, and strengthen its professional
services offering.

In April 2012, Vodafone announced an agreement to acquire Cable & Wireless Worldwide (CWW) for
1.04 billion.[36] Vodafone was advised by UBS AG, while Barclays and Rothschildadvised Cable &
Wireless.[36] The acquisition will give Vodafone access to CWW's fibre network for businesses, enabling
it to take unified communications solutions to large enterprises in UK and globally; and expand its
enterprise service offerings in emerging markets. On 18 June 2012, Cable & Wireless' shareholders
voted in favour of the Vodafone offer, exceeding the 75% of shares necessary for the deal to go ahead.

On 24 June 2013, Vodafone announced it would be buying German cable company Kabel Deutschland.
The takeover is valued at 7.7 billion, and was recommended over the bid of rival Liberty Global.[39]

52

On 2 September 2013, Vodafone announced it would be selling its 45% stake in Verizon
Wireless to Verizon Communications for $130 billion, in one of the biggest deals in corporate history.[40]

In October 2013, Vodafone began its rollout of 4G to provincial New Zealand, with the launch of the
system in holiday hotspots around Coromandel.

In February 2014, Vodafone made an offer to acquire Spains largest cable operator, ONO, in a deal
rumoured to be around 7 billion.
Adverts-

Since 2010, the adverts feature two bees named Jack and Mike who are voiced by Karl Theobald and
Dan Antopolski. Other adverts feature Star Wars character Yoda. Idris Elba does voice over for adverts.

Financial Results
Vodafone reports its results in accordance with International Financial Reporting Standards (IFRS).

53

Vodafone has some large minority stakes, which are not included in its consolidated turnover. In order to
provide additional information on the overall scale and growth trends of its business, it publishes
"proportionate turnover" figures, and these are included in the tables below. For example, if a business in
which it owns a 45% stake has turnover of 10 billion, that equals 4.5 billion of proportionate turnover
for Vodafone. Proportionate turnover is not an official accounting measure, and Vodafone's proportionate
turnover should not be compared with other companies' statutory turnover.

Vodafone also produces proportionate customer number figures on a similar basis, e.g. if an operator in
which it has a 30% stake has 10 million customers that equals 3 million proportionate Vodafone
customers.

Year ended 31 Turnover

March
m

Profit before
tax m

Profit for the Basic eps (pence

year m
)

54

Proportionate
customers (m)

2013

44,445

3,255

673

0.87

404.0

2012

46,417

9,549

7,003

13.74

446.5

2011

45,884

9,498

7,870

15.20

347.7

2010

44,472

8,674

8,618

16.44

341.1

2009

41,017

4,189

3,080

5.81

302.6

2008

35,478

9,001

6,756

12.56

260

2007

31,104

(2,383)

(5,297)

(8.94)

206.4

2006*

29,350

(14,835)

(21,821)

(35.01)

170.6

2005

34,073

7,951

6,518

9.68

154.8

2004

36,492

9,013

6,112

8.70

133.4

Cellular Service Overview

1.

There are five private service operators in each area, and an incumbent state operator. Almost 80% of

the cellular subscriber base belongs to the pre-paid segment.

55

2. The

DoT has allowed cellular companies to buy rivals within the same operating circle provided their

combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies
outside their circle.

The Key players in the Telecom Market in India

Cellular Service provider:
1. BSNL
56

2. Airtel
3. Vodafone
4. Idea
5. Reliance
6. Tata indicom
7. Aircel
8. Uninor

OBJECTIVES

To study the importance and development of tele communication industry in todays scenario.

57

To understand the various Marketing Strategies which Airtel and Vodafone has adopted to survive in
highly competitive cell phone industry.

To make a comparative study of the major players in Indian Service Provider.

Importance of the study

This research helps to analyze the Position of cellular companies in Indian markets & outline the factors
which make BSNL the leading player in the cellular service industry. Also there has been a focus on the
58

rules regulation and general obligation which are pertaining to the scheme offered in the cellular
industry.
1- This research determines the decision of the Indian customers and this demonstrated in this
report.

2- This research assists to know market growth rate for cellular services.

3- This research helps to know the best option to use cellular service.

4- This research enhances the awareness of the consumer regarding cellular services.

Scope of the study

59

The scope of study consists of a comparative analysis of life time plans offered by various cellular
companies in India. The work was conducted at different areas of India. The other focus was paid to get
the response of individual customers using services of the various companies like BSNL, VODAFONE,
AIRTEL, AIRCEL, UNINOR, TATA, RELIANCE IDEA & other brands.

60

CHAPTER-2
RESEARCH METHODOLOGY

Research Methodology
Research is a common language refers to a search of knowledge. Research is scientific &
systematic search for pertinent information on a specific topic, infect research is an art of
scientific investigation. Research Methodology is a scientific way to solve research problem. It
may be understood as a science of studying how research is dont scientifically. In it we study
various steps that are generally adopted by researchers in studying their research problem. It is

61

necessary for researchers to know not only know research method techniques but also
technology. The scope of Research Methodology is wider than that of research methods.
The research problem consists of series of closely related activities. At times, the first step
determines the native of the last step to be undertaken. Why a research has been defined, what
data has been collected and what a particular methods have been adopted and a host of similar
other questions are usually answered when we talk of research methodology concerning a
research problem or study. The project is a study where focus is on the following points:

Research Design:-

A research design is defined, as the specification of methods and procedures for acquiring the
Information needed. It is a plant or organizing framework for doing the study and collecting the
data. Designing a research plan requires decisions all the data sources, research approaches,
Research instruments, sampling plan and contact methods. The study was descriptive kind of
research.

Research design is mainly of following types:

1. Exploratory research.
2. Descriptive studies
3. Causal studies/Experimental studies

1. Exploratory research:62

The major purposes of exploratory studies are the identification of problems, the more precise
Formulation of problems and the formulations of new alternative courses of action. The design of
exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

2. Descriptive research:Descriptive research in contrast to exploratory research is marked by the prior formulation of
specific research Questions. The investigator already knows a substantial amount about the
research problem. Perhaps as a Result of an exploratory study, before the project is initiated.
Descriptive research is also characterized by a Preplanned and structured design.

3. Causal studies/Experimental studies

A casual design investigates the cause and effect relationships between two or more variables. The
hypothesis is tested and the experiment is done. There are following types of casual designs
a. After only with control design
b. Before after with control design
c. Before after without control design
d. Consumer panel design
e. Ex-post facto design
Research Design has been classified into four subsections they are:
1. Sample selection and size;
2. Sampling procedure;
3. Data collection; and
4. Analytical tools

63

Sampling Procedure
There are basically two methods of sampling:Probability sampling
It is also known as random sampling. Under this sampling design every item of the universe has an
equal chance of inclusion in the sample. It is, so to say, a lottery method in which individual units are
picked from the whole group not deliberately but by some mechanical process. Here it blind chance
alone that determines whether one item or the other is selected. The results obtained from probability
sampling can be assured in terms of probability.

Non Probability sampling

Non Probability sampling is that sampling procedure which does not afford any basis for estimating the
probability that each item in the population has been included in the sample. In this type of sampling,
items for the sample selected deliberately by the researcher; his choice concerning the items remains
supreme.
For the study the consumers are selected by the convenience sampling method. The
selection of units from the population based on their easy availability and accessibility to the researcher
is known as convenience sampling

Data Collection method

Data Collection Method

64

Primary

Secondary

Published Sources

Unpublished
Sources

Direct personal Interview

Indirect personal Interview

Govt. publication

Information from correspondents

Report Committees

Mailed questionnaire & Commissions

Private Publication

Question filled by enumerators

Research Institute

The task data collection begins after research problem has been defined. There are two methods for data
collection.
Primary data
Primary data may be described as those data that have been observed and recorded by the researcher for
the first time to their knowledge.
65

Secondary data
Secondary data are those data which have been already collected and analyzed by some earlier agency
for its own use; and later the same data are used by a different agency.
For the present study, the survey method was used for collecting primary data. A structured
questionnaire was used for the purpose. The questionnaire included multiple choice questions. The main
source of secondary data has been the leafy journal of Consumer Behavior, and Indian journal of
Marketing. The study employs primary data collected by communicating with the respondents with the
help of structured questionnaire. The study mainly deals with the behavior of individual towards
Consumer Preference for Birla Sun Life Insurance in Varanasi.

Analytical Data
The data thus collected, was tabulated, interpreted and analyzed with a view to make the study
meaningful. In the present study, hypothesis testing, percentage, frequency and cross tabulation methods
have been used for analysis.

CHAPTER-3
66

Data Analysis Interpretation

Data Analysis and Interpretation

Do you believe that India is potentially one of the most exciting mobile service
providers in the world?

Company

Yes

Airtel
Vodafone
Idea
MTNL

4
4
4
4
67

No
1
1
1
1

No

MT NL

Ye s

Idea

Vodafone

AirT el

10

12

14

16

18

InterpretationAs according to the above table 16 (80%) out of the total 20 interviewed people in all the above
four specified Indian mobile service providers are of belief that India is potentially one of the
most exciting mobile service providers in the world, whereas some 4 (20%) of them do not agree
to this view.

68

2. Do you find that the governments telecom policy has had the most radical impact
on the development of mobile service providers?

Company

No

Yes

Airtel
Vodafone
Idea
MTNL

4
3
3
5

1
2
2
--

5
4.5
4
3.5
3
2.5

AirT el

Vodafone

Idea

MT NL

2
1.5
1
0.5
0
Yes

No

Interpretation-

69

As according to the above table 15 (75%) out of the total 20 interviewed people in all the above four
specified Indian mobile service providers find that the governments telecom policy has had the most
radical impact on the development of mobile service providers, whereas some 5 (25%) of them deny
this.

70

4. Do you believe that one of the challenges facing mobile operators in India is the
diversity of the coverage regions?
Company

No

Yes

Airtel
Vodafone
Idea
MTNL

2
3
3
2

3
2
2
3

2.5

1.5

AirT el

Vodafone

Idea

MT NL

0.5

0
Yes

No

Interpretation-

71

As according to the above table 10 (50%) out of the total 20 interviewed people in the mobile service
providers are of belief that one of the challenges facing mobile operations in India is the diversify of the
coverage regions, whereas interestingly another 10 (50%) of them deny this.

5. To what extent, does you find that mobile service providers is a very complex
standard?
72

Company

To great extent

To some extent

(6-10)

(1-5)
3
2
2
3

Airtel
Vodafone
Idea
MTNL

2
3
3
2

3
2.5
2
1.5

AirT el

Vodafone

Idea

MT NL

1
0.5
0

To some extent

To great extent

Interpretation-

73

As according to the above table 10 (50%) out of the total 20 interviewed people in all the above four
major the mobile service providers in Indian Cellular industry find only to some extent that GSM is a
very complex standard, whereas the another 10 (50%) respondents find to great extent that mobile
service providers is a very complex standard.

74

CHAPTER-4
Finding

FINDING
75

a. As according to the above table 16 (80%) out of the total 20 interviewed people in all the
above four specified Indian mobile service providers are of belief that India is potentially
one of the most exciting mobile service providers in the world, whereas some 4 (20%) of
them do not agree to this view.
b. As according to the above table 15 (75%) out of the total 20 interviewed people in all the
above four specified Indian mobile service providers find that the governments telecom
policy has had the most radical impact on the development of mobile service providers,
whereas some 5 (25%) of them deny this.
c. As according to the above table 10 (50%) out of the total 20 interviewed people in the
mobile service providers are of belief that one of the challenges facing mobile operations
in India is the diversify of the coverage regions, whereas interestingly another 10 (50%)
of them deny this.
d. As according to the above table 10 (50%) out of the total 20 interviewed people in all the
above four major the mobile service providers in Indian Cellular industry find only to
some extent that GSM is a very complex standard, whereas the another 10 (50%)
respondents find to great extent that mobile service providers is a very complex standard.

76

CHAPTER-5
Conclusion

Conclusion
77

SUGGESTIONS AND RECOMMENDATIONS

78

BIBLIOGRAPHY
79

BIBLIOGRAPHY
Following sources have been sought for the preparation of this report:
Corporate Intranet
Financial Statements (Annual Reports)
CMA Data
Direct interaction with the employees of the company
Internet ---o www.sintechpumps.co.in
o www.scribd.com
o www.indianpumpsindustry.com
Textbooks on financial management I.M.Pandey
Khan and Jain

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81