A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM A STUDY ON DATA SALES OF AIRTEL IN RURAL MARKET AT BHARTI AIRTEL LIMITED, TRIVANDRUM Submitted in partial fulfillment of the requirement for the award of degree of MASTER OF BUSINESS ADMINISTRAN Submitted by DILEEP A M MGT 0905259 Under the guidance of Faculty Guide Mrs. VEENA P K Faculty, IMK Alleppey Project Guide Mr. DIXEN ELIAS Zonal Sales Manager, Bharti Airtel Ltd, Trivandrum. INSTITUTE OF MANAGEMENT IN KERALA UNIVERSITY OF KERALA EXTENSION CENTRE, ALAPPUZHA,2009-2011 1

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM CERTIFICATE This is to certify that the report entitled “A STUDY ON DATA SALES OF AIRTEL IN RURAL MARKET at Bharati Airtel Ltd, Thrivandrum submitted here is a bonafide record of the work done by MR. DILEEP A. M (MGT0905259) under my guidance in partial fulfilment of the requirement for the award of degree of Master of Business Administration of the University of Kerala and this work has not been submitted by him for the award of any other degree of this University or any other University COORDINATOR IMK, ALAPPUZHA Mrs.

VEENA P. K FACULTY GUIDE 2 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM DECLARATION I declare that the project report entitled “A STUDY ON DATA SALES OF AIRTEL IN RURAL MARKET at BHARATI AIRTEL LTD, TRIVANDRUM, submitted by me for the award of Degree of Master of Business Administration of the University of Kerala is my own work. I have not submitted this report for the award of any other degree, diploma or title of recognition earlier. PLACE: ALAPPUZHA DATE: DILEEP A. M MGT 0905259 3

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 4 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM ACKNOWLEDGEMENT Let me take this opportunity to thank Almighty for giving courage and opportunity to do this Summer Project well and to my parents who provided all their support for completing my work. I sincerely thank to our Coordinator IMK Extension Centre, Alappuzha for providing me all the facilities for the successful completion of this project. I express my sincere gratitude to Mr.

Dixen Elias, Zonal Sales Manager (Rural Territory Manager), Bharti Airtel Ltd, Thiruvananthapuram for granting me permission and guiding me to do the Summer Project. In addition, I express my thanks to Mr. Nibeesh, Area Sales Manager (Territory Sales Manager), Bharti Airtel Ltd, Ambalappuzha for guiding me all the way of my project. I express my gratitude for the valuable help extended to me by Rural Super, Chanakya and all the staff there for providing the required information to this study. I also express my sincere thanks to Mrs.

Veena P K Faculty, IMK Extension Centre, Alappuzha for giving valuable guidance for framing this project. I express my gratitude to all Rural Distributors and Retailers of BhartiAirtel Ltd, Rural Alleppey who helped me along the way to the completion of this study. I express my wholehearted thanks to all the teaching staffs and friends whose cooperation and support helped me a lot to reach a fruitful stage. DILEEP A. M MGT 0905259 5 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM CONTENTS CHAPTER No: 1 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 1. 7 1. 8 1. 2 2 3 4 5 TITLE PAGE No: INTRODUCTION -INTRODUCTION TO THE STUDY -PROBLEM STATEMENT -REVIEW OF LITERATURE -OBJECTIVE OF THE OF THE STUDY -SCOPE OF THE STUDY -RESEARCH DESIGN -METHODOLOGY -SCALING TECHNIQUES -LIMITATIONS OF STUDY -CHAPTERISATION INDUSTRY PROFILE COMPANY PROFILE ANALYSIS & INTERPRETATIONS FINDINGS, SUGGESTIONS&CONCLUSION BIBLIOGRAPHY APPENDIX 1 2 3 3 11 11 12 12 13 16 17 18 27 51 76 82 83 6 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM LIST OF TABLES SI NO: TITLE PAGE NO: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Extend by which retailers working for airtel Rate of growth of airtel gprs Customers opinion of airtel gprs Next competitor Rating of provider? s performance Reasons for decreased sales Deciding factors of customer purchase Data quality of airtel Influence of price Stock out Frequency of stock out Beneficial network provider Administrative support Satisfaction level of retailers Opinion for increment of sales Influence of promotional activities Network problem Increase of sales during seasons Ranking with respect to different features Sales trend in rural Aleppy 2 53 54 55 56 57 58 60 61 62 63 64 65 66 67 68 69 70 71 75 7 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM LIST OF CHARTS SI NO: TITLE PAGE NO: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Extend by which retailers working for airtel Rate of growth of airtel gprs Customers opinion of airtel gprs Next competitor Rating of provider? performance Reasons for decreased sales Deciding factors of customer purchase Data quality of airtel Influence of price Stock out Frequency of stock out Beneficial network provider Administrative support Satisfaction level of retailers Opinion for increment of sales Influence of promotional activities Network problem Increase of sales during seasons Ranking with respect to different features Sales trend in rural Aleppy 52 53 54 55 56 57 58 60 61 62 63 64 65 66 67 68 69 70 71 75 8 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM

EXECUTIVE SUMMARY This project is made on the title “DATA SALES OF AIRTEL IN RURAL MARKET” The purpose of this project is to know about the use and sales of mobile internet and the need of sales promotional activities in Rural Kerala especially in Rural Aleppey, taking it as a sample and to know, what are the promotional activities airtel has to follow to increase the sale. My study is conducted on data sales of airtel in rural market. The study was conducted using the data collected by a market survey in rural Alleppey.

Questionnaire was prepared and administrated by taking a sample of 100 retailers of airtel in rural areas of Alleppey district. The research targets the retailers and distributors who deal into telecom service and the time period of the survey is from February to March 2011. Now a day? s large competition and reduced call charges resulted in the decrease of profit in that section, so companies are targeting the value added services like gprs to compensate with that. The study helps to understand the need for sales promotion of airtel gprs products and describe the competition in the telecom industry for airtel data cards. A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM CHAPTER 1 INTRODUCTION 10 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 1. 1 INTRODUCTION This project is made on the title “DATA SALES OF AIRTEL IN RURAL MARKET” The purpose of this project is to know about the use and sales of mobile internet and the need of sales promotional activities in Rural Kerala especially in Rural Aleppey, taking it as a sample and to know, what are the promotional activities. Airtel has to follow to increase the sale.

In field of marketing Airtel conducts many kind of survey time to time for promotion awareness. This project conducted to make an understanding of the market penetration of airtel gprs in rural areas, by a study on the trend of data sales. And also the position of airtel? s data sales is estimated by a comparative study with the movement of data cards in the market. The aim of the project is to know whether the sales is fair enough for the company, and if it is not so we have to make solutions for the problem areas. In modern era market “customers are considered as kings”.

The only way for making profit in today? s market is to make loyal customers. By advertising and all airtel has a good brand name, the rebranding campaign airtel made recently is also very impressive. However, competition is severe in a growing market like India and especially in Kerala. Rural market is growing rapidly and network providers are competing among themselves to achieve a good position in the market. airtel has a good subscriber base in Kerala, What the company has to do is to provide good services to customers, thereby making a market of their own.

Sales promotion is the only way through which they can increase the data sales in rural market. 11 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 1. 2) RESEARCH PROBLEM When any type of the research is being done, than research problem must be cleared. It is said if the problem is clear, it means half problem is solved. This study indicates the problem for the organization to know the public opinion about the data cards of airtel and their concepts and view points on the same. 1. 3) LITERATURE REVIEW

AN OVERVIEW OF INTERNET AND WIRELES Definition of internet The Internet is a worldwide, publicly accessible series of interconnected computer networks that transmit data by packet switching using the standard Internet Protocol (IP). It is a “network of networks” that consists of millions of smaller domestic, academic, business, and government networks, which together carry various information and services, such as electronic mail, online chat, file transfer, and the interlinked web pages and other resources of the World Wide Web (WWW).

Common uses of the Internet E-mail World Wide Web Remote Access Streaming Media File Sharing Voice Telephony 12 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Driving growth of internet data card Growing businesses in all segments, necessity to access emails and corporate applications during urgent business trips and the urge for some entertainment while on the move are some drivers increasing the demand for data card usage.

Wireless broadband connections are penetrated the vast semi-urban and rural parts of the country where entrepreneurs, officials, students, etc have the need to surf the Internet for various purposes. Though the laptop penetration in these areas has not made a significant mark, desktop penetration is comparatively more. With data cards offering convenient access to the Internet, a number of companies have started to tie up with service providers to avail bulk network connections for their employees on the go and allow them to utilize their time during business travels.

Since data cards can be used with desktop also, it cuts down the office infrastructure costs as well. With the data card segment witnessing steady growth, affordability will go up, which, in turn, will drive 46 growth. And growth of mobile telephony in India has created users with specific needs like m-commerce that require wireless Internet, driving the wireless data card growth. Once the concept of mobile wallet and its applications hit the market in India in the near future, the wireless data card segment is also expected to witness an exponential growth.

Apart from this, Internet charges in costly hotels are very high. With the availability of data cards and USB modems, frequent business travelers who stay in costly star hotels can access the Internet and corporate applications on their laptops and avoid using the Internet facility at hotels, saving on high Internet charges. 13 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM What is Sales Promotion? Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity.

As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e. g. , lower purchase price, money back) or the inclusion of additional value-added material (e. g. , something more for the same price). Sales promotions are often confused with advertising. For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may give the contest the appearance of advertising. While the delivery of the marketer? message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion. The factors that distinguish between the two promotional approaches are: 1. whether the promotion involves a short-term value proposition (e. g. , the contest is only offered for a limited period of time), and 2. The customer must perform some activity in order to be eligible to receive the value proposition (e. g. , customer must enter contest). The inclusion of a timing constraint and an activity requirement are hallmarks of sales promotion.

Sales promotions are used by a wide range of organizations in both the consumer and business markets, though the frequency and spending levels are much greater for consumer products marketers. One estimate by the Promotion Marketing Association suggests that in the US alone spending on sales promotion exceeds that of advertising. 14 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM SALES PROMOTION TECHNIQUES OF COMPANY ? Good Advertising. Effective Incentive Policy. ? Good services. ? Wide & Deep Distribution System. Decorating Retailers shop by display board, dealer? s board etc. ? Posters. ? Banners. ? Conducting awareness programs. Types of Sales Promotion Sales promotion can be classified based on the primary target audience to whom the promotion is directed. These include: ? ? ? Consumer Promotion Trade Promotion Sales force Promotion Consumer Sales Promotion Consumer sales promotions encompass a variety of short-term promotional techniques designed to induce customers to respond in some way. The most popular consumer sales promotions are directly associated with product purchasing.

These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product (i. e. , get same product but for less money) or by adding more benefit to the regular purchase price (i. e. , get more for the money). While tying a promotion to an immediate purchase is a major use of consumer sales promotion, it is not the only one. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. Consequently, a marketer? promotional toolbox contains a large variety of consumer. 15 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Several possible tools can be used for consumer promotions. Some of the more important ones are: ? Sampling ? Price-off ? Quality deals ? Banded offers ? In-product gift ? Out- product gift ? Coupons ? Consumer contests Trade Sales Promotions As note in the Promotion Decisions Tutorial, certain promotions can help “push” a product through the channel by encouraging channel members to purchase and promote the product to their customers.

For instance, a trade promotion aimed at retailers may encourage retailers to instruct their employees to promote a marketer? s brand over competitors? offerings. With thousands of products competing for limited shelf space, spending on trade promotion is nearly equal that spent on consumer promotions. Many sales promotions aimed at building relationships with channel partners follow similar designs as those directed to consumers including promotional pricing, contests and free product. In addition to these, several other promotional approaches specifically designed to appeal to trade partners. 6 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Techniques used in trade promotion ? On-consignment sales ? Dealer contests ? Dealer gifts ? Display contests ? Point of sale material ? Shop board painting ? Dealer discounts ? Trade fair participation ? Dealer meets ? Cooperative advertising Sales force promotions Sales promotion directed towards the sales people is referred to as sales force promotion. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or easonal products, sell more deals to resellers, book more orders, develop prospects lists and build up morale and enthusiasm. Some of these activities are meant to prepare the sales people to do their jobs well and include sales meetings and manuals, training programs, sales presentations, film and slide shows etc. Prize distribution to winners is the more tangible aspect of any such programme. Objectives of sales force promotion schemes are: ? ? ? ? ? Increase sales volume Introduce a new product Reducing selling costs Offset competitive promotions Improve working habits 17

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM ? Develop new prospect lists etc. Advantages and Disadvantages of sales Promotion Sales Promotion techniques yield results that many other marketing communication elements cannot achieve . For example it can turn around a sales trend in the short run ,help introduce a new product by encouraging consumer and retail acceptance ,reinforce message driven by other communication –mix element ,etc. Some of the benefits of sale promotion: ? Sales promotion produces result by stimulating people to act – to try, to buy, to buy more, or to buy more often.

It can lead to trial, generate excitement, encourage rein peat purchase, attract switchers, etc. It is especially helpful in situations where there is extreme pressure to increase sales e. g. at the end of the year when there are shortfalls in budgeted sales. ? It produces immediate results. While advertising or public relation act as an investment producing sales in the long run, sales promotion works during a definite span of time. Most of the sales come during the sale promotions period itself. Very often, if the promotion is successful, one can get results within hours, days or weeks. ? It can prevent competitor entry or offset competitor promotions and thus help maintain the brands current market share. Sales promotion techniques directed at channel members or sales force can gain channel support and involvement and help “push” the product. It helps in getting shelf space and merchandising benefits at the retail level, clearing off excess inventory, motivating sales people to find new contacts etc. ? Sales promotion is relatively easy to design and implement. It is possible to calculate costs effect on sales and sometimes even on competitor sales. 18

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM DISADVANTAGES OF SALES PROMOTION ? ? ? Most sales promotion is used for short-term results. Any excessive use can shift the focus on short-term marketing planning that acts only at the behavioral level. Increasing sales promotion activities has led to clutter, leading companies to cut each other and thus eroding the bottom line. In mature markets sales promotion does not do much in attracting new customers but only switchers who are dear prone. The Internet has grown tremendously during the past years.

It radically changes the way people live, work and consume. It represents a tremendous opportunity as well as threats. Internet usage in India continues to grow at a slow but steady pace, both in breadth and depth. Unlike the ’70s and ’80s when business-related travel was not seen much, the ’90s, particularly the dawn of the twenty-first century, has witnessed intensive business travels, and this is gaining momentum with time. India too is on the move and wants to stay connected anytime, anywhere-whether on a train or bus, in a hotel or conference hall, within India or abroad.

Meeting this need of business travelers are data cards and USB modems that have become the preferred solution, even before wireless mobile broadband introduced in the country. At present, there are data cards, USB modems, and Internet-enabled mobile phones in the Indian market. With India on the move, the data card market is flourishing even as low, inconsistent speed remains an issue. In this already competitive market, it becomes essential for Internet data card players to understand the different factors that affect people using the Internet data card as a new wireless device for internet connection.

There are many benefits that attract people to choose internet data card for access to the internet as convenience, time saving, wireless connectivity and possibly affordable, however, many people are often hold back as fear of low speed, high usage charges and using 19 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM issues in relation to internet data card usage. 1. 4) OBJECTIVES OF THE STUDY Primary research objective:To study and interpret the sales and sales promotion schemes running by airtel, for data sales in rural Aleppey, and to know that how the consumers of airtel gprs can be retained or maximized.

Secondary research objective:? ? ? ? ? ? ? ? ? ? Creating an awareness about airtel data cards to retailers. To study about the sales trend of airtel data cards in rural market. Analyzing the problem (if any) faced by airtel in rural market about its data sales. Collecting feedback from retailers about the data cards of airtel. Comparing airtel? s product with others of the same category. Motivating the retailers to push data cards Analyzing which operator is more beneficial to customers and retailers. To find out the places and situations where promotion should be made.

To study about the effectiveness of the distribution channels and administrative set up. To collect valuable opinions from retailers and distributors, about how to increase sales. 20 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 1. 5) SCOPE OF THE STUDY In business it is said winning telecommunication companies are those that can meet customers? s needs economically and conveniently and with effective communication. All marketing activities are coordinated to create a brand image for the company. The Scope of the Research study would include the geographic & Demographic region of Rural Aleppey.

The research targets the retailers and distributors who deal into telecom service and the time period of the survey is from Feb – mar 2011. 1. 6) RESEARCH DESIGN The Research Design followed to obtain the research objective is Descriptive Research Design. The above research design is selected to describe the competition in the telecom industry for airtel data cards. 1. 7) RESEARCH METHODOLOGY Research methodology is a description explanation and justification of various methods for conducting research SAMPLING The sampling plan for the study decides the work area that is the population, which has to be surveyed.

A Brief idea about the sampling for this research consisting of its different parameters is given below: 21 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM TYPE OF SAMPLING METHOD USED IN THE STUDY Deliberate sampling: Deliberate sampling is known as purposive or non-probability sampling. This sampling method involves purposive or deliberate selection of particular units of the universe for constituting a sample, which represents a universe. When population elements are selected for inclusion in the sample on the basis of access it can be called convenience sample.

Here the sample is rural aleppey and it represents the situation of the whole Kerala. And also in this project the distributors are ranked according to their performances. To top five and bottom five distributors are taken as a sample for the convenience of data collection and analysis. Simple random sampling: This type of sampling also known as chance sampling or probability sampling. Where each and every item in population has an equal chance of inclusion in this sample and each one of the possible sample, in case of finite universe, has the sample probability of being selected.

The retailers from whom the datas should be collected are selected using this sampling technique. 22 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM SAMPLING UNIVERSE As this work is done to study the sales and the need for sales promotion of airtel gprs products, the sample are the retailers of airtel in rural aleppey. ie, the retailers of the rural super Chanakya. 1. 8) SCALING TECHNIQUES There are 16 distributors and about 550 retailers in rural Alleppey. It is difficult to collect feedback from all these people. So the distributors are ranked with respect to their performances.

The top five and bottom five are selected in order to analyze about both problem areas and high performing areas. Among these top five and bottom five ten retailers are selected in random. Target / Achievement = Performance 23 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM PERFORMANCE OF RURAL DISTRIBUTORS IN DATA SALES OF AIRTEL IN RURAL ALLEPPEY serial No: RD name Performance % November 1 2 3 4 SKYLINE RAJASREE SARWA PUNNATHAR A ORANGE PHONE DOCTOR SAAI LAND VOICE INDEX HAZEENA AURA NAVADURGA BRAHMA N2J CHINNU SEASHORE 2. 258 2. 35 1. 21 Performance % December 2. 46 2. 47 1. 76 . 975 Performance % January 1. 57 1. 31 1. 67 2. 49 Average Rank Performance% 2. 015 2. 013 1. 699 1. 56 1 2 3 4 5 6 .872 1. 42 1. 82 . 189 1. 236 2. 122 1. 309 1. 244 5 6 7 8 9 10 11 12 13 14 15 16 1. 324 1. 08 2. 66 . 19 1. 40 0 . 559 0 . 489 1. 08 .666 1. 709 0 . 690 . 154 1. 358 1. 61 1. 142 . 881 0 1. 713 . 758 0 1. 218 . 513 . 56 0 . 473 . 411 0 1. 234 1. 182 . 887 . 699 . 689 . 639 . 573 . 538 . 49 . 36 7 8 9 10 11 12 13 14 15 16 24 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM The benchmark of airtel in data sales in rural market is 1. 75% of the total sales.

From the above table we are sure that only two of our rural distributors are achieving their optimum performance. Even though for analysis and data collection the five top performers and the five bottom performers are selected. They are, 1. RD Skyline 2. RD Rajasree 3. RD Sarwa 4. RD Punnathara 5. RD Orange 6. RD Navadurga 7. RD Bhahma 8. RD N2J 9. RD Chinnu 10. RD Seashore SAMPLE SIZE In this study sample size is of 100 people. Due to the shortage of time and un-availability of expert team, the research size is taken short. so that the research can be done easily. 25 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM

METHOD OF DATA COLLECTION This study is done using the following primary and secondary data: Primary Data: The primary data was collected by a market survey in Rural Aleppey. Questionnaire was prepared and administrated by taking a sample of 100 retailers of airtel in rural areas of Alappuzha district. Direct interview with Rural Super(distributer), Rural Distributors and retailers. Secondary Data: The secondary data comprises of various Books, published magazines and Wikipedia are included in the study. Data was also collected from the company’s records and from the websites “www.

Airtel. co. in”‘. 1. 9)LIMITATIONS OF THE STUDY The present study is subjected to following LIMITATIONS. ? ? ? ? ? Method of data collection was through personal interview and therefore bias becomes a major limitation. Due to the time constraints all the customers were not covered. The sample was restricted to 100 customers, which may restrict the scope and completion of study. The scope of study is restricted only in Aleppey and concluded as the situation in whole rural kerala. Owing to their pre occupation some customers were unable to answer the complete questionnaire. 26

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 2)CHAPTERISATION Chapter 1 Includes the introduction to the study, problem statement, review of literature, objectives of the study, scope of the study, research design, methodology and limitations of the study. Chapter 2 Chapter 3 Chapter 4 Chapter 5 Includes Industry Profile Includes Company profile of Bharati Airtel Ltd, Trivandrum Analysis and interpretation Findings, suggestions and conclusion 27 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM CHAPTER 2 INDUSTRY PROFILE 28

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Industry profile The Indian telecommunications industry is one of the fastest growing in the world. The industry has witnessed consistent growth during the last year on the back of rollout of newer circles by operators, successful auction of third-generation (3G) and broadband wireless access (BWA) spectrum, network rollout in semi-rural areas and increased focus on the value added services (VAS) market. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 742. 2 million as on October 31, 2010, an increase of 2. 61 per cent from 723. 28 million in September 2010. With this the overall tele-density (telephones per 100 people) has touched 62. 51. The wireless subscriber base has increased to 706. 69 million at the end of October 2010 from 687. 71 million in September 2010, registering a growth of 2. 76 per cent. Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added 17. 45 million new subscribers in November 2010, taking the all-India GSM cellular subscriber base to 526. 8 million, according to the Cellular Operators Association of India (COAI). The GSM subscriber base stood at 508. 72 million at the end of October 2010. Value-Added Services (VAS) Market Mobile value added services (VAS) include text or SMS, menu-based services, downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. As per a report, „India Telecom 2010? released by KPMG in December 2010, currently, the VAS market is worth US$ 2. 45 billion-US$ 2. 67 billion, which is around 10 per cent of the total revenue of the wireless industry.

The share of VAS in wireless revenue is likely to increase to 12-13 per cent by 2011, on the back of increased operator focus on VAS due to continuous fall in voice tariffs, increasing penetration of 29 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM feature rich handsets, availability of vernacular content and increased user adoption of VAS applications. Major Investments The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services.

According to the Department of Industrial Policy and Promotion (DIPP), the telecommunications sector which includes radio paging, mobile services and basic telephone services attracted foreign direct investment (FDI) worth US$ 1,062 million during April-October 2010-11. The cumulative flow of FDI in the sector during April 2000 and October 2010 is US$ 9,993 million. As per an industry report the telecom industry witnessed merger and acquisition (M) deals worth US$ 16. 60 billion during April-December 2010, which represented 28. 6 per cent of the total valuation of the deals across all the sectors during the period analysed. There were 10 inbound, outbound and domestic M deals in the telecom sector during the first nine months of the current fiscal. The biggest M deal in the sector was made by telecommunications service provider Bharti Airtel through the acquisition of Zain? s African mobile services operations in 15 countries. The deal involved a transaction of US$ 10. 7 billion. In another deal, Bharti Airtel acquired 100 per cent stake of Telecom Seychelles Ltd for US$ 62 million.

Other major M deals included the acquisition of 95 per cent stake in Infotel Broadband for US$ 1,032. 26 million by Reliance Industries and 26 per cent stake of USbased mobile chipmaker Qualcomm? s Indian arm for US$ 57. 72 million by India’s Tulip Telecom and Global Holding. Further, India-based GTL Infrastructure Ltd has bought 17,500 telecom towers of Aircel Ltd. for US$ 1,702. 95 million. 30 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Going Global In March 2010, Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for US$ 10. billion, driving the Indian player into the league of top ten telecom players globally. The Reserve Bank of India (RBI) has liberalised the investment norms for Indian telecom companies by allowing them to invest in international submarine cable consortia through the automatic route. In April 2010, RBI issued a notification stating “As a measure of further liberalisation, it has now been decided… to allow Indian companies to participate in a consortium with other international operators to construct and maintain submarine cable systems on co-ownership basis under the automatic route. The notification further added, “Accordingly, banks may allow remittances by Indian companies for overseas direct investment. ” Tele-medicine With increase in cell phone users to around 700 million and introduction of 3G services soon in the country, remote treatment and diagnosis of patients through mobile phones would become a reality in the near future. In fact, a few telecom operators and valueadded service developers are planning to use mobile phones for diagnostic and treatment support, remote disease monitoring, health awareness and communication.

The Gujarat health department plans to connect all villages through its telemedicine network. The state government has so far expanded the reach of telemedicine services from 53 villages in 2008 to 453, and hopes to cross 500 villages soon. Jay Narayan Vyas, state health minister, said “First thing we plan to do is to start the 104 service over the phone. People can call up and talk to paramedics in call centers who can suggest the primary action to be taken in case of any health emergency. Also, they would be able to suggest generic and over the counter drugs. 31 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 3G Services The Department of Telecom has taken the pioneering decision of launching of 3G services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private operators. Allocation of spectrum for 3G and BWA services was done through a controlled simultaneous, ascending e-auction process. All the 71 blocks that were put up for auction across the 22 service areas in the country were sold, leaving no unsold lots.

Auction for 3G spectrum ended on May 19, 2010 after 183 rounds of intense bidding over a span of 34 days. The Government is expected to morph revenue worth US$ 14. 6 billion. All the available slots across 22 circles have been sold to seven different operators. A pan-India bid for third generation spectrum stood at US$ 3. 6 billion. The Anil Ambaniled Reliance Communication bagged the highest number of 13 circles at a cost of US$ 1. 9 billion, followed by Bharti Airtel in 12, Idea in 11 and Vodafone and the Tatas in nine circles each, according to the Department of Telecommunications.

MTNL and BSNL will have to pay US$ 1. 42 billion and US$ 2. 2 billion respectively. 3G spectra have already been allotted to successful bidders for commercial use on September 1, 2010 as per the timelines indicated in the Notice Inviting Application (NIA) and in the Letter of Intent issued after the bid amounts were deposited. The 3G spectrum has been allotted to AirTel, Aircel, Vodafone, S Tel, Reliance, Idea Cellular and Tata Cellular Services who won the bids through the electronic auction spread over a period of 34 days in respect of 3G and 16 days in respect of BWA.

The BWA spectra have also been assigned to the successful bidders which are Aircel, Augere, Tikona, Qualcomm, Infotel and Bharti. 3G & BWA spectrum would enable users to have value added services like video streaming, mobile internet access, higher & faster data downloads. 32 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Manufacturing The Indian telecom industry manufactures a vast range of telecom equipment using stateof-the-art technology. As per a press release by the Ministry of Communications & Information Technology, the roduction of telecom equipments in value terms is expected to increase from US$ 10. 87 billion during 2008-09 to US$ 11. 87 billion in 2010-2011. Favourable factors such as policy moves taken by the Government, incentives offered, large talent pool in R&D and low labour cost can provide an impetus to the industry. Exports increased from US$ 89. 24 million in 2002-03 to US$ 3 billion in 2009-10 accounting for 26 per cent of the total equipment produced in the country and it is expected to increase to US$ 3. 33 billion in 2010-11.

Meanwhile, telecom regulator TRAI has released a consultation paper on „Encouraging Telecom Equipment Manufacturing in India? seeking views of stakeholders for promoting research and development (R&D) and manufacturing of telecom equipment in the country. The consultation paper issued on December 28, 2010 aims at discussing, debating and finalising measures for promotion of R&D and creation of intellectual property as well as manufacture of telecom equipment and electronic components in India. Further, the Indian mobile handsets market continued to grow in the third quarter 2010 as well to record a quarter-on-quarter growth of 3. per cent to touch 40. 08 million units in the quarter, according to market intelligence firm IDC? s India Quarterly Mobile Handsets Tracker. The year 2010 is expected to end with total mobile handset sales of 155. 9 million units. 33 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Rural Telephony The rural Telephone connections have gone up from 3. 6 million in 1999 to 12. 3 million in March 2004 and further to 200. 77 million in March 2010. Their share in the total telephones has constantly increased from around 14 per cent in 2005 to 32. 5 per cent at the end of October 2010. The rural subscribers have grown to 243. 04 million at the end of October 2010. The wireless connections have contributed substantially to total rural telephone connections; it stands at 233. 95 million in October 2010. During 2010-11, the growth rate of rural telephones was 21. 05 per cent as against 18. 69 per cent of urban telephones. The private sector has contributed to the growth of rural telephones as it provided about 84. 27 per cent of rural telephones during October 2010.

The government plans to connect all revenue villages in India either through landline, mobile or WLL by February 2011. “We have already connected about 96 per cent of the revenue villages. The remaining 25,000 villages will have connectivity by February 2011,” stated Mr Sachin Pilot, Minister of State for Communications and IT. Further, the Government, under Bharat Nirman II Programme, has envisaged providing broadband coverage to all 250,000 Gram Panchayats by 2012. Policy Initiatives The government plans to formulate a comprehensive „National Telecom Policy 2011? ncluding the recognition of Telecom as infrastructure and as an essential service, encouraging Green Telecom, steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6 standards by Telecom Engineering Centre for implementation in the country, etc. , as per a press release by the Ministry of Communications & Information Technology. 34 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Further, the government plans to take concrete steps towards finalisation of „National Broadband Plan? including strategy for implementation and initiation of steps for roll out of optical fibre.

The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry. ? ? In the area of telecom equipment manufacturing and provision of IT-enabled services, 100 per cent FDI is permitted No cap on the number of access providers in any service area. In 2008, 122 new Unified Access Service (UAS) licences were granted to 17 companies in 22 services areas of the country ? Revised subscriber based criteria for allocation of Global System of Mobile Communication (GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008 ?

To provide infrastructure support for mobile services a scheme has been launched to provide support for setting up and managing 7,436 infrastructure sites spread over 500 districts in 27 states. As on December 31, 2009, about 6,956 towers had been set up under the scheme The Road Ahead According to a report published by Gartner Inc in June 2009, the total mobile services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 12. 5 per cent from 2009-2013 to exceed US$ 30 billion. The India mobile subscriber base is set to exceed 771 million connections by 2013, growing at a CAGR of 14. per cent in the same period from 452 million in 2009. This growth is poised to continue through the forecast period, and India is expected to remain the world’s second largest wireless market after China in terms of mobile connections. “The Indian mobile industry has now moved out of its hyper growth mode, but it will continue to grow at double-digit rates for next three years as operators focus on rural 35 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM parts of the country,” said Madhusudan Gupta, senior research analyst at Gartner. Growth will also be triggered by increased adoption of value-added services, which are relevant to both rural and urban markets. ” Mobile market penetration is projected to increase from 38. 7 per cent in 2009 to 63. 5 per cent in 2013, according to Gartner. The much-awaited mobile number portability was launched on November 25, 2010 in Haryana and is available to more than 700 million subscribers across the country. As continued efforts of the Government to increase competition in the market and to provide wider choice to customer, Mobile Number Portability will be an important step.

Bharti to launch 3G services in 1,000 cities by March 2011 The Economic Times: March 04, 2011 New Delhi: More than 5 lakh customers have upgraded to Bharti Aritel’s high-speed data or 3G services, from voice-based 2G services , within a month after India’s largest mobile operator launched this facility in Bangalore . After introducing 3G services in six cities, Airtel launched this platform in Delhi on Thursday that enables customer to enjoy services such as high-speed internet and mobile TV.

In Delhi NCR, the fifth-largest telco in the world has spent 3,750 crore of the total 13,000 crore spent in acquiring 3G airwaves, which is the largest investment in any circle, president for mobile services Atul Bindal said. Bindal added that Airtel will cover 13 circles, where it has permits to offer 3G services, by the end of this month. By March 2011, it would have 3G services in more than 1,000 cities. The company is talking to other operators to offer 3G services in the rest of the 22 circles where Airtel did not have permits.

Competitors like Reliance Communications , Vodafone Essar, Tata DoCoMo and Aircel have launched 3G in areas where they hold respective permits. No mobile operator has 3G permits in all 22 circles of the country. Airtel added that 3G users were consuming more than 1,000 GB data, a large percentage of the total 2G data consumption, within days. Reliance Communications’ head for 3G Prashant Gokarn also expects phenomenally fast adoption of 3G as proportion of customers buying 3G handsets was increasing rapidly.

Vodafone would target existing mobile data users and bring various 3G services to life, says Vice-President, brand communication and insights, 36 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Anuradha Aggarwal. However, the telcos are battling with each other to grab the chunk of a small market because analysts predict very slow adoption of 3G services. A recent Frost and Sullivan report suggests 3G to become mainstream in more than five years. CHAPTER 3 COMPANY PROFILE 37 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM

COMPANY PROFILE Bharti Airtel Limited usually referred to simply as “airtel”, is an Indian telecommunications company that operates in 19 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world with over 207. 8 million subscribers across 19 countries at the end of 2010. It is the largest cellular service provider in India, with over 152. 5 million subscribers at the end of 2010.

Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel also offers fixed line services and broadband 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 this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India.

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. It is known for being the first mobile phone company in the world to outsource everything except marketing and sales and finance. Its network (base stations, microwave links, etc. ) is maintained by Ericsson, Nokia Siemens Network and Huawei business support by IBM and transmission towers by another company (Bharti Infratel Ltd. n 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. This enabled the company to provide pan-India phone call rates of Rs. 1/minute (U$0. 02/minute). Call rates have come down much further like second pulse plans. During the last financial year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business. 38 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM

The company is structured into four strategic business units – Mobile, Telemedia, Enterprise and Digital TV. The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. History Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an agreement with Germany’s Siemens to manufacture the company’s push-button elephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the country’s first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi.

In 1995, Sunil 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 Mumbai 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. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began operating in Bangladesh and 16 African countries. Today, Airtel is the largest cellular service provider in India and fifth largest in the world. 39 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 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 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. Rebranding On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding strategy. The comspany unveiled a new logo with ‘airtel’ written in lower case. Designed by London-based brand agency, Brand Union, the new logo is the letter ‘a’ in lowercase, with ‘airtel’ written in lowercase under the logo. 40

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM On November 23, 2010, Airtel’s Africa operations were rebranded to ‘airtel’. Sri Lanka followed on November 28, 2010 and on December 20, 2010, Warid Telecom rebranded to ‘airtel’ in Bangladesh logo used by Airtel till 2010 November On 18 November, 2010, Bharti Airtel announced a re-branding campaign wherein, they would be referred as airtel, with a new logo. MNP (Mobile Number portability) Mobile number portability service is also rendered by airtel. In this facility, a customer can change his network operator without changing the number. 1 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM An overall description about airtel business description Provides GSM mobile services in all the 22 telecom circles in India, Srilanka, Bangladesh and now in 16 Countries of Africa. Provides telemedia services (fixed line and broadband services through DSL) in 88 cities in India. We also offer suite of Enterprise solutions, DTH and IPTV Services Established proportionate revenue July 07, 1995, as a Public Limited Company Rs. 157,560 million (ended December 31, 2010Audited) Rs. 03,053 million ( ended December 31, 2009Audited) As per IFRS Accounts proportionate EBITDA Rs. 49,816 million ( ended December 31, 2010 Audited) Rs. 40,823 million ( ended December 31, 2009 Audited) As per IFRS Accounts shares in issue Listings 3,797,530,096 as at December 31, 2010 The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) 42 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM market capitalization customer base India: 157,485,000 GSM mobile and 3,257,000 Telemedia (status Africa: as on December GSM Customers. 31, 2010) mobile. 2,124,000 (status as on December 31, 2010) operational network Provides GSM mobile services in all the 22 telecom circles in India, Srilanka, Bangladesh and now in 16 Countries of Africa. Provides telemedia services (fixed line) in 88 cities in India. Provides an integrated suite of Enterprise solutions, in addition to providing long distance connectivity both Nationally and Internationally. Also offer DTH and IPTV Services. . registered office Bharti Airtel Limited (A bharti Enterprise) bharti Crescent, 1 Nelson Mandela Road, Vasant Kunj Phase II New Delhi 110 070 Tel. No. : +91 1 4666 6100 Fax No. : +91 11 4666 6411 43 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Challenge/Opportunity Bharti Airtel was faced with the challenge of profitably serving the rural areas of India. It is an extremely daunting task due to a variety of factors: rural users’ low incomes, a widely dispersed population, and a less than ideal public infrastructure (i. e. , roads, electricity, etc. ). Specifically, Bharti Airtel had to address the following conditions: ? The incomes of Indian rural residents are significantly lower than urban residents.

The average revenue per user (ARPU) for rural residents was typically less than US$2 per month. ? Besides deploying a scalable network, Bharti Airtel also needed to establish a cost-effective marketing, sales, and distribution channel to provide service promotion and customer support. Counter to these challenges were the significant opportunity that the Indian rural market represented and Bharti Airtel’s unique ability to address it. ? The future growth of the Indian mobile market is expected to be driven by rural customers, which account for about 70 percent of the country’s total population (1. billion people) with a teledensity of only 18. 5 percent as of September 2009. Indian urban mobile penetration is already over 100 percent. ? Rural dwellers place a high value on communications. Contacting urban/overseas relatives and friends often requires a long and sometimes treacherous trip to the nearest town to reach a payphone. ? Various studies (e. g. , fishermen in the Indian state of Kerala and grain producers in Niger) have shown that increased mobile service penetration in rural areas could have tremendous socio-economic benefits for the rural population. With its strong presence in the relatively untapped rural market (over 27 percent market share as of September 2009), Bharti Airtel is well-placed to continue growth with its focus on under-penetrated Indian regions with new revenue streams such 3G-enabled data services and pay-TV 44 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Alliances/Partnerships To extend its reach in India’s rural markets, Bharti Airtel is focusing on innovative initiatives, including efficient infrastructure deployments, expanding its distribution network via partnerships, and customized content and tariffs. Bharti Airtel has launched microfinancing agreements in collaboration with Nokia and SKS Micro-finance. Under these partnerships, Bharti provides subsidized tariffs and subscriber identity module (SIM) cards to rural users, Nokia provides subsidized handsets, and SKS offers microfinancing. ? To expand coverage into rural regions, Bharti Airtel is sharing passive infrastructure services with Vodafone (42 percent ownership) and Idea (16 percent ownership) through its joint venture, Indus Towers. Sharing the infrastructure cost and usage between multiple operators has helped Bharti Airtel to reduce its operating and capital expenses. Bharti Airtel also formed a joint venture with the Indian Farmers Fertilizer Cooperative Limited (IFFCO). Its joint venture, IFFCO Kisan Sanchar, uses IFFCO’s wide rural presence (present in 80 percent of Indian villages) and appeal among the rural agricultural community to market and distribute Bharti’s products. ? IFFCO Kisan Sanchar provides subsidized handsets and connections at competitive rates in rural areas. It also helps Bharti Airtel to identify and acquire suitable locations for deploying its cell sites.

In addition, it offers tailored services including voice-based updates on crop prices, farming techniques, rural health initiatives, and “help line” services. 45 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Strategy Bharti Airtel first studies the commercial viability of a rural community (and the surrounding villages) based on parameters such as source of livelihood, average income, and involvement in frequent commercial transactions or travels. The company has developed a prioritized deployment strategy based on the specified criteria.

Qualifying villages are first to receive a base station, which also caters to nearby communities. To help ensure efficient usage and profitability for each of these base stations, Bharti Airtel tracks the revenue generated per base station (instead of ARPU, which is considered less relevant in a rural context). The following best practices have also been established: ? Bharti Airtel has adopted the strategy of direct communications to market its value proposition to rural customers. To make its services accessible, the company provides all of its marketing content in local languages.

Vans are used to cover rural areas with staff who educate locals about mobile services and usage. ? The company has developed a shared phone service called Public Call Offices (PCOs) in rural regions to increase awareness about its brand and services. ? Bharti Airtel Service Centers have been set up in villages to address customer queries and complaints as well as act as sales and distribution points. These centers employ local people and offer sales and customer services using local dialects. ? Bharti Airtel has already established over 18,000 service centers in rural India, covering over 400 languages and local dialects.

The company plans to expand this network. 46 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Success Factors/Metrics/Monetization Bharti Airtel does not provide separate rural key performance indicators, but the following results have been publicly announced: •As of April 2010, Bharti Airtel’s network covered 440,000 villages in India, which, together with its urban services, accounted for coverage of approximately 84 percent of India’s total population. •As of March 31, 2010, Bharti Airtel had added 9 million new customers to reach a total of 128 million connections.

Ovum estimates that rural users accounted for 60 percent of the company’s net subscriber adds in that quarter. •Despite Bharti Airtel’s overall ARPU of just under $5, its mobile division’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was approximately 30 percent, and its earnings before interest and taxes (EBIT) margin was Organization Structure As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of bharti? key team players. With effect from March 01, 2006, this unified management structure of ‘One airtel’ will enable continued improvement in the delivery of the Group? s strategic vision. approximately 19 percent, which indicate a healthy return on overall (including significant rural) investments. 47 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 48 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM CORPOATE GOVERNANCE Integrity and Ethics The partners will conduct all its dealings in a very ethical manner and with the highest business standards.

All partners with a business relationship with Bharti Airtel shall comply with the highest level of integrity and ethical practices. The partners will provide all possible assistance to Bharti Airtel in order to investigate any possible instances of unethical behavior or business conduct violations by its employee. Partner will disclose forthwith any breach of these provisions that comes to their knowledge to allow for timely action in their prevention and detection. Partners will adopt appropriate processes to prevent offering any illegal gratification in the form of bribes or kickbacks either in cash or in kind in the course of all dealings with us. Any instances of such violations will be viewed in a serious manner and Bharti Airtel reserves the right to take all appropriate actions or remedies as may be required under the circumstances. ? All partners are required to confirm their compliance to ethical dealings on an annual basis by signing a certificate to this effect as per Bharti Airtel’s standard annual certificate ?

Any ethical or integrity issues observed or encountered while dealing with Bharti Airtel shall be bought to the notice of Bharti Airtel? s senior management or the Head of Internal Audit immediately. Environment, health and safety Suppliers dealing with Bharti Airtel shall comply and adhere to all laws, and guidelines on environment, health and safety. ? Suppliers will ensure that all new service offerings as well as new product designs are in compliance with the relevant environmental regulation and guidelines, at the time of implementation at Bharti Airtel. regulations 49

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM Vision By 2015 airtel will be the most loved brand, enriching the lives of millions. “Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovation, on their side and a truly world class company. ” Mission “Refine your process, strive for dominance and build a brand” 50

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM RURAL KERALA The state of Kerala is fascinating in many ways. This lush green coastal beauty is deservingly called God’s Own Country. A drive through the state almost never shows any distinction between urban and rural regions. The houses generally reflect a good standard of living. In, globalized Kerala; households receive a lot of remittances from Malayalies working in the Gulf and in other regions. The Consumer Pyramid put together by the Centre for Monitoring Indian Economy (CMIE) amends our (mis)understanding of Kerala.

According to the Consumer Pyramid Kerala ranks first, and not sixth, in terms of per capita household income Kerala’s per capita income in 2009 at Rs 63,000. It was the highest among all states in the country. The official per capita NSDP understates the income of Kerala households by 22 per cent at Rs 49,000. Kerala does not generate much income, but its households receive lot of transfers in the form of remittances from its people working outside. These transfers raise the purchasing power of Kerala households substantially. Kerala is correspondingly a big spender.

As a result, its household savings rate is close to the all-India average In Kerala, the people maintain a good standard of living. Above 90% of the people, own the land they live in. In Kerala all people are educated, they read newspapers, they watch television, they are socially, politically more self-aware. The condition of the people of Kerala is comparable to any western nation. In Any other state, all development is limited to few cities. Once you go out of cities it is like travelling to some stone age. In Kerala all places are equally developed. Kerala people are always keeping their tradition.

One among is reading newspapers daily. Hence most preferred source for accessing daily information Among rural Kerala are newspapers (33%). Telecommunication and satellite technologies have made television as a household item even in villages. Television along with radio is the second most preferable media of getting daily information. This is followed by accessing information from the friends 51 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM (15. 5%). Libraries unfortunately play a small role (7%) for providing daily information needs.

Since knowledge on computer and its applications has become an inevitable factor of this present digital era. By computer knowledge, the rural people under study have achieved to get better from the activities relating to their areas of working. Students are enjoying the easiness in academic activities (93. 2%) at the same time large number (65. 7%) of the housewives and (37. 5%) of the labours are utilizing the new communication facilities available through computer as well as internet There is a small portion of the professionals (36. 3 %) and students (18 %) having own computer at home.

Using internet has become a necessity of the people in Kerala. Most of the results of Kerala Govt. are publishing through internet and online applications also very common among the Kerala Public Service Commission. The people in rural Kerala giving a least preference to the entertainment facilities of computer (15. 7%) and they are using computer in an efficient and effective manner A picture representing rural market Most of the rural Kerala market is not fully utilized by the telecomm industry. Therefore, there is a great chance for development of a profitable market in the rural Kerala. 52

A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM 53 A study on data sales of airtel in rural market at Bharti Airtel Ltd, TVM RURAL ALLEPPEY About Alleppey: ? ? ? Area1,414 Sq. Km. which constitutes 3. 64% of the total state area. The population size 21,09,160 persons, ranks the 9

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