Airtel - Positioning (And Repositioning)

Background Note

Sunil Bharti Mittal (S.B. Mittal) laid the foundations of the New Delhi based Bharti Group in the 1970s with a small bicycle-parts business. In 1985, he entered the telecom business by establishing Bharti Telecom Limited (BTL) that manufactured telephonic equipment. In the same year, BTL entered into technical collaboration with Siemens AG (Germany) for manufacturing electronic push button telephones. BTL also signed an agreement with Takacom Corporation (Japan) for manufacturing telephone answering machines. Over the years, BTL tied up with leading telephone equipment manufacturers from countries such as South Korea and US.

It even announced plans to acquire Usha Martin, the leading cellular service in Kolkata. It also entered into collaborative agreements with BPL to gain seamless access in Mumbai, Maharashtra, Chennai, Delhi, Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Bharti launched Airtel as a post paid cellular service in Delhi in November 1995. Over the next few years, the company redefined the way cellular services were being marketed in the country.

This was made possible due to its innovative marketing strategies, continuous technological upgradations, new value added service offerings and efficient customer service. Initially confined only to the Delhi circle, Airtel's services were soon extended to many other places. Through the Airtel brand, Bharti set many benchmarks for the Indian cellular industry. It was the first cellular operator to set up cellular showrooms. The company opened its first showroom 'Airtel Connect' in Delhi, in late-1995.

Airtel Connect was a one stop cellular shop where customers could purchase handsets, get new connections, subscribe to various value-added services and pay their mobile bills. Bharti was also the first cellular company to install a second mobile switching center³ in April 1997. The company was the first to provide roaming cellular services and other value-added services such as Smart mail, Fax, Call hold, Call waiting and Information services (Refer Table II).

Bharti was the first company to launch an online e-commerce portal that enabled customers to make online payments. It also provided them with information regarding cellular services and the features of handsets manufactured by various companies, along with their price. On account of such initiatives, during the late-1990s, Airtel was named the 'Best Cellular Service' in the country, and won the 'Techies' award⁴ for four consecutive years (1997-2000).

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2] The Indian telecom market was divided into 21 'telecom circles' (circles), which in turn, was divided into three categories 'A,' 'B,' and 'C' based on their size, density (population) and importance. Category 'A' comprised Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu; 'B' comprised Kerala, Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh and West Bengal; 'C' comprised Himachal Pradesh, Bihar, Orissa, Assam and North East. Cellular licenses were separately issued for in the metros of Delhi, Chennai, Mumbai and Kolkata.
3] The central switch that controls the entire operation of a cellular system. It is a sophisticated computer that monitors all cellular calls, keeps track of the location of all cellular-equipped vehicles traveling in the system, arranges hand-offs and keeps track of billing information. By operating multiple switching centers, cellular service providers can increase the efficiency of their operations significantly.
4] Techies awards are given to the best companies, technologies and products in the IT and Communication industry in India. These awards were instituted in 1996, by the group that publishes three IT magazines - Computer World, PC World and Informations Communications World.