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Telecom Sector Analysis

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Submitted By ABHI1808
Words 1024
Pages 5
Customer acquisition
In India, Airtel was first launched in Delhi in August, 1995. At that time the market was at nascent stage, awareness level among the people was very low and all the service providers tried to educate people and spread awareness. As new players came into market, number game was started with a range of schemes being offered to entice customers. Initially the mobile phone was considered as a status symbol and utility was not of that much importance. So the company’s main strategy was to target corporate and high income group people. The initial target was about 1.5 lakh customers. But the steep rise in license fee by Department of telecommunication made Airtel to expand their markets to break-even. In the initial two years, this led to a number of offers and schemes being provided to customers.
With its launch, Airtel has captured the bulk of the high usage premium clients. It was perceived as a high quality provider. This quality is still the distinction factor between airtel and others. Airtel acquired the market in Telecom industry by positioning its Brand value in the minds of the people. After capturing most of the urban market, now it is aiming to target rural population. This seems to be a very interesting strategy by airtel which is perceived to be used by high end users.
In order to target Rural areas, Airtel first studies the commercial viability of a rural community that includes a number of small and large villages on the basis of diffrenet parameters like livelihood source, average per capita income and involvement in frequent commercial transactions or travels. Based on specified criteria, company has developed a deployment strategy. First of all, selected villages would receive a base station, which will cater nearby communities too. For efficient utilization of of each of the base stations, It tracks the revenue generated per

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