Case Study Aircel vs BSNL

8/14/2019 Case Study Aircel vs BSNL

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CASE STUDY SERIESBY AFTERSCHOOOL

CASE STUDY AIRCELby :Dr. T.K. Jain

AFTERSCHOOLcentre for social entrepreneurshipsivakamu veterinary hospital roadbikaner 334001 rajasthan, india

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HISTORY OF TELECOM IN INDIA1850The first Experimental Electric Telegraph Line was started between Calcutta and DiamondHarbour.November

1953Construction started of 4,000 miles of telegraph lines connecting Calcutta and Peshawar inthe north via Agra and Bombay through Sindwa Ghats, Bombay and Madras in the Southas well as Ootacamund and Bangalore.October1854The first Telegraph Act enacted.February1855Electric telegraph opened to public traffic.

1857The Mutiny? ElectricTelegraph saved India? Dalhousie.1858First Indo-Ceylon cable laidJanuary1865First Indo-European telegraphs communication effected.1867A new cable laid between India and Ceylon.1871International Telegraph Conference at Berne and Rome.Octobe 1872Interference to Telegraph Working by Magnetic Storm.1873Duplex Telegraphy introduced in India between Bombay and Calcutta1873

Indigenous manufacture of cables for river crossing by Telegraph Workshops, Alipore.August1875The first Private Telephone line supplied by the Telegraph department.August1877Indian Telegraph Department erected telegraph line between Srinagar and Gilgit on behalfof the Maharaja of Kashmir.1878For the first time (except the first year) the receipt of the Indian Telegraph Department

exceeded the expenses, netting a surplus Of Rs. 182,128.July 1880I.T.D. transferred responsibility of the Ceylon Telegraph System and offices to the Ceylon


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Government.November 1881Licenses granted to Private Companies to operate Telephone Systems at Madras,Bombay, Rangoon, and Calcutta.January 1882Opening of telephone exchange at Bombay.

October1885Upper Burma Campaign? I.T.D. helps in providing communications for swift advance.Introduction of Quadruplex telegraphy and copper wire for transmission.1886Copper wire for transmission between Bombay and Madras instead of iron wire.1887Facilities afforded to Indian Meteorological Service for communicating? Storm Signals? toall places.

1888Post Office and Telegraph Department combined as quasi- commercial departments.January 1889Death of Dr. O? Shaughnessy at Southern.1892 -95Construction and control of Telegraph System of Kashmir State by I.T.D.1895 -96Phonograms introduced for the first time at Bombay and Calcutta.1902First wireless telegraph station established between Saugor Islands and Sandheads.1903Field Telegraphs for Sikkim, Tibet.1903Reorganisation of Superior Establishment in Telegraph. Departmental Wireless Telegraphintroduced.

1904Wireless Telegraph introduced between Elephant Point and Amherst.1905Control of Telegraph Department transferred from P.W.D. to Commerce and IndustryDepartment, except for matters connected with Buildings and Electricity.1906Baudot system introduced between Calcutta and Bombay, and Calcutta and Rangoon.August

1907Central Battery working of telephones was first introduced in Kanpur.December


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1907Women signalers employed for the first time.1907-08Wireless Telegraph working between Diamond Islands and Port Blair were successfulduring the nights of cold weather.

1908Wheatstone working between London and Calcutta, Madras and Rangoon.1909Wireless Telegraph Traffic was maintained with ships at-sea from Calcutta stations atDiamond Island, Table Island, etc.April1910Birth of Technical Branch as a separate organization for dealing with the technical mattersunder Electrical Engineer-in-Chief.

December 1910Telegraph Department awarded a gold medal in the Unite Provinces Exhibition held atAllahabad.1910-11Introduction of Circle Scheme in the department and decentralization.1912-14Amalgamation of Postal and Telegraph Department under a single Director-General.Reversion of control of P&T again to P.W.D.1913-14First automatic exchange at Simla with a capacity of 700 lines with 400 actual connections.1914-Production of war materials by Workshops.April1919Lady operators employed in Simla Exchange.1920

Madras-Port Blair route for Wireless Telegraph opened.May 1921Recurrence of Magnetic Storm after a period of 50 years. Telegraph Traffic in south Indiainterrupted.August 1921National Cash Registers introduced in Calcutta C.T.O. for the first time.

1921

Continuous wave transmitters for wireless telegraphy replace the spark transmitters.


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1921Introduction of R.A.X. at Poona.1922Department erected a line for Tibetan Government from Gyantse to Lhassa.

1923Long distance dialing (90 miles) introduced between Lahore and Lyallpur.1923First Trunk Telephone Circuit in Burma established between Rangoon and Pegu.1923-24152 questions relating to Department were asked and answered in the LegislativeAssembly.1924

Floods and cyclone interrupted Telegraph Traffic throughout India.Ist April1925Accounts of the Department re-constituted on the basis of a full-fledged commercial unit.1925-26Conversion of Delhi Manual system to Auto System. Deluxe telegrams for greetingmessages with foreign countries introduced.23rd July1927Radio-Telegraph started working between U.K. and India. The beam station at Kirkee andDhond opened by Lord Irwin and greetings exchanged with the King of England.May1933Radio-Telephone communications between England and India opened by India Radio andCable Communication Co. Special Trunk Exchange was installed at Kirkee.December1936Indo-Burma Radio-Telephone service started functioning between Madras and Rangoon.

1936-37

Use of Trunk Lines for broadcasting programmes introduced.1937Burma and Aden Telegraph Systems, which were a part of Indian Telegraph System,separated.

1937

Deluxe Telegram with foreign countries introduced.

1938-39Construction of short wave and medium wave wireless telegraph receivers in a number ofstations and direction finding stations at Gaya and Allahabad.


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1940Introduction of? Urgent Private Inland Trunk Calls?. Overseas Telephone Servicetemporarily suspended due to war conditions.1942

Bombay Australian wireless Telegraphic service inaugurated.February1942Bombay-China Wireless Service inaugurated. Training center at Calcutta transferred toJabalpur.1942The Bombay Telephone Workshop was taken over by the I.T.D.1943The Jabalpur Telegraph Workshop started.

1943

The Bombay, Calcutta and Madras Telephone Systems were taken over by I.T.D.1943Telecommunication Development Scheme came into operation. ATelecommunication Development Board was set up.August1944Bombay-New York Wirless Telegraph Service was commissioned into service.September 1944Second civilian outlet to U.K., Delhi and London Wireless Telegraph Service inaugurated.1947India was represented at the important Atlantic City International Radio Conference.1947

Direct Telephone link to Kashmir and Assam.1947The late Sardar Patel launched Jalaprabha on Telephone Carrier Channel and Wireless.1st June1949Introduction of Hindi telegram in Devanagari script.December1949? Own Your Telephone? Scheme inaugurated.

1949Wireless Station commenced functioning at Srinagar.


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1949-1950State Merger Scheme; the P&T gradually took over the respective State P&T Systems.January1950India-Afghanistan Wireless Telegraph Service inaugurated. Radio-Telephone Servicebetween India and Nepal inaugurated.

May-June1950Coastal Wireless Stations at Karwar, Ratnagiri and Mangalore started.October1950The Wireless Telephone Service between Indonesia and India opened.November1950Private Priority Telegram introduced.1950

? Own Your Telephone Exchange? Scheme began to operate.December1950? Telegraph Wires (Unlawful possession) of 1950, Act was passed by Parliament.March1951The First Asian Games held at Delhi was conveyed by a direct Radio telephoto servicebetween India and Japan. Innovation of Radio-Telephoto Service.December1951Launching of S.S. Jalapushpa of Scindia Steam Navigation Company at Vizagapatam byShri N.V. Gadgil from Bombay through telegraph circuits.Wireless Telegraph link toThailand.June1951Wireless Telegraph link to Moscow.July1951Wireless Telegraph and Telephone link to Egypt. First Toll Cable: Delhi-Ghaziabad.September 1951Wireless Telegraph and Telephone link to Iceland.

Mar/Aug 1952Wireless Telephone link to Iran/Japan.195312 channel carrier systems introduced.1953First Automatic Exchange in Calcutta. Telex Service in Bombay.First 12-Channel CarrierSystems. Introduction of Frequency Modulation.Mechanisation of Telephone Revenue

Accounting.July1959


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First Coaxial route between Delhi-Agra commissioned.November1960First subscriber trunk dialing route commissioned between Kanpur and LucknowDecember1965

First microwave route between Calcutta-Asansol openedFebruary1967First crossbar-local exchange commissioned at Mambalam ? Madras.December1967First crossbar trunk automatic exchange out into service at MadrasMarch1975First PCM system between city and Andheri telephone exchanges commissioned inMumbai?Advanced Level Telecom Training Centre? commenced training activities from

Delhi to be eventually shifted to its own campus in Ghaziabad.1976Installation of SPC gateway telex exchange and introduction of International Subscriberdialed telex service. First Digital Microwave System introduced in Calcutta Junctionnetwork1978Introduction of Press Bulletin Service (PBS).?Telecommunications Consultants IndiaLimited? set up in the public sector to provide consultancy services in telecommunications.1979First optic fibre system for local junction commissioned at Pune.1980First satellite earth station for domestic communications established at Secunderabad

(U.P.)1982First SPC electronic digital telex exchange commissioned at Bombay.

1983First SPC analogue electronic trunk automatic exchange commissioned at Bombay.1984? Centre for Development of Telematics (C-DOT) was established as a society fordevelopment of digital switching system.1985First Mobile Telephone Service introduced at Delhi.First Radio Paging introduced in Delhi.1986

?Mahanagar Telephone Nigam Limited? And? Videsh Sanchar Nigam Limited? Wereestablished.


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1987First digital coaxial 140 Mb/s between Ahmedabad and Rajkot commissioned.1988International gateway packet switch system commissioned at Bombay.

1991I-Net exchange commissioned Inmarsat coastal earthstationatARVItoprovidemaritime communication.Voice Mail Service (VMS) introduced inDelhi.

1994Announcement of National Telecom Policy.Cellular telephone service started in Calcuttaand Delhi.Internet service provided by VSNL.ISDN service started commercially.

1995The? Telecom Regulatory Authority of India? Wasset up.Wireless in Local Loop (WLL)telephone system introduced in MTNL Delhi.Indo ? Nepal Optical Fibre linkCommissioned.Basic Telecom Services opened for private competition.1998New ISP Policy was announced.1999New Telecom Policy .DOT is separated into two organs- DTS and DTO.2000Telecom disputes, settlement and Appellate Tribunal was established.National LongDistance Service opened for private competition. Bharat Sanchar Nigam Limited is born.2001Convergence Bill to promote, facilitate and develop the carriage and content ofcommunications tabled in the Parliament.Policy for GMPCS service has been announced.Policy for PMRTS has been announced.Policy for UMS was announced.2002

VSNL came under private management. International Long Distance Service opened forprivate competition. Internet telephony was started.

AIRCELAircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSMcellular phone coverage throughout India. Aircel was founded by NRI businessman CSivasankaran.Aircel is a joint venture between Maxis Communications Berhad of Malaysia and ApolloHospital Enterprise Ltd of India. Maxis has a 74% stake in Aircel and the remaining 26% is

with Apollo Hospitals. It is Indias fifth largest GSM mobile service provider with asubscriber base of over 27.7 million, as of October 31, 2009. It has a market share of12.8% among the GSM operators in the country. As on date, Aircel is present in 18 of the


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total 23 telecom circles (including Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai,Delhi & NCR, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Mumbai,North East, Orissa, Rest of Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal,Uttar Pradesh East, Uttar Pradesh West) and with licences secured for the remaining 5telecom circles, the company plans to become a pan-India operator by 2010. Additionally,Aircel has also obtained permission from Department of Telecommunications (DoT) to

provide International Long Distance (ILD) and National Long Distance (NLD) telephonyservices. It is also a category A ISP.Aircel Business Solutions (ABS), part of Aircel, is an ISO 9000 certified company. ABS is aregistered member of WiMAX forum both in the Indian and International Chapters. ABSproduct range includes enterprise solutions such as Multi Protocol Label Switching VirtualPrivate Networks (MPLS VPNs), Voice over Internet Protocol (VoIP) and Managed VideoServices on wireless platform including WiMAX.Aircel has won many awards for its services. Aircel was honored at the World BrandCongress 2009 with three awards, Brand Leadership in Telecom, Marketing Campaign &Marketing Professional of the Year. Aircel was honored by CMAI INFOCOM NationalTelecom Award 2009 for, Excellence in Marketing of New Telecom Service. Aircel had

been selected as the best regional operator in 2008 by Tele.net. Aircel was rated as thetop mid-size utility company in Business Worlds List of Best Mid-Size Companies in2007. Aircel got the highest rating for overall customer satisfaction and network quality in2006 by Voice and Data.Aircel is one of the sponsors of the Indian Premier League Cricket Team Chennai SuperKings, which is captained by Mahendra Singh Dhoni. It is also the major sponsors forChennai Open (the only ATP tennis tournament in India), and Professional Golf Tour ofIndia.In latest news, Maxis, Aircel's majority stake holder, raised RM11.2 billions (USD 3.36billions)for its shareholders, making it the largest IPO in Malaysia and Southeast Asia.Aircel boat. Aircel, placed an actual dinghy lifeboat to a downtown billboard. A rope with asign reading, In case of emergency, cut rope, held up the branded raft. July 15, 2009 themonsoon arrived and so did Aircel customer service. The dinghy was cut down andpedestrians were safely transported.

What Aircel calls Corporate Social Responsibility A Solution. The company was able togenerate positive publicity and show consumers that they care.

Aircel has grown to become the world's leading provider of air-to-ground

telecommunications. Its products are offered as standard or optional equipment by virtuallyevery aircraft manufacturer in business aviation, and are installed aboard the world's threelargest fractional ownership fleets, NetJets, Flight Options and CitationShares.

Since winning the FCCs exclusive air-to-ground broadband frequency license in a 2006auction, Aircell has successfully developed a groundbreaking new wireless broadbandservice for domestic airlines, business aircraft and passengers. Aircell's Gogo InflightInternet service keeps airborne commuters connected to the world below.

The Aircel group is a joint venture between Maxis Communications Berhad of Malaysiaand Sindya Securities & Investments Private Limited, whose current shareholders are the

Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding amajority stake of 74%.


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Aircel commenced operations in 1999 and became the leading mobile operator in TamilNadu within 18 months. In December 2003, it launched commercially in Chennai andquickly established itself as a market leader a position it has held since.

Aircel began its outward expansion in 2005 and met with unprecedented success in theEastern frontier circles. It emerged a market leader in Assam and in the North Eastern

provinces within 18 months of operations. Till today, the company gained a foothold in 18circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu &Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka,Delhi, UP(West), UP(East), Maharashtra & Goa and Mumbai.

The Company has currently gained a momentum in the space of telecom in India post theallocation of additional spectrum by the Department of Telecom, Govt. of India for 13 newcircles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh,Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan,Punjab, UP (West) and UP (East).

Aircel has won many awards and recognitions. Voice and Data gave Aircel the highestrating for overall customer satisfaction and network quality in 2006. Aircel emerged as thetop mid-size utility company in Businessworlds List of Best Mid-Size Companies in 2007.Additionally, Tele.net recognised Aircel as the best regional operator in 2008.

With over 25 million happy customers in the country, Aircel is a full-fledged nationaloperator.

COMPARISON TO BSNL

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largestTelecommunications Company providing comprehensive range of telecom services inIndia: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VOIP services, IN Services etc. Within a span of five years it has become oneof the largest public sector units in India.BSNL has installed Quality Telecom Network in the country and now focusing onimproving it, expanding the network, introducing new telecom services with ICTapplications in villages and wining customer's confidence. Today, it has about 47.3 million

line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, morethan 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFCCable, 63730 Rkm of Microwave Network connecting 602 Districts,7330 cities/ town sand5.5 Lakhs villages.BSNL is the only service provider, making focused efforts and planned initiatives to bridgethe Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in thecountry to beat its reach with its wide network giving services in every nook & corner ofcountry and operates across India except Delhi & Mumbai. Whether it is inaccessibleareas of Siachen glacier and North-eastern region of the country. BSNL serves itscustomers with its wide bouquet of telecom services.BSNL is numero uno operator of India in all services in its license area. The company

offers vide ranging & most transparent tariff schemes designed to suite every customer.BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering24 percent of all mobile users as its subscribers. That means that almost every fourth


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mobile user in the country has a BSNL connection. In basic services, BSNL is miles aheadof its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of thesubscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers whoaccess Internet through various modes viz. Dial-up, Leased Line, DIAS, and Account LessInternet (CLI).BSNL has been adjudged as the NUMBER ONE ISP in the country. BSNL has set up aworld class multi-gigabit, multi-protocol convergent IP infrastructure that providesconvergent services like Voice, data and video through the same Backbone andBroadband Access Network. At present there are 0.6 million Data One broad bandcustomers. The company has vast experience in Planning, Installation, network integrationand Maintenance of Switching & Transmission Networks and also has a world class ISO9000 certified Telecom Training Institute. Scaling new heights of success, the presentturnover of BSNL is more than Rs.351, 820 million (US $ 8 billion) with net profit to the

tune of Rs.99,390 million (US $ 2.26 Billion) for last financial year. The infrastructure asseton telephone alone is worth about Rs.630, 000 million (US $ 14.37billion).BSNL plans to expand its customer base from present 47 millions lines to 125 million linesby December 2007 and infrastructure investment plan to the tune of Rs. 733 crores (US$16.67 million) in the next three years. The turnover, nationwide coverage, reach,comprehensive range of telecom services and the desire to excel has made BSNL the No.1 Telecom Company of India.

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Case Study Aircel vs BSNL