Airtel Magic - Selling a Pre-paid Cellphone Service.doc by handongqp

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									Airtel Magic - Selling a Pre-paid
Cellphone Service
"Magic's success can be attributed to the one on one relationship that the brand has built
successfully with its customers. Add to that the vibrant colours, the local language and
simplicity that the brand communicates with, and the celebrity association, Magic creates
a lasting bond with its customers."

                           - Vivek Goyal, CEO, Bharti Mobitel Ltd., in January 2002.

Casting the Celebrity Magic
In 2002, the leading Indian telecommunications company, Bharti Cellular Limited
(Bharti) signed the famous cricket player Saurav Ganguly and leading movie stars,
Madhavan and Kareena Kapoor as endorsers for its brand, Airtel Magic (pre-paid cellular
card). Its objective was to create the highest recall for Magic in the pre-paid cellular
telephony segment by cashing in on the two biggest passions of India – movies and
cricket. Bharti also changed the tagline for Magic from 'You Can Do Magic' to 'Magic
Hai To Mumkin Hai' (If there is Magic, it's possible). The move attracted considerable
media attention, as it was unusual for a company to spend so lavishly to promote a single
brand.

                                In October 2002, Bharti launched a television commercial
                                (TVC), featuring Shah Rukh Khan (leading actor, already
                                    endorsing Magic since a couple of years) and Kareena
                                   Kapoor. The TVC, developed by one of India's leading
                             advertising agencies, Percept Advertising, was the first of the
                                           series of four TVCs for Magic's new campaign.

                                 According to Bharti, the TVCs aimed at attracting young
                                  adults in SEC B and C categories of the Indian market1.
                                 Commenting on the new developments, Hemant Sachdev
                                             (Hemant), Director, Marketing and Corporate
                              Communications, Bharti Enterprises, said, "The aim is to be
                              relevant to the masses and make all their dreams, hopes and
                                        desires come true instantly, at Rs 3002 per month."

However, industry observers felt that these actions were necessiated by the intensifying
competition in the pre-paid cellular card segment in India in the early 21st century (Refer
Exhibit I for a note on cellular telephony). Many new players (national as well as
international) had entered the segment and the competition had become quite severe.
Besides Magic, the major players in the pre-paid card segment in 2002 included Idea
(Tata, AT&T and Birla Group), Speed (Essar), Hutch (Hutchison), Wings (RPG),
Cellsuvidha (Fascel) and Yes (Usha Martin). In October 2002, Magic led the market,
with 30% of the market share.

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1] Socio-Economic Classification (SEC) categorized urban Indian households into five
segments          SEC           A,         SEC          B,          SEC            C,
SEC D and SEC E, based on education, occupation and chief wage earner's profile. A&B
are           high            SEC            classes.           Mid              SEC
class    is    SEC     C       and    low     SEC      classes    include       D&E.

2] In November 2002, Rs 48 equaled 1 US $.


Airtel Magic - Selling a Pre-paid
Cellphone Service
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Casting the Celebrity Magic Contd...
Bharti claimed that its strategies were one of the most ambitious experiments ever in the
Indian pre-paid cellular telephony market. However, given the increasing competitive
pressure, doubts were being expressed regarding the ability of Bharti's marketing
initiatives to help Magic retain its 'Magic' in the future.

Background Note
Cellular telephony was introduced in India during the early 1990s. At that time, there
were only two major private players, Bharti (Airtel) and Essar (Essar) and both these
companies offered only post-paid services. Initially, the cellular services market
registered limited growth. This was primarily due to the high tariff rates charged by the
companies (about Rs 16 per minute for outgoing calls). Indians who were used to paying
much lesser amounts (Rs 1.20 for 3 minutes) for landline telephone calls found these to
be very expensive.

                            However, as there were only two players, a monopoly regime
                                 prevailed. The tariff rates as well as the prices of cellular
                           phone handsets (instrument) available in that period continued
                               to remain high. Hence, cellular phone services during that
                                  period were regarded as a luxury and companies mostly
                                targeted the elite segment of the society. Moreover, these
                               services were mostly restricted to the metros. Other factors
                                           such as lack of awareness among people, lack of
                                        infrastructural facilities, low standard of living, and
                                government regulations were also responsible for the slow
                                   growth of cellular phone services in India. Although the
                               cellular services market in India grew during the late 1990s
                                (as the number of players increased and tariffs and handset
                                     prices came down significantly) the growth was rather
                                                                                      marginal.

This was because the cellular service providers offered only post-paid cellular services,
which were still perceived to be very costly as compared to landline communications.
Following this realization, the major cellular service providers in India, launched pre-paid
cellular services in the late 1990s. The main purpose of these services was to target
customers from all sections of society (unlike post-paid services, which were targeted
only at the premium segment). On account of the benefits they offered (Refer Exhibit I),
pre-paid cellular card services gained quick popularity during the late 1990s.


Airtel Magic - Selling a Pre-paid
Cellphone Service
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Background Note Contd...
Between the late 1990s and early 2000s, tariff rates declined 75%. Reportedly, Indian
cellular players were offering the lowest cellular tariffs in the world (Rs 1.99 for 60
seconds). By October 2002, of the 8.5 million cellular phone users in the country, 65%
belonged to the pre-paid segment. Also, an estimated 80% of the new add-ons were pre-
paid card subscribers. Bharti, being one of the early entrants in the industry, (Refer
Exhibit II for a note on Bharti), launched its own pre-paid cellular service under the
Magic brand in January 1999. Magic was first launched in Delhi and later in other
circles3 in India (where the company offered cellular services under its flagship brand,
Airtel). Through Magic, Bharti targeted the infrequent users of mobile phone.

                              Acquiring Magic connection was very easy – all a customer
                              needed to do was walk into an outlet (selling Magic) with a
                            handset. Here the customer was provided with a pre-activated
                            SIM card4 (which had to be loaded with the calling value) and
                               a recharge card (which was required for loading the calling
                                 value into the SIM card). These cards were valid only for
                                   specific period (beyond which the services could not be
                             availed), depending on the value of the recharge card loaded.
                                Whenever a customer utilized his Magic card, a specific
                                  amount was deducted as per the applicable tariff rates.
                                Customers were required to recharge the card before the
                              expiry of the validity period to avail the services (further).
                           When the card was recharged, customers were provided with a
                                     new calling value possessing a new validity period.

The company provided a grace period of 30-90 days based on the denomination of
recharge card. However, no incoming or outgoing calls were allowed during this period.
The attractively designed Magic cards could be activated/recharged by using a 16-digit
number. Bharti adopted the international 'scratch system' for Magic cards, that is,
customers were required to scratch a marked area on the card to acquire this service
recharge or activation number.

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3] India was divided into 21 'telecom circles' (circles). These circles were divided into
three             categories           'A,'             'B,'            and            'C'
based on their size and importance. Category 'A' - Maharashtra, Gujarat, Andhra Pradesh,
Karnataka                      and                       Tamil                     Nadu.
Category 'B' - Kerala, Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh and
West                  Bengal.               Category                   'C'               -
Himachal Pradesh, Bihar, Orissa, Assam and North East. Cellular licenses were
separately          issued        to          the          four          metros         in
India        –         Delhi,       Chennai,         Mumbai           and        Kolkata.

4] Subscriber Identification Module (SIM) card is a smart card that allows cellphone
users           to             make            and            receive             calls.
The SIM card contains a microprocessor chip, which stores unique information about the
user                      account,                   including                      his
phone number and security numbers, thus helping the network to identify the user.

Background Note Contd...
To establish Magic as a brand and make it more accessible, Bharti focused on its
distribution strategies. Apart from company outlets, Magic was made available at
departmental stores, gift shops, retailing outlets, telephone booths and even 'Kirana'
stores (small grocery shops). Besides the absence of rental hassles and security deposits,
Magic offered features such as instant connectivity, pre-activated STD/ISD facility
(customers did not have to maintain a minimum balance in the pre-paid card for utilizing
the STD/ISD services), voice mail and short messaging service (SMS). To meet the
requirements of varying customer groups Magic was made available in various
denominations (ranging between Rs 300 to Rs 3,000). Due to its innovative and
customer-friendly features, Magic came to be credited by industry observers for bringing
about dynamic changes in the Indian cellular services market and expanding the cellular
user base.

                            Thus, providing affordable and easily accessible services to all
                            sections of the community and maintaining strong relationship
                                with customers, Magic was able to differentiate itself from
                                                          other pre-paid cellular services.

                                  Magic soon became the market leader and was the most
                                  visible pre-paid cellular brand in the country – aided by
                                  Bharti's (and Airtel's) strong presence in 16 states of the
                                        country (reaching around 400 million customers).

                            By 2002, it became the largest selling pre-paid cellular card in
                             India. However, Bharti was not content with sitting back and
                                  savoring the short-term success of Magic. The company
                                    realized that the Indian cellular telephony market was
                                                       undergoing a radical transformation.

With the entry of a fourth players in various telecom circles in 2002 (until then only three
players were operating in all circles), the future was expected to be rather uncertain. The
subscriber base was over 6.4 million by March 2002 as compared to 3.5 million in March
2001. Telecom circles in the states of Rajasthan, Haryana and Kerala posted an estimated
growth rate (in subscribers) of 179%, 151% and 151% respectively in 2002. This growth
could be primarily attributed to the introduction of pre-paid cards, which accounted for
over 55% of an operator's revenue. In early 2002, analysts forecasted that the number of
subscribers using pre-paid cellular services in India was estimated to reach over 25
million by the year 2004 (from 4.5 million in 2002).

Background Note Contd...
The immense potential the market offered lured almost all major players to shift their
focus to the pre-paid segment to design new marketing strategies to expand their user
base in this segment. With the intensifying competition in the market, Bharti also felt the
need to revamp its own marketing strategies and retain its position as the market leader.

All Set to Create Magic
In early 2002, Magic decided to revamp its marketing strategies. There were plans to
launch the service in newer areas and bring about changes in pricing, positioning and
advertising. The company also planned to make new value additions by providing better
services. As a first step in this direction, Magic was brought under Bharti's umbrella
brand, Airtel, and was renamed Airtel Magic. Company sources said that the move was
aimed at banking on the strengths of Airtel as a brand.
                             While the earlier brand strategy aimed at customers interested
                                    in using mobile services, the new strategy was aimed at
                             attracting even non-interested customers by appealing to their
                                needs and requirements (offering them a value they did not
                                                                           perceive earlier).

                              In line with this strategy, Magic was positioned as a friendly,
                                   mass-market brand. Sources at Bharti revealed that in its
                              repositioning exercise under the Airtel brand, Magic targeted
                             youth and stood for simplicity and attitude that said, 'anything
                                      is possible.' Explaining the rationale behind the brand
                            repositioning on the Airtel level, Hemant said, "As we grew to
                             a 15-circle telecom network, we wanted to become generic to
                                                                     mobility in the country."

As a part of its revamping exercise, Bharti also changed the logo. The new Magic logo
reflected the new brand values of youthfulness, energy, simplicity and friendliness (See
Exhibit III for Old and New Logos of Magic). Bharti then focused on extending its
distribution base in all the circles in which it operated and therefore, ensured the
availability of Magic cards in the remotest parts of its operating circles. By late 2002, the
states of Kerala and A.P. had 2000 and 4,500 stores respectively. In Chennai (Tamil
Nadu) and Kolkata (West Bengal) there were over 2,500 and 3,000 outlets respectively.

All Set to Create Magic Contd...
In mid 2002, in an innovative move, Bharti entered into a strategic tie-up with a leading
Indian private sector bank, ICICI to offer recharge facility for Magic cards users at the
bank's ATMs5 across Andhra Pradesh, Delhi and Kolkata. Commenting on this, Pawan
Kapur, Chief Executive, Bharti Mobile (Andhra Pradesh) said, "It is another innovative
combination of customer benefit and technological advancement." Bharti also focused on
revamping of its pricing strategies from time to time (at regular intervals) in order to stay
ahead of competition. The company charged different rates for incoming and outgoing
calls depending on the time when the call was made. For instance, customers in Delhi
were charged Rs 1.35 (per 30 seconds) and Rs 0.99 (per 30 seconds) for incoming calls in
the time slot of 8.00 am and 10.00 p.m.

                            However, these rates were much lower at night (outgoing calls
                            cost only Rs 0.67 for 30 seconds, while incoming calls cost Rs
                            0.49). In order to increase its penetration in the market, Magic
                                also came up with many special offers during mid and late
                             2002. In mid 2002, Magic was made available at only Rs 290
                               (as against Rs 300 previously), which included Rs 90 worth
                              free talk time valid for 7 days (as against Rs 50 previously).
                               One of its special launch offers included providing free talk
                            time worth Rs 290 to new subscribers (Rs 145 worth talk time
                                  free at the end of the third month and the balance Rs 145
                              worth, at the end of sixth month from the date of making the
                              first call from magic card). Free voice mail service was also
                                   offered to new subscribers for a period of three months.

As a part of its efforts to expand its reach, Bharti offered and introduced many special
features for Magic subscribers. These included free caller line identification, and
innovative services like balance on screen (balance amount displayed at the end of each
call) and balance on demand (balance amount derived by pressing specific numbers on
the phone without making or receiving a call). Bharti also introduced doorstep delivery of
Magic cards in mid-2002.

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5] ATMs (automatic teller machines) interact with users and with the central system of
the             concerned            bank            to           execute            a
transaction (dispense cash and print receipts). Customers wishing to recharge a Magic
card                were               provided              the               16-digit
recharge pin number through a printed receipt.

All Set to Create Magic Contd...
Although the service was initially available only in Delhi and Gurgaon (for a recharge
value of Rs 500 and above), there were plans to extend it to other circles as well. In mid
2002, Bharti launched its regional roaming6 network in Asia for Magic subscribers.
Under this offer, subscribers were able to utilize roaming services in over 66 countries
across the world, underlying Europe, Australia, the Asia-Pacific region, the Middle East
and the US. This service was offered free of charge for calls placed through any Airtel
network in India. Regional roaming facility was offered to customers within the country
as well in mid 2002.

                             Apart from this, the company also waived airtime charges on
                                 incoming calls between Airtel cellular customers (intra-
                               operator calls) in some parts of the country. New celebrity
                                endorsers who projected a fresh and youthful image were
                                  chosen. The idea was to reflect Magic's brand values of
                                                 energy, hope, optimism and achievement.

                                         Explaining the rationale behind focus on celebrity
                                  endorsements, P H Rao, MD, Bharti Mobinet Ltd., said,
                                   "Magic is a youth brand, and all these celebrities depict
                              exuberance and confidence to succeed, which are in synergy
                               with the core values of the product." These campaigns were
                               extensively covered by both the print and television media.

Besides the new tagline of 'Magic Hai To Mumkin Hai,' Bharti devised many ad-specific
taglines to take the brand closer to masses. Some of them were 'Kabhi bhi Kahin bhi'
(Anytime, anywhere) 'Jahan Chaho, Airtel Magic Pao' (Wherever you want, you will find
Magic), Airtel Magic gives you the max out of life, 'Kharch aapki mutthi mein' (Costs are
under your control) and 'Life banao ab aur bhi aasaan' (Make life easier with Magic). To
promote the brand and retain its customers, Bharti conducted many contests for its
subscribers through SMS. For instance, the 'Khulja Sim Sim' contest launched in April
2002, offered a treasure hunt kind of an interactive game through SMS, wherein many
attractive prizes were given to the winners.

Many other such contests were held, either as part of a new scheme's promotional efforts
or to coincide with some local Indian festival. In 2002, Bharti entered into many new
telecom circles as the fourth player. Due to the strong brand equity of both Airtel and
Magic it picked up instant momentum. Magic was reportedly very popular with
customers (especially the youth) who appreciated the (ease of operation, affordability and
ready availability) the brand offered.

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The Industry Strikes Back
Bharti's aggressive marketing, advertising and promotional efforts led other players to
focus on their marketing efforts as well (Refer Exhibit IV for competition details).
Companies resorted to price reductions, new service additions, value additions and
focused advertising and promotional campaigns. For instance, in Mumbai, BPL Mobile
and Hutchison Max Telecom made incoming calls (from across the country) free to
counter Bharti's waiver of airtime charges for incoming calls in Mumbai. Apart from this,
BPL and Hutchison also announced the launch of new advertising campaigns in Mumbai.
Hutchison and BPL also launched their 32K7 SIM cards in order to match Bharti's 32K
SIM offer (previously, the players offered only 8-Kilobyte memory SIM cards).

                                 BPL and Hutch also waived airtime charges for incoming
                             calls and reduced their roaming service charges. Both Hutch
                                 and BPL announced a flat rate of Rs 1.49 (60 seconds) as
                           roaming charges, as against the previous Rs 3 (60 seconds) on
                            all partner networks. In January 2002, Spice allowed national
                                        roaming named Spice Quicky on its pre-paid card.

                            In late 2002, in the light of price slashes by Bharti, Hutch and
                               BPL, MTNL also slashed tariff rates of its Dolphin cellular
                            service in Mumbai and Delhi, in order to sustain its market in
                                  these circles. Escotel, one of the leading cellular service
                                  providers in UP (West) launched roaming services (both
                                incoming and outgoing) for its pre-paid card subscribers in
                               late 2002. It announced plans to extend these services to its
                                                                      other circles as well.

In mid 2002, Idea Cellular Ltd. planned to focus on creating brand awareness and
launched an aggressive advertising campaign with an ad-spend of Rs 630 million (7% of
its net revenues). The company developed new TVCs to highlight the company's tagline
'Liberation through idea.' Apart from its advertising strategies, the company announced
plans to offer various value-added services that included games on mobile, SMS in 9
languages and pre-paid roaming facility. However, the company decided against the
usage of celebrity endorsements for its pre-paid cellular service, Idea ChitChat.

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The Industry Strikes Back Contd...
Bharti's competitors launched various promotional campaigns for their brands – many of
them copying those of Bharti's. While Spice awarded free talk-time to winners of a
Soccer World cup related promotional event, the subscribers of Idea ChitChat in Andhra
Pradesh could win gold coins, watches and talk-time under a special scheme. However,
the most severe competition was witnessed in the area of tariff reduction. In the
Karnataka circle, Spice reduced tariff rates on its pre-paid cellular cards, Simple and Uth
in mid 2002. According to the new rates, Simple subscribers were required to pay Rs 1.49
(30 seconds) both for incoming and outgoing calls (24 hours a day) and Uth subscribers
were required to pay only Rs 0.5 (30 seconds) at night as against Rs 0.75 charged
previously.

                               In September 2002, Spice even offered interesting and even
                             useful information like train timings, astrology, news, movie
                             tickets, cricket updates, stock market news through its brand,
                                  Genie. With Hutch Essar entering the Karnataka cellular
                              market as the fourth operator in 2002, both Bharti and Spice
                             were devising strategies to retain their respective positions in
                                                                                 the market.

                            The case was the same in Andhra Pradesh (AP), where Hutch
                             entered in August 2002. Hutch8 was becoming a formidable
                               competitor for Bharti in many circles. With its aggressive
                             marketing and promotional campaigns and a range of value
                              added services, Hutch had garnered considerable shares in
                                                             many circles by mid 2002.

Value added services offered by Hutch (through its advanced 16K SIM) included
regional roaming, dial-in service, voice messaging (in India and even to US or Canada),
voice mail, voice response service, unified messaging service and other online menu
services (such as SMS, railway information, train timings, movie tickets, stock market
news, TV schedules). In Kolkata, Hutchison's Command recorded over 55.03% growth
between January and August 2002, while Orange, Essar and Fascel reported growth rates
of 46%, 36.67% and 46.29% respectively for the same period.

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8] A brand belonging to the Hutchison group. Hutchison operated through the Orange,
Hutchison                              Max                               (Mumbai),
Celforce (Gujarat) and Hutch/Hutch Essar (Andhra Pradesh, Karnataka, Delhi and
Chennai) brands.

The Industry Strikes Back Contd...
In early August 2002, Hutchison announced a new scheme 'Go Hutch for Rs 74' in
Andhra Pradesh, wherein pre-paid customers were offered a talk time of worth Rs 175 on
purchase of a pre-paid card of Rs 249, which made Hutch pre-paid card cheaper to other
pre-paid cellular services in the state. In response to this, Bharti introduced its new Magic
Recharge scheme, under which, subscribers could accumulate free talk time for every
fourth recharge card bought. Bharti decided to design different marketing strategies for
different circles depending on the strategies, employed by the competitors.

                              While the company was focusing on its pricing strategies, its
                                 competitors in various sectors were concentrated on new
                                service offerings and value additions (For instance, in the
                              Chennai circle, the cellular war between RPG Group, Bharti
                                           and Hutch was more value and service driven).

                                    Since price reduction moves were almost immediately
                               matched by the players, companies had begun focussing on
                            developing value-added offerings and schemes to expand their
                                                        market and gain customer loyalty.

                             Analysts remarked that the players were coming up with new
                                 schemes or value-additions almost every week to get the
                                                               better of their competitors.

Some such schemes launched in mid 2002 included Tamil SMS and Audiotimes (a
service which enabled subscribers to send song clippings to other cell phone users) by
RPG. Bharti shot back with an offer wherein new Magic subscribers were given an
audiocassette containing popular Tamil movie songs.

Various value-added services were also offered in late 2002 in Chennai such as
Panchangam (SMS-based), which informed customers about good (and bad) timings
during the day. Bharti also tied up with a leading Internet portal, indiatimes.com to offer
news headlines and stock market news through SMS.

By constantly keeping itself abreast with the moves of its competitors and launching
various proactive/reactive schemes, Bharti was able to retain its leadership position.
Despite continual attacks from Hutch, RPG, Spice, Idea Cellular and BPL, Bharti's
cellular services received good high response in all circles during 2002.

The Industry Strikes Back Contd...
It was reported that in Mumbai, 60-75% of customers seeking Airtel services were BPL
Mobile and Hutch subscribers. In fact, it was becoming difficult for the company to
activate cellular connections in Mumbai swiftly on account of the high rush – in some
cases, it took almost three days to activate a connection.

The Future – Far from Magical
While the players in the cellular market in India were focussing heavily on the pre-paid
card segment due to its high potential, some analysts expressed doubts about the
profitability of this segment in the long run. They said that low profit margins from the
pre-paid segment (on account of low tariff and high advertising, promotional and
customer service costs) could lead to losses in the long run.

                               As the fierce competition would make price-cuts and heavy
                                 investments in advertising and promotions inevitable, this
                                     seemed quite possible. However, it was believed such
                              problems might be overcome by building up a vast customer
                              base and making up for margins by increasing sales volumes
                             (A company's cost per subscriber decreased with the increase
                                      in the subscriber base, thereby, resulting in increased
                                                                                    margins.)

                             However, the biggest challenge came in the form of CellOne,
                             a cellular service launched by the state-owned telecom major,
                                 Bharat Sanchar Nigam Ltd. (BSNL) in October 2002. Not
                                  only were the rental charges of CellOne much lower than
                             those of any other player, BSNL had plans to (further) reduce
                                                                                     tariff.

Given the vast reach of BSNL and years of experience in the Indian telecom sector, the
new, private players were justified in their fears. Moreover, BSNL did not have to pay
any license fee (8-12% of the revenue share paid by all private players) to the
government. Being a major stakeholder in the fixed line telephone network (90%), it did
have to shell a large share of its revenues as interconnect charges (over 70% of the calls
made from cellular network used fixed line network) for routing calls, both landline and
STD. With such control (on fixed line network) and established infrastructure, BSNL
could pose a severe threat to its competitors on the pricing front.

The Future – Far from Magical Contd...
With the Department of Telecommunications announcing plans to grant International
Long Distance (ILD) license to BSNL and BSNL planning to acquire a subscriber base of
over 4 million (by late 2003 across 1,000 cities), the competition in the cellular market
was expected to intensify further.

Meanwhile, true to the belief of industry observers that the cellular telecom sector would
see product/service innovations, Bharti launched a two-in-one cellular card in October
2002. This product offered both the features of post-paid and pre-paid cards in one card9.
It was aimed at customers residing in places where post-paid facilities were not available.

                            The product was available with all Magic vendors and ICICI's
                                                                                 ATMs.

                              Commenting on Bharti's leadership position, representatives
                                of BPL and Hutch said that Bharti might seem to have an
                              advantage at present but it was a long-term game and it was
                                                                      too early to respond.

                               As the market awaited the response of other competitors in
                              November 2002, Indian pre-paid cellular services customers
                                              expected the future to be anything but dull.

                            Competitive tariff plans, value-added services and to top it all,
                             entertaining advertisement campaigns – customers, perhaps,
                                                            could not have asked for more!

Exhibits
Exhibit I: Cellular Telephony & The Pre-Paid/Post-Paid Issue
Exhibit II: About the Bharti Group
Exhibit III: Old Logo of Magic & New Logo of Magic
Exhibit IV: Post-Paid & Pre-Paid Cellular Brands in India (Late 2002)



9] The starter pack of the product costed Rs 999, which included an airtime worth Rs 499
and                         which                        carried                      an
additional charge of Rs 10 as rental charge every day. For both, incoming and outgoing
calls,                     customers                    were                     charged
at Rs 1.15 (30 seconds) between 8 am and 9 pm and Rs 0.25 between 9pm and 8am.

								
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