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 Home > V & D 100 > 80. Aircel
  V & D 100
80. Aircel
Monday, July 16, 2001

Factsheet

CEO: KVP Baskaran
Year of Start-up: 1999
Area of Operation: Cellular services in Tamil Nadu
Address: Codissia Towers 7A-TB Road (Huzur Road) Coimbatore-641 018
Tel: 0422-217117 
Fax: 0422-218907

SWOT

STRENGTH: Aggressive service provider
WEAKNESS: Profitability could be an issue
OPPORTUNITY: n Mobile data services
THREAT: The Batata BPL JV formation

Aircel, the Sivasankaran promoted company providing cellular services in Tamil Nadu, has been the most aggressive service provider in the country. In fact, in a span of two years of operation, it has not only been able to make remarkable progress, but has also become the largest service provider in the state beating BPL, which has been in operation for at least four years now. During 2000-01, it notched up a subscriber base of 1,19,989 growing by about 79,750 subscribers and earned an estimated revenue of Rs 89.62 crore.

Aircel has, in fact, won the battle of subscribers by aggressive tariffs. It targeted the tea-shop owners, auto drivers, cable TV operators. It was the first cellular operator in the country to introduce a three-minute pulse. It also introduced competitive pricing. It came up with very low-priced tariff plans. It offered Rs 2 per minute kind of charges and free incoming calls and introduced another airtime free plan for corporates if they procured fifty cellphones. It also introduced mobile banking, e-mail services, access to stock market quotations and other services. The success has been because it had sufficient capacity to cater to on its exchanges. For further consolidation, the company is also interested in biding for the fourth license in the Chennai circle. This, it thinks, will bring synergy in its operations across the entire state and is now looking at the second round of network expansion.

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