2. SYNOPSIS
Aim:
The aim of this study is to analyze critically the Ahmedabad’s customer preference and their
satisfaction in Telecom Sector.
Objective of the Study:
1) To determine the technical factors which influence the purchasing
behavior of mobile connection.
2) To determine the marketing process elements which influence the
purchasing behavior of mobile connection.
Commerercial Viability of Study:
In today’s scenario communication has become much faster day by day by
telephone, internet, media etc. One of them is growth of Telecom sector. Today
many organizations provide services for telecom purpose. This study will help to
understand customer preferences and their satisfaction by the service provided by
different organizations in this sector. It will also help these organizations to form
various strategies and getting the results from marketing efforts.
3. Research Methodology:
This research consists of primary and secondary research.
Primary Sources
1) Interaction with customers by filling up of questionnaires.
Secondary Sources
Books
Internet
Articles
Magazines
Project reports
News papers
4. Acknowledgement
The success of this project depends upon the contributions of many people, especially
those who shared their precious and valuable time in giving thoughtful suggestions to
improve our work.
We would like to extend our sincere feelings towards our project guide Prof. KAVITA
SHARMA whose continuance guidance made this project a great success. We
especially thank our institute called IBMR which gave us this golden opportunity to
prove ourselves by doing something which is blend of both practical and theory.
A very special thanks to our Honorable Dean R.K. BALYAN and some students &
people who shared their opinion with us.
UTKARSH SINGH YOGENDRA PRATAP SINGH BADORIYA
5. EXECUTIVE SUMMARY
The development of telecom sector has experienced a major process of transformation
in terms of growth, technology content and market structure in the last decade through
policy reforms introduced by government. The impetus of these changes expected to
continue, and at a much faster pace.
The study aims to analyze that with the increase in competition in telecom services,
higher level of consumer satisfaction with affordable prizes and better quality of services
achieving or not. Wireless telephone and internet are expected to be the preferred
means of communication as convergence of telecommunications, broadcasting and
information technology progresses.
Liberalization of telecom sector of Indian economy aims at improving accessibility,
availability, reliability and connectivity through private sector participation and to bring
about much needed improvement in the quality of Services. Through increased
competition, the service providers expected to become more sensitive and responsive to
the customers needs and choices and endeavor to give him great satisfaction. TRAI has
the mandate to safe the customer’s interest and to set the standards of quality of
service. The rapid technological advances which have taken place in the telecom sector
have brought about significant improvements in the quality of service provided to
customers. With the digitization of exchanges and up gradation of external network the
fault rate has come down.
6. INDEX
1. Introduction
1.1 History
1.2 Quick Facts
2. Evolution of the industry-Important Milestones
3. Journey of telecom sector after 1991’s liberalization policy
4. Government Policies
4.1 The specific targets mentioned in the NTP 1999
4.2 Rural Telecom Network
4.3 Expansion of Telephone network
4.4 Entry of private sector in both basic and VAS
4.5 VAS challenges
5. TRAI
5.1 Functions of TRAI
6. Major Players in different segments of Indian telecom industry
6.1 Airtel
6.2 Idea
6.3 Vodafone
6.4 BSNL
6.5 Reliance
6.6 Tata Teleservices
6.7 New entries
7. Research objective
7.1 Approach to problem
7.2 Theory development
7. 7.3 Model development
8. Research Design
8.1 Types of Research to be undertaken
8.2 Survey method
8.3 Scaling methods
8.4 Questionnaires development
8.5 Sampling technique
8.6 Field work
8.7 Limitation of study
8.8 Sample size
8.9 Assumptions
9. Data analysis
9.1 Sampling
9.2 Observations
10. Findings
10.1 Total Analysis
10.2 Company wise Analysis
11. Conclusions and Recommendations
12. List of figures
13. Questionnaire
14. Bibliography
15. List of Abbreviations used
8. The telecom network in India is the fifth largest network in the world meeting up with global
standards. Presently, the Indian telecom industry is currently slated to an estimated contribution
of nearly 1% to India’s GDP.
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest in
the world and the second largest among the emerging economies of Asia. Today, it is the
fastest growing market in the world and represents unique opportunities for U.S. companies in
the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is
expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million broadband
connections and 18 million internet connections by 2007. The wireless subscriber base has
jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out
of every three new telephone subscribers were wireless subscribers. Consequently, wireless
now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in
2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month
by 2007. The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM
and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,
covering 2000 towns across the country.
9. HISTORY
1851 Introduction of Telegraph services
1947 Foreign Telecom Companies nationalized to form PTT
-Tele-density in 1980-81: 0.3%
-Introduction of public pay phones
1980’s: The -Private Sector allowed
Beginning -DoT, MTNL and VSNL formed
Early to Mid -Telecom policy 1994
90’s: - Basic telephony service to private operators
- 49% FDI
A Messy Affair - 8 licensees began operations in Aug 1995
Late 90’s - Birth of a regulator: TRAI
- NTP 1999
- (New Telecom Policy)
2000+ -CAGR of around 85% since 1999
- FDI: 74% (2005)
-Having the world's lowest call rates the fastest growth in the
number of subscribers (45 million in 4 months),
2007-2009 - The fastest sale of million mobile phones (in a week),
- The world's cheapest mobile handset
- The world's most affordable colour phone
Quick Facts
Total telecom subscribers : 429.72 million (March 2009)
Wireless subscribers : 391.76 million
Wire line subscribers : 37.94 million
Tele density : 36.98 per cent
India’s service providers revenue in Q1 (2009) $8.2 billion
India’s Rural Mobile Phone Users : 100 Million
10. Evolution of the industry-Important
Milestones
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta (seat of
British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC)
1947 Nationalization of all foreign telecommunication companies to form the Posts,
Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications
1985 Department of Telecommunications (DOT) established, an exclusive provider of
domestic and long-distance service that would be its own regulator (separate from
the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in Metropolitan areas.
1997 Telecom Regulatory Authority of India created.
2000 DoT becomes a corporation, BSNL
2008 3-G Service is launched
10
11. Journey of telecom sector after 1991’s
liberalization policy
Three forces--Telecommunication, Information and Globalization--are restructuring
every aspect of business and society. Telecom professionals are the key players in this
transformation. They play a crucial role as leaders in the changing dynamics of global
11
12. communications, internetworking, the Internet, e-commerce, mobile and wireless
communications strategy.
Modern age is the age of convergence and fusion for telecommunications. This fusion of
telecommunications, broadcasting and information technologies has resulted in amazing
discoveries. Voice over IP, television web casting over Internet and video on demand is
a reality. Telecommunications is a key to modern economy infrastructure.
Telecommunications when linked with computer becomes Information Technology,
which is the most dominating technology of today as it influences the entire spectrum of
the economy. IT practically covers all aspects of business, technology, manufacturing
and other services.
Today the networks and companies will no longer be categorized on the basis of only
voice, data or video services they provide. They have to become info-communications
companies providing a bundle of services.
Telecommunication has now become the backbone of any modern economy due to its
all-pervasive nature of running through almost every human transaction - commercial,
digital or even personal. The emerging new economy, powered by technology and
dictated by the digital revolution is incredibly forcing the telecom industry to grow more
than ever before.
The changing lifestyle of human beings enhanced by Internet, facilitated by mobile
communications and enriched by e-commerce would give a real boost to this industry.
As trade and industry grows, telecom services also have to expand commensurately
because it is one of the greatest infrastructure and life-blood for the modern trade and
commerce.
Telecommunications services are used for a variety of purposes. Modern communities
and businesses have come to rely on these services for:
• Social contact such as keeping in touch with friends and relatives and for organising
social activities;
12
13. • Business purposes which cover a wide range of uses from customer contact and
business transactions to inter-company communications;
• Emergency use for summoning police, ambulance and fire brigades;
• Cultural and entertainment use;
• Educational use where telecommunications services or applications replace or
augment traditional delivery of education; and
• On-line business transactions, education and entertainment using Internet access. In
this report Internet access is considered as a separate telecommunications service.
Government Policies
The main guiding policy for the telecom sector is the New Telecom Policy (“NTP”)
1999. The objectives of the policy are as follows:-
1. Access to telecommunications is of utmost importance for achievement of the
country’s social and economic goals.
2. Availability of affordable and effective communications for the citizens is at the
core of the vision and goal of the telecom policy.
3. Strive to provide a balance between the provision of universal service to all
uncovered areas, including the rural areas, and the provision of high-level services
capable of meeting the needs of the country’s economy,
4. Encourage development of telecommunication facilities in remote, hilly and tribal
areas of the country.
13
14. 5. Create a modern and efficient telecommunications infrastructure taking into
account the convergence of IT, media, telecom and consumer electronics and assist
emergence of India as an IT superpower,
6. Convert PCOs, wherever justified, into Public Tele-info Centres having
multimedia capability like ISDN services, remote database access, and assist
emergence of community information systems etc.,
7. Transform the telecommunications sector in a time bound manner to a greater
competitive environment in both urban and rural areas providing equal opportunities
and level playing field for all players,
8. Strengthen research and development efforts in the country and provide an
impetus to build worldclass manufacturing capabilities, Achieve efficiency and
transparency in spectrum management,
9. Protect defence and security interests of the country,
10.Enable Indian Telecom Companies to become truly global players.
The specific targets mentioned in the NTP 1999 are:
1. Make telephone available on demand by the year 2002 and sustain the position
thereafter so as to achieve a tele-density of 7 by the year 2005 and 15 by the year
2010,
2. Encourage development of telecom in rural areas making it more affordable by
modifying the tariff structure suitably and making rural communication obligatory
for all fixed service providers,
3. Increase rural tele-density from the current level of 0.4 to 4 by the year 2010 and
provide reliable transmission media in all rural areas,
4. Achieve telecom coverage of all villages in the country and provide reliable media
to all exchanges by the year 2002,
5. Provide internet access to all district headquarters by the year 2000,
14
15. 6. Provide high speed data and multimedia capability using technologies including
ISDN to all towns with a population greater than 2 lakhs by the year 2002.
RURAL TELEPHONE NETWORK
The objectives and targets of NTP 1999 for rural telephone network are as follows:
1. Encourage development of telecom in rural areas by making it more affordable
through tariff restructure and making rural communication obligatory for all fixed
service providers,
2. Rural tele-density to be raised to 4 per hundred by the year 2010,
3. Achieve 100% telecom coverage of villages by the year 2002 and provide
reliable transmission media in all rural areas.
Out of the 5,93, 485 villages in the country, 5,59,503 villages have been
provided with Village Public Telephone (VPT). 33,982 villages are yet to be
connected with a VPT. In percentage terms 94% villages have been covered by
VPTs and 6% villages are yet to be covered. There was a decrease of 4572 VPTs
during the financial year. The private operators share in these VPTs is very
negligible and almost the entire VPTs have been installed by BSNL. The total no. of
VPTs of BSNL was recorded at 5,19,616 in March 2008 as compared to 39,887
VPTs of private operators as on March 2007. Out of total 39.42 million subscriber
base of wireline, the Rural Subscriber base was 11.64 million on 31st March 2008.
The Rural teledensity as on 31st March 2008 was 9.20.
15
16. EXPANSION OF TELEPHONE NETWORK
The main objectives and targets of NTP 1999 with respect to expansion of telephone
network, other than rural network, which has been discussed above, are as follows:
1. make telephone available on demand by year 2002 and achieve tele-density of 7
percent by the year 2005 and 15 percent by the year 2010,
2. Provide internet access to all Districts Headquarters by the year 2000,
3. Provide high speed data and multimedia capability using technologies including
ISDN to all towns with population greater than 2 lakhs
by the year 2002,
4. Conversion of PCOs wherever justified, into Public Tele-Information Centres
having multimedia capabilities like ISDN services, remote database access and
information systems etc
The subscriber base of basic services (Wireline) recorded marginal
decrease by 3.28% in 2007-08 over the previous year. The mobile industry has
witnessed annual growth rate of 58.12%. The growth in absolute numbers in mobile
subscribers during 2007-08 was 95.96 million a compared to 66.34 million in 2006-
07. The total number of subscriber crossed 26149 million mark by the end of
16
17. financial year 2007-08. The total subscribers comprises of 192.7 million GSM and
68.37 million CDMA subscribers. Another service within the telecom sector, which
recorded substantial growth, was Internet and Broadband services. While the total
number of subscribers of Internet services increased from 9.27 million in March 2007
to 11.09 million at the end of March 2008 recording a growth rate of about 19.63%,
the subscriber base of Broadband increased from 2.34 million in March 2007 to 3.87
million at the end of March, 2008. There has been significant expansion of the
telecom network in the country as may be seen from the growth of various kinds of
services mentioned above. The overall tele-density during the year rose to 26.22 on
31st March 2008 as compared to 18.23 on 31st March 2007.
ENTRY OF PRIVATE SECTOR IN BOTH BASIC AND
VALUE ADDED SERVICE
Basic Service
After the announcement of the NTP-94, in September, 1994, the Department of
Telecommunications issued Guidelines for private sector entry into basic telecom
service. In early 1995, bids were called for basic service and were received in August,
1995. By March, 1996, the successful bidders were short-listed for providing basic
services and in 1997, license agreements with private basic service operators were
signed for six circles. However, unlike other services, the Basic Service did not take off
soon after the licenses were awarded. Subsequent to the announcement of the NTP
1999, TRAI’ recommendations were sought for grant of fresh licenses for basic telecom
service in the 15 vacant telecom Circles and for additional licenses in six Circles where
licenses had already been issued. TRAI had given its Recommendations to the
Government on 31st August 2000. In line with the TRAI’s Recommendations, the
Government issued the Guidelines for issue of Licence for Basic Service on 25th
January, 2001. These Guidelines provided for opening the Basic Telephone Service
without any restriction on the number of operators.
17
18. By the end of March 2008, 5 private BSO Groups namely, M/s Reliance Infocom Ltd.
(21 circles), M/s Tata Teleservices Ltd. (20 circles), M/s Tata Teleservices
(Maharashtra) Limited (2 circles), M/s Bharti Airtel Ltd. (17 circles), M/s Shyam Telelink
Ltd. (Rajasthan circle) and M/s HFCL Infotel Ltd. (Punjab circle) are licensed operators
providing wireline service. All the five private operators had migrated to Unified Access
Service Regime during 2003-04.
Value Added Services
Telecommunications had traditionally been a voice communication service. The
services today have moved beyond their fundamental role of voice communications to a
spectrum of non-core services, which in telecommunication parlance is called Value
Added Service (VAS). VAS are provided either directly by the telecom operators
themselves or by a third party Value Added Service Provider (VASP). VASP connects to
the core equipment of telecom operators through interworking units using protocols like
short message peer-to-peer protocol (SMPP), connecting either directly to the short
message service centre (SMSC) or to a messaging gateway that allows the telecom
operators to have control of the content. Unlike the core or basic services, the VAS
have unique characteristics and they relate to other services in different ways. They
also provide benefits which the core services cannot provide. Basically, there are two
types of Value Added Services –
(i) Value Added Services that stand alone from operational perspective and
(ii) Value Added Services provided as an optional service along with voice service.
Non-Voice services like SMS are examples of stand alone value added services. The
Value Added Services presently being provided by the telecom operators are in the
following areas:
18
19. Sl. No. Type of Value Description
Added Service
1. News National, International, Business, Entertainment , Sports
News
2. Finance Stocks (NSE, BSE, NASDAQ), Forex
3. Entertainment Games, Mobile TV and Jokes
4. Travel Railways, Airlines
5. Downloads Logos, Ringtones, Caller tones etc.
6. Astrology service Personal Horoscope / Personalized prediction
7. Cricket Cricket scores, Match clippings, cricket commentary
8. Missed call alters Subscriber to get a SMS alert of incoming calls when
the subscriber’s mobile phone is switched off / not
reachable and busy
9. E-mail E-mail through SMS
10. Music on demand Dial a song
11. Contest Reality shows
12. GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV
13. MMS Picture messages, picture clippings
14. Health Health tips, Beauty tips
15. M-commerce Transactions based services with multiple payment modes
and support in multiple domains like WAP, GPRS, SMS,
IVR and Web
16. Miscellaneous Devotional, Movies & Music, Fun, Navigation etc.
VAS challenges……
19
20. Operator Challenge
User Challenge
• Operators focusing on subscriber
acquisition with no incentives to • Operators not driving users
push VAS in light of current awareness to promote various
spectrum allocation criteria VAS offerings
• Spectrum constraints and delay in
3G roll-out has substantially limited • Ease of use, user interface and
high-end VAS take-off familiarity with medium of
access such as GPRS, IVR etc.
Value
Adde
d
Servi Revenue Challenge
ces
• Ongoing tussle between
operators and VAS
companies for revenue share
Content Localization Challenge continues
• Since alternative models
• Operators haven’t done much haven't evolved yet, this has
to customize content according hampered VAS innovation
to consumer behaviour
• • Limited availability of local Device Challenge
web content and WAP versions
of whatever is available
• Providing feature-rich handsets at low
cost is a big challenge with GPRS
enabled handsets still around INR 2,599
(USD 63)
• Pre-loading of applications by handset
OEMs has not really caught on yet
20
22. TRAI
TELECOM REGULATORY AUTHORITY OF INDIA
Telecom Regulatory Authority Of India, a statutory and quasi-judicial body was
formed by an Act in Indian Parliament to regulate the vast telecom sector. The
necessity to form such a regulatory body in line with SEBI, IRDA etc. was felt
when the telecom sector was open to private sector. Plainly speaking it’s job could
be comparable to an umpires’ of a game field. It has been given the liberty to act
without the intervention of bureaucracy or some self-serving politicians,
The skirmishes encompassing TRAI came to limelight due to conflict among various
telecom operators. That’s exactly the duty of this regulatory body, as has been
entrusted with the statutory power, umpiring on behalf of the public for smooth
telecom service.
If one reviews the sequence of it’s orders/regulations, chronologically, to various
telecom operators and the crucial policy changes with regards to service changes,
the monopolistic and arbitrary attitude is clearly visible.
Unfortunately, It’s a matter of concern that INTER CONNECT USAGE REGIME ordered
by the same agency is being reviewed again by itself within two month’s of it’s
enforcement. It could have been reviewed before it has been implemented or
could have been kept for public perception or operator’s opinion. If an telecom
regulator of a country having almost 7 crores telephone connections could act in
such a haste manner without taking into consideration of aspects of technical
feasibility, accounting, public psyche etc. into oblivion.
Though operators have the requisite expertise technically and financially to provide
cheaper telecom service, TRAI is there only to make it costlier. e.g. BSNL and
RELIANCE . If they could offer cheaper telecom services them, TRAI should not
prevent them in the name of ’PREDATORY PRICING ’.
It’s appropriate time to review the role of TRAI and other Statutory Regulatory bodies by
the public forum and parliament as well, rather than giving it a free reign to act on
this way to the tune of certain players.
22
23. On April 25, 1997, the recently constituted Telecom Regulatory Authority of India (TRAI)
gave its first judgment -- a landmark one, delivered with speed and style. This judgment
and its no-nonsense approach could well set the stage for things to come.
TRAI quashed DoT’s (Department of Technology) order of January 29, which had
sought to hike rather steeply, the price of calls made by users of ordinary fixed line
phones to cellular subscribers in the non-metro areas.
Even the cellular operators, whose stand was accepted by the TRAI, would accept
privately that the respondent DoT was poorly served by many of its officers and lawyers
who were entrusted with the task of representing DoT’s case.
They seemed to have cut a very sorry figure before TRAI, ignoring or not being
prepared by reading pertinent papers, such as tender documents, the clarifications
offered to would-be bidders, or the correspondence that DoT was having with the
operators later. Since the tender documents mentioned that tariffs would be the same
for circles and metros, it would have made sense for DoT to seek legal advice on how to
correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been
recourse, as the body is in charge of tariffs.
Fixed line users pay local call rates when they dial a cellular number in the four metros
(Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the
same as states) would be charged Rs10 per call for the same facility, if the DoT order in
question had not been quashed.
DoT had raised current rates on grounds that such charges were low and allowed users
in the circles which are much larger than metros, to make long distance calls without
paying STD charges. On the face of it, DoT is entitled to want to change this state of
affairs. But in trying to correct one injustice to itself, it managed to inflict several on the
users and other service providers.
The cellular operators lost no time in going to the courts, since TRAI did not then exist.
The courts in turn took an enlightened decision to pass the matter on to TRAI on March
3, as the body had been formally constituted by then.
23
24. TRAI took a few weeks to give its judgment and ruled against the Department of
Telecom. The body was not persuaded about the justness of DoT’s order.
Nor was TRAI particularly impressed by the operator’s contention that DoT was not
authorized to raise these tariffs. The judgment clearly says that the order of DoT to raise
the tariff was passed before the TRAI was formally constituted and during the said
period in question, the DoT was the sole body with the power to amend tariffs.
Mission
To ensure that the interests of consumers are protected and at the same time to
nurture conditions for growth of telecommunications, broadcasting and
cable services in a manner and at a pace which will enable India to play a
leading role in the emerging global information society. Function of
Telecom Regulatory Authority of India
Functions of TRAI
1. Recommendatory Functions
Need and timing for introduction of new service provider
Terms and conditions of licence to a service provider
Revocation of license for non-compliance of terms and conditions of license
Measures to facilitate competition and promote efficiency in the operation to facilitate
growth in industry
Technological improvement in services by service providers
Inspection of type of equipment used by service provider
Efficient Management of available spectrum
2. Mandatory Functions
24
25. Ensure compliance of terms and conditions of license
Fix the terms and conditions of their inter connectivity between service providers
Ensure Technical compatibility and effective inter-connection between different
service providers.
Regulate arrangements for sharing of revenues amongst service providers
Lay-down the standards of QoS to be provided by service provider,ensure this by
periodical survey
Lay-down and ensure time period for providing local and long-distance circuits of
telecommunication between different service providers
3. Other functions
Levy fees and other charges as determined by regulations
Perform administrative functions as entrusted to it by Central government or as per
TRAI act
Notify in Official Gazette the service rates and message rates within and outside
India
Major Players in different segments of Indian
telecom industry
25
27. Airtel
Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest and
world's third largest cellular service provider with more than 82 million subscribers as of
December 2008. It also offers fixed line services and broadband services. It offers its
TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company
also provides telephone services and Internet access over DSL in 14 circles. The
company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides end-to-end data and enterprise services to the
corporate customers through its nationwide fiber optic backbone, last mile connectivity
in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through
the gateways and landing station. SingTel owns over 30% of the Bharti Telecom.
Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister
company of the brand.
Airtel is a brand of telecommunication services in India and Sri Lanka owned and
operated by Bharti Airtel. It is the largest cellular service provider in India in terms of
number of subscribers. Services are offered under the brand name Airtel: Mobile
Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise
27
28. Services (Telecommunications Consulting for corporates). It has presence in all 23
circles of the country and covers 71% of the current population.
VISION AND MISSION OF THE COMPANY
-:Vision:-
• First private telecommunications company to launch long distance services.
• Benchmarked by more business
• Targeted by top talent
• Loved by more customers
• By 2010 Airtel will be the most admired brand in India
-: Mission:-
• We will meet the mobile communication needs of our customers through Error- free
service delivery
• Innovative products and services
• Cost efficiency
• Unified Messaging Solutions
28
29. Idea
Idea Cellular Limited (“Idea”) is a leading mobile services operator in India. Idea has a
subscriber market share of 19.3 % in its 8 established service areas, and 12.9 % in its
15 operating service areas. After inclusion of Spice Communications, brand !dea has
47.1 mn subscribers, corresponding to a 11.0% national subscriber market share as on
June’09.
A. Promoter Group
Idea is part of the Aditya Birla Group, India's first truly multinational group. The Group
has businesses in sectors ranging from metals, garments, cement, fertilisers, life
insurance and financial services among others. Over half of the Group’s revenues are
derived from overseas operations. The group operates in 25 countries, and is anchored
by an extraordinary force of over 130,000 employees belonging to 30 nationalities. The
current Group holding of 49.13% in Idea is made up of;
Aditya Birla Nuvo Ltd. 27.02%
Birla TMT Holdings Pvt. Ltd. 9.15%
Hindalco Industries Ltd. 7.37%
Grasim Industries Ltd. 5.52%
IGH Holdings Pvt. Ltd. 0.08%
Total 49.13%
B. Key Shareholders
29
30. AXIATA Group Berhad (previously TM International Berhad), through its affiliates, has
14.99% shareholding in Idea Cellular, and a 49.0% holding in Spice Communications.
With the proposed merger of Spice Communications into Idea Cellular, the Axiata
Group holding in Idea Cellular would increase to around 20%. AXIATA has controlling
stakes in its affiliates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, and
significant stakes in India and Singapore. India and Indonesia are among the fastest
growing markets in the world. As of March 2009, the Group has close to 94 million
mobile subscribers in Asia, and provides employment to over 25,000 people in 10
countries. Providence Equity Partners, through its affiliates has a 10.6% shareholding in
Idea, and has also invested INR 20982 mn in ABTL through Compulsorily Convertible
Preference Shares.
C. Mobile Coverage Area
Brand !dea covers 17 telecom service areas, viz, Maharashtra & Goa, Gujarat, Andhra
Pradesh, Madhya Pradesh & Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West
& Uttaranchal, Uttar Pradesh East, Rajasthan, Himachal Pradesh, Mumbai, Bihar &
Jharkhand, Orissa, Tamil Nadu, Punjab and Karnataka, covering ~ 90% of the all India
subscriber base Of these, the 3 service areas of UP East, Rajasthan and Himachal
Pradesh were rolled out during Sep-Nov’06, while the 2 service areas of Mumbai and
Bihar became operational during Aug-Oct‘08. The service areas of Punjab and
Karnataka were added through Spice w.e.f October 16, 2008. Brand !dea has extended
it coverage to Orissa service area in April’09 and the Tamil Nadu service area (excl.
Chennai) in May’09. Services in Chennai were launched in July’09.
30
31. Vodafone
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
licence for Mumbai. Vodafone Essar now has operations in 20 circles with over
54.63 million customers. Vodafone is the world’s leading international mobile
communications company. It now has operations in 25 countries across 5 continents
and 40 partner networks with over 269 million customers worldwide. Vodafone has
partnered with the Essar Group as its principal joint venture partner for the Indian
market.
Market Strategy of Vodafone
• Our strategic objective is
- Innovate and deliver on customer’s total communications needs.
• Vodafone too, needed to educate consumers about cellular telephony:-
- Can I call std?
- Can I use my phone in a lift?
- what is airtime?
Commercial Strategy of Vodafone
31
32. • Rebranding
- Stores
- Mass media coverage
• Innovative distribution to reach the customer
- Exclusive shops
- Hub and spoke
- Associate distributions
• Customer service
- Shops and call centers
- Vans
- Help desks
BSNL
32
33. (BHARAT SANCHAR NIGAM LIMITED)
BHARAT SANCHAR NIGAM LIMITED (BSNL) was formed on October 1, 2000 by
corporatisation of the erstwhile Department of Telecom operation & Department
Telecom Services. The company has taken over the erstwhile functions of the
Department of Telecom in respect of provision of telecom services across the length
and breadth of the country excluding Delhi and Mumbai. BSNL has one of large base of
skilled work force of around 3.0 lakh as on March 31, 2008. BSNL is a 100% Govt. of
India owned Public Sector Undertaking.
BSNL is a technology-oriented company and provides all types of telecom services
namely telephone services on landline, WLL and mobile, Broadband, Internet, leased
circuits and long distance telecom Service. The company has also been in the forefront
of technology with 100% digital new technology switching network. BSNL nation-wide
telecom network covers all District headquarters, Sub-Divisional headquarters, Tehsil
headquarters and almost all the Block Headquarters. Telecommunications is a basic
infrastructure along with power and transportation and is thus recognized as the means
for accelerating the economic growth in all the regions including remote and
inaccessible areas in the country. Telecom in the modern world is expected to usher a
concept of global economy and single world market place. BSNL telecom network,
therefore, is part of modern global network, providing access to countries around the
world for transporting information in the form of voice and data.
33
34. INTELLIGENT NETWORK
With the commissioning of 5 new technology IN Platforms (4 r General-Purpose and 1
Mass Calling), IN Services are available throughout the country. Various IN services
being offered by BSNL are ITC & Call Now (Prepaid Calling Cards), ACC (Account Card
Calling), FPH (Free Phone), UAN (Universal Access Number), PRC (Premium Rate
Calling), Voice VPN (Virtual Private Network), UPN (Universal Personal Number) &
Tele-voting & Fixed line Pre-Paid (FLPP) Service. Tele-voting service is provided by
BSNL's Mass Calling IN platform at Hyderabad to programs such as 'Indian Idol', "Kaun
Banega Crorepati" (KBC)", "Sa re gama" etc. Fixed Line Pre-Paid (FLPP) telephony
service for PCOs is available. FLPP Pre-paid over Post- paid service is available on
telephone connections. Combined Voice VPN including BSNL landline, BSNL CellOne
& MTNL landline is available. BSNL has signed an interoperability agreement for
making available BSNL's Toll and UAN service through network of almost all the private
operators. Online sale of Pre-paid cards of IN services is available.
Achievements during 2008-09
Sl. Parameter No. Unit Achievement Status as on
during 2008-09 March 31, 2009
1 Wire line Connections Nos. 22,05,865 2,93,46,431
2 WLL connections Nos. 8,55,306 54,33,038
3 Mobile Connections Nos. 1,05,02,156 4,67,11,196
4 Broadband Connections Nos. 15,35,035 35,57,471
5 Internet connections Nos. 1,31,091 36,93,423
34
35. Reliance
Communication
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom services,
covering mobile and fixed line telephony including broadband, national and international
long distance services, data services and a wide range of value added services and
applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India. Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for India's farmers,
businesses, hospitals, government and public sector organizations. Until recently,
Reliance was permitted to provide only “limited mobility” services through its basic
services license. However, it has now acquired a unified access license for 18 circles
that permits it to provide the full range of mobile services. It has rolled out its CDMA
mobile network and enrolled more than 6 million subscribers in one year to become the
country’s largest mobile operator. It now wants to increase its market share and has
35
36. recently launched pre-paid services. Having captured the voice market, it intends to
attack the broadband market.
Tata Teleservices
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles:
Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat,
and Karnataka. It has over 800,000 subscribers. It has now migrated to unified
access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to
provide fully mobile services as well. The company is also expanding its footprint, and
has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime. The new licenses, coupled with the six circles in
which it already operates, virtually gives the CDMA mobile operator a national footprint
that is almost on par with BSNL and Reliance Infocomm. The company hopes to start
off services in these 11 new circles by August 2004. These circles include Bihar,
Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh
(East) & West and West Bengal.
36
37. List of Related figures
Market Share of GSM & CDMA
Market Share of GSM Players
37
38. Market Share of CDMA Players
Market Share of All Players
(Over all and Rural)
38
39. Subscriber Growth
Tele Density
Year Urban Tele Density Rural Tele Density
1999 2.33 0.58
39
40. 2000 2.86 0.68
2001 3.58 0.93
2002 4.29 1.21
2003 5.11 1.49
2004 7.02 1.55
2005 8.95 1.73
2006 12.74 2.34
2007 18.22 5.89
2008 26.22 9.46
2009 36.98 15.11
RESEARCH OBJECTIVES
Research objectives include the objective of research of the researcher before starting
any research. The researcher should determine the objective or the goal of the research
for the smooth functioning of study. Predetermine objective should be of such that
researcher fulfils in the certain period of time at minimum cost.
Following are the research objectives, which we have developed…
To determine the factors which influence the purchasing behavior of mobile
connection.
To determine the marketing process elements which influence the purchasing
behavior of mobile connection.
To understand the improvement and customer preference in telecom services.
40
41. To study customer satisfaction and understand the current market scenario in
telecom sector.
Approach to the Problem
Theory Development:
To identify the determinant factors regarding purchasing behaviors of mobile
connection that could improve the efficiency to get the customers or make the
customers switch from the competitors’ products, I have initially identified some
variables, which are significantly correlated with the purchase of mobile
connections. When a customer decides to purchase a mobile connection, he
normally considers tariffs, promotional activities, celebrity involvement, brand
image, value added services, network, switching cost, after sales services, word
of mouth, availability of complementary products and marketing mix. So buying a
mobile connection is based on the simultaneous activation of these variables.
These variables are to be described under the descriptive research. Non
probability sampling technique (convenience sampling technique) has to be
used. Then I will use T test, frequency distribution, graph and cross tabulation
methods to analyze the data and then finding will be interpreting with the existing
body of knowledge.
When a customer decides to purchase a mobile connection, he normally
Considers -
1. Technology
2. Tariffs
3. Promotional activities
4. Celebrity involvement
5. Brand image
41
42. 6. Value added services
7. Network
8. After sales services
9. Availability of complementary products
Model Development:
Need for communication with Status Factor in Society
relatives/people
Drive for immediate
solution.
Drive for immediate solution leads to immediate
purchase of mobile connection
Purchasing decision making based on some
determinant factors
42
43. Specific mobile connection has been purchased and
met the satisfaction
Research Design
Types of Research to be undertaken:
Among the different types of researches I have chosen Descriptive research for this
project. I have gone to conduct this project base on Descriptive research technique
because I want to test the significant level of the particular factors. Among two types of
Descriptive research techniques I have gone for Cross-Sectional design because I have
wanted to collect data from the sample of population element only for one time. From
Cross-Sectional designs I have taken Single cross-sectional design to carry out my
research.
(a) Primary Data Collection Method:
Survey method was used for primary data collection.
We used questionnaire as an instrument for survey method.
Structured questionnaire.
(b) Secondary Data Collection method:
43
44. Information from Related Peoples.
Information gathered from Different Sites of the companies.
Information gathered from TRAI Website.
The nature of the research is basically of two types.
• Basic Research
• Applied Research
“Basic Research is that intended to expand the body of knowledge in a field or to
provide knowledge for the others.”
“Applied Research is carried out for solving of a particular problem or for guiding a
specific decision, and usually its results are private.”
“Basic Research is generally for common purpose and Applied research is for specific
purpose.”
Here the nature of the research is basic. The sources for data collection are both
primary and secondary data sources.
Survey method:
Among four types of survey methods I have chosen the appropriate one that suited my
research objectives. I have chosen the personal survey techniques. From the personal
techniques I have selected mall intercept technique. According to this technique I have
needed to go directly to my sample unit and got the questionnaires filled. I have chosen
Mall intercept survey technique because it has higher Flexibility for data collection,
Diversity of questions, Response rate, and Social desirability. And also it is higher in
Control of data collection environment and moderate Use of physical stimuli.
44
45. Scaling Method:
Since I have conducted descriptive research, I have chosen non-comparative scaling
technique because I have wanted to measure the influence of each and every factor on
the purchasing behaviors of the target market separately. Only by Non-comparative
scaling technique it can be done. And among two types non-comparative technique I
have used itemize technique and from three itemize techniques I have taken Likert
scaling which range from 1 to 5 point scale. Because I have wanted to do my research
based on five dimensions which have been strongly disagree, disagree, neutral, agree
and strongly agree.
Questionnaire development:
First of all I have given the introduction. I have just introduced myself and the reasons
why I am collecting data. Then I have given assurance that your information will be kept
confidential. I have gone for screening and then I have prepared the body of the
questionnaire. Lastly I make respondents profiles. Questionnaires have been structured
questionnaires based on non comparative scales techniques.
Sampling Technique:
In case of my research my target population has been the students and the general
people of the Ahmedabad city. The students and general people who are using the
mobile connection or intended to purchase the mobile connection have been sample
unit. I have conducted my research through non-probability sampling techniques and
among non-probability sampling techniques I have gone for convenience sampling
technique. Most importantly as it is an academic research it lacks money and time.
That’s why for administering this research, the sample size has been 50. Then I have
45
46. carried out the research by myself very efficiently and accurately to come to an end with
a solution of the marketing research problem statement.
Field work:
Field work is a general descriptive term for the collection of raw data. In the professional
research, research firm use its own people or external people to collect data for the
sample. Since it is an academic and individual research I myself have to go and collect
the data from the respondents. I have gone to the people in the Ahmedabad city and get
the questionnaires filled.
Limitations Of The Study:
Reluctance on the part of the respondents to provide exact details.
Sample size may not sufficient.
Chance of sampling mistake.
Sample size:
During the project study we attached to near about 400 people of Ahmedabad. These
people belongs to the different parts of the city.
Assumptions:
1) The area selected is assumed to represent whole universe of Indian rural
telecom market.
46
47. 2) Data collected are assumed to be bias free from side of respondents, interviewer
or any other mediaries.
3) Whole research and analysis part based on data collected is carried out under
unbiased environment and without any influence of any factor which can lead to
deviation in result.
Data Analysis (Methodology)
Sampling
Sample Size : 200
47
48. Sample Frame : Ahmedabad City
Sampling Method : Simple Random Sampling
Constraints : Time, No. of respondent, Biased opinion
Sampling Error : Response - 172
Non-response - 28
Survey : Questionnaire
Observations
1. Age and Gender :
Normally consumers’ needs and wants change with age. There are
certain types of mobile connection which attract different types of aged people
as well as different sex. There some mobile connection (packages) which
adopted by male people and there are some mobile connection (packages)
which get adopted by female people.
10-20 36
21-40 106
More than 30
48
49. 40
1: Total samples (Age group)
17
21
%
%
62
%
According to the above bar diagram, among 100% respondents, These respondents
have informed their choosing factor for purchasing mobile connection. Form their
responses I will be able to understand the various aspects of my research topic.
Male 102
Female 70
2: Total samples (Gender Wise)
49
50. According to Graph-2 the majority of the respondents are male. Among 100%
respondents, male is % and female is %.
2. Marital Status:
Consumption and expectations on mobile from consumers
changes according to the marital status. The consumption tactics of
consumer depends on how they handling their relations. Single & married
perceptions are different from each other.
Single 110
Married 72
3: Total samples (Marital Status)
50
51. 3. Working Status:The purchasing behaviors depend on the occupation
of the individuals. For My research I am simply interested about
public service, private service, student, Housewife and for making
my questionnaire non force I have kept an option blank.
Student 80
House Wife 13
Public service 8
Private service 19
Businessman 52
4: Total samples according to working status
51
52. 30.5 46
%
11 7.5
5%
Among 100% respondents, % students, % are private service holders, % are
public service holders, % is housewife and % businessman.
4. Educational Qualification:
Under Graduate 55
Graduate 48
Post Graduate 69
Others 0
5: Total samples according to educational status
52
53. 5. Service Provider
BSNL 27
Airtel 24
Vodafone 46
Idea 33
Reliance 34
Tata Indicom 6
Others 2
6: Total Service Provider (% wise)
53
54. 3.5 1.2
% %
15.6
20 %
14
19 26.7
% %
6. Time spend :
Time spend with mobile connection shows how much customer is
satisfied with their connection. This shows the level of post purchase services
of telecom giants.
0 – 3 Months 0
4 – 6 Months 5
7 – 12 Months 18
1 – 2 Year 24
2 – 3 Year 69
More than 3 Years 56
54
55. 7: Total time spend by subscribers
3
%
10.5
32.5
%
14
%
40
%
7. Who influences most, the decision to purchase a
telecommunication service in your family?
This particular question helps companies to identify their
current marketing strategies position. According to the answers companies
can identify the segments whom they have for purchase intent.
Self 72
Spouse 9
Parents 27
Children 13
Friends 45
Salesman 6
8: Purchase influence factors of subscriber
55
56. 8. What advertising media has influenced you in choosing a telecom
operator?
This particular question targets the medium of
advertisement. Shows which medium stands where according to awareness
towards consumers.
Print Media 28
Radio 13
Television 80
Road side 7
Advertisement
Word-of-Mouth 44
9: Affect of Advertisement on Telecom Purchase
56
57. Print
Media
9. How much you invest monthly on your phone?
Up to Rs.500 76
Rs.501 – Rs.1000 54
Rs. 1001 – Rs.1500 30
More than 1500 12
10: Monthly investment on phone
57
58. 10. Do you prefer online payment through your mobile service
provider?
Yes 37
No 135
11: Chart showing Online payment statics
58
59. 11. What do you think about the competition in the market?
No Choice 29
Some Choice 40
Enough 87
Choice
Can’t Say 16
12: Chart showing market competition state according to customers
59
60. 12. Given a choice with same number which service provider will you
select?
Airtel 8
Reliance 18
Vodafone 8
BSNL 1
Idea 6
Tata 3
No change 128
13: Preference to alternatives
60
61. Near about 75% of customers not interested in changing
their service providers. This is a positive sign for companies. More the
consumer satisfied more they became loyal to company.
Reliance has other positive signs as most want to switch over to
it. So this may increase it’s market share in near future.
13. How long do you have to wait in customer care?
Up to 1 Minute 83
2 Minutes 34
3-5 Minutes 30
61
62. 6-10 Minutes 23
11 Minutes or 2
more
14: Performance of customer care in eyes of customers
14. What kind of expectations do you have with your service provider?
Price 42
Voice Clearity 9
Network 58
Good Services 63
62
63. 15: Expectations from service providers
15. What is your purchase intent for news alerts on mobile phone?
Astrology 2
Sports 42
Business 40
General News 23
Entertainment 132
63
64. 16: Purchase intent from mobile phone
16. Are you aware of the role of the telecom services in providing broadband
without using cable network?
Yes 130
No 42
64
65. 18. Are you aware of 3-G technology?
Yes 105
No 67
65
67. 1. Customers are self driven while purchasing a mobile connection.
2. Print media is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
3. Television is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
4. There is some choice in the market for telecom service providers.
T – Test
H0 : Null Hypothesis
H1 : Alternative Hypothesis
S : Standard Deviation
α : Significance level
df : Degree of freedom
a)
H0 : Customers are self driven while purchasing a mobile connection.
H1 : Other factors drive customers to purchase a mobile connection.
The significance level is alpha=0.05
Using the data in our database, calculate the test statistic.
67
68. Using excel, we get
Sample size 172
Sample mean 28.66
S 1.76
Standard error 0.13
Null hypothesis 72
α 0.05
df 171
t test statics -3.23
lower value 1.65
Decision Accept H0
Since the null hypothesis is accepted so we can say that costomers are self driven while
deciding the purchase of mobile connection.
b)
H0 : Print media is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
H1 : Print media is not the most effective advertisement medium which influence the
customer to purchase a mobile connection.
The significance level is alpha=0.05
Using the data in our database, calculate the test statistic.
Using excel, we get
68
69. Sample size 172
Sample mean 34.4
S 1.78
standard error 0.14
null hypothesis 28
α 0.05
df 171
t test statics 0.47
lower value -1.65
Decision Reject H0
Since the null hypothesis is rejected so we can say Print Media is not the perfect
communication medium between customers and mobile service providers.
c)
H0 : Television is the most effective advertisement medium which influence the
customer to purchase a mobile connection.
H1 : Telivision is not the most effective advertisement medium which influence the
customer to purchase a mobile connection.
The significance level is alpha=0.05
Using the data in our database, calculate the test statistic.
Using excel, we get
69
70. Sample size 172
Sample mean 34.4
S 1.78
standard error 0.13
null hypothesis 80
α 0.05
df 171
t test statics -3.36
lower value -1.65
Decision Reject H0
Since the null hypothesis is rejected so we can say Television is not the perfect
communication medium between customers and mobile service providers but it the best
way one can attract the customer (According the data collected).
d)
H0 : There is some choice in the market for telecom service providers.
H1 : There is no choice in the market for telecom service providers.
There is enough choice in the market for telecom service providers.
The significance level is alpha=0.10
Using the data in our database, calculate the test statistic.
Using excel, we get
70
71. Sample size 172
Sample mean 43
S 0.87
standard error 0.06
null hypothesis 40
α 0.1
Df 171
t test statics .45
lower value -1.65
Upper value 1.65
Decision Reject H0
The null hypothesis is rejected. It is a two tailed taste. So according to customers in the
market there is enough choice in the market for telecom service providers.
Table : Null Hypothesis and their acceptance level
Acceptance
S.N0. Null Hypothesis
level
Customers are self driven while purchasing a mobile
1. Accept H0
connection
Print media is the most effective advertisement medium
2. which influence the customer to purchase a mobile Reject H0
connection
Television is the most effective advertisement medium
3. which influence the customer to purchase a mobile Reject H0
connection
There is some choice in the market for telecom service
4. Reject H0
providers
Findings:
71
72. Total Analysis:
Nowadays telecommunication sector is very competitive. Here every telecom company
has to strive to get the prospects as many as possible. Every company uses different
tools to persuade the target markets to buy the products. They conduct market research
very often to know about the choices of the target markets. I also come up with
important findings after conducting a research.
The target markets are influenced by Promotional activities for purchasing behaviors of
mobile connection. But target markets are not basically concerned about Celebrities for
buying the mobile connection. They do not get influenced by promotional activities
which include classical conditioning rather they get influenced by the promotion which
include operant conditioning. They give less importance on promotional activities than
other marketing mix such as products, distribution, price, process etc. The target
markets of the telecom industry seriously think of the tariff and put more importance on
the tariff than any other factors. They can even tolerate interrupted network service to
some extent as they put more importance on the tariff than network. They have chosen
tariff as a most important factor to by mobile connection than brand image. Target
markets do value complementary products’ availability. Target markets have chosen
availability of complementary product over network. It means that the target markets go
for that product which complementary are widely available regardless the network
condition. According to target markets network is important factor to purchase the
mobile connection but not as important as tariff. But target market put importance on
network than brand image. Customers seriously consider the word of mouth. They
rather prefer it than any promotional activities. After sale Services and value added
services are the important factor to target market for purchasing the mobile connection.
Target markets generally think of switching cost before purchasing a particular mobile
connection. One interesting finding is that target markets do not generally concerned
about Brand image.
72
73. After relating occupation with other important marketing research question the following
findings has been found-
1. Among respondents Public service holders are the most sensitive towards to
tariff price
2. Student and Housewife value the celebrities for purchasing the mobile
connection.
3. Students and private service holders are concerned and value the brand image
for purchasing the mobile connection.
4. In case of word of mouth, Students, housewives, private service holders value it
for purchasing the mobile connection.
5. Public service holders, Students and housewives are highly influence by any
discount, free sampling, rebate for purchasing the mobile connection.
6. Private Service holders are most concern about network for purchasing the
mobile connection.
Company wise Analysis:
73
74. a) Airtel-:
1. Most of the company’s customers are driven through the ads on Television and
Print Media. So more focus on these medium will beneficial.
2. 3 out of 24 customers want to switch to other operators and 8 want to join it. So
good positive signs to company.
3. Customer wants affordable price, good services and network availability.
4. Company should focus on news alerts related to Sports, Entertainment and
Business.
5. Fair chances in Broadband Services.
b)BSNL
1. Not popular in the age group of 10-20. Most popular in higher age group.
2. Brand endorsement is working for company (Most influenced by television ads).
3. Mostly used for Broadband Services.
4. Voice clarity in between the calls is a issue company should focus.
5. Need to enhance VAS.
6. Switch over to other operators is a threat to company.
74
75. c) Reliance
1. One of the fast growing service operators. As most want to switchover to it. So a
bright future is waiting.
2. Television and word of mouth working to boost sale.
3. Entertainment as a VAS generating good revenue.
4. Customers are price conscious so there should be a tight eye on it. This the
feature attracting most of the customers.
d) Idea
1. In the city it is the most loved GSM operator. Popular in each age group and in
every working status sample.
2. Customer wants better services from the company as 20 out of 33 has
expectations of Good Services.
3. Some times Customer care may frustrate customers.
4. Sports and Entertainment as VAS generating high revenue.
e) Vodafone
75
76. 1. Most trusted Mobile brand in city. As 27% customers trust the brand.
2. Most popular in Age group of 21-40.
3. Zoo Zoo magic works in city. Satisfaction of customers is strength to the
company.
4. Customers have expectations in price, network and good services are coming as
a priority and can be a major factor in near future.
5. Reliance communication is a big threat to company as it growing fast in price war
period.
6. Like others Entertainment is a most revenue generating VAS.
f) Others
1. Not a good presence in the city. But arrival of new service operators may change
the current scenario.
2. Television, Print media and Radio should be focused as advertisement medium.
3. As low prices boost Reliance Communication market in the city TATA
Teleservices should catch this opportunity as they are the initiator of the price
war in the country.
Conclusions and Recommendations:
76
77. After talking to decision makers, taking interview of experts I have developed a
management decision problem statement. Then I have developed Marketing research
Problem. And from the marketing research problem I have identified some factors that
influence the behaviors of mobile connection. The specific components have been-
Marketing process, Technology, service ability switching cost etc. I have developed the
research questions and finally I have developed the Hypotheses from the research
question. Then I have gone for Descriptive research and among different descriptive
researches I have taken single cross-sectional design. And among deferent methods I
have chosen in-home survey method. My target population has been the citizen of the
Dhaka city who are a customer or future prospects of mobile connection. The sampling
technique I have used has been convenience sampling technique. I have used Likert
scaling technique and finally I have analyzed one sample t test and cross tabulation to
relate two variables. Then I have carried out the research.
After analyzing the hypotheses I would like to offer some recommendation to influence
the decision of mobile purchasing of the target market.
1) The operator should focus on the tariff because target markets are still
concerned about tariff than any other factors for purchasing mobile phone.
Tariff is still the most dominant factor for purchasing the mobile
connection.
2) Among different types of promotional techniques, target markets value
the promotions those contain operant conditioning. Target markets put
more importance on promotional activities that contain operant
conditioning than those contain classical conditioning such as celebrities.
So mobile operator must keep on providing rebates, discounts, free offer
etc.
77
78. 3) The brand image is still less important to target markets than tariffs. So the
mobile operator must build strong brand image so that target markets do
not think much about tariff.
4) The complementary products must be available.
5) Network is also concern of the target markets. But target market can
consider some disruption for the lower tariff.
6) Word of mouth influence the purchasing behavior of the target market so
mobile operator should adopt some tactic to promote word of mouth
promotion.
7) Mobile phone operators should launch multiple promotional activities to
attract or meet different needs of different segment. They can go for
promotion with operant conditioning for students or housewives segment
to force them to buy the products.
8) Mobile operator can highlight the brand image for its products to students
and private service holders as students and private service holders value
brand image for purchasing the mobile phone.
Companies should be careful while selling product to the segment of public
service holder because they are most price sensitive customer among the target
markets.
78
79. List of figures
S.No. Title Page No.
1 Journey of telecom sector……......... 11
2 Subscriber In different areas 16
3 VAS Challenge 20
4 Major Players…………………….. 25
5 Market Share of GSM and CDMA 36
6 Market Share of GSM Players 36
7 Market Share of CDMA Players 37
8 Market Share of All Players 37
9 Subscriber Growth 38
10 Model Development 40
11 Total samples (Age group) 47
12 Total samples (Gender Wise) 48
13 Total samples (Marital Status) 49
14 Total samples according to working status 50
15 Total samples according to educational status 51
16 Total Service Provider (% wise) 52
17 Total time spend by subscribers 53
18 Purchase influence factors of subscriber 54
19 Affect of Advertisement on Telecom Purchase 55
20 Monthly investment on phone 56
21 Chart showing Online payment statics 57
22 Chart showing market competition state according to customers 58
23 Preference to alternatives 59
24 Performance of customer care in eyes of customers 60
25 Expectations from service providers 61
26 Purchase intent from mobile phone 62
Questionnaire
1. Respondent Name: Mr Ms
Full Name ______________________________________
2. Age Group
1 10-20
79
80. .
2 21-40
.
3 More than 40
.
3. Marital Status: Single Married
4. Working Status: Student; House-Wife; Public service;
Private service; Businessman;
5. Educational Qualification:
Under Graduate Graduate Post Graduate
Professional
Others: ____________
6. Presently you are availing services from which operator (Tick more than
one, if
applicable):
BSNL Airtel Vodafone Reliance Tata Indicom
Idea Virgin
g) Time you spend with your current connection (Approx)
1. 0 – 3 Months
2. 4 – 6 Months
80
81. 3. 7 – 12 Months
4. 1 – 2 Year
5. 2 – 3 Year
6. More than 3 Years
8. Who influences most, the decision to purchase a telecommunication
service in your
family?
Self Spouse Parents Children Friends
Salesman
9. What advertising media has influenced you in choosing a telecom
operator?
Print Media; Radio Television
Road side Advertisement Word-of-Mouth
10. How much you invest monthly on your phone?
Up to Rs.500 Rs.501 – Rs.1000 Rs. 1001 – Rs.1500
More than 1500
11. Do you prefer online payment through your mobile service provider?
Yes No
12. What do you think about the competition in the market?
No Choice Some Choice Enough Choice Can’t Say
13. Given a choice with same number which service provider will you select?
Airtel Reliance Idea Tata Vodafone BSNL
Vergin
14. How long do you have to wait in customer care?
Up to 1 Minute 2 Minutes 3-5 Minutes 6-10
Minutes
11 Minutes or more
15. What kind of expectations do you have with your service provider?
81
82. Price Voice Clearity Network Good Services
16. What is your purchase intent for news alerts on mobile phone?
Astrology Sports Business Entertainment
General News
17. Are you aware of the role of the telecom services in providing broadband
without
using cable network?
Yes No
18. Are you aware of 3-G technology?
Yes No
19. Rank the following attributes in the order you service provider-
Availabili Networ Voice Talk Call SMS Billing Schem Value
ty k clearity time charge servic syste e Added
and e m Services
Validity
(In the analysis part we didn’t include the Q. 19 because it became tough for
respondents to answer it.)
82
83. BIBILOGRAPHY
1) Reports
a. TRAI 2008-09
b. Telecom Sector annual report 2008-09
c. Idea Unaudited results Q1 FY 10
d. Department of telecommunication Govt. of India Annual Report 2008-09
2) Articles
a. Business Standard
b. Times of India
c. Idea press release
d. Airtel press release
e. RCom press release
f. The Economic Times
3) Websites
a. www.trai.gov.in
b. www.dot.gov.in
c. www.coai.com
d. www. Ideacellular.com
e. www.airtel.in
f. www.vodafone.in
g. www.rcom.co.in
h. www.teleservices.com
83
84. List of Abbreviations used
3G Third Generation
ARPU Average Revenue Per User
BSN Bharat Sanchar Nigam Limited
CDMA Code Division Multiple Assay
COAI Cellular Operators Association of India
DoT Department of Telecommunication
GPRS General Packet Radio Service
GSM Global System of Mobiles
MTNL Mahanagar Telephone Nigam Limited
NGN Next Generation Network
QoS Quality of Service
SMS Short Messaging Service
TRAI Telecom Regulatory Authority of India
VAS Value Added Services
84
