Chapter 2 Conceptual Framework of Brand Image,...

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56 Chapter 2 Conceptual Framework of Brand Image, Consumer Perception & Company Performance 2.1 History of Cellular Telephony 2.2 History of Cellular Telephony - India 2.3 Systems 2.3.1 GSM 2.3.2 CDMA 2.4 Current Status of Indian Telecom Industry 2.4.1 Introduction 2.4.2 Key Statistics 2.4.3 Market Dynamics 2.4.4 Telecommunication: Key Developments & Investments 2.4.5 Government Initiatives 2.4.6 Road Ahead 2.5 Brand 2.6 Brand Image 2.7 Consumer Perception (QoS) 2.8 Company Performance (Market) 2.9 References

Transcript of Chapter 2 Conceptual Framework of Brand Image,...

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Chapter 2 Conceptual Framework of Brand Image, Consumer

Perception & Company Performance

2.1 History of Cellular Telephony

2.2 History of Cellular Telephony - India

2.3 Systems

2.3.1 GSM

2.3.2 CDMA

2.4 Current Status of Indian Telecom Industry

2.4.1 Introduction

2.4.2 Key Statistics

2.4.3 Market Dynamics

2.4.4 Telecommunication: Key Developments & Investments

2.4.5 Government Initiatives

2.4.6 Road Ahead

2.5 Brand

2.6 Brand Image

2.7 Consumer Perception (QoS)

2.8 Company Performance (Market)

2.9 References

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2.1 History of Cellular Telephony

1947 Bell Laboratories introduced the idea of cellular communications

with the police car technology.

1947 The basic concept of cellular phones began, when researchers

looked at crude mobile (car) phones and realized that by using

small cells (range of service area) with frequency reuse they could

increase the traffic capacity of mobile phones substantially.

However at that time, the technology to do so was nonexistent.

1947 AT&T proposed that the FCC allocate a large number of radio-

spectrum frequencies so that widespread mobile telephone service

would become feasible.

1947 The FCC decided to limit the amount of frequencies available, the

limits made only twenty-three phone conversations possible

simultaneously in the same service area.

1968 AT&T and Bell Labs proposed a cellular system to the FCC of

many small, low-powered, broadcast towers, each covering a 'cell' a

few miles in radius and collectively covering a larger area. Each

tower would use only a few of the total frequencies allocated to the

system. As the phones traveled across the area, calls would be

passed from tower to tower.

1968 The FCC reconsidered its position by stating "if the technology to

build a better mobile service works, we will increase the

frequencies allocation, freeing the airwaves for more mobile

phones."

1973 (April) The first call on a portable cell phone is made by Dr Martin Cooper,

a former general manager for the systems division at Motorola, who

is also considered the inventor of the first modern portable handset.

1977 AT&T and Bell Labs had constructed a prototype cellular system.

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A year later, public trials of the new system were started in Chicago

with over 2000 trial customers.

1979 The first commercial cellular telephone system began operation in

Tokyo.

1980 Analog cellular telephone systems were experiencing rapid growth

in Europe, particularly in Scandinavia, United Kingdom, France

and Germany. Each country developed its own system, which was

incompatible with everyone else's in equipment and operation

1981 Motorola and American Radio telephone started a second U.S.

cellular radio-telephone system test in the Washington/Baltimore

area.

1982 FCC authorizes commercial cellular service for the USA.

1982 The Conference of European Posts and Telegraphs (CEPT) formed

a study group called the Groupe Spécial Mobile (GSM) to study

and develop a pan-European public land mobile system. The

proposed system had to meet certain criteria:

· Good subjective speech quality

· Low terminal and service cost

· Support for international roaming

· Ability to support handheld terminals

· Support for range of new services and facilities

· Spectral efficiency

· ISDN compatibility

1983 The first American commercial analog cellular service or AMPS

(Advanced Mobile Phone Service) was made available in Chicago

by Ameritech.

1987 Cellular telephone subscribers exceeded one million and the

airways were crowded.

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1989 GSM responsibility was transferred to the European

Telecommunication Standards Institute (ETSI),

1990 Phase I of the GSM specifications were published.

1991 Commercial launch of cellular service based on GSM standard in

Finland.

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2.2 History of Cellular Telephony in India

1992 Telecommunication sector in India liberalized to bridge the gap

through government spending & to provide additional resources

for the nation’s telecom target. Private sector allowed participating

1993 The telecom industry gets an annual foreign investment Rs 20.6

million

1994 License for providing cellular mobile services granted by the

government of India for the Metropolitan cites of Delhi, Mumbai,

Kolkata & Chennai. Cellular mobile service to be duopoly (i.e. not

more than two cellular mobile operators could be licensed in each

telecom circle), under a fixed license fee regime for 10 years.

1995 19 more telecom circles get mobile licenses

1995(August) Kolkata became the first metro to have a cellular network

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4

million.

1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7

million

1999 Tariff rebalancing exercise gets initiated

1999(March) National Telecom Policy is announced.

2000(June) FDI inflow drops further down to Rs 918 million coming

2000 (January) Amendment of TRAI Act.

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2.3 Mobile Telecommunication Systems

2.3.1 GSM System

In a cellular system, the geographical area is divided into adjacent, non-overlapping,

hexagonal shaped cells. Each cell has its own transmitter and receiver (called base

stations) to communicate with the Mobile units in that cell; a mobile switching station

coordinates the handoff of mobile units crossing cell boundaries. Cellular systems are

based on the concept of frequency reuse : the same frequency is used by several sites

which are far enough from one another, resulting in a tremendous gain in system

capacity. The counterpart is the increased complexity, both for the network and the

mobile stations, which must be able to select a station among several possibilities, and

the infrastructure cost because of the number of different sites. The system hands over

calls from transmitter to transmitter as customers move around in their vehicles. This

new technique would allow more customers access to the system simultaneously, and

when more capacity was needed, the area served by each transmitter could be divided

again which is popularly known as CELL SPLITTING. One of the most important

concepts for any cellular telephone system is that of multiple access meaning that

multiple, simultaneous users can be supported through frequency reuse. In other

words, a large number of users share a common pool of radio channels and any user

can gain access to any channel (each user is not always assigned to the same channel).

A channel can be thought as merely a portion of the limited radio spectrum, which is

temporarily allocated for a specific purpose, such as someone's phone call.

Cellular Architecture:

GSM System Components

A schematic overview of the GSM system is shown in the figure given below. The

system is composed of three main elements; the switching subsystem, the base station

subsystem, and the mobile. The switching part makes the connection between the two

users, the base station part controls the communication across the radio interface, and

the mobile acts as the transmitter receiver for the user.

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PSTN

A schematic overview of the GSM system is shown in the figure given below. The

system is composed of three main elements; the switching subsystem, the base station

subsystem, and the mobile. The switching part makes the connection between the two

users, the base station part controls the communication across the radio interface, and

the mobile acts as the transmitter receiver for the user.

Mobile Station

The best known part of the cellular network is certainly the mobile stations. Different

types of mobile stations are distinguished by power and application. The mobile

station (MS) types include not only vehicle mounted portable equipment but also

handheld stations popularly known as mobile handsets. A significant architectural

aspect of the MS relates to the concept of Subscriber Identity Module (SIM). The SIM

card contains a unique International Mobile Subscriber Identity (IMSI) used to

identify the subscriber to the system. The SIM is basically a smart card, containing all

the subscriber-related information stored on the user side of the radio interface.

A potential user may off course buy mobile equipment, but he may also lease or

borrow the equipment or purchase it through other channels. Fixed Mobile Stations

are permanently installed in a car and may have a maximum allowed RF output of up

to 20W. Portable (bag phones) can emit up to8 W and handheld portable units up to 2

W. With Second Generation mobiles (on the market since 1993), the GSM system is

becoming more and more attractive. Hand-portable units are becoming much smaller

and are coming with numerous features on it. This is giving the system boost

popularity, especially in those markets with a particular demand for small mobiles

such as in Asian and Pacific areas.

Base Station Subsystem

Base Station Subsystem groups the infrastructure machines, which are specific to the

radio cellular aspect of GSM. The BSS is in direct contact with the mobile station

through the radio interface. As such, it includes the machines in charge of

transmission and reception on the radio path, and the management thereof. On the

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other side, the BSS is in contact with the switches of Network Subsystem (NSS). The

BSS includes two types of machines:

Base Station or Base Transceiver Station

The counterpart to a mobile station within a cellular network is the base transceiver

station (BTS), which is the mobile's interface to the network. Each cell site is

equipped with a BTS. A BTS is usually located in the center of a cell. A cell site is

used to refer to the physical location of radio equipment that provides coverage within

a cell. The transmitting power of the BTS determines the absolute cell size. The BTS

houses the radio transceivers that define a cell and handles the radio-link protocols

with the Mobile station. BTSs are placed in the field to transfer a call to a customer's

handsets, and there are between one and sixteen transceiver, each of which represents

a separate RF channel. A BTS may cover an area of 30 - 40 sq kms. However, in a

congested, urban location, the BTS coverage area is much smaller. BTS can be

considered as complex radio modems and have little other function. A list of hardware

located at a cell site includes power sources, interface equipment, radio frequency

transmitters and receivers, and antenna systems.

Base Station Controller BSC

Base station controller is in contact with the switches of NSS. It monitors and controls

several base stations, the number of which depends on the manufacturer and can be

between several tens and several hundred of stations. A typical BSC can manage from

one BTS to the entire BTS in service area, depending on their traffic capacity. The

chief tasks of the BSC are frequency administration, the control of a BTS, and

exchange functions, it handles radio - channels setup, frequency hopping, and

handovers. The BSC is the connection between the mobile station and the Mobile

Service Switching Centre and is in charge of all radio interface management through

the remote command of the BTS and the mobile station, mainly the allocation and

release of radio channels and the handover management. The BSC is connected, on

one side, to several BTSs and on the other side, to the Network and Switching Sub

System (more appropriately to a Mobile Switching Centre). A BSC is in fact a small

switch with substantial computational capability. The hardware of the BSC may be

located at the same site as the BTS, at its own standalone site, or at the site of the

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Mobile Switching Centre (MSC). BSC and BTS together form a functional entity

sometimes referred to as the Base Station Subsystem.

Network and Switching Subsystem / Switching subsystem

The NSS includes the main switching functions, as well as the data basis needed for

subscriber data and mobility management. The main role of NSS is to manage the

communications between the GSM users and the other telecommunications network

users. The NSS is responsible for performing call processing and subscriber-related

functions.

Mobile Services Switching Centre

The MSC is the interface of the cellular network to the PSTN. MSC performs the

telephony switching functions of the system, it acts like a normal switching node of

the PSTN, and additionally provides all the functionality needed to handle a mobile

subscriber, such as registration, authentication, location updating, handovers, and call

routing to a roaming subscriber. MSC is the primary switching interface between the

mobile telephone systems, and the PSTN. It is capable of routing calls from the fixed

network - via the BSC and the BTS- to an individual mobile station. The MSC also

provides the network with specific data about individual mobile stations. The MSC

interfaces with BSS on one other side (through which it is in contact with GSM users)

and with the external networks on the other. The NSSs also need to interface with the

external networks to make use of their capability to transport user data or signaling

between GSM entities. In particular, the NSS make use of a signaling support

network, at least partly external to GSM, usually referred to as the SS7 network.

Home Location Register (HLR)

The HLR is a database about subscribers; it stores the identity and user data of all the

subscribers belonging to the area of related MSC. These are permanent data, such as

the International Mobile Subscriber Number (IMSI) of an individual user,

authentication key, including a subscriber's service profile, location information,

activity status and some temporary data. Temporary data on the SIM include such

entries as (1) the address of the current visitor location register (VLR), which

currently administers the mobile stations (2) the number to which the calls must be

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forwarded (if the subscriber select call forwarding), and (3) some transient parameters

for authentication and ciphering .

The IMSI is permanently stored on the SIM card. The IMSI is one of the pieces of

important information used to identify a subscriber within GSM system. The first

three digits of the IMSI identify the Mobile Country Code (MCC) and the next two

digits are the mobile network code (MNC). Up to ten additional digits of the mobile

subscriber identification number (MSIC) complete the IMSI.

Visitor Location Register

The VLR contains the relevant data of all mobiles currently located in a serving (G)

MSC. It is the database that contains temporary storing subscription data for those

subscribers currently situated in the service area of the corresponding MSC as well as

holding data on their location at a more precise level than the HLR. The VLR is

always integrated with MSC. The permanent data are the same as data found in the

HLR; the temporary data differ slightly. For example, the VLR contains the

temporary mobile subscriber identity (TMSI), which is used for limited periods of

time to prevent the transmission of the IMSI via the air - interface. The substitution of

the TMSI for the IMSI serves to protect the subscriber from high-technology intruders

and helps point to the location of the mobile station through the cell identity.

The VLR has to support the (G) MSC during a call establishment and an

authentication procedure as it furnishes data specific to the subscriber. Locating

subscriber data in the VLR, as well as in the HLR, reduces the data traffic to the HLR,

because it is not necessary to ask for these data every time they are needed. Another

reason for storing the identical data at two different locations (in the HLR & VLR) is

that each serves a different purpose. The HLR has to provide the GMSC with the

necessary subscriber data when a call is coming from the public network. The VLR,

on the other hand serves the opposite function, providing the host (G) MSC with the

necessary subscriber data when a call is coming from mobile station.

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Authentication Centre

The Authentication center (AC) is related to the HLR. It provides the HLR with

different set of parameters to complete the authentication of a mobile station. The AC

knows exactly which algorithms it has to use for a specific subscriber in order to

calculate input values and issue the required results. Since all the algorithms for the

authentication procedures are stored within AC, they are protected against abuse. The

SIM card issued in area assigned to AC contains the same algorithms for

authentication as the AC does. If the AC provides input and output parameters for

these algorithms to either the HLR or the VLR, either location register can verify

(authenticate) the mobile station.

Equipment Identity Register

The equipment identity register (EIR) is a database that contains a list of all valid

mobile equipment on the network, where each mobile station is identified by its

International Mobile Equipment Identity (IMEI). An IMEI is marked as invalid if it

has been reported stolen or is not type approved. Within the EIR we find all the serial

numbers of the mobile equipment that is either stolen or, due to some defect in their

hardware, may not be used in a network. The idea is to check the identity at each

registration or call setup of any mobile station, and then depending on its IMEI, admit

or bar access of the mobile station to the system. The implementation of EIR is

relatively a new security feature of the GSM system.

Operation & Maintenance Centre

The Operation & Maintenance Centre (OMC) has access to both the (G) MSC and the

BSC, handles error messages coming from the network, and controls the traffic load

of the BSC and the BTS. The OMC configures the BTS via the BSC and allows the

operator to check the attached components of the system. As the cells become smaller

and the number of base stations increases, it will not be possible in the future.

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2.3.2 CDMA System

CDMA or Code Division Multiple Access is a form of access scheme that has been

widely used within 3G cellular telecommunications systems as well as being used in a

number of other technologies as well. CDMA technology gave some significant

advantages when compared to the technologies used for previous in terms of overall

performance and specifically in terms of spectrum efficiency.

CDMA uses spread spectrum technology with the use of different codes to separate

between different stations or users rather than different frequencies of time slots as in

the case of previous access technologies. In this way, CDMA is different to the

previous schemes used to provide different cellular users with access to the radio

network.

CDMA history

CDMA is based around a form of transmission known as Direct Sequence Spread

Spectrum. The CDMA history can be directly linked back to the 1940s when this

form of transmission was first envisaged. As electronics technology improved, it

started to be used for covert military transmissions in view of the facts that the

transmissions look like noise, it is difficult to decipher without the knowledge of the

right codes, and furthermore it is difficult to jam.

With the revolution in cellular telecommunications that occurred in the 1980s a then

little know company named Qualcomm working on DSSS transmissions started to

look at this as the basis for a cellular telecommunications multiple access scheme -

CDMA - code division multiple access.

The concept of CDMA had to prove in the field and accordingly Qualcomm was

joined by US network operators Nynex and Ameritech to develop the first

experimental CDMA system. Later the team was expanded as Motorola and AT&T

(now Lucent) joined to bring their resources to speed development.

As a result this it was possible to start writing a specification for CDMA in 1990.

With the support of the Cellular Telecommunications Industry Association (CTIA)

and the Telecommunications Industry Association (TIA) a standards group was set

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up. This group then published the standard for the first CDMA system in the form of

IS-95, resulting in the formal publication of IS-95-A in 1995.

The first CDMA system was launched in September 1995 by Hutchison Telephone

Co. Ltd. in Hong Kong and SK Telecom in Korea soon followed along with networks

in the USA.

This was only one cellular telecommunications system, although it was the first. Its

development led on to the CDMA2000 series of standards.

The use of CDMA did not stop with CDMA2000 as it became necessary to evolve the

GSM standard so that it could carry data and provide significant improvements in

terms of spectrum use efficiency. Accordingly CDMA, in the form of Wideband

CDMA (WCDMA) was adopted for this standard.

Key elements of CDMA

CDMA is a form of spread spectrum transmission technology. It has a number of

distinguishing key features to spread spectrum transmission technologies:

· Use of wide bandwidth: CDMA, like other spread spectrum technologies uses

a wider bandwidth than would otherwise be needed fort he transmission of the

data. This results in a number of advantages including an increased immunity

to interference or jamming, and multiple user access.

· Spreading codes used: In order to achieve the increased bandwidth, the data

is spread by use of a code which is independent of the data.

· Level of security: In order to receive the data, the receiver must have

knowledge of the spreading code, without this it is not possible to decipher the

transmitted data, and this gives a measure of security.

· Multiple access: The use of the spreading codes which are independent for

each user along with synchronous reception allow multiple users to access the

same channel simultaneously.

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CDMA technology advantages

The use of CDMA offers several advantages and it is for this reason that CDMA

technology has been adopted for many 3G cellular telecommunications systems.

· Improvement in capacity: One of the chief claims for CDMA is that it gives

significant improvements in network capacity. Original expectations for some

of the proponents of CDMA technology were for some very significant

improvements:

· 18 fold increase in capacity when compared to AMPS (1G technology

used in USA)

· 6 fold increase in capacity when compared to US TDMA (2G

technology used in USA) - similar increases were also claimed over

GSM.

In reality the original expectations were not fulfilled although increases of a

factor of about two were seen when compared to US TDMA and GSM. This

in itself was a significant improvement.

· Improvement in handover / handoff: Using CDMA it is possible for a

terminal to communicate with two base stations at once. As a result, the old

link only needs to be broken when the new one is firmly established. This

provides significant improvements in terms of the reliability of handover /

handoff from one base station to another.

CDMA has been a particularly successful technology. CDMA technology has been

used in all the 3G cellular telecommunications systems in one form or another and has

enabled significant improvements to be gained over previously technologies used in

2G systems, for example.

CDMA is based around the use of direct sequence spread spectrum techniques.

Essentially CDMA is a form of spread spectrum transmission which uses spreading

codes to spread the signal out over a wider bandwidth then would normally be

required. By using CDMA spread spectrum technology, many users are able to use

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the same channel and gain access to the system without causing undue interference to

each other.

Although as the number of users increases care has to be taken to ensure that

interference levels do not rise to the extent that performance falls, it is still possible to

provide access to a large number of different users and allow them access.

CDMA spread spectrum basics

The key element of code division multiple access CDMA is its use of a form of

transmission known as direct sequence spread spectrum, DSSS.

Direct sequence spread spectrum is a form of transmission that looks very similar to

white noise over the bandwidth of the transmission. However once received and

processed with the correct descrambling codes, it is possible to extract the required

data.

When transmitting a CDMA spread spectrum signal, the required data signal is

multiplied with what is known as a spreading or chip code data stream. The resulting

data stream has a higher data rate than the data itself. Often the data is multiplied

using the XOR (exclusive OR) function.

CDMA spreading

Each bit in the spreading sequence is called a chip, and this is much shorter than each

information bit. The spreading sequence or chip sequence has the same data rate as

the final output from the spreading multiplier. The rate is called the chip rate, and this

is often measured in terms of a number of M chips / sec.

The baseband data stream is then modulated onto a carrier and in this way the overall

the overall signal is spread over a much wider bandwidth than if the data had been

simply modulated onto the carrier. This is because; signals with high data rates

occupy wider signal bandwidths than those with low data rates.

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CDMA spread spectrum generation

To decode the signal and receive the original data, the CDMA signal is first

demodulated from the carrier to reconstitute the high speed data stream. This is

multiplied with the spreading code to regenerate the original data. When this is done,

then only the data with that was generated with the same spreading code is

regenerated, all the other data that is generated from different spreading code streams

is ignored.

CDMA spread spectrum decoding

The use of CDMA spread spectrum is a powerful principle and using this CDMA

technique, it is possible to transmit several sets of data independently on the same

carrier and then reconstitute them at the receiver without mutual interference. In this

way a base station can communicate with several mobiles on a single channel.

Similarly several mobiles can communicate with a single base station, provided that

in each case an independent spreading code is used.

CDMA spread spectrums encode / decode process

In order to visualize how the CDMA spread spectrum process operates; the easiest

method is to show an example of how the system actually operates in terms of data

bits, and how the data is recovered from the CDMA spread spectrum signal.

The first part of the process is to generate the CDMA spread spectrum signal. Take as

an example that the data to be transmitted is 1001, and the chip or spreading code is

0010. For each data bit, the complete spreading code is used to multiple the data, and

in this way, for each data bits, the spread or expanded signal consists of four bits.

1 0 0 1 Data to be transmitted

0010 0010 0010 0010 Chip or spreading code

1101 0010 0010 1101 Resultant spread data output

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With the signal obtained and transmitted, it needs to be decoded within the remote

receiver:

1101 0010 0010 1101 Incoming CDMA signal

0010 0010 0010 0010 Chip or spreading code

1111 0000 0000 1111 Result of de-spreading

1 0 0 1 Integrated output

NB: 1 x 1 = 0 1 x 0 = 1

In this way it can be seen that the original data is recovered exactly by using the same

spreading or chip code. Had another code been used to regenerate the CDMA spread

spectrum signal, then it would have resulted in a random sequence after de-spreading.

This would have appeared as noise in the system.

The spreading code used in this example was only four bits long. This enabled the

process to be visualized more easily. Commonly spreading codes may be 64 bits, or

even 128 bits long to provide the required performance.

CDMA spreading gain

The bandwidth of the CDMA spread spectrum signal will be much wider than the

original data stream. To quantify the increase in bandwidth, a term known as the

spreading gain is used. If the bandwidth of the CDMS spread spectrum signal is W

and the input data bit length or period 1/R then the CDMA spreading gain can be

defined:

Spreading gain = W / R

It is found that the larger the spreading gain of the CDMA spread spectrum signal, the

more effective the performance of the system is. This is because the wanted signal

becomes larger. In the example shown above, the spreading gain is four, as seen by

the fact that four "1"s are generated for each required data bit. Data produced by other

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dispreading codes would appear as noise and can be discarded as it would be lower in

value.

The principle behind CDMA spread spectrum communications is relatively

straightforward. The same code must be sued within generation and decoding of the

CDMA spread spectrum signal to enable the data to pass unchanged through the

system. The use of a different code in transmission and reception results in a signal

similar in character to noise being generated and this can be discarded.

The CDMA orthogonal spreading codes are one of the major elements within the

whole CDMA system. The CDMA orthogonal spreading codes are combined with the

data stream to be transmitted in such a way that the bandwidth required is increased

and the benefits of the spread spectrum system can be gained.

The CDMA codes are specific to each channel / user so that the different users can

gain access to the system and communicate as required.

CDMA codes and correlation

The concept of CDMA is based around the fact that a data sequence is multiplied by a

spreading code or sequence which increases the bandwidth of the signal. Then within

the receiver the same spreading code or sequence is used to extract the required data.

Only when the required code is used, does the required data appear from the signal.

The process of extracting the data is called correlation. When a code exactly the same

as that used in the transmitter is used, then it is said to have a correlation of one and

data is extracted. When a spreading code that does not correlate is used, then the data

will not be extracted and a different set of data will appear. This means that it is

necessary for the same spreading code to be used within the transmitter and receiver

for the data to be extracted.

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CDMA code types

There are several types of codes that can be used within a CDMA system for

providing the spreading function:

· PN codes: Pseudo-random number codes (pseudo-noise or PN code) can be

generated very easily. These codes will sum to zero over a period of time.

Although the sequence is deterministic because of the limited length of the

linear shift register used to generate the sequence, they provide a PN code that

can be used within a CDMA system to provide the spreading code required.

They are used within many systems as there is a very large number that can be

used.

A feature of PN codes is that if the same versions of the PN code are time

shifted, then they become almost orthogonal, and can be used as virtually

orthogonal codes within a CDMA system.

· Truly orthogonal codes: Two codes are said to be orthogonal if when they

are multiplied together the result is added over a period of time they sum to

zero. For example a codes 1 -1 -1 1 and 1 -1 1 -1 when multiplied together

give 1 1 -1 -1 which gives the sum zero. An example of an orthogonal code set

is the Walsh codes used within the IS95 / CDMA2000 system.

One of the problems encountered with CDMA is known as the "Near Far" problem.

This CDMA near far problem is a key element in CDMA and as a result close control

of the power within CDMA handsets is required.

The provision of a satisfactory solution of the CDMA near far problem was a key

element in enabling CDMA to become a viable technology for providing a multiple

access scheme for users within cellular and other radio based communications

systems.

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CDMA near far problem basics

The CDMA near far problem arises because handsets may be anywhere within the

particular cell boundaries. Some handsets will be close to the base station, whereas

others will be much further away.

In a free space scenario signals decay according to an inverse square law - in other

words double the distance and the strength falls away to a quarter.

Signal = k x 1 / d2

Where:

k = constant

d = distance

In cellular applications this situation may be worse. The effects of objects and other

obstructions in the signal propagation path mean that in reality a signal decays at a

greater rate than the simple inverse square law. It is somewhere between a law that

follows a curve of an inverse of the distance to the power three or four. Many system

planners may use a law of around 1 / d 3.4.

The result of this is that signals within a cell will have a huge variation in signal

strengths. However for CDMA to operate correctly the receiver must be able to

receive all the required signals within the same channel bandwidth and it must be able

to decode them.

For the receiver to be able to decode all the signals in the channel, they should ideally

all be at the same signal strength - giving the CDMA near far problem.

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CDMA near far problem solution

The CDMA near far problem is a serious problem, and requires an effective means of

overcoming the problem for CDMA to operate correctly.

The schemes used to overcome the CDMA near far problem utilize fast and accurate

power control systems.

Drawbacks caused by the CDMA near far problem

While the power control schemes that are adopted by the different cellular

telecommunications technologies work very well and allow the CDMA systems to

operate over a wide area, there are penalties for using them:

· Reduced data capacity: The power control mechanism requires data to be

sent in both directions across the radio interface. This utilizes data capacity

that could be otherwise used for carrying revenue earning data.

· High power handset power consumption at cell edges: In order to be able to

maintain the required signal level at the base station when the handset is close

to the edge of the cell, it will be required to transmit at a high power level.

This will reduce battery life. Other cellular systems might not require such

high signal levels at the base station and may be able to conserve battery

power as a result.

The CDMA near far problem is resolved in systems such as cdmaOne, CDMA2000

and W-CDMA by using sophisticated power control schemes to ensure that the power

levels at the base station fall within a given band. Although there are some penalties

to be paid for these schemes to overcome the CDMA near far problem, they operate

well and enable significant gains to be made by using CDMA over previous

technologies.

One of the major reasons for the choice of CDMA for the 3G cellular services as well

as a number of other communications systems, was the fact that it gave a significant

improvement in capacity.

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In fact CDMA capacity has been the subject of many papers and much discussion. It

is dependent upon many factors and as a result, the exact determination of the

improvements in CDMA capacity has been largely down to practical experience.

Original CDMA capacity claims

One of the chief claims for CDMA is that it gives significant improvements in

network capacity. Original hype for CDMA proposed some very significant

improvements. Expectations by some of the proponents of CDMA technology were

for some very significant improvements:

· 18 fold increase in capacity when compared to AMPS (1G technology used in

USA)

· 6 fold increase in capacity when compared to US TDMA (2G technology used

in USA) - similar increases were also claimed over GSM.

In reality the original expectations were not fulfilled although increases of a factor of

about two were seen when compared to US TDMA and GSM. This in itself was a

significant improvement.

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2.4 Current Status of Indian Telecom Industry

2.4.1 Introduction

India is one of the fastest growing telecom markets in the world wherein the

telecommunications sector has emerged as a key propeller of social-economic

development in an intensive, knowledge-driven global landscape. Introduction of

National Telecom Policy-2012 has furthermore accelerated equitable and inclusive

economic growth by laying special focus on providing affordable and quality

telecommunication services in rural and remote areas.

The sector's significant contribution to the economic development is clearly reflected

in the unprecedented increase in tele-density and sharp decline in tariffs in the Indian

telecom sector which accounts for almost 3 per cent of the gross domestic product

(GDP).

2.4.2 Key Developments

Aligning their efforts with international trends, Indian service providers are exploring

new ways to capture the markets. They are adopting new technologies like mobile

Value Added Services (MVAS), cloud and data-center services, according to a report

titled 'Indian Telecom Market Overview 2012'.

· India's telecom subscriber base stands at 935.18 million at the end of October

2012, according to data released by the sector regulator Telecom Regulatory

Authority of India (TRAI)

· The tele-density, based on total number of mobile connections, has reached

74.21, according to TRAI

· Furthermore, a study by Bangalore-based Zinnov states that the wireless

subscriber market stands at 933.7 million subscribers while the wireline stands

at 31.4 million wherein Bharti dominates the wireless segment and BSNL

dominates the wireline market

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2.4.3 Market Dynamics

The Indian mobile phone market is highly competitive with more than 150 device

manufacturers trying to woo the consumers with their offerings. Most of these

producers focus their efforts on the low-cost feature phone market, which constitutes

over 91 per cent of overall mobile phone sales, offering a huge scope for growth.

Manufacturers like ZTE, Micromax, Karbonn Mobile, Huawei stood at sixth, seventh

and twelfth positions respectively, in the Indian smartphone market in the first half of

2012. They are constantly enhancing their smartphone portfolio to compete with big

global manufacturers like Samsung and Nokia, which held the first and second

position respectively.

Samsung's share grew from 15 per cent in the first quarter of 2011 to 49.8 per cent in

the second quarter of 2012, owing to its brand strength and wide device portfolio.

Industry experts believe that if Samsung continues to take advantage of the high

growth opportunities in Indian market, it could end 2012 with more than 60 per cent

of the market share.

2.4.4 Telecommunication: Key Expansions & Investments

· RPG Group's KEC International Ltd has won orders worth Rs 868 crore (US$

159.81 million) for supply and laying of transmission, power systems and

telecom lines in India, Abu Dhabi, Tunisia and Philippines. These include Rs

227 crore (US$ 41.88 million)-order from Power Grid Corporation of India

(PGCIL) for supply and erection of transmission lines in Jharkhand on turnkey

basis and Rs 278 crore (US$ 51.18 million)-order for laying transmission line

between Ruwais and Bab grid stations in Abu Dhabi on a similar basis, stated

an official release

· Vodafone India has inked an agreement with ICICI Bank to launch a mobile

payment service, m-pesa, which will take-off in Kolkata, West Bengal, Bihar

and Jharkhand, and will then be rolled out to other parts of the country in a

phased manner. The service will facilitate cash deposit and money transfer to

any mobile phone in India, and cash withdraw from designated outlets. The

service would also enable customers for mobile recharge, recharge for direct-

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to-home (DTH) services, utility bill payments and money transfer to any bank

account in India and payments at shops

· Tech Mahindra, the software services provider, in which vehicle manufacturer

Mahindra & Mahindra holds about 48 per cent stake, has set up three

laboratories for Long Term Evolution (LTE) technology in Delhi, Bangalore

and Pune. The company plans to work along with companies preparing to

launch the services in India. LTE, commonly called 4G, is a standard for high-

speed data communication for mobile phones and data networks.

2.4.5 Government Initiatives

· The Indian Government intends to make India a teleport hub, enabling it to

become an up-linking/down-linking centre, just like Hong Kong and

Singapore. The Ministry of Information and Broadcasting (I&B), in

consultation with the industry, will explore modalities, challenges and finalize

the road map for the same. The initiative is expected to facilitate foreign

investments, better technology and sustainable employment opportunities in

the country. The Government has recently given its nod to 74 per cent of

foreign direct investment (FDI) in DTH, IPTV, and mobile TV.

· Meanwhile, in a bid to make International long distance calls cheaper and

intensify competition in this segment, the telecom regulator TRAI has allowed

telephone users of one operator to use calling cards issued by another operator.

For instance, a Vodafone user would now be able to make calls to the US or

UK using Reliance's global calling card.

· The new system is expected to open up markets for foreign giants such as BT,

AT&T and Orange that would now sell their voice calling cards to retail and

enterprise users in India. These multinational firms, at present are offering

only data services to large corporate.

· The telecom tower provider industry has been recently granted the

'infrastructure' status, a move that will make tower providers eligible for

viability gap funding, higher limit on external commercial borrowings (ECBs),

lower import duties and exemptions on excise duty on telecom infrastructure

equipment.

· Tower providers will also get advantage of lower lending rates at 3-4 per cent

on loan terms of 10-15 years as against the market borrowing rates of 12-13

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per cent. Along with other multiple benefits, the companies will also be given

a tax holiday under section 80-IA of the Income Tax Act. Industry body

Tower and Infrastructure Provider's Association (TAIPA) will coordinate with

the implementation committee to bring in commonality of interest to ensure

rapid progression of the new development.

· The Government will also soon give a green signal to a three-way partnership

between Russia's NIS Glonass (a wholly-owned subsidiary of the Russian

public-private partnership company, Navigation-Information Systems), BSNL

and MTNL for delivering satellite-based navigation services in India. A draft

memorandum of understanding (MoU) between the entities involved is being

considered.

· The Department of Telecommunications (DoT) has issued new guidelines

according to which foreign entities can participate in the upcoming 2G

auctions directly and obtain a licence. The initiative is expected to make the

upcoming auctions more attractive to certain foreign players such as Telenor,

which wanted to bid directly without an Indian partner in the auctions. The

notice inviting applications (NIA) for the same have stated that the debut

companies will have to pay Rs 1 crore (US$ 184, 059.68) for unified license in

a service area where they wish to operate. There will be a lock-in period of

three years.

2.4.6 Future Ahead

Mobile device sales in India are projected to reach 251 million units in 2013, an

increase of 13.5 per cent over the sales of 221 million units in 2012, according to a

study by Gartner. The study further anticipates that the mobile handset market would

witness a steady growth through 2016 when end-user sales will surpass 326 million

units.

Moreover, the data-center market is pegged at over US$ 4 billion currently and is

expected to reach approximately US$ 6 billion by 2014, said the study by Zinnov. The

players are increasingly getting inclined towards MVAS opportunities. Indian MVAS

market, presently valued over US$ 5 billion, is expected to shift from the

conventional SMS based services to internet based and application based services and

reach well over US$ 6 billion by 2013.

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2.5 Brand

American Marketing Association defined that a brand is a name, term, sign, symbol,

or design, or a combination of them, intended to identify the goods or services of one

seller or group of sellers and to differentiate them from those of competitors. This

definition emphasized on visual features as a differentiating factor.

Dibb, Simkin, Pride, & Ferrell (1997) modified this original definition to a name,

term, design, symbol or any other feature that identifies one seller's good or service as

distinct from those of other sellers. Any other feature here allows for intangibles such

as brand image as a point of differentiation and not only the tangible visual features.

Ambler (2003) defined further as a name, symbol or design that identifies one or more

product and it is something that is bought by the consumers. Ambler (2003) further

emphasize the difference between a product and a brand by highlighting that unlike a

product, which can be produced in a factory and it can be copied by a competitor, a

brand is unique. Earlier definitions by Ambler (1995) was based on a consumer

oriented approach by defining a brand as a promise of the bundles of attributes that

someone buys and provide satisfaction.

The attributes that make up a brand may be real or illusory, rational or emotional,

tangible or invisible. Wood (2000) supports this view and highlights that a brand can

be defined from different perspective such as consumers' perspective and/or from the

brand owner's perspective.

According to Leiser (2004), the understanding of brands today is far beyond the

simplistic view of a logo, tagline or advertising image but a set of expectations and

associations evoked from experience with a company or product. Furthermore, it is all

about how customers think and feel about what the business or product can deliver

across the board.

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Davis (2002) reiterates that consumers do not have a relationship with a product or

service but he/she may have a relationship with a brand because a brand is a set of

promises and therefore the strongest brands own a place in the consumer‘s mind.

Furthermore, strong brands can increase the value of a company as investors are

willing to pay more for intangible asset such as a strong brand (Motameni and

Shahrokhi, 1998; Davis 2002; Ambler, 2003; Rooney, 1995).

According to Aaker (1996), a strong brand has a strong brand equity which is a set of

assets such as: brand name awareness, brand loyalty, perceived quality and brand

associations. However building strong brands is a challenge in today‘s environment as

there are substantial pressures and barriers both internal and external. Aaker (1996),

further highlights that one needs to understand these pressures and barriers in order to

develop strong brand strategies. Some of the barriers highlighted by Aaker (1996) are:

price, proliferation of competitors, fragmented media and so forth.

Nandan (2005) suggests that strong brands have two very key distinct features namely

brand image and brand identity however no matter how good a company is such as

having a unique vision, strong management or superior product if the core benefits of

the brand are not clearly communicated to the right target audience, the brand will

ultimately fail. Strong brands understand the changing needs of consumers and the

micro and macro environments.

According to Davis (2000), an understanding of competitors is vital in building a

strong brand and the failure to understand one's competitors is ultimately the failure to

know one's customers: who they are, how they think, and how the brand can be

adapted to meet their needs. Strong brands are developed over time and the branding

literature increasingly suggests that the strength of a brand is not due to the strength of

creating a difference in customer perceptions but rather brand strength is due to the

meaning that the brand creates (Kay, 2005).

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2.6 Brand Image

Brand image represents an important aspect of marketing activities; branding and

market offering with varied definition and approaches to its conceptualization

(Burleigh and Sidney, 1955; Dobni and Zinkhan, 1990; Martinez and Pina, 2003).

A widely accepted view is that brand image represents customers' perceptions of a

brand as reflected by the brand associations held in consumer memory (Herzog, 1963;

Keller, 1993a, b). Keller (1993a, b) argued that these associations could originate

from customers direct experience or from information obtained on a market offering

or due to the impact a pre-existing associations with an organization had on consumer.

Brand image is, therefore, the mental picture or perception of a brand or a branded

product or service and includes symbolic meanings that consumers associate with the

specific attributes of a product or service (Dobni and Zinkhan, 1990; Padgett and

Allen, 1997; Aperia and Back, 2004).

Brand image represents "the reasoned or emotional perceptions consumers attach to

specific brands" (Low and Lamb, 2000) a set of beliefs held by customers about a

particular brand, based upon some intrinsic and extrinsic attributes of a market

offering resulting to perceived quality, and customer satisfaction. Perceived quality

refers to the customer's perception of the overall quality or superiority of a product or

service with respect to its intended purpose, relative to alternatives.

While customer satisfaction although subject to debate as there are dichotomies to its

definition can be likened to customer feeling of pleasure or disappointment as a result

of experience or the act of comparing a product's perceived performance (or outcome)

in relation to a customer's expectations. It is, therefore, the degree to which customers

are satisfied or dissatisfied with a business, product, or specific aspect of a product or

service provided by a business. Customer satisfaction can be explained as the

outcome of a comparison between perceived product performance and pre-purchase

expectations. An outcome argued in Fornell et al. (2006) as leading to long-term

customer loyalty. Fornell et al. (2006) developed a model called the Customer

Satisfaction Index aimed at encouraging organizations adaptation of market-

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orientation and to recognize that the outcomes of perceived quality and brand image

could be customer satisfaction. Fornell et al. (2006) study concludes that brand image

impacts on customer perceived quality and satisfaction with the result of strong

satisfaction being possible customer loyalty.

According to Hsieh, Pan, and Setiono (2004), "a successful brand image enables

consumers to identify the needs that the brand satisfies and to differentiate the brand

from its competitors, and consequently increases the likelihood that consumers will

purchase the brand". A company or its product/ services which constantly holds a

favorable image by the public, would definitely gain a better position in the market,

sustainable competitive advantage, and increase market share or performance (Park,

Jaworski, & MacInnis, 1986). In addition, several empirical findings have confirmed

that a favorable image (i.e. brand, store/retail) will lead to loyalty (e.g. Koo, 2003;

Kandampully & Suhartanto, 2000; Nguyen & LeBlanc, 1998), brand equity

(Faircloth, Capella, & Alford, 2001; Biel, 1992; Aaker, 1991; Keller, 1993), purchase

behavior (Hsieh et al., 2004) and brand performance (Roth, 1995).

Reynolds (1965) noted that "an image is the mental construct developed by the

consumer on the basis of a few selected impressions among the flood of the total

impressions; it comes into being through a creative process in which these selected

impressions are elaborated, embellished, and ordered". Kotler (2001) defined image

as "the set of beliefs, ideas, and impression that a person holds regarding an object".

On the other hand, Keller (1993) considered brand image as "a set of perceptions

about a brand as reflected by brand associations in consumer's memory". A similar

definition to Keller's was proposed by Aaker (1991), whereby brand image is referred

to as "a set of associations, usually organized in some meaningful way". Biel (1992)

however defined brand image as "a cluster of attributes and associations that

consumers connect to the brand name".

Brand image has been conceptualized and operationalized in several ways (Reynolds

& Gutman, 1984; Faircloth et al., 2001). It has been measured based on attributes (i.e.

Koo, 2003; Kandampully & Suhartanto, 2000); brand benefits/ values (i.e. Hsieh et al,

2004; Roth, 1995; Bhat & Reddy, 1998); or using Malhotra's (1981) brand image

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scale (i.e. Faircloth et al., 2001). Measuring image based on the above definition

would help marketers to identify the strengths and weaknesses of their brand as well

as consumers' perceptions toward their product or services.

Zooming into Keller's (1993) conceptualization of brand image, it is considered a

perception about a brand as reflected by the brand associations held in consumers'

memory. He suggested that "brand associations" comprise of brand attributes, brand

benefits, and overall brand attitudes.

To Keller (1993), attributes are "descriptive features that characterized a product or

service - what a consumer thought the product or service is or has and what is

involved with its purchase or consumption". Attributes can be classified into product-

related attributes and non product-related attributes (i.e. price, packaging or product

appearance information, user and usage imagery). Product-related attributes refer to

the ingredients necessary for performing the product or service function sought by

consumers while non product-related attributes refer to the external aspects of the

product or services that relate to its purchase or consumption. As for benefits, these

are considered "the personal value consumers attach to the product or service

attributes - that is, what consumers think the product or service can do for them".

Keller (1993) described that this image benefits can be classified into functional,

experiential and symbolic benefits, which was originally derived from the work of

Park et al. (1986). Here, the functional benefits are related to the intrinsic advantages

of product or services consumption and usually correspond to the product related

attributes. For example, experiential benefits refer to "what it felt like to use the

product or services and usually correspond to the product related attributes", while

symbolic benefits were associated with the underlying needs for social approval or

personal expression and outer-directed self-esteem and basically corresponded to non-

product related attributes.

For brand attitude, Keller (1993) referred to Wilkie's (1986) definition of brand

attitudes which was "consumers' overall evaluations of a brand".

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Overall, image can generate value in terms of helping customer to process

information, differentiating the brand, generating reasons to buy, give positive

feelings, and providing a basis for extensions (Aaker, 1991). Creating and maintaining

image of the brand is an important part of a firm's marketing program (Roth, 1995)

and branding strategy (Keller, 1993; Aaker, 1991). Therefore, it is very important to

understand the development of image formation and its consequences such as

satisfaction and loyalty.

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2.7 Consumer Perception

Study of consumers’ view of a product/ service is very vital because it may lead to the

success or failure of any product/ service. Consumer perception is the psychological

factor which means selecting, organizing and interpreting information to create a

meaningful picture of the world.

There can be numerous factors for a consumer to move towards or get away from a

product/ service. For a service quality is a major parameter which helps consumer

take a positive or negative note of a service and thereafter making the buying or

avoiding decisions.

Telecom services today touch many human lives and especially Mobile services have

paved very deep way in the routine lives of consumers. It plays a major role in

connecting people over distances almost instantly and thus has revolutionized the way

communication used to be done over the period of years.

Telecom Regulatory Authority of India has come up with parameters pertaining to

quality of services to measure the quality of services provided by various Mobile

Service Providers. These service providers are gauged on these parameters against set

benchmarks and figures on these parameters are reported at the end of every quarter.

Non-complying providers may me triggered to match the benchmarks in next quarter.

The following table shows these parameters and set benchmarks to be complied with

by wireless service providers:

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2.3 TRAI Network Benchmarks

Sr. No. Parameters Benchmarks Network Related Parameters 1 Network Availability

(i) BTSs Accumulated downtime (not available for service)

< 2%

(ii) Worst affected BTSs due to downtime < 2%

2 Connection Establishment (Accessibility)

(i) Call Set-up Success Rate (within licensee's own network)

> 95%

(ii) SDCCH/ Paging Chl. Congestion < 1%

(iii) TCH Congestion < 2%

3 Connection Maintenance (Retain ability) (i) Call Drop Rate < 2%

(ii) Worst affected cells having more than 3% TCH drop (call drop) rate

< 3%

(iii) Connection with good voice quality > 95%

4

Point of Interconnection (POI) Congestion (No. of POIs not meeting the benchmark) (Averaged over a period of quarter)

< 0.5%

Customer Service Quality Parameters 5 Metering and Billing (i) Metering and billing credibility - post paid < 0.1%

(ii) Metering and billing credibility - pre paid < 0.1%

(iii) Resolution of billing/charging/validity complaints

100% within 4 weeks

(iv) Period of applying credit/ waiver/ adjustment to customer's account from the date of resolution of complaints

within 1 week of resolution of complaint

6 Response time to the customer for assistance

(i) Accessibility of call centre/ customer care > 95%

(ii) %age of calls answered by the operators (voice to voice) within 60 seconds

> 90%

7 Termination / closure of service

(i) %age requests for Termination / Closure of service complied within 7 days

100% within 7 days

(ii) Time taken for refund of deposits after closures 100% within 60 days

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Wireless service providers are able to track their performance and also come to know

the amount of further efforts to put to keep up with benchmarks and thus fine tune

their performance but how consumers perceive the services regards to these

parameters is an area not much touched. Some of these parameters such as call drop

rates, connection success/ failure, metering and billing etc. which can be understood

by a common consumer from Network Quality and Customer Quality Service should

be studied to get consumer’s perspective on these benchmarks.

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2.8 Company Performance In business bottom line is of utmost importance. Because, when company itself makes

money, it can think of giving back to the society in other forms to serve for the social

cause and in turn to discharge the corporate social responsibility. Therefore, positive

company performance remains the common goal of companies. It gives us the idea of

company’s Market Position, financial position and also its overall performance

through analysis of various performance indicators of the company. For this study of

telecom industry market related parameters have been chosen to study the

performance of the companies.

Market share is the percentage or proportion of the total available market or market

segment that is being serviced by a company. It can be expressed as a company's sales

revenue (from that market) divided by the total sales revenue available in that market.

It can also be expressed as a company's unit sales volume (in a market) divided by the

total volume of units sold in that market. It is generally necessary to commission

market research (generally desk/secondary research) to determine, although

sometimes primary research) to estimate the total market size and a company's market

share.

Increasing market share is one of the most important objectives of business. The main

advantage of using market share as a measure of business performance is that it is less

dependent upon macro environmental variables such as the state of the economy or

changes in tax policy.

Here in this study subscribers’ share is considered as an indicator of market position

of telecom companies. Subscribers’ share increase and decrease can indicate the

company’s direction towards strong or weak position in the market.

Average revenue per user (sometimes average revenue per unit) usually

abbreviated to ARPU is a measure used primarily by consumer communications and

networking companies, it is the total revenue divided by the number of subscribers.

This term is used by companies that offer subscription services to clients for example,

telephone carriers, Internet service providers, and hosts. It is a measure of the revenue

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generated by one customer phone, pager, etc., per unit time, typically per year or

month. In mobile telephony, ARPU includes not only the revenues billed to the

customer each month for usage, but also the revenue generated from incoming calls,

payable within the regulatory interconnection regime. This provides the company a

granular view at per user or unit basis and allows it to track revenue sources and

growth.

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