WINTER Project Report FILE

8/13/2019 WINTER Project Report FILE

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RESEARCH PROJECT REPORT

ON

STUDY OF BUSINESS DEVELOPMENT STRATEGIC IN TELECOM

INDUSTRIES

KANPUR INSTITUTE OF MANAGEMENT STUDIES

(AFFILIATED TO GAUTAM BUDDHA TECHNICAL UNIVERSITY,LUCKNOW)

IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD

OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

(2010-2012)

UNDER THE GUIDANCE OF

(Ms. SWATI DWIVEDI)

SUBMITTED BY:

RUPESH KUMAR

ROLL NO: 1071470019

MBA BATCH -2010-2012

ON (16-04-2012)


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CERTIFICATE

This is to certify that Mr. Rupesh Kumar, Roll number 1071470019, a student of MBA in

Kanpur Institute of Management Studies, has carried out the research work presented in this

winter trainingproject report titled STUDY OF BUSINESS DEVELOPMENT STRATEGIC

IN TELECOM INDUSTRIESfor the award of Master of Business Administration from

Gautam Buddha Technical University/ Kanpur Institute of Management Studies for the academic

batch 2010-2012, under my guidance.

Name of the Project Guide

Swati Dwivedi

HOD

Kanpur Institute of Management Studies Unnao.


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Consumer Perception Towards Telecom

Services

In Patna


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SYNOPSIS

Aim:

The aim of this study is to analyze critically the Patna 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.

Commercial Viability of Study:

In todays 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.

Research Methodology:

This research consists of primary and secondary research.

Primary Sources

1) Interaction with customers by filling up of questionnaires.


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Secondary Sources

Books

Internet

Articles

Magazines

Project reports

News papers


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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 Ms.wwwwwwhose

continuance guidance made this project a great success. We especially thank our institute called

KANPUR INSTITUTE OF MANAGEMENT STUDIES which gave us this golden

opportunity to prove ourselves by doing something which is blend of both practical and theory.

Very special thanks to our Academic Coordinator Mis.Swati Dwivedi and some students &

people who shared their opinion with us.

RUPESH KUMAR

Acknowledgement


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TABLE OF CONTENTS

S.No. Title Page No.

1 Executive Summary 08

2 Index 9-11

3 Introduction 12-32

4 Mission &Vision of the Company 33

5 IDEA 34-35

6 VODAFONE 36-37

7 BSNL 38-39

8 RELIANCE 40

9 TATA Teleservices 41

10 Market Share of CDMA & GSM 42-44

11 Research Methodology 45-51

12 Data Analysis 52-70

13 Hypothesis 71-77

14 Finding 78-79

15 Company Wise Analysis 80-82

16 Conclusion & Recommendation 83-84

17 Questionnaire 86-88

18 Bibliography 89-90


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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 asconvergence 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 customers interest and

to set the standards of quality of service. The rapid technological advances which have takenplace 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.

EXECUTIVE SUMMARY


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1. Introduction

1.1 History

1.2 Quick Facts

2. Evolution of the industry-Important Milestones

3. Journey of telecom sector after 1991s 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

INDEX


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6.7 New entries

7. Research objective

7.1 Approach to problem

7.2 Theory development

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


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11. Conclusions and Recommendations

12. List of figures

13. Questionnaire

14. Bibliography

15. List of Abbreviations used


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Introduction

The Indian Telecommunications network with 110.01 million connections is the fifth largest inthe 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.

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 Indias GDP.


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HISTORY

1851 Introduction of Telegraph services

1947 Foreign Telecom Companies nationalized to form PTT

1980s: The Beginning

-Tele-density in 1980-81: 0.3%

-Introduction of public pay phones

-Private Sector allowed

-DoT, MTNL and VSNL formed

Early to Mid 90s:

A Messy Affair

-Telecom policy 1994

- Basic telephony service to private operators

- 49% FDI

- 8 licensees began operations in Aug 1995

Late 90s - Birth of a regulator: TRAI

- NTP 1999

- (New Telecom Policy)

2000+ -CAGR of around 85% since 1999

- FDI: 74% (2005)

2007-2009

-Having the world's lowest call rates the fastest growth in the

number of subscribers (45 million in 4 months),- The fastest sale of million mobile phones (in a week),

- The world's cheapest mobile handset

- The world's most affordable color phone


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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

Indias service providers revenue in Q1 (2009) $8.2 billion

Indias Rural Mobile Phone Users : 100 Million


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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


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Journey of telecom sector after 1991s 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 communications,

internetworking, the Internet, e-commerce, mobile and wireless communications strategy.


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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;

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;


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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 countrys

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 countrys economy,

4. Encourage development of telecommunication facilities in remote, hilly and tribal areas of

the country.

5. Create a modern and efficient telecommunications infrastructure taking into account the

convergence of IT, media, telecom and consumer electronics and assist emergence of Indiaas an IT superpower,

6. Convert PCOs, wherever justified, into Public Tele-info Centers having multimedia

capability like ISDN services, remote database access, and assist emergence of community

information systems etc.,


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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 world-class manufacturing capabilities, Achieve efficiency and transparency in

spectrum management,

9. Protect defense 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,

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.


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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 2011,

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 wire line, the Rural Subscriber base was 11.64 million on 31st March

2008. The Rural teledensity as on 31st March 2008 was 9.20.


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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 2011,

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 Centers having

multimedia capabilities like ISDN services, remote database access and information

systems etc

The subscriber base of basic services (Wire line) 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 as compared to 66.34 million in 2006-07. The total number of subscriber

crossed 26149 million mark by the end of 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 2008as compared to 18.23 on 31stMarch 2007.


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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 TRAIs

Recommendations, the Government issued the Guidelines for issue of License for Basic Service

on 25th January, 2001. These Guidelines provided for opening the Basic Telephone Service

without any restriction on the number of operators.

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 wire line 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


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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 standalone value added services. The Value

Added Services presently being provided by the telecom operators are in the following areas:

Sl. No. Type of Value

Added Service

Description

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

subscribers mobile phone is switched off / not reachable

and busy

9. E-mail E-mail through SMS


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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.


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VAS challenges

Value

Added

Services

User Challenge

Operators not driving users

awareness to promote various

VAS offerings

Ease of use, user interface an

familiarity with medium of

access such as GPRS IVR et

Operator Challenge

Operators focusing on subscriberacquisition with no incentives topush VAS in light of currentspectrum allocation criteria

Spectrum constraints and delayin 3G roll-out has substantially

limited hi h-end VAS take-off

Revenue Challenge

Ongoing tussle betweenoperators and VAScompanies for revenue scontinues

Since alternative modelshaven't evolved yet, this ham ered VAS innovatio

Device Challenge

Providing feature-rich handsets at lowcost is a big challenge with GPRSenabled handsets still around INR 2,599(USD 63)

Pre-loading of applications by handsetOEMs has not really caught on yet

Content Localization

Challenge

Operators havent donemuch to customizecontent according toconsumer behavior

Limited availability of

local web content andWAP versions of whateveris available


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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 its 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. Thats exactly the duty of this regulatory body, as has been entrusted with thestatutory power, umpiring on behalf of the public for smooth telecom service.

If one reviews the sequence of its 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, Its a matter of concern that INTER CONNECT USAGE REGIME ordered by

the same agency is being reviewed again by itself within two months of its enforcement. It could

have been reviewed before it has been implemented or could have been kept for public

perception or operators 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


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could offer cheaper telecom services them, TRAI should not prevent them in the name of

PREDATORY PRICING .

Its appropriate time to review the roleof 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.

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 DoTs (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 DoTs 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.


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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.

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 DoTs order.

Nor was TRAI particularly impressed by the operators 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.


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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

license to a service provider

-compliance of terms and conditions of license

growth in industry

nological improvement in services by service providers

2. Mandatory Functions

ms and conditions of their inter connectivity between service providers

-connection between different

service providers.


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ay-down the standards of QoS to be provided by service provider, ensure this by

periodical survey

-down and ensure time period for providing local and long-distance circuits of

telecommunication between different service providers

3. Other functions

TRAI act

side India

Major Players in dif ferent s egments of Indian

telecom industry


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Airtel

Basic Services

Operators

BSNL

MTNL

Reliance

TTSL

GSM Services

Operators

Airtel

Vodafone

Idea

Reliance

BSNL

Internet Services

Operators

BSNL

MTNL

Reliance

TTSL

Airtel

Reliance

TTS

CDMA Services

Operators


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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 Services (Telecommunications Consulting for corporate).

It has presence in all 23 circles of the country and covers 71% of the current population.


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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 2011 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


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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 June09.

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, fertilizers, life insurance and

financial services among others. Over half of the Groups 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%


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B. KeyShareholders

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-Nov06,

while the 2 service areas of Mumbai and

Bihar became operational during Aug-Oct08. 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 April09 and the Tamil Nadu service area (excl. Chennai) in May09. Services in

Chennai were launched in July09.


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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 license for Mumbai.

Vodafone Essar now has operations in 20 circles with over 54.63 million customers.

Vodafone is the worlds leading international mobile communications company. It now hasoperations 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 customers 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

Rebranding

- Stores

- Mass media coverage

Innovative distribution to reach the customer

- Exclusive shops

- Hub and spoke


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- Associate distributions

Customer service

- Shops and call centers

- Vans

- Help desks


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BSNL

(BHARAT SANCHAR NIGAM LIMITED)

BHARAT SANCHAR NIGAM LIMITED (BSNL) was formed on October 1, 2000 by

corporatization of the erstwhile Department of Telecom operation & Department TelecomServices. 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.

INTELLIGENT NETWORK


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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 Cell One & 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 during

2008-09

Status as on 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


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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 India Mobile, 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 toprovide 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 countrys largest mobile operator. It now wants to increase

its market share and has recently launched pre-paid services. Having captured the voice market,

it intends to attack the broadband market.


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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.


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List of Related figures

Market Share of GSM & CDMA

Market Share of GSM Players

Market Share of CDMA Players

0 10 20 30 40 50 60 70 80

GSM

CDMA

Airtel

Vodafon

BSNL

IDEA

Aircel

Reliance Telecom


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Market Share of All Players

(Over all and Rural)

Subscriber Growth

Reliance Communication

Tata Teliservices

Others

0 5 10 15 20 25 30

Airtel

Vodafone

Reliance

Idea

BSNL

Tata

Aircel

Rural Area

Over aii


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Tele Density

Year Urban Tele Density Rural Tele Density

1999 2.33 0.58

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


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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.

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


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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 thedescriptive 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 acustomer decides to purchase a mobile connection, he normally

Considers -

1. Technology

2. Tariffs

3. Promotional activities

4. Celebrity involvement

5. Brand image

6. Value added services

7. Network

8. After sales services

9. Availability of complementary products

Model Development:

Need for communication withrelatives/people

Status Factor in Society

Drive for immediate solution.


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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.

Drive for immediate solution leads to immediate purchase of mobile

connection

Purchasing decision making based on some determinant

factors

Specific mobile connection has been purchased and met the

satisfaction


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(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:

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


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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.

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 Liker 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

Patna 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


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gone for convenience sampling technique. Most importantly as it is an academic research it lacks

money and time. Thats why for administering this research, the sample size has been 50. Then I

have 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 Kanpur 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 Patna. These people belong to

the different parts of the city.

Assumptions:

1) The area selected is assumed to represent whole universe of Indian rural telecom market.

2) Data collected are assumed to be bias free from side of respondents, interviewer or any

other mediaries.


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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.


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Data Analysis (Methodology)

Sampling

Sample Size : 200

Sample Frame : Patna 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 40 30


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1: Total samples (Age group)

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

10_20

21-40

More than 40

62%

17% 21%


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2: Total samples (Gender Wise)

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

0

20

40

60

80

100

120

Male Female

Series1


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3: Total samples (Marital Status)

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

0

20

40

60

80

100

120

Single Married

Series1


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5: Total samples according to educational status

5. Service Provider

BSNL 27

Airtel 24

Vodafone 46

Idea 33

Reliance 34

Tata Indicom 6

Others 2

55

48

69

0

Under Graduate

Graduate

Post Graduate

Others

Chart Title

Series1


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6: Total Service Provider (% wise)

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.

03 Months 0

46 Months 5

712 Months 18

BSNL

Airtel

Vodafone

Idea

Reliance

Tata Indicom

Others

15.6%

14%

26.7%19%

20%

3.5% 1.2%


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12 Year 24

23 Year 69

More than 3 Years 56

7: Total time spend by subscribers

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.

03 Months

46 Months

712 Months

12 Year

23 Year

More than 3 Years

3%

10.5%

14%

40%

32.5%


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Self 72

Spouse 9

Parents 27

Children 13

Friends 45

Salesman 6

8: Purchase influence factors of subscriber

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 Advertisement 7

01020304050607080

Series1


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Word-of-Mouth 44

9: Affect of Advertisement on Telecom Purchase

9. How much you invest monthly on your phone?

Up to Rs.500 76

Rs.501Rs.1000 54

Rs. 1001Rs.1500 30

More than 1500 12

2813

80

7

44

Print Media Radio Television Road side

Advertisement

Word-of-Mouth

Chart Title

Series1

Print Media


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10: Monthly investment on phone

10. Do you prefer online payment through your mobile service provider?

Yes 37

No 135

76

54

30

12

Up to Rs.500

Rs.501Rs.1000

Rs. 1001Rs.1500

More than 1500

Chart Title

Series1


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11: Chart showing Online payment statics

11. What do you think about the competition in the market?

No Choice 29Some Choice 40

Enough Choice 87

Cant Say 16

0 50 100 150

Yes

No

Series1


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12: Chart showing market competition state according to customers

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

No Choice Some Choice Enough Choice Cant Say

29

40

87

16

Chart Title

Series1


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13: Preference to alternatives

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 its 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

6-10 Minutes 23

11 Minutes or more 2

8

18

8

1

6

3

128

Airtel

Reliance

Vodafone

BSNL

Idea

Tata

No change

Chart Title

Series1


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14: Performance of customer care in eyes of customers

14. What kind of expectations do you have with your service provider?

Up to 1

Minute

2 Minutes 3-5 Minutes 6-10

Minutes

11 Minutes

or more

83

34 30 232

Chart Title

Series1

Price 42

Voice Clarity 9

Network 58

Good Services 63


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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

Price

Voice Clearity Network

Good Services

42

9

58 63

Chart Title

Series1


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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

2

42

40

23

132

Astrology

Sports

Business

General News

Entertainment

Chart Title

Series1


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18. Are you aware of 3-G technology?

Yes 105

No 67

130

42

Yes

No

Chart Title

Series1


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105

67

Yes

No

Chart Title

Series1


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Hypothesis

1. Customers are self driven while purchasing a mobile connection.

2. Print media is the most effective advertisement medium which influences the customer to

purchase a mobile connection.

3. Television is the most effective advertisement medium which influences the customer to


4. There is some choice in the market for telecom service providers.

TTest

H0 :Null Hypothesis

H1 : Alternative Hypothesis

S : Standard Deviation

df : Degree of freedom

a)


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H0 : Customers are self driven while purchasing

a mobile connection.

H1 : Other factors drive customers to purchase a

mobile connection.

The significance levelis alpha=0.05

Using the data in our database, calculate the test

statistic.

Using excel, we get

Since the null hypothesis is accepted so we can say that customers are self driven while deciding

the purchase of mobile connection.

b)

Sample size 172

Sample mean 28.66

S 1.76Standard error 0.13

Null hypothesis 72

0.05

df 171

t test statics -3.23

lower value 1.65

Decision Accept H0


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H0: Print media is the most effective advertisement medium which influences the customer to


H1: Print media is not the most effective advertisement medium which influences the customer

to purchase a mobile connection.


Using the data in our database, calculate the test statistic.

Using excel, we get

Sample size 172

Sample mean 34.4

S 1.78

standard error 0.14

null hypothesis 28

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.


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c)

H0: Television is the most effective advertisement medium which influence the customer to


H1: Television is not the most effective advertisement medium which influence the customer

to purchase a mobile connection.



Using excel, we get


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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.



Using excel, we get

Sample size 172

Sample mean 34.4

S 1.78

standard error 0.13

null hypothesis 80

0.05

df 171

t test statics -3.36

lower value -1.65

Decision Reject H0


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Sample size 172

Sample mean 43

S 0.87

standard error 0.06

null hypothesis 40

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.


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Table: Null Hypothesis and their acceptance level

S.N0. Null Hypothesis Acceptance level

1. Customers are self driven while purchasing a mobile connection Accept H0

2.Print media is the most effective advertisement medium which

influence the customer to purchase a mobile connectionReject H0

3.Television is the most effective advertisement medium which

influence the customer to purchase a mobile connectionReject H0

4.There is some choice in the market for telecom service

providersReject H0


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Findings:

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 promotionalactivities. 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.


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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.


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Company wise Analysis:

a) Airtel-:

1. Most of the companys 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.


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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. Sometimes Customer care may frustrate customers.

4. Sports and Entertainment as VAS generating high revenue.


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e) Vodafone

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.


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Conclusions and Recommendations:

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.


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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.


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Questionnaire

1. Respondent Name: Mr. Ms

Full Name______________________________________

2. AgeGroup

1. 10-20

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 IndicomIdea Virgin

g) Time you spend with your current connection (Approx)

1. 03 Months

2. 46 Months

3. 712 Months

4. 12 Year


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5. 23 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.501Rs.1000 Rs. 1001Rs.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 Cant Say

13. Given a choice with same number which service provider will you select?

Airtel Reliance Idea Tata Vodafone BSNLVirgin

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?

Price Voice Clarity 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?


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Yes No

18. Are you aware of 3-G technology?

Yes No

19. Rank the following attributes in the order you service provider-

Availabilit

y

Network Voice

clarity

Talk time

and

Validity

Call charge SMS

service

Billing

system

Scheme Value Added

Services

(In the analysis part we didnt include the Q. 19 because it became tough for respondents to

answer it.)


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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

WINTER Project Report FILE

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Transcript of WINTER Project Report FILE