19186708 telecom sector analysis

7/28/2019 19186708 Telecom Sector Analysis

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Copyright 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.


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PANKAJ GUPTA ICFAI NATIONAL COLLEGE AGRA 1-2

PRESENTATION

ON

COMPARATIVE ANALYSIS OF PUBLIC AND

PRIVATE PLAYER OF TELECOM INDUSTRY

(BASED ON CUSTOMER SURVEY)

Presented by- Group I


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STATUS OF TELECOM SECTORSTATUS OF TELECOM SECTOR

Historically telecom network in india

was owned and managed by govt as it is

considered as a strategic service.


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INDIAS POSITION IN TELECOM SECTORINDIAS POSITION IN TELECOM SECTOR

India is 4th largest market in asia after china,japan and south korea.

Indian telecom network is 8th largest in theworld and 2nd largest among emergingecomomies.

Contribution of telecom sector in terms ofrevenue is 2.1 % of GDP as compared to 2.8%in developed economies.


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REFORMS IN TELECOM SECTORREFORMS IN TELECOM SECTOR

Reforms in telecom sector began in 1980 withtelecom manufacturing being opened for private

sector followed by national telecom policy(ntp) in

1994 and 1999.

In 1990 telecom revolution in many countries

which resulted in better quality of service with

lower tariff rates force Indian policy makers to

open up telecom sector for private players


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CLASSIFICATION OF TELECOM SECTORCLASSIFICATION OF TELECOM SECTOR

1. Fixed line telephony Current market size of rs.30164 crore with

43 million lines.

BSNL and MTNL account for 90% revenue

for basic services.

Private sector avilable in 18 circles and

collectively account for 10% of revenue.

Private sector offer high end services likeleased lines, isdn, videoconferencing as a

result ARPU ( av. revenue per useris more

for private players).


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2. Mobile telephony

There are 25 private companies providingcellular services in 19 telecom circles and 4metro cities, covering 1500 towns across thecountry.

Presently, there are five private serviceoperators in each area, and an state operator.

Almost 80% of the cellular subscriber basebelongs to the pre-paid segment.

The dot has allowed cellular companies to buyrivals within the same operating circle providedtheir combined market share did not exceed 67per cent.

Previously, they were only allowed to buycompanies outside their circle.




3. Internet-

Internet has become very easily accessiblewith cyber cafes.

There is no restriction on the number ofinternet companies and more than 185

companies are operational. Internet telephony has been allowed

officially from 1 april 2002.

The growing demand of corporates forapplications such as electronic commerce,internet leased lines, ISDN, VPN etc isdriving the growth of the internet services

market.



MARKET SHARE OF PRIVATE AND PUBLICMARKET SHARE OF PRIVATE AND PUBLIC

PLAYERSPLAYERS

The public players and the private players

share the fixed line and the mobile

segments.

Currently the public players have more than

60% of themarket share. Bharti airtel has the largest customer base

with 31% market share, followed by hutch

(vodafone) and bsnl with each holding 22%

market share. The value added services provided by the

mobile service operators contribute more

than 10% of the total revenue.



KEY INDIAN COMPANIESKEY INDIAN COMPANIES

BSNL - Incumbent service provider and World's 7th largestTelecommunications Company providing comprehensive range of telecom

services in India

Services include Wireline, CDMA mobile, GSM Mobile, Internet, Broadband,Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.

MTNL - State owned operator covering the cities of Mumbai an Delhi

Provides both fixed and mobile services

Bharti Airtel - Integrated operator with presence in all segments

Leads the mobile segment in the country

Reliance Communications - Largest player in India in the CDMA segment

Plans a GSM network

Tata Teleservices - Integrated operator (with VSNL) with presence in all segments

Provides CDMA services in 20 circles



TELECOM SERVICE PROVIDERS ANDTELECOM SERVICE PROVIDERS AND

EQUIPMENT MAJORSEQUIPMENT MAJORS

Has a 10% stake in Bharti telecom, an integrated service

provider

Represents the largest foreign investment in the telecom

services

sector in India

IDEA operates in eight telecom circles, orregions, in Western India, and has received

additional GSM licenses to expand its

network into three circles in Eastern India --

the first phase of a major expansion plan

that it intends to fund through an IPO,

according to parent company Aditya Birla

Group



MAJOR PLAYERS IN TELECOM SECTORMAJOR PLAYERS IN TELECOM SECTOR

SERVICE PROVIDER NO OF CDMASUBSCRIBER

NO OF GSMSUBSCRIBER

RELIANCE 2.7CR

TATA 1.07CR

AIRTEL 3.37 CR

MTNL 24.98 LAKH

BSNL 2.44 CR

VODAFONE 2.44 CR

IDEA 1.3 CRSPICE 25.56 LAKH

BPL 10.62 LAKH

AIRCEL 48 LAKH



TECHNOLOGY USED IN TELECOM SECTORTECHNOLOGY USED IN TELECOM SECTOR

1.Gsm (global system for mobile communication)

2.Cdma (code division multiple access )

3. Wireless local loop (WLL)

4. 3g technology



Research MethodologyResearch Methodology

1.Research Objectives

To compare public and private telecom player on the bases of product/service

features.

To compare public and private telecom player on the bases of tariff plans.

To compare public and private telecom player on the network and VAS (value added

services).

To compare public and private telecom player on the bases of customer services.

2. Research design We have used explorative research design method as we have conducted a

survey on customers to reveal the consumer behaviour towards

telecommunication industry.

We have also used descriptive research design as we have described the

trends and history of telecommunication industry based on the information

from the existing sources.

3.Data Sources

Primary data Secondary data

Questionnaires Journal and websites



4. Questionnaire Design/ Formulation

We have used both Open ended and close ended questions.

The users are interviewed through structured questionnaire.

5. Sample Design

Sample element/ unit: - we have interviewed 100 telecom customers.Extent: - Delhi and NCR region.

Time frame: - 14 daysSampling technique: - Non probability sampling technique (convenience sampling).

Sample size-100



Findings/conclusionFindings/conclusion

After doing the study we can conclude that yes the Gap exist there intelecommunication industry. Consumers have a lot of expectations from their

service provider that are not performed or deliver by their companies. we haveconclude that consumer expect from public companies to improve its customercare service that can be found busy most of the times. Now users of publictelecom companies have rated it as a best company for its post paid services butstill they are not satisfied with some of companys strategies. So this is the Gapbetween BSNL users and company performance. Then we have example ofDelhi market leader- private sector. Users of private telecom are not satisfied with

company fixed line services and their post paid service as they charge more ascompared to the public companies.

Private companys performance is good but Gap exists not just with a single

company, but with all the companies in the industry. Various VAS (Value Added

Services) provided by company does not seems to be Satisfying their users.

Customers are not satisfied with SMS pack that is perceived costlier as Compare to

public companies SMS packs. Users also found monthly low call rate pack costlieras well.



Private players in the telecom industry are performing far better than the

public players i.e., MTNL and BSNL. Private company in the industry isfound to be delivering as per their customer expectations. Thats whycustomers have rated it not as satisfactory but excellent. But one has topay more for superior service. Price is the potent Gap exists in betweenprivate company and public companies. But it should be noticed thatEffective tariffs have dropped from over Rs 14 a minute to Re 1, bringingthe phone within reach of people even below the middle-class.

Looking at the competition trend, it seems that soon in future, ruralschools will be having broadband and internet facilities as their part ofstudies as well as routine lives. There is availability of internet facility inmany villages. But soon it will be taught in secondary and highersecondary schools in all villages and various technologies like 3G andvarious VAS have made the market more competitive and made easy

for the users. Implementation of number portability and 3G technologyhave solved many problems and made easy and comfortable for thecustomers



LimitationsLimitations

Carrying the survey was a general learning experience for us but we also faced some problems,

which are listed here:

The market of Telecommunication is too vast and it is not possible to cover each and every

customers and dealers in the available short span of time.

Respondents were reluctant to discover complete and correct information.

Some of the respondents were using the service first time and they were not able to properly

understand the terminology used in the questionnaire.

Due to human behaviour information may be biased.



RecommendationsRecommendations

After the complete analysis of entire STUDY we put forward a set of

recommendations which are a follows:

.1.Depending on the market conditions / competition from cellular or WLL-mobile service

providers and also to suit local conditions, there should be flexible pricing mechanism (either at

central or local level).

2.Private companies should immediately shift to 3g service replacing 2g network service.

This will improve the quality of service to desired level and provide simultaneous integration

with the nationwide network. The special distribution of the transmission. Towers should beincreased to avoid no signal pockets

3.Public companies should establish widespread and conspicuous

distribution to match that of the competitors. The distribution network shall

make the product visible and available at convenient locations.

4.Public companies has to concentrate on its customer care service as most of therespondents are Found dissatisfied with company service. Even some of them have called it

the worst customer care service provider in the market. But it is also rated as best company

for non-usage of unfair means. So company can be competitive in the market by just

investing in their customer care service. Users also found not satisfied with the network

service to some Extent. So it can also improve it.



5. Private companies is the market leader of the area according to our survey asmost of our respondents are using private services. Company is also providing a

good network service. But company users does not found satisfied with the fixedline service as they found it costly. And some of also said that customer carerepresentatives are not knowledgeable and courteous as well. So companyshould improve its post-Paid customer care service.



BibliographyBibliography

Journal

Vatsal Goyal, the Indian Telecom Industry, IIM Calcutta, 2007

Websites: -

1. www.trai.gov.in

2. WWW.SCRIBD.COM

3http://images.google.co.in/images

4. WWW.GOOGLE.COM


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19186708 telecom sector analysis

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