24644002-consumer-perseption-towards-telecom-services (1)

8/7/2019 24644002-Consumer-Perseption-towards-telecom-services (1)

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ConsumerPerceptionTowards TelecomServicesIn Ahmedabad


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Research Methodology:

This research consists of primary and secondary research.

Primary Sources

1) Interaction with customers by filling up of questionnaires.

Secondary Sources

Books

Internet

Articles

Magazines

Project reports

News papers


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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 Prof. KAVITA

SHARMA whose continuance guidance made this project a great success. We

especially thank our institute called IBMR which gave us this golden opportunity to

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

A very special thanks to our Honorable Dean R.K. BALYAN and some students &

people who shared their opinion with us.

UTKARSH SINGH YOGENDRA PRATAP SINGH BADORIYA

Acknowledgement


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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 as convergence of telecommunications, broadcasting and

information technology progresses.

Liberalization of telecom sector of Indian economy aims at improving accessibility,

availability, reliability and connectivity through private sector participation and to bringabout 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 taken place in the telecom sector

have brought about significant improvements in the quality of service provided to

customers. With the digitization of exchanges and up gradation of external network the

fault rate has come down.

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

6.7 New entries

7. Research objective

7.1 Approach to problem

7.2 Theory development

INDEX


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7.3 Model development

8. Research Design

8.1 Types of Research to be undertaken

8.2 Survey method

8.3 Scaling methods

8.4 Questionnaires development

8.5 Sampling technique

8.6 Field work

8.7 Limitation of study

8.8 Sample size

8.9 Assumptions

9. Data analysis

9.1 Sampling

9.2 Observations

10. Findings

10.1 Total Analysis

10.2 Company wise Analysis

11. Conclusions and Recommendations

12. List of figures

13. Questionnaire

14. Bibliography

15. List of Abbreviations used


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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.

Introduction

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

the world and the second largest among the emerging economies of Asia. Today, it is the

fastest growing market in the world and represents unique opportunities for U.S. companies in

the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is

expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 million broadband

connections and 18 million internet connections by 2007. The wireless subscriber base has

jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out

of every three new telephone subscribers were wireless subscribers. Consequently, wireless

now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in

2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month

by 2007. The wireless technologies currently in use are Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM

and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,

covering 2000 towns across the country.


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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 thenumber 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 colour phone

Quick Facts

Total telecom subscribers : 429.72 million (March 2009)

Wireless subscribers : 391.76 million

Wire line subscribers : 37.94 million

Tele density : 36.98 per cent

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

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

communications strategy.

Modern age is the age of convergence and fusion for telecommunications. This fusion of

telecommunications, broadcasting and information technologies has resulted in amazing

discoveries. Voice over IP, television web casting over Internet and video on demand is

a reality. Telecommunications is a key to modern economy infrastructure.

Telecommunications when linked with computer becomes Information Technology,

which is the most dominating technology of today as it influences the entire spectrum of

the economy. IT practically covers all aspects of business, technology, manufacturing

and other services.

Today the networks and companies will no longer be categorized on the basis of only

voice, data or video services they provide. They have to become info-communications

companies providing a bundle of services.

Telecommunication has now become the backbone of any modern economy due to its

all-pervasive nature of running through almost every human transaction - commercial,

digital or even personal. The emerging new economy, powered by technology and

dictated by the digital revolution is incredibly forcing the telecom industry to grow more

than ever before.

The changing lifestyle of human beings enhanced by Internet, facilitated by mobile

communications and enriched by e-commerce would give a real boost to this industry.

As trade and industry grows, telecom services also have to expand commensurately

because it is one of the greatest infrastructure and life-blood for the modern trade and

commerce.

Telecommunications services are used for a variety of purposes. Modern communities

and businesses have come to rely on these services for:

Social contact such as keeping in touch with friends and relatives and for organising

social activities;

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Business purposes which cover a wide range of uses from customer contact and

business transactions to inter-company communications;

Emergency use for summoning police, ambulance and fire brigades;

Cultural and entertainment use;

Educational use where telecommunications services or applications replace or

augment traditional delivery of education; and

On-line business transactions, education and entertainment using Internet access. In

this report Internet access is considered as a separate telecommunications service.

Government Policies

The main guiding policy for the telecom sector is the New Telecom Policy (NTP)

1999. The objectives of the policy are as follows:-

1. Access to telecommunications is of utmost importance for achievement of the

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.

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5. Create a modern and efficient telecommunications infrastructure taking into

account the convergence of IT, media, telecom and consumer electronics and assist

emergence of India as an IT superpower,

6. Convert PCOs, wherever justified, into Public Tele-info Centres havingmultimedia capability like ISDN services, remote database access, and assist

emergence of community information systems etc.,

7. Transform the telecommunications sector in a time bound manner to a greater

competitive environment in both urban and rural areas providing equal opportunities

and level playing field for all players,

8. Strengthen research and development efforts in the country and provide an

impetus to build worldclass manufacturing capabilities, Achieve efficiency and

transparency in spectrum management,

9. Protect defence and security interests of the country,

10.Enable Indian Telecom Companies to become truly global players.

The specific targets mentioned in the NTP 1999 are:

1. Make telephone available on demand by the year 2002 and sustain the position

thereafter so as to achieve a tele-density of 7 by the year 2005 and 15 by the year

2010,

2. Encourage development of telecom in rural areas making it more affordable by

modifying the tariff structure suitably and making rural communication obligatory

for all fixed service providers,

3. Increase rural tele-density from the current level of 0.4 to 4 by the year 2010 and

provide reliable transmission media in all rural areas,

4. Achieve telecom coverage of all villages in the country and provide reliable media

to all exchanges by the year 2002,

5. Provide internet access to all district headquarters by the year 2000,

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6. Provide high speed data and multimedia capability using technologies including

ISDN to all towns with a population greater than 2 lakhs by the year 2002.

RURAL TELEPHONE NETWORK

The objectives and targets of NTP 1999 for rural telephone network are as follows:

1. Encourage development of telecom in rural areas by making it more affordable

through tariff restructure and making rural communication obligatory for all fixed

service providers,

2. Rural tele-density to be raised to 4 per hundred by the year 2010,

3. Achieve 100% telecom coverage of villages by the year 2002 and provide

reliable transmission media in all rural areas.

Out of the 5,93, 485 villages in the country, 5,59,503 villages have been

provided with Village Public Telephone (VPT). 33,982 villages are yet to be

connected with a VPT. In percentage terms 94% villages have been covered by

VPTs and 6% villages are yet to be covered. There was a decrease of 4572 VPTs

during the financial year. The private operators share in these VPTs is verynegligible and almost the entire VPTs have been installed by BSNL. The total no. of

VPTs of BSNL was recorded at 5,19,616 in March 2008 as compared to 39,887

VPTs of private operators as on March 2007. Out of total 39.42 million subscriber

base of wireline, the Rural Subscriber base was 11.64 million on 31st March 2008.

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

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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 2010,

2. Provide internet access to all Districts Headquarters by the year 2000,

3. Provide high speed data and multimedia capability using technologies including

ISDN to all towns with population greater than 2 lakhs

by the year 2002,

4. Conversion of PCOs wherever justified, into Public Tele-Information Centres

having multimedia capabilities like ISDN services, remote database access and

information systems etc

The subscriber base of basic services (Wireline) recorded marginal

decrease by 3.28% in 2007-08 over the previous year. The mobile industry has

witnessed annual growth rate of 58.12%. The growth in absolute numbers in mobile

subscribers during 2007-08 was 95.96 million a compared to 66.34 million in 2006-

07. The total number of subscriber crossed 26149 million mark by the end of

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financial year 2007-08. The total subscribers comprises of 192.7 million GSM and

68.37 million CDMA subscribers. Another service within the telecom sector, which

recorded substantial growth, was Internet and Broadband services. While the total

number of subscribers of Internet services increased from 9.27 million in March 2007

to 11.09 million at the end of March 2008 recording a growth rate of about 19.63%,

the subscriber base of Broadband increased from 2.34 million in March 2007 to 3.87

million at the end of March, 2008. There has been significant expansion of the

telecom network in the country as may be seen from the growth of various kinds of

services mentioned above. The overall tele-density during the year rose to 26.22 on

31st March 2008 as compared to 18.23 on 31st March 2007.

ENTRY OF PRIVATE SECTOR IN BOTH BASIC AND

VALUE ADDED SERVICE

Basic Service

After the announcement of the NTP-94, in September, 1994, the Department of

Telecommunications issued Guidelines for private sector entry into basic telecom

service. In early 1995, bids were called for basic service and were received in August,

1995. By March, 1996, the successful bidders were short-listed for providing basic

services and in 1997, license agreements with private basic service operators were

signed for six circles. However, unlike other services, the Basic Service did not take off

soon after the licenses were awarded. Subsequent to the announcement of the NTP

1999, TRAI recommendations were sought for grant of fresh licenses for basic telecom

service in the 15 vacant telecom Circles and for additional licenses in six Circles where

licenses had already been issued. TRAI had given its Recommendations to the

Government on 31st August 2000. In line with the TRAIs Recommendations, theGovernment issued the Guidelines for issue of Licence for Basic Service on 25th

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

without any restriction on the number of operators.

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By the end of March 2008, 5 private BSO Groups namely, M/s Reliance Infocom Ltd.

(21 circles), M/s Tata Teleservices Ltd. (20 circles), M/s Tata Teleservices

(Maharashtra) Limited (2 circles), M/s Bharti Airtel Ltd. (17 circles), M/s Shyam Telelink

Ltd. (Rajasthan circle) and M/s HFCL Infotel Ltd. (Punjab circle) are licensed operators

providing wireline service. All the five private operators had migrated to Unified Access

Service Regime during 2003-04.

Value Added Services

Telecommunications had traditionally been a voice communication service. The

services today have moved beyond their fundamental role of voice communications to a

spectrum of non-core services, which in telecommunication parlance is called Value

Added Service (VAS). VAS are provided either directly by the telecom operators

themselves or by a third party Value Added Service Provider (VASP). VASP connects to

the core equipment of telecom operators through interworking units using protocols like

short message peer-to-peer protocol (SMPP), connecting either directly to the short

message service centre (SMSC) or to a messaging gateway that allows the telecom

operators to have control of the content. Unlike the core or basic services, the VAS

have unique characteristics and they relate to other services in different ways. They

also provide benefits which the core services cannot provide. Basically, there are twotypes of Value Added Services

(i) Value Added Services that stand alone from operational perspective and

(ii) Value Added Services provided as an optional service along with voice service.

Non-Voice services like SMS are examples of stand alone value added services. The

Value Added Services presently being provided by the telecom operators are in the

following areas:

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Sl. No. Type of Value

Added Service

Description

1. News National, International, Business, Entertainment, Sports

News

2. Finance Stocks (NSE, BSE, NASDAQ), Forex3. 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

thesubscribers mobile phone is switched off / not

reachableand busy

9. E-mail E-mail through SMS

10. Music on demand Dial a song

11. Contest Reality shows

12. GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV

13. MMS Picture messages, picture clippings

14. Health Health tips, Beauty tips

15. M-commerce Transactions based services with multiple payment modes

and support in multiple domains like WAP, GPRS, SMS,

IVR and Web

16. Miscellaneous Devotional, Movies & Music, Fun, Navigation etc.

VAS challenges

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20

Value

Adde

dServi

ces

User Challenge

Operators not driving users

awareness to promote various

VAS offerings

Ease of use, user interface and

familiarity with medium of

Operator Challenge

Operators focusing on subscriberacquisition with no incentives topush VAS in light of current

spectrum allocation criteria Spectrum constraints and delay in

3G roll-out has substantially limitedhi 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 done muchto customize content accordingto consumer behaviour

Limited availability of localweb content and WAP versionsof whatever is available


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TRAI

TELECOM REGULATORY AUTHORITY OF INDIA

Telecom Regulatory Authority Of India, a statutory and quasi-judicial body was

formed by an Act in Indian Parliament to regulate the vast telecom sector. The

necessity to form such a regulatory body in line with SEBI, IRDA etc. was felt

when the telecom sector was open to private sector. Plainly speaking 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 the statutory 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 itsenforcement. 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 could offer cheaper telecom services them, TRAI should not

prevent them in the name of PREDATORY PRICING .

Its appropriate time to review the role of TRAI and other Statutory Regulatory bodies by

the public forum and parliament as well, rather than giving it a free reign to act on

this way to the tune of certain players.

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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 hadsought 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 clarificationsoffered to would-be bidders, or the correspondence that DoT was having with the

operators later. Since the tender documents mentioned that tariffs would be the same

for circles and metros, it would have made sense for DoT to seek legal advice on how to

correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been

recourse, as the body is in charge of tariffs.

Fixed line users pay local call rates when they dial a cellular number in the four metros

(Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the

same as states) would be charged Rs10 per call for the same facility, if the DoT order in

question had not been quashed.

DoT had raised current rates on grounds that such charges were low and allowed users

in the circles which are much larger than metros, to make long distance calls without

paying STD charges. On the face of it, DoT is entitled to want to change this state of

affairs. But in trying to correct one injustice to itself, it managed to inflict several on the

users and other service providers.

The cellular operators lost no time in going to the courts, since TRAI did not then exist.

The courts in turn took an enlightened decision to pass the matter on to TRAI on March

3, as the body had been formally constituted by then.

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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 raisethe tariff was passed before the TRAI was formally constituted and during the said

period in question, the DoT was the sole body with the power to amend tariffs.

Mission

To ensure that the interests of consumers are protected and at the same time to

nurture conditions for growth of telecommunications, broadcasting and

cable services in a manner and at a pace which will enable India to play a

leading role in the emerging global information society. Function of

Telecom Regulatory Authority of India

Functions of TRAI

1. Recommendatory Functions

Need and timing for introduction of new service provider

Terms and conditions of licence to a service provider

Revocation of license for non-compliance of terms and conditions of license

Measures to facilitate competition and promote efficiency in the operation to facilitate

growth in industry

Technological improvement in services by service providers

Inspection of type of equipment used by service provider

Efficient Management of available spectrum

2. Mandatory Functions

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Ensure compliance of terms and conditions of license

Fix the terms and conditions of their inter connectivity between service providers

Ensure Technical compatibility and effective inter-connection between different

service providers.

Regulate arrangements for sharing of revenues amongst service providers

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

periodical survey

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

telecommunication between different service providers

3. Other functions

Levy fees and other charges as determined by regulations

Perform administrative functions as entrusted to it by Central government or as per

TRAI act

Notify in Official Gazette the service rates and message rates within and outside

India

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Major Players in different segments of Indian

telecom industry


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26

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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Airtel

Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest and

world's third largest cellular service provider with more than 82 million subscribers as of

December 2008. It also offers fixed line services and broadband services. It offers its

TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company

also provides telephone services and Internet access over DSL in 14 circles. The

company complements its mobile, broadband & telephone services with national and

international long distance services. The company also has a submarine cable landing

station at Chennai, which connects the submarine cable connecting Chennai and

Singapore. The company provides end-to-end data and enterprise services to the

corporate customers through its nationwide fiber optic backbone, last mile connectivity

in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through

the gateways and landing station. SingTel owns over 30% of the Bharti Telecom.

Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister

company of the brand.

Airtel is a brand of telecommunication services in India and Sri Lanka owned and

operated by Bharti Airtel. It is the largest cellular service provider in India in terms of

number of subscribers. Services are offered under the brand name Airtel: Mobile

Services (using GSM Technology), Broadband & Telephone Services (Fixed line,

Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise

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Services (Telecommunications Consulting for corporates). It has presence in all 23

circles of the country and covers 71% of the current population.

VISION AND MISSION OF THE COMPANY

-:Vision:-

First private telecommunications company to launch long distance services.

Benchmarked by more business

Targeted by top talent

Loved by more customers

By 2010 Airtel will be the most admired brand in India

-: Mission:-

We will meet the mobile communication needs of our customers through Error- free

service delivery

Innovative products and services

Cost efficiency

Unified Messaging Solutions

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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 has47.1 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, fertilisers, 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%

B. KeyShareholders

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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

licence 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 has operations in 25 countries across 5 continents

and 40 partner networks with over 269 million customers worldwide. Vodafone has

partnered with the Essar Group as its principal joint venture partner for the Indian

market.

Market Strategy of Vodafone

Our strategic objective is

- Innovate and deliver on 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

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Rebranding

- Stores

- Mass media coverage

Innovative distribution to reach the customer

- Exclusive shops

- Hub and spoke

- Associate distributions

Customer service

- Shops and call centers

- Vans

- Help desks

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(BHARAT SANCHAR NIGAM LIMITED)

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

corporatisation of the erstwhile Department of Telecom operation & Department

Telecom Services. The company has taken over the erstwhile functions of the

Department of Telecom in respect of provision of telecom services across the length

and breadth of the country excluding Delhi and Mumbai. BSNL has one of large base of

skilled work force of around 3.0 lakh as on March 31, 2008. BSNL is a 100% Govt. of

India owned Public Sector Undertaking.

BSNL is a technology-oriented company and provides all types of telecom servicesnamely 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.

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INTELLIGENT NETWORK

With the commissioning of 5 new technology IN Platforms (4 r General-Purpose and 1

Mass Calling), IN Services are available throughout the country. Various IN services

being offered by BSNL are ITC & Call Now (Prepaid Calling Cards), ACC (Account Card

Calling), FPH (Free Phone), UAN (Universal Access Number), PRC (Premium Rate

Calling), Voice VPN (Virtual Private Network), UPN (Universal Personal Number) &

Tele-voting & Fixed line Pre-Paid (FLPP) Service. Tele-voting service is provided by

BSNL's Mass Calling IN platform at Hyderabad to programs such as 'Indian Idol', "Kaun

Banega Crorepati" (KBC)", "Sa re gama" etc. Fixed Line Pre-Paid (FLPP) telephony

service for PCOs is available. FLPP Pre-paid over Post- paid service is available on

telephone connections. Combined Voice VPN including BSNL landline, BSNL CellOne

& MTNL landline is available. BSNL has signed an interoperability agreement for

making available BSNL's Toll and UAN service through network of almost all the private

operators. Online sale of Pre-paid cards of IN services is available.

Achievements during 2008-09

Sl. Parameter No. Unit Achievementduring 2008-09

Status as onMarch 31, 2009

1 Wire line Connections Nos. 22,05,865 2,93,46,4312 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 andapplications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on

December 28, 2002. This marked the beginning of Reliance's vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India. Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for India's farmers,

businesses, hospitals, government and public sector organizations. Until recently,

Reliance was permitted to provide only limited mobility services through its basic

services license. However, it has now acquired a unified access license for 18 circles

that permits it to provide the full range of mobile services. It has rolled out its CDMA

mobile network and enrolled more than 6 million subscribers in one year to become the

countrys largest mobile operator. It now wants to increase its market share and has

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recently launched pre-paid services. Having captured the voice market, it intends to

attack the broadband market.

Tata Teleservices

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over

200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides

basic (fixed line services), using CDMA technology in six circles:

Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat,

and Karnataka. It has over 800,000 subscribers. It has now migrated to unified

access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to

provide fully mobile services as well. The company is also expanding its footprint, and

has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC

(interconnect usage charges) regime. The new licenses, coupled with the six circles in

which it already operates, virtually gives the CDMA mobile operator a national footprint

that is almost on par with BSNL and Reliance Infocomm. The company hopes to startoff 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 figuresMarket Share of GSM & CDMA

Market Share of GSM Players

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Market Share of CDMA Players

Market Share of All Players(Over all and Rural)

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Subscriber Growth

Tele Density

Year Urban Tele Density Rural Tele Density

1999 2.33 0.58

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2000 2.86 0.68

2001 3.58 0.93

2002 4.29 1.21

2003 5.11 1.49

2004 7.02 1.55

2005 8.95 1.73

2006 12.74 2.34

2007 18.22 5.89

2008 26.22 9.46

2009 36.98 15.11

RESEARCH OBJECTIVES

Research objectives include the objective of research of the researcher before starting

any research. The researcher should determine the objective or the goal of the research

for the smooth functioning of study. Predetermine objective should be of such that

researcher fulfils in the certain period of time at minimum cost.

Following are the research objectives, which we have developed

To determine the factors which influence the purchasing behavior of mobile

connection.

To determine the marketing process elements which influence the purchasing

behavior of mobile connection.

To understand the improvement and customer preference in telecom services.

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To study customer satisfaction and understand the current market scenario in

telecom sector.

Approach to the Problem

Theory Development:

To identify the determinant factors regarding purchasing behaviors of mobile

connection that could improve the efficiency to get the customers or make the

customers switch from the competitors products, I have initially identified some

variables, which are significantly correlated with the purchase of mobile

connections. When a customer decides to purchase a mobile connection, he

normally considers tariffs, promotional activities, celebrity involvement, brand

image, value added services, network, switching cost, after sales services, word

of mouth, availability of complementary products and marketing mix. So buying a

mobile connection is based on the simultaneous activation of these variables.

These variables are to be described under the descriptive research. Non

probability sampling technique (convenience sampling technique) has to beused. 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

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6. Value added services

7. Network

8. After sales services

9. Availability of complementary products

Model Development:

42

Need for communication with

relatives/people

Drive for immediate solution leads to immediate

purchase of mobile connection

Purchasing decision making based on some

determinant factors

Status Factor in Society

Drive for immediate


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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.

(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:

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Specific mobile connection has been purchased and

met the satisfaction


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Information from Related Peoples.

Information gathered from Different Sites of the companies.

Information gathered from TRAI Website.

The nature of the research is basically of two types.

Basic Research

Applied Research

Basic Research is that intended to expand the body of knowledge in a field or to

provide knowledge for the others.

Applied Research is carried out for solving of a particular problem or for guiding a

specific decision, and usually its results are private.

Basic Research is generally for common purpose and Applied research is for specific

purpose.

Here the nature of the research is basic. The sources for data collection are both

primary and secondary data sources.

Survey method:

Among four types of survey methods I have chosen the appropriate one that suited my

research objectives. I have chosen the personal survey techniques. From the personal

techniques I have selected mall intercept technique. According to this technique I have

needed to go directly to my sample unit and got the questionnaires filled. I have chosen

Mall intercept survey technique because it has higher Flexibility for data collection,

Diversity of questions, Response rate, and Social desirability. And also it is higher in

Control of data collection environment and moderate Use of physical stimuli.

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Scaling Method:

Since I have conducted descriptive research, I have chosen non-comparative scalingtechnique because I have wanted to measure the influence of each and every factor on

the purchasing behaviors of the target market separately. Only by Non-comparative

scaling technique it can be done. And among two types non-comparative technique I

have used itemize technique and from three itemize techniques I have taken Likert

scaling which range from 1 to 5 point scale. Because I have wanted to do my research

based on five dimensions which have been strongly disagree, disagree, neutral, agree

and strongly agree.

Questionnaire development:

First of all I have given the introduction. I have just introduced myself and the reasons

why I am collecting data. Then I have given assurance that your information will be kept

confidential. I have gone for screening and then I have prepared the body of the

questionnaire. Lastly I make respondents profiles. Questionnaires have been structuredquestionnaires based on non comparative scales techniques.

Sampling Technique:

In case of my research my target population has been the students and the general

people of the Ahmedabad city. The students and general people who are using the

mobile connection or intended to purchase the mobile connection have been sample

unit. I have conducted my research through non-probability sampling techniques and

among non-probability sampling techniques I have gone for convenience sampling

technique. Most importantly as it is an academic research it lacks money and time.

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

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carried out the research by myself very efficiently and accurately to come to an end with

a solution of the marketing research problem statement.

Field work:

Field work is a general descriptive term for the collection of raw data. In the professional

research, research firm use its own people or external people to collect data for the

sample. Since it is an academic and individual research I myself have to go and collect

the data from the respondents. I have gone to the people in the Ahmedabad city and get

the questionnaires filled.

Limitations Of The Study:

Reluctance on the part of the respondents to provide exact details.

Sample size may not sufficient.

Chance of sampling mistake.

Sample size:

During the project study we attached to near about 400 people of Ahmedabad. These

people belongs to the different parts of the city.

Assumptions:

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

telecom market.

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

or any other mediaries.

3) Whole research and analysis part based on data collected is carried out under

unbiased environment and without any influence of any factor which can lead to

deviation in result.

Data Analysis (Methodology)

Sampling

Sample Size : 200

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Sample Frame : Ahmedabad City

Sampling Method : Simple Random Sampling

Constraints : Time, No. of respondent, Biased opinion

Sampling Error : Response - 172

Non-response - 28

Survey : Questionnaire

Observations

1. Age and Gender :

Normally consumers needs and wants change with age. There are

certain types of mobile connection which attract different types of aged people

as well as different sex. There some mobile connection (packages) which

adopted by male people and there are some mobile connection (packages)

which get adopted by female people.

10-20 3621-40 106

More than 30

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40

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

2: Total samples (Gender Wise)

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62

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According to Graph-2 the majority of the respondents are male. Among 100%

respondents, male is % and female is %.

2. Marital Status:

Consumption and expectations on mobile from consumers

changes according to the marital status. The consumption tactics of

consumer depends on how they handling their relations. Single & married

perceptions are different from each other.

Single 110

Married 72

3: Total samples (Marital Status)

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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 80House Wife 13Public service 8

Private service 19

Businessman 52

4: Total samples according to working status

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Among 100% respondents, % students, % are private service holders, % are

public service holders, % is housewife and % businessman.

4. Educational Qualification:

Under Graduate 55

Graduate 48

Post Graduate 69

Others 0

5: Total samples according to educational status

52

46

7.5

5%

11

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5. Service Provider

BSNL 27Airtel 24

Vodafone 46Idea 33

Reliance 34Tata Indicom 6

Others 2

6: Total Service Provider (% wise)

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6. Time spend :

Time spend with mobile connection shows how much customer is

satisfied with their connection. This shows the level of post purchase services

of telecom giants.

0 3 Months 0

4 6 Months 5

7 12 Months 18

1 2 Year 24

2 3 Year 69

More than 3 Years 56

54

15.6

14

26.719

20

3.5 1.2


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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.

Self 72Spouse 9Parents 27Children 13

Friends 45Salesman 6

8: Purchase influence factors of subscriber

55

3

10.5

14

40

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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 28Radio 13

Television 80Road side

Advertisement

7

Word-of-Mouth 44

9: Affect of Advertisement on Telecom Purchase

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9. How much you invest monthly on your phone?

Up to Rs.500 76

Rs.501 Rs.1000 54

Rs. 1001 Rs.1500 30More than 1500 12

10: Monthly investment on phone

57

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10. Do you prefer online payment through your mobile service

provider?

Yes 37No 135

11: Chart showing Online payment statics

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

No Choice 29Some Choice 40

Enough

Choice

87

Cant Say 16

12: Chart showing market competition state according to customers

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12. Given a choice with same number which service provider will you

select?

Airtel 8Reliance 18Vodafone 8

BSNL 1Idea 6Tata 3

No change 128

13: Preference to alternatives

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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 832 Minutes 34

3-5 Minutes 30

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6-10 Minutes 2311 Minutes or

more

2

14: Performance of customer care in eyes of customers

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

62

Price 42Voice Clearity 9

Network 58Good Services 63


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15: Expectations from service providers

15. What is your purchase intent for news alerts on mobile phone?

Astrology 2Sports 42Business 40General News 23Entertainment 132

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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 130No 42

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18. Are you aware of 3-G technology?

Yes 105No 67

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Hypothesis

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

2. Print media is the most effective advertisement medium which influence the

customer to purchase a mobile connection.

3. Television is the most effective advertisement medium which influence the


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

T Test

H0 : Null Hypothesis

H1 : Alternative Hypothesis

S : Standard Deviation

: Significance level

df : Degree of freedom

a)

H0 : Customers are self driven while purchasing a mobile connection.

H1 : Other factors drive customers to purchase a mobile connection.

The significance level is alpha=0.05

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

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Using excel, we get

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

deciding the purchase of mobile connection.

b)

H0 : Print media is the most effective advertisement medium which influence the


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




Using excel, we get

68

Sample size 172Sample mean 28.66

S 1.76

Standard error 0.13Null hypothesis 72

0.05

df 171

t test statics -3.23

lower value 1.65

Decision Accept H0


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S 1.78

standard error 0.14null 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.

c)

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


H1 : Telivision is not the most effective advertisement medium which influence the




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 bestway 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

70


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 172Sample 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 themarket there is enough choice in the market for telecom service providers.

Table : Null Hypothesis and their acceptance level

S.N0. Null Hypothesis

Acceptance

level

1.Customers are self driven while purchasing a mobile

connectionAccept H0

2.

Print media is the most effective advertisement medium

which influence the customer to purchase a mobile

connection

Reject H0

3.

Television is the most effective advertisement medium

which influence the customer to purchase a mobile

connection

Reject H0

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

providersReject H0

Findings:

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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 forbuying the mobile connection. They do not get influenced by promotional activities

which include classical conditioning rather they get influenced by the promotion which

include operant conditioning. They give less importance on promotional activities than

other marketing mix such as products, distribution, price, process etc. The target

markets of the telecom industry seriously think of the tariff and put more importance on

the tariff than any other factors. They can even tolerate interrupted network service to

some extent as they put more importance on the tariff than network. They have chosen

tariff as a most important factor to by mobile connection than brand image. Target

markets do value complementary products availability. Target markets have chosen

availability of complementary product over network. It means that the target markets go

for that product which complementary are widely available regardless the network

condition. According to target markets network is important factor to purchase the

mobile connection but not as important as tariff. But target market put importance on

network than brand image. Customers seriously consider the word of mouth. They

rather prefer it than any promotional activities. After sale Services and value added

services are the important factor to target market for purchasing the mobile connection.

Target markets generally think of switching cost before purchasing a particular mobile

connection. One interesting finding is that target markets do not generally concerned

about Brand image.

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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.

Company wise Analysis:

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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 andBusiness.

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 hasexpectations of Good Services.

3. Some times Customer care may frustrate customers.

4. Sports and Entertainment as VAS generating high revenue.

e) Vodafone

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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 changethe current scenario.

2. Television, Print media and Radio should be focused as advertisement medium.

3. As low prices boost Reliance Communication market in the city TATA

Teleservices should catch this opportunity as they are the initiator of the price

war in the country.

Conclusions and Recommendations:

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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 thatinfluence 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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List of figures

S.No. Title Page No.1 Journey of telecom sector......... 112 Subscriber In different areas 163 VAS Challenge 204 Major Players.. 255 Market Share of GSM and CDMA 366 Market Share of GSM Players 367 Market Share of CDMA Players 378 Market Share of All Players 379 Subscriber Growth 3810 Model Development 40

11 Total samples (Age group) 4712 Total samples (Gender Wise) 4813 Total samples (Marital Status) 4914 Total samples according to working status 5015 Total samples according to educational status 5116 Total Service Provider (% wise) 5217 Total time spend by subscribers 5318 Purchase influence factors of subscriber 5419 Affect of Advertisement on Telecom Purchase 5520 Monthly investment on phone 5621 Chart showing Online payment statics 5722 Chart showing market competition state according to customers 5823 Preference to alternatives 5924 Performance of customer care in eyes of customers 6025 Expectations from service providers 6126 Purchase intent from mobile phone 62

Questionnaire

1. Respondent Name: Mr Ms

Full Name ______________________________________

2. AgeGroup

1 10-20

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.2

.

21-40

3

.

More than 40

3. Marital Status: Single Married

4. Working Status: Student; House-Wife; Public service;

Private service; Businessman;

5. Educational Qualification:

Under Graduate Graduate Post Graduate

Professional

Others: ____________

6. Presently you are availing services from which operator (Tick more than

one, if

applicable):

BSNL Airtel Vodafone Reliance Tata Indicom

Idea Virgin

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

1. 0 3 Months

2. 4 6 Months

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3. 7 12 Months

4. 1 2 Year

5. 2 3 Year

6. More than 3 Years

8. Who influences most, the decision to purchase a telecommunication

service in your

family?

Self Spouse Parents Children Friends

Salesman

9. What advertising media has influenced you in choosing a telecom

operator?

Print Media; Radio Television

Road side Advertisement Word-of-Mouth

10. How much you invest monthly on your phone?

Up to Rs.500 Rs.501 Rs.1000 Rs. 1001 Rs.1500

More than 1500

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

Yes No

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

No Choice Some Choice Enough Choice Cant Say

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

Airtel Reliance Idea Tata Vodafone BSNL

Vergin

14. How long do you have to wait in customer care?

Up to 1 Minute 2 Minutes 3-5 Minutes 6-10

Minutes

11 Minutes or more

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

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Price Voice Clearity Network Good Services

16. What is your purchase intent for news alerts on mobile phone?

Astrology Sports Business Entertainment

General News

17. Are you aware of the role of the telecom services in providing broadband

without

using cable network?

Yes No

18. Are you aware of 3-G technology?

Yes No

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

Availabili

ty

Networ

k

Voice

clearity

Talk

time

and

Validity

Call

charge

SMS

servic

e

Billing

syste

m

Schem

e

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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BIBILOGRAPHY

1) Reports

a. TRAI 2008-09

b. Telecom Sector annual report 2008-09

c. Idea Unaudited results Q1 FY 10

d. Department of telecommunication Govt. of India Annual Report 2008-09

2) Articles

a. Business Standard

b. Times of India

c. Idea press release

d. Airtel press release

e. RCom press release

f. The Economic Times

3) Websites

a. www.trai.gov.in

b. www.dot.gov.in

c. www.coai.com

d. www.Ideacellular.com

e. www.airtel.in

f. www.vodafone.in

g. www.rcom.co.in

h. www.teleservices.com

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List of Abbreviations used

3G Third Generation

ARPU Average Revenue Per User

BSN Bharat Sanchar Nigam Limited

CDMA Code Division Multiple Assay

COAI Cellular Operators Association of India

DoT Department of Telecommunication

GPRS General Packet Radio Service

GSM Global System of Mobiles

MTNL Mahanagar Telephone Nigam Limited

NGN Next Generation Network

QoS Quality of Service

SMS Short Messaging Service

TRAI Telecom Regulatory Authority of India

VAS Value Added Services

24644002-consumer-perseption-towards-telecom-services (1)

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