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CHAPTER-1
INTRODUCTION
1.1 GENERAL INTRODUCTION
Technological changes in telecommunications and computers have radically changed
the business scenario In turn, the new demands of business have spurred many telecom-
based technological innovations. In order to exploit these innovations for competing in global
markets the business community the world over has been putting pressure on governments
to revise the policy regulation, and structure of the telecom sector. Several countries across
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the world have responded by restructuring the state-controlled telecom service provider,
increasing private participation, and deregulating service provision. The emergent
organizations have attempted to be more responsive to the business needs and have
evolved mechanisms to remain competitive even under tremendous pressures !ehara "##$%
&lynn "##'% (im,(im, and )oon "##'% *aidlaw "##+
ver the past several years, developing countries have also recognized the important
role a responsive, business-oriented, and technologically advanced telecom sector plays in
the growth of the economy. any developing countries now see the constraints of a state
monopoly in telecom as standing in the way of a response to the twin challenges of spurring
internal growth and competing in an increasingly global economy onaldson "##+%
/ussawala "##'% elody "#01% /ain "##2% 3isciotta "##+% Tyler and 4ednarizyk "##5%
Scherer "##+% 6ellenius "##$% 6ellenius "##+7. The process of introduction of new
organizational forms and structures 8esearch assistance provided by s Trupti 3atel is
gratefully acknowledged.
In today9s market customer service and satisfaction has become very important without
which the companies are finding it difficult to complete in the market place.
In early days since people were not keen on service aspects, it was easy for the company to
:ust sell and ;uite. 4ut in today9s market more than sales servicing has been given prime
importance as the life of the product depends on it. This infects helps in rising the attitude
and interest of the customers to buy more and more companies product.
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OBJECTIVES OF THE STUDY:
To analyze the customer response towards Idea =ellular *td. in 4angalore city. To evaluate the 4rand Image opinion of the customer.
To know about the customer acceptance of the product.
To identify customer problem of Idea =ellular *td.
To know how far customer satisfied with company9s product and services.
To know customer preferences and disking regarding of bills.
To know customer perception towards on Idea =ellular *td.
The research was undertaken to gather information from the customers overall
feedback towards Idea =ellular *td. in 4angalore city. The study was restricted only within
4angalore city.
1.2 INDUSTRY PROFILE:
The Indian telecommunications >etwork with ??m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of
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Y'ar H$+tr, ) In!$an T'&'#"n$#at$n+
"02" Dirst operational land lines were laid by the government near =alcutta seat of4ritish power7
"00" Telephone service introduced in India
"005 erger with the postal system
"#'5 Dormation of Indian 8adio Telegraph =ompany I8T7
"#5' erger of ET= and I8T into the Indian 8adio and =able =ommunication
=ompany I8==7"#+? >ationalization of all foreign telecommunication companies to form the 3osts,
Telephone and Telegraph 3TT7, a monopoly run by the governmentFs inistry
of =ommunications"#02 epartment of Telecommunications T7 established, an exclusive provider
of domestic and long-distance service that would be its own regulator
separate from the postal system7"#01 =onversion of T into two wholly government-owned companiesG the
Bidesh Sanchar >igam *imited BS>*7 for international telecommunicationsand ahanagar Telephone >igam *imited T>*7 for service in metropolitan
areas."##? Telecom 8egulatory
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BSNL:
n ctober ", '$$$ the epartment of Telecom perations, &overnment of India
became a corporation and was renamed 4harat Sanchar >igam *imited 4S>*7. 4S>* is
now India9s leading telecommunications company and the largest public sector undertaking.
It has a network of over +2 million lines covering 2$$$ towns with over 52 million telephone
connections. The state-controlled 4S>* operates basic, cellular &S and =* will
be expanding the network in line with the Tenth Dive-)ear 3lan "##'-#?7. The aim is to
provide a telephone density of #.# per hundred by arch '$$?. 4S>*, which became the
third operator of &S mobile services in most circles, is now planning to overtake 4harti to
become the largest &S operator in the country. 4S>* is also the largest operator in the
Internet market, with a share of '" per cent of the entire subscriber base.
BHARTI:
Established in "#02, 4harti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile service
in elhi, first private basic telephone service provider in the country, first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private sector
service provider to launch >ational *ong istance Services in India. 4harti Tele-Bentures
*imited was incorporated on /uly ?, "##2 for promoting investments in telecommunications
services. Its subsidiaries operate telecom services across India. 4harti9s operations are
broadly handled by two companiesG the obility group, which handles the mobile services in
"1 circles out of a total '5 circles across the country% and the Infotel group, which handles the
>*, I*, fixed line, broadband, data, and satellite-based services. Together they have so far
deployed around '5,$$$ km of optical fiber cables across the country, coupled with
approximately ",2$$ nodes, and presence in around '$$ locations. The group has a total
customer base of 1.+2 million, of which 2.01 million are mobile and 200,$$$ fixed line
customers, as of /anuary 5", '$$+. In mobile, 4harti9s footprint extends across "2 circles.
4harti Tele-BenturesF strategic ob:ective is Jto capitalize on the growth opportunities the
company believes are available in the Indian telecommunications market and consolidate its
position to be the leading integrated telecommunications services provider in key markets inIndia, with a focus on providing mobile servicesK.
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MTNL:
T>* was set up on "st
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organizations. !ntil recently, 8eliance was permitted to provide only Jlimited mobilityK
services through its basic services license. owever, it has now ac;uired a unified access
license for "0 circles that permits it to provide the full range of mobile services. It has rolled
out its =< mobile network and enrolled more than 1 million subscribers in one year to
become the country9s largest mobile operator. It now wants to increase its market share and
has recently launched pre-paid services. aving captured the voice market, it intends to
attack the broadband market.
TATA TELESERVICES:
Tata Teleservices is a part of the N"' billion Tata &roup, which has #5 companies, over
'$$,$$$ employees and more than '.5 million shareholders. Tata Teleservices provides basic
fixed line services7, using =< technology in six circlesG aharashtra including umbai7,
>ew elhi, adu, &u:arat, and (arnataka. It has over 0$$,$$$
subscribers. It has now migrated to unified access licenses, by paying a 8s. 2.+2 billion
N"'$ million7 fee, which enables it to provide fully mobile services as well. The company is
also expanding its footprint, and has paid 8s. +."? billion N#$ million7 to oT for "" new
licenses under the I!= interconnect usage charges7 regime. The new licenses, coupled with
the six circles in which it already operates, virtually gives the =< mobile operator a
national footprint that is almost on parwith 4S>* and 8eliance Info comm. The company
hopes to start off services in these "" new circles by *Fs main gateway centers are located at umbai, >ew elhi, (olkata and
=hennai. The international telecommunication circuits are derived via Intelsat and Inmarsat
satellites and wide band submarine cable systems e.g. D*
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cent e;uity, As 3antone Dinevest *imited as investing vehicle of Tata &roup owns +2 per
cent e;uity and the overseas holding inclusive of DIIs, ovember "##2. 4etween '$$$ and arch '$$+,
utch ac;uired further operator e;uity interests or operating licences. 6ith the completion of
the ac;uisition of 43* obile =ellular *imited in /anuary '$$1, it now provides mobile
services in "1 of the '5 defined license areas across the country. utch India has benefited
from rapid and profitable growth in recent years. it had over "?.2 million customers by the
end of /une '$$1.
IDEA:
Indian regional operator IE< =ellular *td. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the side of
8eliance =ommunications *td. IE< operates in eight telecom Jcircles,K or regions, in
6estern India, and has received additional &S licenses to expand its network into threecircles in Eastern India -- the first phase of a ma:or expansion plan that it intends to fund
through an I3, according to parent company
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COMPANY MAR0ET SHARES
Can, M$&&$n S"%+N( 234
5 +*ar'
4S>* +$.5 20.0
8eliance 1." 0.#
4harti 2.? 0.5
T>* +.# ?.'
utchison '.# +.'
Idea =ellular '." 5.$
43* ".+ '."
Tata Teleservices ".5 ".#
Spice ".$ ".+
Escotel $.0 "."
Dascel $.0 "."
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Indian telecommunications today benefits from among the most enlightened regulation
in the region, and arguably in the world. The sector, sometimes considered the Jposter-boy
for economic reforms,K has been among the chief beneficiaries of the post-"##" liberalization.
!nlike electricity, for example, where reforms have been stalled, telecommunications has
generally been seen as removed from Jmass concerns,K and thus less sub:ect to electoral
calculations. arket oriented reforms have also been facilitated by lobbying from India9s
booming technology sector, whose continued success of course depends on the ;uality ofcommunications infrastructure.
espite several hiccups along the way, the Telecom 8egulatory
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3osts and Telegraph. Dor a time he also even considered corporatizing the T, before
succumbing to union pressure. In a compromise, &andhi created two T-owned
corporationsG ahanagar Telephone >igam *imited T>*7, to serve elhi and 4ombay, and
Bidesh Sanchar >igam *imited BS>*7, to operate international telecom services. e also
introduced private capital into the manufacturing of telecommunications e;uipment, which
had previously been a T monopoly.
These and other reforms were limited by the unstable coalition politics of the late
"#0$s. It was not until the early "##$s, when the political situation stabilized, and with the
general momentum for economic reforms, that telecommunications liberalization really took
off. In "##+, the government released its >ational Telecommunications 3olicy >T3-#+7,
which allowed private fixed operators to take part in the Indian market for the first time
cellular operators had been allowed into the four largest metropolitan centers in "##'7.
!nder the government9s new policy, India was divided into '$ circles roughly corresponding
to state boundaries, each of which would contain two fixed operators including the
incumbent7, and two mobile operators.
ver the years, T8
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The gradual easing of the original duopoly licensing policy, allowing a greater number of
operators in each circle%
The legalization, in '$$', of I3 telephony a move that many believe was held up due to
lobbying by BS>*, which feared the conse;uences on its international monopoly7%
The introduction in '$$5 of a =alling 3arty 3ays =337 system for cell phones, despite
considerable opposition including litigation7 by fixed operators%
* sought permission from T8
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une;ual regulatory treatment for two kinds of operators who were in fact offering the same
service. The real victim, of course, was the Indian telecommunications market, which suffered
from investor perceptions of regulatory confusion and operator in-fighting. In late '$$', for
example, thousands of mobile users in >ew elhi were for a time cut off from the fixed-line
network when T>* shut down interconnection for cellular companies. T>* later attributed
the incident to a Jtechnical snag.K7
%. GRO7TH AND PRESENT STATUS OF THE TELECOM INDUSTRY
In '$$2-'$$1, the telecom industry witnessed a growth of '"@ with a total revenue of
8s. 01,?'$ crores, and the total investment rising to 8s. ',$$,11$ crores. It is pro:ected that
the telecom industry will be en:oying over "2$@ growth in the next +-1 years. The growth
also re;uires a huge investment by the players in the sector. 4harti
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#. FUTURE OF THE INDUSTRY
6ednesday, >ovember $?, '$$?G Traditional telecom carriers can no longer rely onconventional competitive tactics such as price cuts, promotions and basic product bundling to
maintain their edge in the consumer segment, warned &artner. The research firm also said
that non-traditional telecom players like okia, which have a strong
understanding of consumers, are adopting new business models that are forcing carriers to
reassess their approach and service delivery. Daced with this competition, traditional telecom
carriers will attempt to transform themselves by primarily exploiting content, but &artner
predicts that more than 0$ per cent will fail.OThe players that will be amongst the successful '$ per cent will be the ones that
provide a consumer-centric experience, for example, through interactive TB, where users will
be able to chat online while watching their favourite TB programmes,O said artin &utberlet,
vice president, &artner.
wning infrastructure initially gives telecom carriers some competitive edge but this is
mitigated by non-traditional competitors that don9t own a network but bundle their services
attractively. O
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CHAPTER-2
PROFILE OF THE ORGANI@ATION
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2.1 ORIGIN OF THE IDEA CELLULAR LTD.
I!'a C'&&"&aris a wireless telephonycompany operating in various states in India. It
initially started on arch "+,"##2 and is one of the leading &S mobile services operators.ead;uartered in umbai, it has licenses to operate in all '' service areas across the
country, though commercial operations are currently in "1 services areas. 6ith a customer
base of over +5.$' million subscribers, the operations cover the states of aharashtra, &oa,
&u:arat, 8a:asthan, elhi, aryana, imachal 3radesh, !ttaranchal, !ttar 3radesh, adhya
3radesh, =hhattisgarh, adu will
become operational during '$$0-$#, and Idea will then cover approximately #$ per cent of
the country9s telephony potential.
IE< en:oys a market leadership position in many of its operational areas. It offers
&38S on all its operating networks for all categories of subscribers, and was the first
company in India to commercially launch the next generation E&E technology in elhi in
'$$5.
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the P4est 4illing and =ustomer =are Solution9 both in '$$1 and in '$$? in the face of
international competition.
In '$$? IE< was listed on the >ational Stock Exchange >SE7 and the 4ombay
Stock Exchange 4SE7.
2.2GRO7TH AND DEVELOPMENT OF THE IDEA CELLULAR LTD.
6e were incorporated as 4irla =ommunications *imited on arch "+, "##2 andgranted a certificate of commencement of business on
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n ctober '1, '$$1, 32
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MAJOR EVENTS:
T*' #*rn&6, ) ', '('nt+ ) t*' Can, )r $n#rrat$n $+ +'t "t %'&8:1;;9:Incorporated as 4irla =ommunications *imited btained licenses for providing &S-
based services in the &u:arat and aharashtra =ircles following the original &S license
bidding process
1;;=:=hanged name to 4irla T3K7
2: erged with Tata =ellular *imited, thereby ac;uiring original license for the
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Birla AT&T commence Cellular operations Maharashtra & Gujarat
1;;;:
igrated to revenues share license fee regime under >ew Telecommunications 3olicy
O>T3O7
2:
erged with Tata =ellular *imited, thereby ac;uiring original license for the
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MoU for merger between Birla AT&T and Tata Cellular imited Andhra !radesh signed "#an4
21:
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btained license for providing &S-based services in the elhi =ircle following the
fourth operator &S license bidding process
Ac$uired %!G Cellcom service provider in Madhya !radesh "'eb( Awarded
22:
=hanged name to Idea =ellular *imited and launched OIdeaO brand name
=ommenced commercial operations in elhi =ircle 8eached the one million subscriber mark
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Brand )*+A launched *elhi operations commence ",ov(
23:
8eached the two million subscriber mark
2
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Turned 3rofit 3ositive 6on an
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6on an award for the O=adu C =hennai, 6est 4engal,
rissa, (olkata, orth East and /ammu C (ashmir adu Idea expanded services into rissa
2.3 PRESENT STATUS OF THE IDEA CELLULAR LTD.
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The entire Indian region is divided into '' in some places it is mentioned '57 circles that
are divided into three categories based on their economic potentialG
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8a:asthan - 1?229?=
imachal 3radesh - 11;
umbai - 91?9
4iharC/harkhand - >=3?
Totaling to 01112345or 26207(Approx.) of the total 391,760,569[1]mobile onnetion! in
)ndia.
F"rt* "art'r 'n!'! Mar#* 31? 2;:
!nless stated otherwise, the financial data in this report is derived from our unaudited A
audited consolidated financial statements prepared in accordance with Indian &
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and financial services among others. ver 2$@ of the &roup9s revenues are derived from
overseas operations. The group operates in '2 countries, and is anchored by an
extraordinary force of over "'2,$$$ employees belonging to '2 nationalities. The current
&roup holding of +#."5@ in Idea is made up of%
Ta%&'-2.An! F$6-2.1
uvo *td. '?.$'@
4irla TT oldings 3vt. *td. #."2@
indalco Industries *td. ?.5?@
&rasim Industries *td. 2.2'@
I& oldings 3vt. *td. $.$0@
Tta&
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a7 )es X Y b7 >o X Y
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a7 )es X Y b7 >o X Y
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a7 )es X Y b7 >o X Y
;4 Ar' ," +at$+)$'! 8$t* t*' '&,'' %'*a($r $n t*' T'&'+*
a7 )es X Y b7 >o X Y
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a7 )es X Y b7 >o X Y
114 Ar' ," +at$+)$'! 8$t* t*' STD #a&& rat'+
a7 )es X Y b7 >o X Y
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a7 )es X Y b7 >o X Y
134 7*at $+ ,"r ('ra&& )''&$n6 a%"t t*' I!'a C'&&"&ar
a7
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194 7*at 'tra )'at"r'+ ! ," 8$+* t *a(' )r C'&&"&ar +'r($#'+
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Dat': S$6nat"r'
BIBLIOGRAPHY
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B+ R')'rr'!
& T : 3hilip (otler
! 8ES!8=E T : Tewspapers : The Times f India
agazines : utlook
6ebsites : 888.$!'a#'&&"&ar.#?
888.66&'.#
In!$a#'&&"&'r.#
888.a!$t,a%$r&a6r".#
http://www.idea/http://www.google.com/http://www.idea/http://www.google.com/