MTS a step ahead

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PROJECT REPORT

Prepared by

Kaustav Sarkar &

Reeha Paul

About

MTS a step ahead

Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia and the CIS, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services in one of the world's fastest growing regions. Including its subsidiaries, as of December 31, 2013 , the Group serviced over 100 million mobile subscribers in Russia, Ukraine, Armenia, Turkmenistan and Belarus, a region that boasts a total population of more than 200 million.

The Group’s fixed business, as of December 31, 2013, had a total of 12.269 million households passed, 2.421 million broadband Internet and 2.613 million pay-TV subscribers.MTS launched its current brand in 2006, building on the reputation as the leader and highest quality operator in the region. The brand was developed to attract customers in a variety of cultural, socio-geographic and income segments with the consistent message of quality and leadership.

In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to allow Shyam Telelink to use MTS brand in India. In India, brand MTS offers voice & data services to over 16 million wireless subscribers and operates across all 22 telecom circles of India.

MTS launched the high-speed mobile broadband service, MBlaze, in November 2009 and has seen tremendous market acceptance with over 1.7 million satisfied mobile broadband customers. The high speed mobile broadband service has been made available in 420 towns (Including all Metros) across the country. In April 2010, MTS is also credited to have launched its LIVE TV and Video on demand service, aptly called MTS TV for all MBlaze customers.

ACKNOWLEDGEMENT

We, the PGDTM students of IISWBM, Kolkata are really grateful to MTS for selecting and giving us this great opportunity to undertake this project. The authority of this organization has trained, encouraged and allowed us to participate us in the field work to gather hands-on- experience which has given us a wide exposure to the telecom industry. We have received immense co-operation and support from the ISDs and the store authorities during the review period for this project.

We would like to express our special gratitude to Sri Anupam Guha, Sales Manager, Kolkata & West Bengal Circle for his immense help, support and guidance to execute this project successfully.

Kaustav Sarkar &

Reeha Paul

PGDTM students

IISWBM, Kolkata.

OBJECTIVE OF THE PROJECT

The objective was to find the voice of the customer and the approach of the ISDs to the customer in popularizing MBlaze Ultra post paid plan of Rs 999 and generating revenue.

OUR FINDINGS

The amount of 40 GB is above the necessity of the general customer demand. As the number of customers attracted to this plan is predominantly from the age group

18-25 years, most of them are college students who are not willing to spend Rs 999 per month on a fixed basis on just internet.

The demand for the product in the age group 30 years and above is considerably less. The increasing competition from local cable broadband service providers such as

Alliance, Meghbala, Siti etc. at rates much cheaper than this product offers and speed around 1 mbps suffice net surfing, whereas torrents provide speed around 4-5 mbps for the need of younger generations. All these are taking attention away from the needy segment.

Customers having huge data usage demand are also tending towards broadband connection as they think that is cheaper and much reliable. They are not considering mobility as an additional advantage. Even when they are considering service on the move, they are looking for much less data package and at cheaper rates where other brands are standing ahead in the line.

Awareness about the product from MTS is less compared to other competing brands like Tata.

Ample number of complaints is coming from specific parts of south Kolkata like Behala, Tollygunge and Santoshpur where network coverage is very poor.

The promised speed is up to 9.8 mbps but in reality it goes nowhere near that. People feel they are misled and therefore dissatisfied. This is also hampering the brand image. They are unwilling to hear technical aspects and demand for promised speed near upper limit.

Speed drastically drops into some 20-30 kbps in wi-fi when three or more devices are connected. Sometimes even with one device connected, speed ranges within 4-20 kbps and customers are bringing evidences of such poor services.

Customer evidence:

Online bill payment is an issue as server goes down while payment. Physical bill payment options are few in places like Behala. Customers are confused where to make the payment in case of hazards faced in online payment.

Product is not roaming free across all states across pan India and wherever there is no MTS service, roaming charges are very high, whereas competing brands with similar products has such free roaming facility almost across pan India.

The dongles of ZTE are causing trouble like slowing down the computer or even restarting it all over, whereas previous dongles of Huwaei proved better performance.

The price of the dongle is not specified in case of initial purchase, which though is less compared to competing brands but customers turn a back as their idea is that the device comes free and claim that it’s not mentioned in ads.

The rental rate is Rs 999 but not mentioned to the customer while buying that it is excluding tax.

Customers are more willing towards open dongle and prefer if the same offer was valid on postpaid SIM, they could have given a second thought.

The carry forward concept is not clear to customers. ISDs are stressing less on the product and more on prepaid products as per customer

demand. In case of postpaid services, customers have a common fear of overpayment and undue

charges levied upon them by company even if they think they did not use that much.

DATA POINT

Eastern Logica Info., Ground Floor, E-Mall, Chandni Chowk, Kolkata. IT Solution Plaza, Top floor, Metropolis Mall, Highland Park, Kolkata.

HOW DO WE WANT TO IMPLEMENT

Targeting the product towards a particular segment can work wonders like in case of college students residing in hostels and mess. Aggressive marketing with temporary outlets near such places.

Create more awareness through ads, leaflets, temporary outlets. Enrich the after sales service with customer care having better knowledge and providing

solutions. Though practically speed not achievable up to 9.8 mbps at all places, so an average

speed should be mentioned to the customers. ISDs to be better trained about technical details of product, coverage zones across India

and carry forward concept. Offline bill payment options should be increased with more assistance to customer

access points. Since necessity is not uniform over all segments, customer acquisition cost can be

reduced with flexible plan as per customer necessity, making more customized offers. Postpaid is already an uncouth experience for some customers, so better customer

service required. Rentals and tax charges must be clearly explained to the customers.

REVIEW TIMELINE

Three months.

CLOSURE REPORT

To make this MBlaze Ultra postpaid plan of Rs 999 popular, proper market segmentation is very essential. If the target market is known, the job of making a product popular becomes many times easier. Once the target market is identified, the second thing that MTS needs to follow is to provide service as per what they are advertising or promising to a customer. Some customers are even asking the area where MTS is really providing 9.8Mbps data speed. So it is very essential for MTS to ensure its brand value while providing a true and fair picture of their service and products to their customers.