A PROJECT REPORT onCOMPARITIVE STUDY OF THE LIFETIME PLANS OF THE CELLULAR COMPANIES IN BHOPAL FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY ANURAG SAHU MBA II SEMESTER GUIDED BY Mr. OWAIS AHMED QURESHI INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH (BARKATULLAH UNIVERSITY, BHOPAL) 2007-2009
ACKNOWLEDGEMENTThis Project has been made possible through the direct and indirect Co-operationof various persons, who have inspired me at every step of my work. It is a matter ofpride for me to acknowledge my profound gratitude to my respected Director Dr.J.P. Sahu who always facilitates me in gaining practical knowledge.I am very much obliged and thankful to my esteemed Project GuideMr. OWAIS AHMED QURESHI for his valuable Cooperation and Guidance.And above all, I am beholden to my Parents and other family members for theirblessing and encouragement in completing this task. ANURAG SAHU
PREFACEThe research provides an opportunity to a student to demonstrate application ofhis/her knowledge, skill and competencies required during the technical session.Research also helps the student to devote his/her skill to analyze the problem tosuggest alternative solutions, to evaluate them and to provide feasiblerecommendations on the provided data.The research is on the topic of “COMPARITIVE STUDY OF THE LIFETIMEPLANS OF CELLULAR OPERATORS IN BHOPAL”. Although I have triedmy level best to prepare this report an error free report every effort has been madeto offer the most authenticate position with accuracy.
DECLARATIONI here by declare that the following documented Project Report titled “COMPARITIVESTUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN BHOPAL” is anauthentic work done by me.The Study was undertaken as a part of the course curriculum of MBA Full Time Programof Barkatullah University, Bhopal. ANURAG SAHU
CONTENTSCHAPTERSCHAPTER-1 • INTRODUCTION • OBJECTIVES OF THE STUDYCHAPTER-2 • INTRODUCTION OF TELECOM SECTOR • INTRODUCTION TO CELLULAR COMPANIESCHAPTER-3 • RESEARCH METHODOLOGY • RESEARCH DESIGN • SAMPLE DESIGN • LIMITATIONS OF THE STUDYCHATPER-4 • DATA ANALYSIS AND INTERPRETATIONCHAPTER-5 • OBSERVATION & FINDINGS • CONCLUSIONS • SUGGESTIONSBIBLOGRAPHYANNEXURE
INTRODUCTIONComparative research, simply put, is the act of comparing two or more things with a viewto discovering something about one or all of the things being compared.This technique is often utilizes multiple disciplines in one study.When it comes to method, the majority agreement is that there is no methodology peculiarto comparative research. The multidisciplinary approach is good for the flexibility it offers,yet comparative programs do have a case to answer against the call that their researchlacks a “seamless whole”.There are certainly methods far more common than others in comparative studies,however. Quantitative analysis is much more frequently perused than qualitative, and thisis seen in the majority of comparative studies can be use quantitative data.The general method of comparing things is the same for comparative research as it is inour everyday practice of comparisons. Like cases are treated alike, and cases are treateddifferently; the extent of difference determines how differently cases are treated. The pointhere is that if one is able to sufficiently distinguish two cases, comparative researchconclusions will not be very helpful.Secondary analysis of quantitative data is relatively widespread in comparative research,undoubtedly in part because of the cost of obtaining primary data for such large things asa country’s policy environment. A typical method of comparing welfare state is to takebalance their levels of spending on social welfare.
In line with how a lot of theorizing has gone in the last century, comparative research doesnot tend to investigate ‘grand theories’ such as Marxism. It instead occupies itself withmiddle-range theories – theories that do not purport to describe our social system in itsentirely, but a subset of it. A good example of this is the common research programs thatlooks for differences between two or more social systems, then look at these differencesin relation to some other variable coexisting in those societies to see if it is related. Theclassic cases of this is Esping-Anderson’s research on social welfare systems, andcompared them based on there levels of deco modification of social welfare goods. Hefound that he was able to class welfare states in four types, based on their decomodification. She further theorized from this that deco modification was based on acombination of class collisions and mobilization, and regime legacy. Here Esping-Anderson is using comparative research: he takes many western countries and comparedtheir level of deco modification, then develops a theory of the divergence based on hisfindings.Comparative research is a methodology in the social sciences that aims to makecomparisons across different countries and cultures. A major problem in comparativeresearch is that the data sets in different countries may not use the same categories, ordefine categories differently.
OBJECTIVES1. To find out the perception of the general people towards the land line & mobile phone.2. To find out the hidden information in lifetime plans of cellular services.3. To find out the consumer satisfaction towards the lifetime plans.
Telecom Industry in IndiaThe telecom industry is one of the fastest growing industries in India. India has nearly200 million telephone lines making it the third largest network in the world after Chinaand USA. With a growth rate of 45%, Indian telecom industry has the highest growthrate in the world.- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China.- India‘s mobile phone subscriber base is growing at a rate of 82.2%.- China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India ’s share in Asia Pacific Mobile Phone market is 6.4%. Considering the fact that India and China have almost comparable populations, India’s low mobile penetration offers huge scope for growth.History of Indian Telecommunications Started in 1851 when the first operational land lines were laid by the government nearCalcutta (seat of British power). Telephone services were introduced in India in 1881. In1883 telephone services were merged with the postal system. Indian Radio TelegraphCompany (IRT) was formed in 1923. After independence in 1947, all the foreigntelecommunication companies were nationalized to form the Posts, Telephone andTelegraph (PTT), a monopoly run by the governments Ministry of Communications.Telecom sector was considered as a strategic service and the government considered itbest to bring under states control.The first wind of reforms in telecommunications sector began to flow in 1980s when theprivate sector was allowed in telecommunications equipment manufacturing. In 1985,Department of Telecommunications (DOT) was established. It was an exclusive providerof domestic and long-distance service that would be its own regulator (separate from thepostal system). In 1986, two wholly government-owned companies were created: theVidesh Sanchar Nigam Limited (VSNL) for international telecommunications andMahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.In 1990s, telecommunications sector benefited from the general opening up of theeconomy. Also, examples of telecom revolution in many other countries, which resultedin better quality of service and lower tariffs, led Indian policy makers to initiate a changeprocess finally resulting in opening up of telecom services sector for the private sector.
National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensiveroadmap for the Indian telecommunications sector. In 1997, Telecom RegulatoryAuthority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitatethe growth of the telecom sector. New National Telecom Policy was adopted in 1999 andcellular services were also launched in the same year.Telecommunication sector in India can be divided into two segments: Fixed ServiceProvider (FSPs), and Cellular Services. Fixed line services consist of basic services,national or domestic long distance and international long distance services. The stateoperators (BSNL and MTNL), account for almost 90 per cent of revenues from basicservices. Private sector services are presently available in selective urban areas, andcollectively account for less than 5 per cent of subscriptions. However, private servicesfocus on the business/corporate sector, and offer reliable, high- end services, such asleased lines, ISDN, closed user group and videoconferencing.Cellular services can be further divided into two categories: Global System for MobileCommunications (GSM) and Code Division Multiple Access (CDMA). The GSM sector isdominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector isdominated by Reliance and Tata Indicom. Opening up of international and domestic longdistance telephony services are the major growth drivers for cellular industry. Cellularoperators get substantial revenue from these services, and compensate them forreduction in tariffs on airtime, which along with rental was the main source of revenue.The reduction in tariffs for airtime, national long distance, international long distance,and handset prices has driven demand.Classification of Telecommunication services 1. Basic services 2. Cellular services 3. Internet Service Provider (ISP) Cellular Service Overview 1. There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. 2. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle.
Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. The Key players in the Telecom Market in IndiaCellular Service provider: 1. BSNL 2. Airtel 3. Vodafone 4. Idea 5. Reliance 6. Tata indicom 7. Aircel 8. Spice 9. MTNLSubscribers Wireless subscribers crosses 200 million mark Tele density reaches 21.20%The total number of telephone subscribers has reached 241.02 million at the end ofAugust 2007 as compared to 232.87 million in July 2007. The overall teledensityhas increased to 21.20% in August 2007 as compared to 20.52% in July 2007.In the wireless segment, 8.31 million subscribers have been added in August 2007 while8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM,CDMA & WLL(F)) base reaches 201.29 million at the end of August 2007.The wireline segment subscriber base stood at 39.73 million with a decrease of 0.16million at the end of August 2007. Circle wise wire line subscriber base of serviceproviders is given at following chart ..
Market Share of the telecom Company in India
INTRODUCTION OF CELLULAR COMPANIES
Company ProfileINTRODUCTION“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among Indiaslargest mobile phone and Fixed Network operators. With more than 60 millionsubscriptions as of 13th February 2008. It offers its mobile services under the Airtelbrand and is headed by Sunil Mittal. The company also provides telephone services andInternet 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 connectsthe submarine cable connecting Chennai and Singapore. The company providesreliable end-to-end data and enterprise services to the corporate customers byleveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line andmobile circles, VSATs, ISP and international bandwidth access through the gatewaysand landing station.Airtel is the largest cellular service provider in India in terms of number of subscribers.Bharti Airtel owns the Airtel brand and provides the following services under the brandname Airtel: Mobile Services (using GSM Technology), Broadband & TelephoneServices (Fixed line, Internet Connectivity(DSL) and Leased Line), Long DistanceServices and Enterprise Services (Telecommunications Consulting for corporates).Leading international telecommunication companies such as Vodafone and SingTel heldpartial stakes in Bharti Airtel.In April 2006 Bharti Global Limited was awarded a telecommunications license in Jerseyin the Channel Islands by the local telecommunications regulator the JCRA. InSeptember 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtelwith a mobile telecommunications license. In May 2007 Jersey Airtel and GuernseyAirtel announced the launch of a relationship with Vodafone for island mobilesubscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900million dollar expansion of its mobile and fixed network. In August 2007, the companyannounced it will be launching a customized version of Google search engine that willprovide an array of services to its broadband customers.
INTRODUCTIONAs Indias leading GSM Mobile Services operator, IDEA Cellular has licenses to operatein 11 circles. With a customer base of over 17 million, IDEA Cellular has operations inDelhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellulars footprintcurrently covers approximately 45% of Indias population and over 50% of the potentialtelecom-market.As a leader in Value Added Services, Innovation is central to IDEAs VAS Factory. It isthe first cellular company to launch music messaging with Cellular Jockey, BackgroundTones, Group Talk, a voice portal with Say IDEA and a complete suite of Mobile EmailServices.Idea Cellular is a wireless telephony company operating in various states in India. Itinitially started in 1995 as a join venture between the Tatas, Aditya Birla Group andAT&T by merging Tata Cellular and Birla AT&T Communications.Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai),Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (East andWest), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).The company has its retail outlets under the "Idea n U" banner. The company has alsobeen the first to offer flexible tarrif plans for prepaid customers. It also offers GPRSservices in urban areas.HoldingInitially the Birlas, the Tatas and AT&T Wireless each held one-third equity in thecompany. But following AT&T Wireless merger with Cingular Wireless in 2004, Cingulardecided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas andBirlas at 16.45% each.Tatas foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dualholding by the Tatas also became a major reason for the delay in Idea being granted alicense to operate in Mumbai. This was because as per Department of Telecom (DOT)license norms, one promoter could not have more than 10% stake in two companiesoperating in the same circle and Tata Indicom was already operating in Mumbai whenIdea filed for its license.
The Birlas thus approached the DOT and sought its intervention, and the Tatas repliedby saying that they would exit Idea but only for a good price. On April 10, 2006, theAditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas atRs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake wasacquired by Aditya Birla Nuvo, a company in-charge of the Birlas new businessinitiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AVBirla family owned company.Currently, Birla Group holds 98.3% of the total shares of thecompany.Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan,Himachal Pradesh and UP (East) to make itself a pan-India player. Recently, Idea gotlicenses to operate in Mumbai & Bihar. They are awaiting the spectrum from DoT.
INTRODUCTIONA DREAM COME TRUEThe Late Dhirubhai Ambani dreamt of a digital India — an India where the common manwould have access to affordable means of information and communication. Dhirubhai,who single-handedly built India’s largest private sector company virtually from scratch,had stated as early as 1999: “Make the tools of information and communicationavailable to people at an affordable cost. They will overcome the handicaps of illiteracyand lack of mobility.”It was with this belief in mind that Reliance Communications (formerly RelianceInfocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.This backbone was commissioned on 28 December 2002, the auspicious occasion ofDhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.Reliance Communications has a reliable, high-capacity, integrated (both wireless andwireline) and convergent (voice, data and video) digital network. It is capable ofdelivering a range of services spanning the entire infocomm (information andcommunication) value chain, including infrastructure and services — for enterprises aswell as individuals, applications, and consulting.Today, Reliance Communications is revolutionising the way India communicates andnetworks, truly bringing about a new way of life.Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecomand Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According toNational Stock Exchange data, Anil Ambani controls 66.75 per cent of the company,which accounts for more than 1.36 billion shares of the company.Reliance Infocommis an Indian telecommunications company. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services(Reliance Capital) and telecom initiatives of the Reliance ADA Group. RelianceInfocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1xtechnology
HISTORYReliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002 RelianceInfocomm built 60,000 km of fibre optic backbone in India. This network wascommissioned on December 28, 2002.FOOTPRINTAt present, Reliance Telecoms GSM cellular services are available in 340 towns withinits eight-circle footprint. Reliances CDMA services are available in 19 states and coverabout 65% of the country, state wise. Reliance Infocomm also offered for the first time inIndia, mobile data services through its R-World mobile portal. This portal leverages thedata capability of the CDMA 1X network.BUSINESS REVIEWDuring the twelve months ended March 31, 2007, revenues of the Wireless businessincreased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$1,709 million).Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore(US$ 522 million). Margins expanded to 37% from 31%.EBITDA of the Global business increased by 98% during the twelve months endedMarch 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to24% from 12% last year.In the same period, the Broadband business achieved revenue growth of 123% to Rs.1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months endedMarch 31, 2007, from 15% in the corresponding period in the previous year.
TATA TELESERVICESINTRODUCTIONTata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an IndianConglomerate. It runs the brand name Tata Indicom in India in various telecom circles ofIndia. The company forms part of the Tata Groups prescence in the TelecommunicationIndustry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL.TTSL was incorporated in 1995 and was the first company to offer CDMA Mobileservices in India, specifically in the state of Andhra Pradesh.In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd.which was renamed Tata Teleservices (Maharashtra) Limited.In September 2007, Tata Indicom launched the Talk World plan, an International LongDistance Plan.Tata is the direct competitor with Reliance, both CDMA operators in India. The companyprovides unified telecommunication solutions including mobile, fixed wireless, fixed lineand broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNLproviding GSM based mobile telephony.The company was first in India to provide free intra network calling within city limits.They launched a unique scheme providing lifetime rental free connectivity on its mobileand fixed wireless for a one time charge.Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29 billion) Tata Group, thathas over 87 companies, over 250,000 employees and more than 2.8 millionshareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) inTelecom (FY 2006), the Group has a formidable presence across the telecom valuechain.Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporatedin 1996, Tata Teleservices was the first to launch CDMA mobile services in India with theAndhra Pradesh circle.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamedTata Teleservices (Maharashtra) Limited] in December 2002 the company swung into anexpansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices hascreated a Pan India presence spread across 20 circles that includes Andhra Pradesh,Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar,Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W),Kerala, Kolkata, Madhya Pradesh and West Bengal.Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices hasestablished a robust and reliable 3G ready telecom infrastructure that ensures quality inits services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for thedeployment of a reliable, technologically advanced network.The company, which heralded convergence technologies in the Indian telecom sector, istoday the market leader in the fixed wireless telephony market with a total customerbase of over 3.8 million.Tata Teleservices’ bouquet of telephony services includes Mobile services, WirelessDesktop Phones, Public Booth Telephony and Wireline services. Other services includevalue added services like voice portal, roaming, post-paid Internet services, 3-wayconferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling cardservices and enterprise services.Some of the other products launched by the company include prepaid wireless desktopphones, public phone booths, new mobile handsets and new voice & data services suchas BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactiveapplications like news, cricket, astrology, etc.Tata Indicom redefined the existing prepaid mobile market in India, by unveiling theiroffering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive freeincoming calls. Tata Teleservices today has India’s largest branded telecom retail chainand is the first service provider in the country to offer an online channel www.ichoose.into offer postpaid mobile connections in the country.Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created morethan 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of itsmanpower needs.Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limitedserves over 21 million customers in over 4000 towns. With an ambitious rollout planboth within existing circles and across new circles, Tata Teleservices offers world-classtechnology and user-friendly services in 20 circles.
INTRODUCTIONBharat Sanchar Nigam Limited (known as BSNL, India Communications CorporationLimited) is a public sector communications company in India. It is the Indias largesttelecommunication company with 25.14% market share as on December 31, 2007. Itsheadquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath,New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sectorcompanies in India.BSNL is Indias oldest and largest Communication Service Provider (CSP). CurrentlyBSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprintsthroughout India except for the metropolitan cities of Mumbai and New Delhi which aremanaged by MTNL. As on December 31, 2007 BSNL commanded a customer base of31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers.BSNLs earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b(US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is Indiaslargest Telco and one of the largest Public Sector Undertaking with estimated marketvalue of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10 %to public.Bharat Sanchar Nigam Ltd. formed in October, 2000, is Worlds 7th largestTelecommunications Company providing comprehensive range of telecom services inIndia: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it hasbecome one of the largest public sector unit in India.BSNL has installed Quality Telecom Network in the country and now focusing onimproving it, expanding the network, introducing new telecom services with ICTapplications in villages and wining customers confidence. Today, it has about 47.3million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSMCapacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602Districts, 7330 cities/towns and 5.5 Lakhs villages.BSNL is the only service provider, making focused efforts and planned initiatives tobridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator inthe country to beat its reach with its wide network giving services in every nook & cornerof country and operates across India except Delhi & Mumbai. Whether it is inaccessibleareas of Siachen glacier and North-eastern region of the country. BSNL serves itscustomers with its wide bouquet of telecom services.BSNL is numero uno operator of India in all services in its license area. The companyoffers vide ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering24 percent of all mobile users as its subscribers. That means that almost every fourthmobile user in the country has a BSNL connection. In basic services, BSNL is milesahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share ofthe subscriber base and 92 percent share in revenue terms.BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customerswho access Internet through various modes viz. Dial-up, Leased Line, DIAS, AccountLess Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructurethat provides convergent services like voice, data and video through the sameBackbone and Broadband Access Network. At present there are 0.6 million DataOnebroadband customers.The company has vast experience in Planning, Installation, network integration andMaintenance of Switching & Transmission Networks and also has a world class ISO9000 certified Telecom Training Institute.Scaling new heights of success, the present turnover of BSNL is more thanRs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million(US $ 2.26 billion) for last financial year. The infrastructure asset on telephone aloneis worth about Rs.630,000 million (US $ 14.37 billion).BSNL plans to expand its customer base from present 47 millions lines to 125 millionlines by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores(US$ 16.67 million) in the next three years.The turnover, nationwide coverage, reach, comprehensive range of telecom servicesand the desire to excel has made BSNL the No. 1 Telecom Company of India.History The foundation of Telecom Network in India was laid by the British sometime in19th century. The history of BSNL is linked with the beginning of Telecom in India. In19th century and for almost entire 20th century, the Telecom in India was operated as aGovernment of India wing. Earlier it was part of erstwhile Post & Telegraph Department(P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT wasresponsible for running of Telecom services in entire country until 1985 whenMahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecomservices of Delhi and Mumbai. It is a well known fact that BSNL was carved out ofDepartment of Telecom to provide level playing field to private telecoms.Subsequently in1990s the telecom sector was opened up by the Government for Private investment,therefore it became necessary to separate the Governments policy wing fromOperations wing. The Government of India corporatised the operations wing of DoT onOctober 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNLoperates as a public sector.
What is prepaid mobile service?Prepaid cellular services are getting very popular these days. Many people now preferprepaid services since they offer a variety of advantages related to lifestyle and costcontrol that simply are not available through post-paid contract based services.Prepaid cell phones have a distinct advantage over regular subscriptions. They offercost control with a fixed price per minute, control over costs with cell phones distributedby parents, no credit check and increased anonymity.Get you own cell phone with no credit check!Its todays safe, convenient, and flexible way to manage your spending on cellularphones.Prepaid cell phones are convenient and easy to get because there are: * no contracts * no credit checks * no deposits * no monthly bills * no activation or early termination feesYou will be safer and more secure when you own a prepaid cell phone without payinghefty monthly fees.Great Cost Control with No surprises!Increasing consumer demand for prepaid cellular phonesPrepaid cellular services are currently the fastest-growing segment of the wirelessphone market, perhaps because wireless service can be started up with no subscriptionfee for well under $100. More and more people are using this service to controlspending than to get around credit problems.In Europe, already more thatn 60 % of subscribers are on a prepaid wireless plan, whilein the United States, only 8 to 10 percent of users have chosen that system. But itsgrowing fast: in Canada, for example, some providers see their prepaid subscribersbase increase 50% faster than those of an ordinary monthly billed service.
Prepaid cellular phones are ideal in the following situations: * If you want to budget your cell phone use, or * If you want a phone for occasional use but dont want to pay a monthly service feeor enter a long-term agreement, or * If you have no credit history or past credit problems, or * If your usage varies from month to month, or * If you want to buy your children a phone for emergency use but restrict the amountof calls they can make, or * If you are looking for a gift. or * If you dont feeling comfortable providing information for a carrier credit check, or * If you want to learn about your usage patterns before committing to a long-termmonthly billing wireless contract.
What is lifetime validity?Lifetime prepaid means that your cell-phone connection remains valid for life. You alsoget a minimal talktime, ranging from Rs 10 to Rs 100 .The good part is that allsubsequent recharges give you full talk time. There will be no processing charges,something that is a big turn-off for prepaid customers. For instance, out of the Rs 335 anAirtel prepaid customer in Delhi pays to recharge his connection for 30 days, Rs 150 gointo processing fees. Another Rs. 31 goes to the government as tax and he gets airtimeworth only Rs 154. If he takes the lifetime validity offer, the same Rs 335 recharge willgive him talk time worth Rs 302 — and that’s for life. By saving on the Rs 150processing fee, he will recover the one-time charge for lifetime validity in a few months. Lifetime plans allow pre-paid subscribers to have lifetime validity for a one-timepayment. The user can then continue to receive calls without having to recharge. Life time plans of the cellular companies
The Life Time Plan of Airtel Airtel Presents Rs. 295 Lifetime Prepaid with 1 Rupee Outgoing Local TariffSlashes local outgoing call rate by 50% for Rs. 295/- Lifetime Prepaid usersLocal outgoing tariff reduced to Re. 1/- for life to all networks (mobile & landline) fromRs. 1.99/- for Rs. 295/- Lifetime Prepaid customers.· All existing customers of Rs. 295/- Lifetime Prepaid to be migrated to Re. 1/- call rates,without any extra charges.Bharti Airtel, India’s leading telecom service provider, today announced the Rs. 495/-Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all localoutgoing calls (mobile and landline) to Re. 1/- from the existing Rs. 1.99/- per minutecall rate.Bharti Airtel, which was also the first service provider to introduce the Lifetime Prepaid inIndia, announced this revolutionary tariff cut for customers that was earlier applicable toonly the Rs. 999/- Lifetime customers. With effect from february 15, 2008, all Rs. 295/-Lifetime Prepaid customers will be able to make local outgoing calls (Mobile & Landline)at Re. 1/- per minute and all existing customers will be migrated to the revised tariff planwithout any extra charges. Customers will have to recharge with a minimum amount ofRs. 200/- at least once in every 180 days to enjoy the lifetime validity and tariff benefits. Airtel ka Super Lifetime Validity
Pulse Rate60 secPrice of Pack (Rs.)295Free Airtime on Pack (Rs.)150Incoming Calls (Rs.)-AirtelGSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min)1 (night tariff from 11pm to 7am @ 10 paise)11STD RATES (Rs./min)2.652.652.65ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, NewZealand.6.40Gulf, Europe (Mobile),SAARC countries, Africa &Rest of the world9.20Cuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,Vanuatu, Cook Islands,
Other DetailsPF on subsequent talktime recharges to be as per bands specified i.e. Rs 1-100: 25%, Rs101-199: 15%, Rs 200 & above: NIL. This is waived for the first 90 days from 25th Feb08. Min recharge condition of Rs 200/- in 180 running day Idea - Lifelong Validity Recharge Voucher IDEA ka Lifelong Validity offer
Pulse Rate60 secPrice of Pack (Rs.)195 (sim charges exclude)Free Airtime on Pack (Rs.)5Incoming Calls (Rs.)- free for lifelongideaGSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min) 111STD RATES (Rs./min)2.752.752.75ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, NewZealand.Rs.6.99Gulf, Europe (Mobile),SAARC countries, Africa &Rest of the worldRs.9.99Cuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,Vanuatu, Cook Islands,Tuvalu, Tokelau, Norfolk
Promotional Offer All new customers taking 195 rs recharge on the date of activation, willFor New get Full TT in all recharges of Rs. 125/-(Till 30th April,2008.) Total TT-Activations* 111.25. Online TT-86.25, Offline TT-25 Rs. (within 48 hrs.) Reliance “Sath Zindagi Bhar Ka”(lifetime) offer RCom’s new gambit is Rs 199 lifetime prepaidReliance Communications, the code-division multiple access major, which was the firstto launch the lifetime plan almost two years ago at a one-time cost of Rs 999, plans toannounce a similar scheme at one-fourth the price —- Rs 199.For making outgoing calls, the standard local tariff will be 99 paise per minute. Variousother calling tariff options will also be available to the users, depending on the trend ofone’s usage.RCom’s move looks like a replay of 2006, when mobile telephony players were intenselycompeting with each other over lifetime pre-paid schemes.Spectrum war, however, kept the operators busy all through 2007, and one didn’t hearabout lifetime plans at all.
Rcom’s “SATH ZINDAGI BHAR KA” plan
Pulse Rate60 secPrice of Pack (Rs.)195 (sim charges exclude)Free Airtime on Pack (Rs.)5Incoming Calls (Rs.)- free for lifelongRel.GSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min) 0.990.99 0.99STD RATES (Rs./min)2.752.752.75ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, NewZealand.Rs.6}17Gulf, Europe (Mobile),SAARC countries, Africa &Rest of the worldCuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,
BSNL’s Excel ANANT plan BSNL’s “Excel Anant” plan
Pulse Rate60 secPrice of Pack (Rs.)495 (sim charges include)Free Airtime on Pack (Rs.)65Incoming Calls (Rs.)- free for lifelongBSNLGSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min) 1.001.40 1.00STD RATES (Rs./min)2.752.752.75ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, NewZealand.Rs.7.20Gulf, Europe (Mobile),SAARC countries, Africa &Rest of the worldRs.9.60Cuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,Vanuatu, Cook Islands,Tuvalu, Tokelau, Norfolk
In case of Anant, the Life Time Validity means the License Period of the Operator. TheLicense Period for Cellular Services of BSNL is 20 years w. e. f. 29.02.2000. However, theLicense is understood to be renewable further on its expiry. TATA Indicom’s “GO LIFE” plan TATA indicom’s “GO LIFE” plan
Pulse Rate60 secPrice of Pack (Rs.)489Free Airtime on Pack (Rs.)1Incoming Calls (Rs.)- free for lifetimeindicomGSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min) 1.502.002.00STD RATES (Rs./min)2.752.753.00ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, NewZealand.}Rs. 17.20Gulf, Europe (Mobile),SAARC countries, Africa &Rest of the worldCuba, Sao Tome & Principe,
Lifetime validity is subject to the license period till of Tata Teleservices ltd. d. Connections withno usage (incoming, outgoing or recharge) for a continuous period of 180 days will bechurned/deactivated. Comparison of lifetime plans of all cellular companies Charges ( call rates )Cellular co.s Lifetime (Rs.) plan Rs. Own Other STD International SMS network network L/N/IAirtel 295 1 1 2.65 6.4/9.2/40 1/2/5BSNL 495 1 1.40 2.75 7.2/9.6/12 1/2/5R’com 199 0.99 0.99 2.99 6/17 1/2/5Tata 489 1.50 2 2.75 17.20 1/2/5Indicom
TRAI on Lifetime validity plansTRAI asks mobile operators to disclose key issues of lifetime plansTRAI has asked the mobile operators offering lifetime connectivity plans todisclose risk factors, like change in tariff plans and their remaining licenseperiod duration, in their announcement.The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguardsto protect consumer interest in the lifetime validity tariff schemes being offered byphone companies. These include a restriction on the companies from hiking the tariff onany item specified in the plans and an obligation to inform the subscribers of the monthand year of the expiry of current license.The amendment to the Telecommunication Tariff Order thus addresses a moral issuethat had arisen after phone companies began promoting lifetime schemes — theirlicenses are for a limited span ranging from seven to 15 years while they were offering atariff that went well beyond the license period. It also answered a question in the mindsof the subscribers whether there would be subsequent demands from phone companiesafter the initial upfront payment. TRAI made it clear that in the case of tariff plans offeredor marketed as having lifetime or unlimited validity, the subscribers should get theservice as long as the phone company is permitted to provide such telecom serviceunder the current license or renewed license. TRAI has also reiterated the right of thesubscribers to choose any tariff plan at any point of time.TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy.With no stakeholder replying to the consultation paper on billing issues that alsocontained a code of practice for metering and billing accuracy, TRAI decided to issuethe regulation. It has directed companies before enrolling a customer to inform inwriting, within a week of activation of service, the complete details of the tariff plan.Charges for a value added service (download of film clip, ring tone and the like) or entryto an interactive service (such as a game) must be provided before the customercommits to use the service.
RESEARCH METHODOLOGYDefinition of ResearchThe word research is derived from the Latin word meaning to know. It is a systematicand a replicable process, which identifies and defines problems, within specifiedboundaries. It employs well-designed method to collect the data and analyses theresults. It disseminates the findings to contribute to generalize able knowledge. Thecharacteristics of research presented below will be examined in greater details later are: Systematic problem solving which identifies variables and tests relationships between them, Collecting, organizing and evaluating data. Logical, so procedures can be duplicated or understood by others Empirical, so decisions are based on data collected Reductive, so it investigates a small sample which can be generalized to a larger population Replicable, so others may test the findings by repeating it. Discovering new facts or verify and test old facts. Developing new scientific tools, concepts and theories, which would facilitate to take decision.For the proper analysis of data simple statistical techniques such as percentage wereuse. It helps in making more generalization from the data available. The data which wascollected from a sample of population, was assumed to be representing entire
population was interest. Demographic factors like age, income and educationalbackground was used for the classification purpose. Sample sizeFor carrying out any research or study on any subject it is very difficult to cover even10% of the total population. Therefore the sample size has to be decided for ameaningful conclusion. For designing the sample size, it was thought proper to cover avery small percentage of population in various age groups.The method used for sample technique was non probability convenience samplingmethod. This method is used because it is known previously as to whether a particularperson will be asked to fill the questionnaire. Convenient sampling is used because onlythose people will be asked to fill the questionnaires who were easily accessible andavailable to the researcher.Considering the constraints, it was decided to conduct the study based on sample sizeof 100 people in specific age groups. Scientific method is not adopted in this studybecause of financial constraints and also because of lack of time; also the basic aim ofdoing the research is academic, hence most convenient way is selected.
TYPES & TECHNIQUESThe study conducted is a conclusive descriptive statistical study; the researcher comesto the decision which is precise and rational. The study is conclusive because afterdoing the study the researcher comes to a conclusion regarding the position of thebrand in the minds of respondents of different firms groups. The study is statisticalbecause throughout the study all the similar samples are selected and group together.All the similar responses are taken together as one and their percentages arecalculated.Thus, this, conclusive descriptive statistical study is the best study for this purpose as itprovides the necessary information which is utilize to arrive at a concrete decision.
TOOLS USEDTo know the response I have used the questionnaire method in sample survey. If onewishes to find what people think or know, the logical procedure is to ask them. This haslead marketing researchers to use the questionnaire technique for collecting data morethan any other method.In this method questionnaire were distributed to the respondents and they were askedto answer the questions in the questionnaire. The questionnaires were structured non-disguised questionnaire because the questions, which the questionnaire contained,were arranged in a specific order besides every question asked were logical for thestudy, no question can be termed as irrelevant.The questionnaire, were non-disguised because the questionnaire were constructed sothat the objective is clear to the respondent. The respondents were aware of theobjective. They knew why they asked to fill the questionnaire.
LIMITATIONS OF THE STUDY• The research will be conducted in a limited area.• The internet information can be irrelevant.• Time will be a major constraint.• The respondent will be limited so cannot be treated as a whole population.• The respondent may be biased.• Due to language problem it is possible that the respondents are not be able to understand the questionnaire and can cause misleading results.
CHAPTER-4DATA ANALYSIS &INTERPRETATION
DATA ANALYSIS & INTERPRETATIONQ1. Which telecom service do you use? Options Percentage of respondents Mobile 55 Landline 5 Both 40
Q2. Which cellular service do you use? Options Percentage of respondents Airtel 34 idea 28 Reliance 17 BSNL 16 Tata indicom 5Q3. Which service you r using? Options Percentage of respondents Prepaid 95 Postpaid 5
Q4. Are you using lifetime or general plan? Option Percentage of respondents Lifetime 73 General 27Q5. Are you satisfied with the call rates of the Lifetime plan?Option Percentage of respondentsYes 64No 36
Q6. Which facility attracts you most in the lifetime plan?Option Percentage of respondentsCall rates 15Massage Tariff 1Night Tariff 1Validity 83Q7 Are you satisfied with the lifetime plan which you are using?Option Percentage of respondents
Yes 78No 22Q8. Rate of the satisfaction level with the services of your present lifetime plan?Option Percentage of respondentsFully satisfied 14Satisfied 47Average 27Dissatisfied 8Highly dissatisfied 2Q9. Why you chose lifetime plan?Option Percentage of respondentsFor incoming purpose only 23
For money saving 48For the facilities provided in the plan 29Q10. Do you know about the license of the cellular companies?Option Percentage of respondentsYes 24No 76
OBSERVATION & FINDINGS 55% of the people use only mobile, and 40% of respondents use both the services & only 5% people use the telephone service. It shows the popularity of cellular phone services. 34% of respondents are using the Airtel services, which is the highest percentage of users of cellular phone. Idea takes 2nd place in Bhopal with 28% of users. Then comes reliance and BSNL, and tata indicom having least customers in the Bhopal. Prepaid service is most popular in the cellular services with 95% of customers. The remained uses postpaid services. In current situation 73% of respondents are using lifetime plans, where the rest are using general plan of the cellular companies. 64% of respondents are satisfied with the call rates of the lifetime plans, it is because telecom companies have slashed their call rates few months ago. Still in this situation 36% of respondents did not satisfy with the call rates which service they are using. In the lifetime plan of cellular companies most of the respondents are using this service because of its validity period with 83% of answer. Where 15% of people like this services because of its call rates. 78% of customer satisfied with the lifetime plans of cellular companies, and which are not satisfy with the service they are mostly BSNL and TATA indicom users.
Most of the people are using lifetime services because of money savings with the percentage of 48. Where 29% of people like this service because of the facilities provided by the operators. And 23% of people are using this service because of incoming only. When it was asked to the respondents that did they know about the license of the cellular company, then most of the people replied NO. it means people are not aware about the license related bound of the cellular companies which is implemented by TRAI, that cellular companies can deliver their services until their license have validity, they have to renew it for providing further service. CONCLUSIONSIn Bhopal it is found that Airtel is the market leader in the lifetime plan segment. Peoplelike the lifetime plans provided by the companies. And Idea having 2nd highestcustomers in BhopalTATA indicom having least customers in Bhopal, where Reliance and BSNL havingalmost equal percent of customerBut they are not aware about the bound of cellular companies with TRAI, that cellularcompanies can deliver their services till their license have validity, they have to renew itfor providing further service.
SUGGESTIONS In the lifetime plans, cellular companies should reduce the call rates. They should provide other facilities like massage and minimum call rates in the same network. They should make aware the customers that they have limited license period. They should not take other hidden charges. There should not be any compulsion that customer have to recharge their card in 180 days with certain amount. This is the main drawback of the lifetime validity plan.
BIBLOGRAPHYBooks:• Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli.• C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi.• Saxena Rajan ‘marketing management’ Tata Mcgraw-hill publicating Co. Ltd. New Delhi.• H. V. Verma ‘marketing of services’ Global business press, New Delhi.• Business today magazine of February issue,2008.Web Resources:www.trai.gov.inhttp://www.tataindicom.com/t-aboutus-ttsl-organization.aspxhttp://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsphttp://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdeahttp://www.bsnl.co.in/about.htmhttp://www.bsnl.co.in/service/tariff_excel_pre.htmhttp://22.214.171.124/utility/tariff.htmhttp://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdfwww.airtel.inwww.totalnetwork.co.in .
QuestionnaireName -Age - 1)18-40 □ 2)41-70 □ 3)70 above □Sex - 1) Male □ 2) Female □Education- 1) Under graduate □ 2) Graduate □ 3) Post graduate □ 4) Other □Occupation- 1) Job □ 2) Business □ 3) Self employ □Income- 1) 10K □ 2) Above10k □ 3) 20k □ 4) Above 20k □Address- 1) Rural □ 2) Urban □Q1. Which telecom service do you use? a) Mobile □ b) Landline □ c) Both □Q2. Which cellular service do you use? a) Airtel □ b) idea □ c) Reliance □ d) BSNL □ e) Tata indicom □Q3. Which service you r using? a) □ b) PostpaidQ4. Are you using lifetime or general plan? a) Lifetime □ b) General □Q5. Are you satisfied with the call rates of the Lifetime plan?
a) Yes □ b) No □Q6. Which facility attracts you most in the lifetime plan? a) Call rates □ b) Massage Tariff □ c) Night Tariff d) Validity □Q7 Are you satisfied with the lifetime plan which you are using? a) Yes □ b) NoQ8. Rate of the satisfaction level with the services of your lifetime plan? a) Fully satisfied □ b) Satisfied □ c) Average □ d) Dissatisfied □ e) Highly dissatisfied □Q9. Why you chose lifetime plan? a) For incoming purpose only □ b) For money saving □ c) For the facilities provided in the plan □Q10. Do you know about the license of the cellular companies? a) Yes □ b) No □