Summer internship Project - Tata Teleservices Limited
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How to increase market share in wireless broadband market and increase customer retaintivity

How to increase market share in wireless broadband market and increase customer retaintivity

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  • 1. Report On“How to increase market share in wireless broadband market and increase customer retaintivity” For TATA TELESERVICES LIMITED (TATA DOCOMO) Submitted By:- Sumersingh Singh Rajput Term-3rd Roll No. 58Submitted In partial fulfillment of requirement of PGDM program at St. Kabir Institute of professional studies (SKIPS) Under Supervision of Dr. Raashid Saiyed Professor St. Kabir Institute of professional studies (SKIPS) Duration: 1th May to 30th June 2012
  • 2. DeclarationI, Sumersingh Rajput do here by declare that the research project “How to increase marketshare in wireless broadband market and increase customer retaintivity” is an original work.The content of this report regarding finding have not been published before and reflect thework done by me during my summer internship from 1st May 2012 to 3oth June2012 with TataTele service Ltd ( Tata DoCoMo), Ahmadabad.Place: Ahmadabad, Gujarat Sumersingh Rajput ______________ Student at st.kabir institute of professional studies Batch: 2011-2013
  • 3. AcknowledgementAs a part of curriculum at St.kabir institute of professional studies, the “Summer internshipProgram “aims at overall development of the students by providing them an opportunity togain corporate exposure and space to apply their theoretical knowledge in practice in amutually beneficial manner. No summer internship can be successful without the support ofthe people who keep themselves closely involved with the student undergone the program.The wealth of knowledge and guidance shared and provided by these professional is invaluableI have given my all dedication to this project and have been able manage all of thing asprofessional. However, it would not have been possible without the kind support and help ofmany individuals from industry and organizations. I would like to extend my hearties Gratitudeto all of them.I would like to express my gratitude toward Faculty guide Dr. Raashid Saiyed (Professor-Marketing) and also to Dr. Shantanu Mehta (director at St.kabir) for their kind co-operation andencouragement which help me in completion of this project.I would like express my hearties Gratitude to my organizational guides Mr. Chirantan Sharma(Assistant manager-product development) and Mr. Amit.N.Thakker at Tata Teleservices Limitedfor their guidance and constant supervision even though they are having their own many workthey give their time and attention and providing necessary information regarding the project. Itwas privileged to work at TTSL under their supervision.Regards,Sumersingh RajputStudent at St.kabir institute of professional studiers
  • 4. Table of ContentsExecutive summery……………………………………………………………………………...VChapter 1-Introduction…………………………………………………………………….........11.1 Brief introduction of the problem under study of wireless broadband industry………………11.2 Types of broadband……………………………………………………………………………31.3 About the company……………………………………………………………………………61.4 Global broadband subscribers…………………………………………………………………81.5 Region-wise Broadband market share global…………………………………………………81.6 Top 10 broadband and internet operators and their market share in India……………………91.7 Broadband Subscribers in India……………………………………………………………...111.8 Broadband Access - Technologies & Market Share in India………………………………...12Chapter 2- Objective and methodology…………………………………………………….…132.1 Brief introduction of research………………………………………………………………..132.2 Research objective…………………………...………………………………………………142.3 Methodology………………...……………………………………………………………….15 2.3.1 Primary Data……………………………………………………………………….15 2.3.2 Secondary data……………………………………………………………………..16Chapter 3- Data interpretation and Analysis…………………………………………………173.1 Competitive benchmarking…………………………………………………………………..17  3.1.1Tariff plans –prepaid category……………………………………………...17  Monthly………………………………………………………………......17  90 days packs…………………………………………………………….18  180 days packs…………………………………………………………...18  365 days Packs…………………………………………………………...18  Small Validity Packs & Top Ups……...…………………………………19  3.1.2Tariff plans -Postpaid Plan………………………………………………….19 I
  • 5.  Monthly plan……………………………………………………………..19  ARP Plan ………………………………………………………………...20  3.1.3Entry cost of Device (USB Dongle)………………………………………..203.2 Customer requirement Vis a Vis product offered in market…………………………………223.3 Drivers for consumer to buy USB Stick……………………………………………………..253.4 Reasons for churn (For Tata Photon Plus)…………………………………………………...26  3.4.1Churn category……………………………………………………………...26  3.4.2 Voluntary Churn…………………………………………………………...26  3.4.3 Involuntary churn..........................................................................................28  3.4.4 Importance of various factors while buying broadband services…………..28  3.4.5 Satisfaction from Tata photon plus………………………………………...29Chapter 4- recommendations and conclusion………………………………………………...304.1 Key findings………………………………………………………………………………….30 4.1.1For competitive benchmarking……………………………………………………..30 4.1.2 For customer requirement Vis-Vis product offered in market……………………..30 4.1.3 For Key drivers to buy USB-Stick…………………………………………………31 4.1.4 For Reason to churn………………………………………………………………..314.2 Conclusion…………………………………………………………...………………………32 4.2.1For competitive benchmarking……………………………………………………..32 4.2.2 For customer requirement Vis-Vis product offered in market……………………..32 4.2.3 For Key drivers to buy USB-Stick……………………..…………………………..32 4.2.4 For Reason to churn…………………………..……………………………………324.3 Recommendation…………………………………………………………………………….33Glossary…………………………………………………………………………………………34Bibliography ……………………………………………………………………………………35Annexure………...………………………………………………………………………………36Questionnaire 1 –Regarding Reason for churn (Telephone –Interview)………..….....................36 II
  • 6. Questionnaire 2- Regarding survey of Use of USB-DONGLE……………...…………………..36List of TablesTable 1: Top 10 broadband and internet operators and their market share in India………………9Table 2: Monthly prepaid plans………………………………………………………………….17Table 3: 90 day’s packs (prepaid) ……………………………………………………………….18Table 4: 180 days Packs (prepaid)……………………………………………………………….18Table 5: 365 days packs………………………………………………………………………….18Table 6: Small validity Packs & Top Ups……………………………………………………….19Table 7: monthly plan (post paid)………………………………………………………………..19Table 8: ARP (Advance rental plan)……………………………………………………………..20Table 9: Entry cost Of Device (USB dongle)……………………………………………………20Table-10: voluntary churn Sub-category………………………………………………………...21List of graphGraph 1: Regional broadband market share globally…………………………………………..…8Graph 2: Broadband market share……………………………………………………………….11Graph 3: Broadband Access - Technologies & Market Share…………………………………...12Graph-4: Type of Broadband connection used by customers …………………………………...22Graph 5: frequency of net use……………………………………………………………………22Graph-6: Data Used by customer……………...…………………………………………………23Graph-7: Type of Plan…………………………………………………………………………...23Graph-8: why you use a particular Plan………………………………………………………….23Graph-9: Purpose of using internet………………………………………………………………24Graph-10: What they download most……………………………………………………………24Graph-11: which company’s dongle you use…………………………………………………….25Graph-12, Reasons to buy USB- dongle…………………………………………………………25 III
  • 7. Graph- 13: satisfaction with USB-Dongle Device……………………………………………….25Graph-14: Different Churn category-Tata Photon plus………………………………………….26Graph-15: Tata photon plus Voluntary churn……………………………………………………27Graph- 16: Tata photon Involuntary Churn……………………………………………………...28Graph-17: Importance of various factors while buying broadband services…………………….28Graph 18: Satisfaction from Tata photon plus……..…………………………………………….29List of FiguresFigure 1: Process of customer churn……………………………………………………………....2 IV
  • 8. Executive summeryThis report provides information on “how to increase market share in wireless broadband marketand increase customer retaintivity”. In telecommunication product offering keeps on changing onday by day basis or weekly basis which lead to comparison of tariff plan and this create risk forcompanies of losing customers. And also due technological changes and technological differencewhile using Internet services customers encounter certain problem regarding speed, connectivitywhich again leads to dissatisfaction at the end of customer.Rob mattison in his book “Telecom churn Management” talks about telecommunication churnand how uncontrollable it is? He said it is unpredictable and impossible to completely remove itbut you can take advantage of it by doing segmentation of your customer base.Broadly this report will also provide information on reason for churn, Key drivers for consumerto buy USB-Dongle, consumer requirement in terms of data uses and type of plan preferred bythem, and also benchmarking of various companies tariff plan, devices, and retailer’s margin ondevice and tariff plans and what are slabs for them in different category.This report had been divided in four chapters, first chapter gives information regarding globalbroadband industry, Indian broadband industry, type of broadband, about Tata Tele serviceslimited, Indian Players in broadband market, and new technology to come to broadband industryin near future.Second chapter is about Objectives of research and methodology used in finding. Third chaptersis about data interpretation and analysis part and is the main part of this report and give readerthe idea about how objectives have been interpreted .Last chapter no 4 gives Recommendations and conclusion based on data interpreted in Chapterno 3. V
  • 9. Chapter 1-Introduction1.1 Brief introduction of the problem under study of wirelessbroadband industryIn the telecommunications industry, churn is the term used to describe customer attrition orloss. There are different types of churn such as voluntary, involuntary and internal. Churn ismeasured in this industry in different ways. Typically it is calculated by dividing disconnectsby the net subscriber base. However, it differs depending at what point of the time period youare measuring (beginning, end or average between the two) and how you define a customer (aline, an account, a phone, etc.). Many operators do not include involuntary anddealer/employee disconnects in their calculations.Wireless broadband market has changed from rapidly growing market, into a state ofsaturation and fierce competition and this has resulted into losing customers. In the context ofBroadband industry they called it ‘customer churn”.Customers who switch to competitor are so called Churned customers. Churn preventionthrough churn prediction is the one way to keep the customer in house.There are different types of churners.Internal ChurnInternal churn typically refers to those customers that disconnect phone service to move toanother product or payment method. The most common issue in the mobile or wirelessindustry is monitoring and understanding the movement from contract customers to pre-pay.Involuntary ChurnInvoluntary churn refers to customers that are disconnected by the telecom operator, typicallyfor bad debt or fraud reasons. Disconnects for reasons of fraud or non-payment can beanalyzed using modeling and data mining to modify credit policies and qualification models.Voluntary Churn: Voluntary churn in the telecommunications industry refers to themeasurement of customer disconnects for reasons that are at the customer’s choice (e.g.switching to a competitor, cancelling service, moving, etc.)What prompts a Customer to Churn????????Below is the process flow of customer churn which show step by step process which lead tochurning of customers or either retaintivity of customers. 1
  • 10. Customer faces problem related to Product / Service Calls Customer Care Gets response / Diverted to Outlet Customer Yes continues using Satisfied the service No Visits Company Outlet Voices his Request / Complaint Issue Yes Customer Resolved? continues using NO Repeats his Request / Complaint Customer Issue Yes continues using Resolved? the service NO Intends to Shift / Terminate Attempts to Retain by Service provider Customer Yes continues using Retained the service No Customer terminatesFigure 1: Process of customer churn 2
  • 11. 1.2 Types of broadbandBroadband includes several high-speed transmission technologies such as:  Digital Subscriber Line (DSL)  Cable Modem  Fiber  Wireless  Satellite  Broadband over Power lines (BPL)The broadband technology you choose will depend on a number of factors. These mayinclude whether you are located in an urban or rural area, how broadband Internet access ispackaged with other services (such as voice telephone and home entertainment), price, andavailability.DSLDSL is a wireline transmission technology that transmits data faster over traditional coppertelephone lines already installed to homes and businesses. DSL-based broadband providestransmission speeds ranging from several hundred Kbps to millions of bits per second(Mbps). The availability and speed of your DSL service may depend on the distance fromyour home or business to the closest telephone company facility.The following are types of DSL transmission technologies:  ADSL – Used primarily by residential customers, such as Internet surfers, who receive a lot of data but do not send much. ADSL typically provides faster speed in the downstream direction than the upstream direction. ADSL allows faster downstream data transmission over the same line used to provide voice service, without disrupting regular telephone calls on that line.  SDSL – Used typically by businesses for services such as video conferencing, which need significant bandwidth both upstream and downstream.Faster forms of DSL typically available to businesses include:  High data rate Digital Subscriber Line (HDSL); and  Very High data rate Digital Subscriber Line (VDSL).Cable ModemCable modem service enables cable operators to provide broadband using the same coaxialcables that deliver pictures and sound to your TV set. Most cable modems are externaldevices that have two connections: one to the cable wall outlet, the other to a computer. Theyprovide transmission speeds of 1.5 Mbps or more.Subscribers can access their cable modem service by simply turning on their computers,without dialing-up an ISP. You can still watch cable TV while using it. Transmission speeds 3
  • 12. vary depending on the type of cable modem, cable network, and traffic load. Speeds arecomparable to DSL.Fiber  Fiber optic technology converts electrical signals carrying data to light and sends the light through transparent glass fibers about the diameter of a human hair. Fiber transmits data at speeds far exceeding current DSL or cable modem speeds, typically by tens or even hundreds of Mbps.  The actual speed you experience will vary depending on a variety of factors, such as how close to your computer the service provider brings the fiber and how the service provider configures the service, including the amount of bandwidth used. The same fiber providing your broadband can also simultaneously deliver voice (VoIP) and video services, including video-on-demand.  Telecommunications providers sometimes offer fiber broadband in limited areas and have announced plans to expand their fiber networks and offer bundled voice, Internet access, and video services.  Variations of the technology run the fiber all the way to the customer’s home or business, to the curb outside, or to a location somewhere between the provider’s facilities and the customer.Wireless  Wireless broadband connects a home or business to the Internet using a radio link between the customer’s location and the service provider’s facility. Wireless broadband can be mobile or fixed.  Wireless technologies using longer-range directional equipment provide broadband service in remote or sparsely populated areas where DSL or cable modem service would be costly to provide. Speeds are generally comparable to DSL and cable modem. An external antenna is usually required.  Wireless broadband Internet access services offered over fixed networks allow consumers to access the Internet from a fixed point while stationary and often require a direct line-of-sight between the wireless transmitter and receiver. These services have been offered using both licensed spectrum and unlicensed devices. For example, thousands of small Wireless Internet Services Providers (WISPs) provide such wireless broadband at speeds of around one Mbps using unlicensed devices, often in rural areas not served by cable or wireline broadband networks.  Wireless Local Area Networks (WLANs) provide wireless broadband access over shorter distances and are often used to extend the reach of a "last-mile" wireline or fixed wireless broadband connection within a home, building, or campus environment. Wi-Fi networks use unlicensed devices and can be designed for private access within a home or business, or be used for public Internet access at "hot spots" such as restaurants, coffee shops, hotels, airports, convention centers, and city parks.  Mobile wireless broadband services are also becoming available from mobile telephone service providers and others. These services are generally appropriate for highly-mobile customers and require a special PC card with a built in antenna that plugs into a user’s laptop computer. Generally, they provide lower speeds, in the range of several hundred Kbps. 4
  • 13. SatelliteJust as satellites orbiting the earth provide necessary links for telephone and televisionservice, they can also provide links for broadband. Satellite broadband is another form ofwireless broadband, and is also useful for serving remote or sparsely populated areas.Downstream and upstream speeds for satellite broadband depend on several factors, includingthe provider and service package purchased the consumer’s line of sight to the orbitingsatellite, and the weather. Typically a consumer can expect to receive (download) at a speedof about 500 Kbps and send (upload) at a speed of about 80 Kbps. These speeds may beslower than DSL and cable modem, but they are about 10 times faster than the downloadspeed with dial-up Internet access. Service can be disrupted in extreme weather conditions.Broadband over Power-line (BPL)BPL is the delivery of broadband over the existing low- and medium-voltage electric powerdistribution network. BPL speeds are comparable to DSL and cable modem speeds. BPL canbe provided to homes using existing electrical connections and outlets. BPL is an emergingtechnology that is available in very limited areas. It has significant potential because powerlines are installed virtually everywhere, alleviating the need to build new broadband facilitiesfor every customer. 5
  • 14. 1.3 About the companyTATA DoCoMo usually referred to as DoCoMo (not to be confused with NTT DoCoMo), isan Indian cellular service provider on the GSM and platform-arising out of the strategic jointventure between Tata Teleservices (subsidiary of Indian conglomerate Tata Group) andJapanese telecom giant NTT DoCoMo (subsidiary of Nippon Telegraph and Telephone) inNovember 2008. It is the countrys sixth largest operator in terms of subscribers (includingboth GSM and CDMA)Tata DoCoMo received a license to operate GSM telecom services in 19 telecom Circles and has beenallotted spectrum in 18 of these circles, under the brand "TATA DoCoMo". Tata DoCoMo launchedGSM services on 24 June 2009. It first launched in South India and currently operates GSM servicesin 18 of 22 telecom circles. It has license to operate in Delhi but has not been allocated spectrum fromthe Government. DoCoMo provides services throughout India. Tata DOCOMO offers both prepaidand postpaid cellular phone services. It has become very popular with its one second pulse especiallyin semi-urban and rural areas.On 5 November 2010, Tata DOCOMO became the first private sector telecom company tolaunch 3G services in India. Tata DOCOMO had about 42.34 million users at the end ofDecember 2010.On 20 October 2011, Tata DoCoMo brought its brands - GSM, Photon, and INTERNETTATADOCOMO Walky - under the Tata DoCoMo name. All subscribers to these serviceswere migrated to the DoCoMo brand on 20 October 2011.RebrandingOn 20 October 2011, Tata DoCoMo brought its brands - CDMA, GSM, Walky (FixedWireless Phone), Photon, INTERNET - under the Tata DoCoMo name. All subscribers tothese services were migrated to the Tata DoCoMo brand on 20 October 2011.The company’s other brands - Virgin Mobile and T24 - are not part of the rebranding and willretain their names.TATADOCOMO LTD products have been renamed as below  Tata DoCoMo CDMA  Tata DoCoMo GSM  Tata DoCoMo Walky  Tata DoCoMo Photon  Tata DoCoMo Internet 6
  • 15. VALUES  Fairness through meritocracy.  Trust based on Accountability.  Tenacity for results.  Pioneering Spirit.  Excellence in Execution.  Leadership with HumilityMISSION“To empower every Indian to connect with the world affordably”TATA DOCOMO’S ASPIRATIONTo be the most loved Tele service brand.  Simplifying & enriching people’s lives.  A joyful place to work.  Refreshingly Different  Where fresh thoughts set sail 7
  • 16. 1.4 Global broadband subscribersAccording to a research from Point topic ltd and broadband forum that the world passed anotherbroadband milestone in Q1 2012 by breaking through 600 million fixed lines worldwide. As at theend of March 2012 there were 612.6 million fixed lines around the world.This represents a 2.7% growth in the first quarter of 2012 and 11.5% in the 12 months since Q1 2011.This is primarily due to the invigorating addition of markets and countries where penetration is yet toachieve the level of the ‘mature’ countries and allows for faster initial growth.1.5 Region-wise Broadband market share global Regional broadband market share 2012 Quarter 1 25% Asia 43% Middle East and Africa Europe America 29% 3%Graph 1: Regional broadband market share globally.From above Graph1, we can see that Asia is dominating in this entire market and is having amarket share of 43%, than in second position comes Europe with 29% and at third placecomes America with 25% and at fourth comes Middle East and Africa. 8
  • 17. 1.6 Top 10 broadband and internet operators and their marketshare in IndiaAs per the data on TRAI’s websites India has more than 20 million Internet subscribers.BSNL holds 56.94 percent of the market share with subscriber base of 11.95 million Internetsubscribers at the end of September 2011 as against 11.63 million at the end of June 2011.(Below in table subscriber base and market share is given) Internet Subscriber Service Base & Market ISP Category Subs Share (percent) Area share of top 10 ISPs 56.94 percent Bharat Sanchar Nigam Ltd. A All india 11954042 1 Reliance Communications Infrastructure 12.77 percent A All india 2680107 2 Limited Delhi/ Mahanagar Telephone Nigam Ltd. B 2477200 11.80 percent 3 Mumbai Bharti Airtel Ltd. A All india 1412317 6.73 percent 4 Hathway Cable & Datacom Pvt. Ltd. A All india 360950 1.72 percent 5 You Broadband & Cable India Pvt. Ltd. A All india 301513 1.44 percent 6 Tikona Digital Networks Pvt Ltd A All india 237055 1.13 percent 7 Andhra Beam Telecom Pvt. Ltd. B 158184 0.75 percent 8 pradesh Tata Communications Internet Services A All india 157862 0.75 percent 9 Limited Asianet Satellite Communications Ltd. B Kerala 114200 0.54 percent 10 Total of Top 10 ISPs 19853430 94.57 percent Others 1138974 5.43 percent Grand total 20992404 100 percentTable 1: Top 10 broadband and internet operators and their market share in IndiaReliance Communications is at second position (2.68 million) followed by MTNL (2.48million).DSL (Digital Subscriber Line) is the most preferred technology used by the Service Providersto provide Broadband Services and it constitutes 86 percent of total broadband subscribers,followed by Cable Modem Technology (7 percent) and Ethernet LAN (4 percent).The total revenue of the Internet services has increased to Rs 2,664.78 crore for the quarterending September 2011 as compared to Rs 2,350.34 crore for the quarter ending June 2011,showing an increase of 13.38 percent. 9
  • 18. Total minutes of usage (MOU) for Internet telephony recorded sharp increase from 191.77million in June 2011 to 194.36 million in September 2011. Maharashtra is having largest Internet (<256 Kbps) and Broadband (>=256 Kbps) subscriberbase in the country. Tamil Nadu is at second place in internet and broadband subscriber base.At the end of September 2011, in all the top 10 states, the number of broadband subscribers ismore than the number of Internet subscribers. 42.79 percent of total wireless subscribers base are capable of Accessing DataServices/Internet at the end of September 2011 as against 40.70 percent at the end of previousquarter. 10
  • 19. 1.7 Broadband Subscribers in IndiaBroadband (≥ 256 Kbps download)As per the report released by TRAI on 27th June 2012, there is increased in total Broadbandsubscriber base. It has increased from 13.79 million at the end of March 2012 to 13.95million at the end of April 2012, there by showing a monthly growth of 1.13%. Yearlygrowth in broadband subscribers is 15.04% during the last one year (April 2011 to April2012). Broadband Market Share Others 18% MTNL 7% BSNL Bharti 65% 10% Data source:TRAIGraph 2: Broadband market shareAs on 30th April 2012, there are 156 Internet Service Providers (ISPs) which are providingbroadband services in the country. Top three ISPs in terms of market share (based onsubscriber base) Shown in figure 1 are: BSNL (9.00 million), Bharti Airtel (1.36 million) andMTNL (1.05 million). 11
  • 20. 1.8 Broadband Access - Technologies & Market Share in IndiaIn broadband access there are different technologies used to provide internet accessibility toend user. Below in Figure 2, there are shown market share of various technology based onsubscriber based info provided on the website of Telecom Regulatory Authority of India. Broadband Access - Technologies & Market Share 0.23 % 0.27% 0.03% 3% 4% DSL 7% Wireless Eithernet/Lan Cable modem Fibre leased Line 86% othersGraph 3: Broadband Access - Technologies & Market ShareHere you can see the major portion of the broadband access is covered by the DSLtechnology consisting 86% of total subscribers, then wireless and Ethernet/Lan market sharescomes to 3% and 4% and remaining less than 1%. 12
  • 21. Chapter 2-Objective and methodology2.1 Brief introduction of researchThis research was undertaken to find how to increase market share in broadband wirelessindustry and increasing customer retaintivity for “TATA TELESERVICE Limited”.To increase market Share Company need to have strong customer base that use their servicecontinuously and also company need to get new customers. Due to high competition in this industrycompanies cannot play price games because it leads to price wars and that not good for companies ifthey low down price, revenue will be less and if they raise their price they will end up losingcustomers. For that reason companies need to provide better service to win their loyalty rather thanplaying with price.Retention is important not only to protect basic subscriber growth, but also to reduce re-acquisition costs and to increase overall customer loyalty. Operators understand it is moreexpensive to acquire a new customer than it is to maintain a relationship with an existing one.Main focus of the study is to find main reasons behind customer churn, which are the maindriver behind customer’s decision to buy USB-Stick (Dongle/Data card). And also to makecomparative study of competition benchmarking and find customer requirement in terms ofproduct offered.Limitation of this study is that it only focuses on wireless broadband industry and not entirebroadband industry. 13
  • 22. 2.2 Research objectiveObjective of this research are as follows  To do Competitive Benchmarking to gain understanding of Pricing & Brand recall.  To know customer requirement Vis a Vis product offered in market.  Find out key drivers for consumers to buy USB Stick.  Find out the reasons for churn.Competitive Benchmarking to gain understanding of Pricing & Brandrecall: This will help us in improving our service in terms of tariff plans and also in understandingcompetitors pricing and will also help us in deciding profit margin for our retail channelpartners. Competitive benchmarking will be helping us to determine the performance of abusiness in comparison to our competitors and the industry standard. It can push a businessinto immediate actions for improvement and development of its processes and products.To know customer requirement Vis a Vis product offered in market.This will help us understand what actually customers want other then the service offers whichare already there in market. It will help us in removing those tariff plans which are launchedby company but there is no actual customer requirement for themFind out key drivers for consumers to buy USB Stick.What are the main things that’s make consumer to buy USB dongle device to use internetservice. Rather than using Wire-line, WI-Fi, DSL, FTT services to use internet. This will helpus understand who our real customers are?Find out the reasons for churn.Why customer discontinues a service is main concern of any industry everyone always thinkabout getting new customer but what about current customers who are living. In wirelessbroadband industry due to technology service offering by a particular company at low pricemake customer to switch from one company to another company and this is a sign of cut-throat price war. This will not help companies in this business and will result in losing ofprofit or either customers. 14
  • 23. 2.3 MethodologyThis report follows a two way data collection. First part of data collection is primary and it isthe main data gather through survey done by us .which actually support the industry trend andpurely give idea about what really going in market and what company really need to focus.Second part of Data collection is entirely based on secondary data, which deals with currentglobal trend and business scenario in wireless broadband industry. This is required as part ofthis research because it will give proper idea to the reader or who so ever is willing to readabout broadband industry.After collecting data from various sources regarding the four objective. It was then enter inexcel and was organized in such a manner to limit the no of table so that comparison becomeseasy for all the objectives.For Benchmarking all the data regarding Tariff plans and device price was in single tabularformat so that ratio comparison on data and price of tariff could be done.And for reaming all three objective percentage conclusion was done to get differentinterpretation of survey data.2.3.1Primary DataFor Competition benchmarking -Data (on tariff plans) from official website of competitors were taken and it include followingcompetitors.  MTS  Airtel  Vodafone  RCOM (Reliance communication)  Idea  BSNLAlso data regarding OTF (Retailer’s margin On FRC), MOP and hardware margin were takenfrom various retailers. 30-35 retailers were contacted for this purpose.To know customer requirement Vis a Vis product offered in market-Sample questionnaire were used to get data from past and current customers. Questions weremainly focusing on user data requirement, uses of internet based on time, type of tariffs planused by them. 90 (potential customers) and 40 (current customers) respondents were taken forthis purpose.Find out key drivers for consumers to buy USB Stick- 15
  • 24. Sample questionnaire were used to get data from current and potential customers. Who areusing wireless broadband service and USB- Dongle to connect to internet service? 90(potential customers) and 40 (current customers) Respondent were taken for this purpose.Find out reason for churn-Sample questionnaire were used to get data from past customer who have used Tata photonplus Dongle and discontinue their broadband services. 150 past customer’s response weretaken by calling them.2.3.2 Secondary data:Secondary data was taken from website and publish journal or article. Data regarding variousaspect of broadband industry such as penetration level, Growth, top ten countries inbroadband market globally Etc. 16
  • 25. Chapter 3 – Interpretation and analysis3.1 Competitive benchmarkingBenchmarking is used to compare the organization’s processes is used to compare theorganization’s processes or products to other organizations, either internal or external to theirown industry. This comparison can be on specific product features, or can be on broadcustomer service categories, such as product delivery etc. In this report we tried to comparevarious Tariff plans and MRP and retailers billing price for USB device (Data card) andprofit margin for retailers on that device and tariff plans.3.1.1Tariff plans –prepaid categoryMonthly BundledUsage Slab Photon 3G Photon Plus Idea Voda Airtel MTS R Com BSNL Data 100 MB - - - - - - - 250 MB - - - 102 (204 MB) - 196 180 V.Low Usage 350 MB - - 105 (300 MB) - 103(300MB) 248 250 100 ( 300 MB) 500 MB - - - 199 - 348(512MB) 350 650 MB - - 205( 600 MB) - - - - 750 MB - - - - 498 - 255 255 245 1 GB 375 252 647 715 250 Low Usage 350 ( 1.5 GB) 350( 1.5GB) 345(1.5 GB) 450 450 445 2 GB 650 450 - - 450 700 (UL) 700 (UL) 595 (60 days) 3 GB 750 (UL) 750 (UL) - 850 ( 60-D) - - - Medium 4 GB - - 745 - 750 - - Usage 5 GB 850 850 - 1250 ( 60-D) - 798 (UL) 800 (UL) 750 6 GB 1000(UL) 1000 (UL) - - - - - 10 GB 1200 ( 11 GB-UL) 1200 (11 GB-UL) 1495 1500 1500 999(UL) 1099(UL) 1099 High Usage 2500 (12 GB- 15 GB - - - 1298(UL) 1200(UL) 1500 60 D) - 22 GB - - - - - - - 30 GB - - - - - - - V.High Usage 50 GB - - - - - - -Table 2: Monthly prepaid plansIn table 2, Uses of data had been divided in 5 categories. Very low usage, low usage, MediumUsage, High usage, very high usage. Photon plus and DoCoMo 3G is not there in very lowusage category. Only RCOM, MTS, Vodafone is there in this category.In low Usage category all are present and Idea is category leader as it is providing best tarifffor this category.In medium usages again all players are present but only BSNL is giving a best offer. AndBSNL is category leader in this. 17
  • 26. In High usages again all players are present and MTS and RCOM are providing best offers.And in very high usages there is no Player.90 days packs Bundled Tata Docomo Photon Plus Voda Idea2 Airtel MTS R Com BSNL Data4 GB - - - 1245 - 998 (3 GB) - 600 ( 3 GB)6 GB - 1500 - - - - 1500 -12 GB - - - - - - - - 30 GB for - - - - - - - 125 Days - 15 GB for - - - - - - - 90 days -Table 3: 90 day’s packs (prepaid)Here in table 3, show long validity plan of 90 days. Here Photon plus, idea, MTS, RCOM,and BSNL are present in this category of long period. MTS is providing the best offer butit’s not a category leader.180 days packs Bundled Tata Docomo Photon Voda idea Airtel MTS R Com BSNL Data6 GB - - - - - 3999(5GB) - -10 GB - - - - - - - -18 GB - - 3250 - - - 3000 -30 GB - - 4250 - - - - -40 GB - - - - - - - -50 GB - - 6250 (48 GB) - - - - -Table 4: 180 days Packs (prepaid)Table 4 is showing six monthly long validity plans and there are only three players Vodafone,MTS, Rcom. There is no category leader but MTS and Rcom are giving the Best offer.365 days Packs Bundled Tata Docomo Photon Voda idea Airtel MTS R Com BSNL Data6 GB - 2501 - - - - - -10 GB - - - - - - - -18 GB - 5000 (20 GB) - - - - - -30 GB - - - - - - - -40 GB - - - - - - - -50 GB - - - - - - - -Table 5: 365 days packsIn table 5, there is information of Yearly plan. And only Photon is present in this categorythere is no other players in this category. 18
  • 27. Small Validity Packs & Top Ups Bundled Tata Docomo 3 G Photon Plus Voda Idea Airtel MTS R Com BSNL Data - - - - - - -20 MB 25 (25MB-1 D)50 MB - - - - - - - - 44(150 MB- 45 (150 MB- - 100 (2 D) - - 25100 MB 7D) 21 (3 D) 7D) 100 (300MB-1 - 250 (15 D) - - - - 50 ( 200 MB)250 MB D)500 MB - 99( 512MB-2D) - - - - - -1 GB - 300 ( 7 D) - 250 (3 D) 298 (UL-7D) 200 (7D) 151 ( 7- D)Unlimited - - - - - 96 (1 D) 98 ( 1 D) -Table 6: Small validity Packs & Top UpsIn table 6, there is information regarding various plan of small validity packs and top ups,except DoCoMo 3G all are present in this category. Best offering is from BSNL.3.1.2Tariff plans -Postpaid PlanMonthly plan Usage Slab Bundled Data Photon Tata Docomo 3G Idea Voda Airtel MTS R Com BSNL 250 MB - - - - - - - - 300 MB 250 - 100 - - - - 90 V.Low Usage 350 MB - - - - 100 (300MB) - - - 500 MB - - - - - - 499 - 200 499 Low Usage 650 MB 500 500 ( 600 MB) - - (700MB) - - 1 GB 650 650 250 375(1.5GB) 250 549 650 220 2 GB 750 750 450 450 649 750 400 3 GB - - 599 650 675 (3.1 GB) 699 850 - Medium 4 GB - - - - - - - - Usage 5 GB 950 (UL) 850 (UL) - 850 - - 950(UL+CB) 670 6 GB 900 - - - - 799 (UL) - - 8 GB - - - 1250 - - - - 10 GB 1200(UL) 1100(UL) 1250 1500 1100(UL+CB) 1000 High Usage 12 GB 1500(UL) - - 2500 - 899(UL) - - 1350(UL) 15 GB 1500 @ 21.1 - Mbps - - - 1249(UL) 1500(UL+CB) 1350Table 7: monthly plan (post paid)In table 7, again plan were divided in four category based on usage. In Very low usagecategory photon, idea, Airtel, BSNL are present and BSNL, Idea, Airtel are giving best offerin different data usage. In Low usages all players are present and BSNL, Idea, Vodafone, isproviding plan at low rate comparing to other plan of various player standing in samecategory. In medium usage category Idea, BSNL and MTS are providing best for differentdata category all players are present in this category and there is no market leader for thissegment. In high usage segment Vodafone, BSNL, MTS, and DoCoMo are providing the bestoffer in different data category. Again in this segment also there is no market leader.DoCoMo 3 G is having a speed advantage because it gives speed of 21.1 Mbps for Rs 1500and gives data of 15GB. 19
  • 28. ARP Plan Usage Slab Bundled Data Photon Tata Docomo Idea Voda Airtel MTS R Com 750 MB Usage Low 1 GB 3250 (6M) 6201 (12M) 2 GB 7401 (12M) 3 GB 4250 (6M) 998 (3M) 8601 (12M) 4 GB Medium Usage 5 GB 3999(6M) 11589 (12M) 6 GB 8GB 6250 (6M)Table 8: ARP (Advance rental plan)In table 8, advance rental plan have been divided in two category Low usage and mediumusage. Only three players are there in this segment who is giving advance rental plan to endusers. There is no market leader in ARP.3.1.3 Entry cost of Device (USB Dongle)Parameters Photon Plus Photon Plus MTS MTS MTS R Com R Com Idea Idea BSNL 3 G Vodafone 3 G Airtel 3GFree Data with FRC 3*3 GB 2 GB 6 GB 10 GB *UL 15 GB for 3M 3GB 10GB 2GB 5 *5 GB 1 GB 2 GB 1GBMRP - Hardware 1199 1199 1299 1732 1999 1399 1499 1550 1550 1800 1800 1800Retailer Billing Price 1140 1140 733 733 733 1225 1225 1500 1500 1590 1410 1600FRC 300 125 501 999 1499 50 300 95 496 250 103 125OTF 200 60 275 375 475 150 350 75 200 0 50 60Hardware Margin 59 59 566 - - 174 174 50 50 210 390 200CAF 0 0 25 25 25 0 0 0 0 0 0Min Slab Scheme 0 0 50 50 50 0 0 100 100 0 0 0Max Slab Scheme 150 150 175 175 175 0 0 0 0 0 0 0Max Landing (WithFRC) 1240 1205 909 1307 1707 1125 1175 1420 1696 1840 1463 1665Lowest Landing (WithFRC) 1090 1055 784 1182 1582 1125 1175 1520 1796 1840 1463 1665Device MOP (With 1499 1324 1234 1732 1999 1399 1499 1649 2046 2050 1903 1925FRC) - AverageUpfront Max 259 119 325 425 292 274 324 125 250 210 440 260Commission to retailerTable 9: Entry cost Of Device (USB dongle)Hardware margin = MRP of hardware – Retailer’s billing priceMax landing with FRC= Retailer’s billing price + FRC – OTF – Min slabLowest landing with FRC= Retailer’s billing price + FRC – OTF – Max slabOTF is the profit margin that retailer get on FRC.In Table 1 you can see that MRP is lowest for Tata Photon plus it only Rs 1199. While highest is forMTS Rs 1999, second highest is also for MTS. But still the best offering is MTS and RCOM when it 20
  • 29. comes to free data. Also if we look at retailers billing price Lowest is for MTS and also OTF ishighest for MTS which will turned any retailer to sell only MTS Dongle. 21
  • 30. 3.2 Customer requirement Vis a Vis product offered inmarket.This section of the report talk about various products offered in market. As part of ourresearch we try to find out what kind of offering works in wireless broadband market andwhat type of connection they use, what is the pattern of their data uses, what are the purposesof their internet requirement etc? Type of connection Frequency of your Type of connection Dial-up net use? Type of connection Broadband Every day Once a week Type of connection USB-Dongle Twice a week Thrice a week Once a month 5% 37% 1% 1% 3% 3% 58% 95% 0%1Graph-4: Type of Broadband connection Graph 5: frequency of net use used by customersFrom graph 4, we can clearly see that 58% 0f customers are using USB-Dongle data cad, and37% are using broadband through wire-line or Wi-Fi and 5% of responders said they useDial-up connection to use internet.Similarly graph 5, shows frequency of internet use by responders and 93% respondent saidthey use every day, in once a week, twice a week, thrice a week, once a month, percentageare below 4%. It means most responder who have connection uses internet on daily basis.Here in once a week or twice a week or once a month category are those users who usesoccasionally when needed. 22
  • 31. How much data they Which Plan Do you uses use? Prepaid Postpaid Unlimited Plan 22.2 more then 15 GB 1.1 10-15 GB 4.4 5-10 GB 6.7 38% 4 GB 13.3 3 GB 12.2 62% 2 GB 22.2 Less then 1 gB 16.7 Graph-6: Data Used by customer Graph-7: Type of PlanIn Graph 6, we can see that there is highest Percentage is in Unlimited plans and 2 GBcategory,16.7% in less than 1 GB, 13.3% for 4 GB, 12.2 % for 3 %. In 5-10 GB there areonly 6.7% and 10- 15% GB only 4.4 % users are there. It means unlimited plan and 2 GBdata category plan are needed because both category are having highest no of users. Also inGraph 7, we can see that post paid users are more than 60 % and prepaid users are only 38%. Why you use a particular Plan? 11% 1% Cost Effective 27% 61% Range of tariff planavailable For convienience Others Graph-8: why you use a particular Plan.Above in Graph 8, we can see the main reasons behind using a postpaid or prepaid plan.Here61% of responders said they use it because they find them cost effective, 27% said theyuse because of range of tariff plans, 11% said they use because they find it convenient interms of payment, and 1 % for other reasons. 23
  • 32. For what Purpose you use Internet? Only Surfing Surfing & downoading Both 8% 92%Graph-9: Purpose of using internetIn Graph 9, you can see that 92% of people were using it for surfing and downloading bothwhile only 8 % of people were using it only for surfing purpose. It means we shouldcategories our users based on their uses pattern. And make tariffs according so that maximumcustomer uses our tariff plan. What you download the most? g.others 3 f.Document 42 e.Study material 57 d.Songs 60 C.Games 34 b.Movies 40Graph-10: What they download most.To know what customers download most seven option were given to responders and thereresponse is shown in graph10, 60% of them said they download songs, 57% study material,42% document, 40% movies, 34% Games. Here ratio percentage is high in songs and studymaterial which requires users to uses those plans with high data downloading. 24
  • 33. 3.3 Drivers for consumer to buy USB StickThis section of the report, talks about key drivers behind the decision of buying a USB-Dongle (Data card) by customers. And which company’s dongle are used more. And are theysatisfied with the services provided by those companies. Which companies USB-Dongle you Use? 2% Tata 12% Mts 34% Rcom 14% Airtel vodafone 12% idea 8% Bsnl 8% 10% othersGraph-11: which company’s dongle you use.In Graph 11, we can see that 34% 0f respondent are using Tata, 14 %of Idea, 12% in BSNLand Vodafone, 10% Rcom, 8% MTS and Airtel. 2% 0ther open dongles. Reasons behind your decision to buy USB-DONGLE? Are you satisfied with that Dongle Easy to carry 6% Satisfied Not satisfied 25% connectivity on 42% the move 27% Better speed 27% others 73%Graph-12, Reasons to buy USB- dongle. Graph- 13: satisfaction with USB-Dongle DeviceIn Graph 12, can see that Easy to carry is the main reason behind decision to buy USB-Dongle (data Card) 42% of respondent give this as main reason, connectivity and better speedare almost same 25% and 27%. Also you can see that 27 % of customers who were usingDongle of any company were not satisfied with the service. And 73 % customers weresatisfied with that particular dongle services. 25
  • 34. 3.4 Reasons for churn (For Tata Photon Plus)This section of the report talks about reasons behind customer churn. And which reasons arehave more impact on their decision to change a company services. Here we have categorizedthem based on data of two month April and May , 2012 for Tata photon plus. And will alsoused data we got from survey regarding importance of various factor such as price, Speed,connectivity, Bill policies, others (Bill discount, special offers) to customer while buyingbroadband services from any broadband company. And will also discuss how satisfied thosecustomers were who were using Tata photon plus dongle.3.4.1Churn category Different Churn category-Tata Photon plus 0% 15% 4% Voluntray Involuntry sales Reject 51% Migration 30% base adjustmentGraph-14: Different Churn category-Tata Photon plus (Based on data of April and May, 2012)In Graph 14, you can see that voluntary churners are the highest in the total churn consistingmore than 50%, followed by involuntary churners consisting 30% of total churner alsochurners in migration category is 15% and sales rejection category is 4 %. In baseadjustment there is on churn. In next couple of paragraph we will try to understand thiscategory of churn by sub category. This is will give a clear indication of what are the issueswith our service, customers, and salesmen.3.4.2 Voluntary Churn:Voluntary churn is most important from companies point of view because here thosecustomers who were using services and paying their bills. But due to some inconveniencewith service or due to competition they have changed their company. 26
  • 35. Tata photon plus Voluntary churn Billing - BNR Issuse or 4% 1% 0.2% High/inflated Bill 0.3% 3% Device -Faulty device or Lost or 7% feature 7% Legal Network Personal Sales reject 78% Service relatedGraph-15: Tata photon plus Voluntary churnIn Graph 15, we can clearly see that large portion of voluntary churn is mainly because ofpersonal reason and it consist of 78% (Refers to table-11 below) of all voluntary churn. Inpersonal reason there is mainly affordability issues, business closed down, not required,SDCA Change. Billing and network related churner were 7% in both the sub category. Thendue to competition there were 4 % churner and 3 % because of device fault or loss of device.Service related, sales reject, legal were 1%, 0.3%, and 0.2%. So in voluntary churner personalreasons are the main concerned for management of Tata Tele service Limited. Even thoughbilling and service related issues are less than 10 % company should improve billing processand make it error free. Tpye of Churn Churn Sub category Voluntry Churn No of customers Churn Type Category total percentage percentageBilling Issue- BNR Issue 49 37.12121212 Billing Issue 132 6.958355298Billing Issue- High inflated Bills 83 62.87878788Device -Faulty 6 12Device-Accesserces and feathre 3 DeviceRelated 50 2.635740643 6Device- Lost 41 82Legal 4 Legal 4 0.210859251 100Network -coverage Issue 88 70.96774194 Network 124 6.536636795Network -slow speed issue 36 29.03225806Personal -affordibility Issue 220 14.78494624Personal- business closed 218 14.65053763Personal-Change in employeement 9 0.60483871Personal -customers expired 2 Personal 1488 78.43964154 0.134408602Personal-not required 542 36.42473118Personal- reason not known 248 16.66666667Personal- SDCA Changes 249 16.73387097Sales related-Temp connection 1 16.66666667 Sales related 6 0.316288877Sales related- wrong / over commitment 5 83.33333333Service Related- Customer service Issue 15 65.2173913Service Related- Device service Issue 2 8.695652174 Service Related 23 1.212440696Service Related -Excessive promotion calls 5 21.73913043Service Related -Frequent/ wrong Barring 1 4.347826087Switch to competition-customer service Issue 11 15.71428571 Switch toSwitch to competition-coverage Issue 9 70 3.6900369 12.85714286 competitionSwitch to competition-Better Traiffs and product 50 71.42857143Total 1897 1897 100Table-10: voluntary churn Sub-category. 27
  • 36. 3.4.3 Involuntary churn:Involuntary are more damaging to any company they are those who fail to pay their bill. Theyare intentional defaulters who are just a burden on company. Tata photon Involuntary Churn 0% 1% 0% 0% 5% 0% AC/CA -Negative 8% Billing High FMS precheck- 30 days Network Non- payment Personal Product migration 86% Others-MiscGraph- 16: Tata photon Involuntary ChurnIn Graph16, we can clearly see that more than 80% of churner in involuntary categorybelongs to intentional defaulter, 8% comes under other Misc (Disconnection - manual serviceOrder), 5% personal, and 1% in AC/VC-negative.3.4.4 Importance of various factors while buying broadbandservices: Importance of various factors while buying broadband services most important Somewhat important Average 4 Not so important 0 Least Important 1 1 3 5 1 3 6 10 15 10 9 4 10 13 14 11 9 20 44 23 14 9 23 5 76 73 20 63 62 63 46 22 6 Price Speed Connectivity Network Service support Billing Policies Others - special offers / Bill discountGraph-17: Importance of various factors while buying broadband services 28
  • 37. In graph 17, you can see that price important to customers more than 70 % of respondentagreed on that. While for 28 % of customers speed is not so important. Again speed is alsoimportant for more than 80 % of customers and not so important for 16 % of customers.Connectivity and network was important for more than 70% of customers and not soimportant for rest of customers. More than 65% of customer said services support is mostimportant to them. More than 75 % of respondent said Billing policies are most important tothem. While for bill discount and special offer only 26 % of respondent said it is mostimportant to them.3.4.5 Satisfaction from Tata photon plus Satisfaction from Tata photon plus Very satisfied Somewhat satisfied Average Somewht dissatisfied Very Dissatsidied 77 77 67 65 44 33 29 27 27 25 18 11 5 5 5 8 6 3 1 9 11 13 8 14 9 10 7 9 5 8 15 12 10 10 0 Price Speed Connectivity Network Service support Billing Policies Others-special offers / Bill discountGraph 18: Satisfaction from Tata photon plus.In Graph 18, we can see that only 38% of the people were satisfied from Tata photon price.More than 75% of respondent were satisfied with the speed of Tata Photon. Again inconnectivity also More than 75 % of respondent were satisfied. Regarding the network ofTata photon plus 80% of the respondent were satisfied. In services More than 65 % 0frespondent were satisfied. Regarding billing policies 74% of respondent were satisfied.While in bill discount and special offers only 22% were satisfied and 27% said they arehaving moderate opinion about satisfaction. 29
  • 38. Chapter 4- recommendations and conclusion4.1 Key findings 4.1.1For competitive benchmarking Prepaid  We don’t have tariff plan for very low usage slab for monthly prepaid category. There is no much price difference in all Data plan provided by us and competitors.  In Quarterly and six month prepaid plan category we are not there.  In yearly prepaid category only Tata photon plus is giving tariff plans  In small top ups plan we have tariff plans and there is no much difference in price. Post-Paid  In post paid category we have plans for all usage categories but in this category BSNL and Idea is giving their Data plans at very low price as compared to us.  In Advance rental plan in post we don’t give Data plan only three player are there Entry cost of device  MTS Wireless USB device is the cheapest for the retailers.  Commission to retailer is highest for Vodafone and MTS is close to Vodafone 4.1.2 For customer requirement Vis-Vis product offered in market.  Unlimited plan and 2 GB data plan are most preferred plans by internet users.  Users for 15 GB or for High Data are very less as compared to unlimited plan at lower speed.  Customers who want high speed preferred those plan which give high speed till the Data capacity of their Tariff plan. 30
  • 39.  Post-paid plan are more popular then prepaid because customer find it cost effective in terms of prepaid plans and also customer have ranges of tariff plan to chose from.  Customer who were using internet were using it for both purpose downloading and surfing.  And in connection wireless USB-dongle is the most preferred by customer because it is easy to carry anywhere.  Customers mostly were downloading movies, song, and games which require high Data capacity to download those big file.  Service support and billing policies are important to customers.4.1.3 For Key drivers to buy USB-Stick.  Easy to carry is the main standing reason behind the decision to buy USB- sticks.4.1.4 For Reason to churn  Personal Issue is the main reason of voluntary churn. In this when we categories them sub category for personal issue the main reason comes to us is the Affordability issue consisting 15% of personal issue and others are business closed down, customer expired, not required , change in employment. Which are not in the hand of organization?  Intentional default was the main reason of involuntary churn. 31
  • 40. 4.2 Conclusion4.2.1For competitive benchmarkingCompetitive benchmarking is any day, one of the most important aspect of business tocompare them self with competitors. It gives idea of how crucial the competition is. As partof this research I have tried to capture that competition in terms of price offered to customersand to retailers. In prepaid category we don’t need to make too much change as we are justsame to our competitor in every form of competition whether it is for price of tariffs plan orData provided to them (please refers to Table no 2, 3, 4, 5, 6). You will find that only inmonthly plan category we need to focus on very low uses category because all players areproviding tariff plan. For post paid category in monthly category we don’t need to makechange in plans as they are similar to our competitor. But should have plan in ARP categorybecause only two players are there.(refers to table 7,8).Also device price of MTS is a bigheadache for us because since retailer have to pay less to company they will sell only MTSbecause in terms of Data and price it is giving same what other players are giving. (Pleaserefer to table no 9).4.2.2 For customer requirement Vis-Vis product offered in marketIf customers requirement are not meet with then any plans introduce in market would be asure west of time because sales team will not be able to sell it because there is norequirement at the end of customer. As part of this research we have tried to understand whatreally customer wants. When it comes to internet uses customer all need is the speed at lowprice. (Refers to Graph no 8) which says customer use post paid plan because them find itcost effective. And post-paid connection are most proffered by them (refers to Graph no 6).USB-dongle is the most proffered connection by customers.4.2.3 For Key drivers to buy USB-StickTo know what actually drives consumer to by any product is the most crucial thing when itcomes to developing product. As part of this research we have tried to understand thosereasons. Customer buys USB-dongle because they find it easy to carry anywhere, secondthing they want is connectivity on the move and also speed (Refers to graph no12). It meanscompany should focus on providing the better speed since it is the second thing whichcustomer is looking for in the service.4.2.4 For Reason to churnChurn in any industry is one of the most dangerous concerns for manager. This decide thefuture of the company and product, if churn rate are going high and high for certain productor service of company it will result in loss of revenue and market share. As part of ourresearch we have tried to find out the main reason for churn for Tata photon plus and wefound that the main reason are the personal issue of customer who leave the product orservice voluntary (refers to graph no15 and table no 10 on page 27), where we have given 32
  • 41. sub-category of main reason in personal reason there are sub reason like affordability issuewhich are the main concern and rest are issues like business closed, change in employmentand SCDA change , which is not in the hand of company. So company only should try tohave as many range of tariff plan which give customer liberty to choose which supporthis/her need in accordance with their budget.4.3 Recommendation  First we recommend having ranges of tariff plan for very-low category users for prepaid segment.  We recommend having different commission slab for our SRO and not single base for all. First we should divide our SRO based on performance in A, B, C and based on their performance they should be given the commission on device selling.  Rather than giving MRP and FRC in different. We should combine (Bundling) Device MRP and FRC.  In Postpaid category we should have plans for long Validity of 3 month and six month and they should be bundle with the device.  People in tell calling should be trained so well that they get proper response and perfect reason for the discontinuing a service because it will help marketing in data mining and will give real picture of competition. 33
  • 42. GlossaryMOP – Market operated priceUSB- Universal serial busGSM-The Global System for Mobile CommunicationsCDMA-Code Division Multiple AccessFRC – First recharge coupon.DSL - Digital Subscriber LineADSL-Asymmetrical Digital Subscriber LineSDSL- Symmetrical Digital Subscriber LineSRO - Special Retail Outlets. 34
  • 43. BibliographyTRAI- Telecom Regulatory Authority of IndiaDatabase marketing instituteBooks“Telecom- churn Management” –book by Rob mattison Published in apr1, 2001.Published articles and journalsCompetitive Benchmarking Metrics for Businesses- by Sam MillerWebsite linkshttp://www.telecom-cloud.net/wireless-churn-metrics-and-big-data/http://ezinearticles.com/?Competitive-Benchmarking-Metrics-For-Businesses&id=2986739http://www.mtsbroadband.comhttp://www.airtel.inwww.vodafone.inwww.rcom.co.inwww.ideacellular.comwww.bsnl.co.inwww.wikipedia.com 35
  • 44. Annexure Questionnaire 1 –Regarding Reason for churn (Telephone –Interview) Questionnaire 2- Regarding survey of Use of USB-DONGLE 36
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