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Indian telecom service providers

  1. 1. REPORT ON “Operational Comparative Study of Indian Telecom Service providers” SUBMITTED BY Praveen Sidola 1021026 Master in Business Administration CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT Hosur Road, Bangalore 560 029CUIM Page 1
  2. 2. Indexs/n Title From To 1 Executive Summary 3 3 2 Introduction 4 20 3 Literature Review 21 25 4 Problem Definition and Objectives of the Project 26 27 5 Research Methodology 28 30 6 Findings & Interpretations 31 41 7 Conclusion 42 43 8 Bibliography 44 45 9 Appendix 46 54CUIM Page 2
  3. 3. EXECUTIVE SUMMARYRanked amongst some of the fastest growing economies of the world, India has registeredsteady growth over the last few years, The Indian telecom sector particularly, witnessedaggressive growth during the last two years, emerging as a global benchmark for otherdeveloped countries as well. All major international operators are exploring opportunities tomake inroads into the Indian telecommunication sector, both for the vast customer base aswell as to leverage on the low cost outsourcing model which India has been successful inpioneering.As of February 28, 2011, the country’s subscriber base (wireline + wireless) stood at 826.25million but active wireless subscribers in VLR (Visitor Location Register) in Feb- 2011 is562.98 Million, with the overall teledensity reaching 69.29 percent. With increasing maturityof urban markets, the next round of growth is expected to be generated from the rural areas inthe form of increased uptake of voice and data based value added services, as well asbroadband services.The penetration of broadband in India has not been as aggressive as the wirelesscommunication services. As of February 2011, the broadband subscriber base in India isapproximately 11.47 million. The government, recognizing the potential of broadband as akey enabler in furthering its growth agenda, has taken a strong stance to address the issue oflow penetration and enhance broadband coverage across the country. The recently concluded3G and BWA auctions are likely to be the catalyst that furthers the government’s agenda ofproviding broadband connectivity to the remotest parts of India.The government as well as other telecom stakeholders believe that these wirelesstechnologies will help overcome the barriers of expensive wireline infrastructure, especiallyin the low revenue generating zones.CUIM Page 3
  4. 4. Chapter - 1IntroductionCUIM Page 4
  5. 5. 1.1 The Global Telecommunication IndustryTelecom services will continue to be one of the key growth sectors having generatedrevenues of roughly INR 67 trillion in 2009. Global wireless subscribers reached 4.6 billion1in 2009 with a CAGR of 22 percent over 2004-20091. This occurred despite some carriersexperiencing marginal declines or fl at trendsIn revenues with enterprises and consumers exercising cut backs on telecom spending duringthe global economic slowdown. The continuing rise in affl uence levels in emerging marketsand the resultant increase in the standard of living is expected to have an increasing impact onthe revenue per subscriber. Telecom market revenue by sectorCUIM Page 5
  6. 6. Falling voice ARPUs in most countriesWireless ARPU ranges from USD 54 per month in Japan to under USD 5 per month in thePhilippines, Indonesia and India, evidently demonstrating the lower ARPU realization inemerging countries2. The blended wireless ARPU is roughly USD 18 globally, declining at10 percent per year (on a local currency basis). Global wireless ARPU comparison (2009)CUIM Page 6
  7. 7. Asia to continue to lead growth in wireless servicesThe Asia Pacific region driven by growth in India and China will continue to be the keygrowth market for global telecom over the next few years. Developed markets such as Japanand Korea, are witnessing the benefits of significant technology investments and innovation.Meanwhile, India and China, which constitute 28 percent10 of the global wireless subscriberbase today, are witnessing the benefits of significant growth in income levels due to sustainedeconomic growth. Penetration figures in both countries continue to remain significantly lowerthan developed economy levels, auguring Ill for continued growth and development of thetelecom market in the region. Mobile subscribers (share of the world)CUIM Page 7
  8. 8. 1.2 The Indian Telecommunication IndustryThe Indian telecommunications market has continued to show consistent growth during thelast one year, with exciting developments such as rollout of newer circles by operators,successful auction of 3G and BWA spectrum, growing push by telecom operators to rolloutnetwork in semi-rural areas and increased focus on the value added services market. Telecomcontinues to be one of the fastest growing sectors of the Indian economy, becoming a strongcontributor to India’s overall GDP and is expected to grow further. Overall teledensity in India has risen to the levels of ~59.6 percent (as of August’10)to 69.29 percent (as of February 2011) comprises 551.27 million urban subscribers(teledensity of ~154.01 percent) and 274.98 million rural subscribers (teledensity of ~32.95percent) With a large part of the population yet to obtain access to the telecommunicationmarket, there is immense potential for the sector to grow, especially in non-urban areas,where wireline and internet services are yet to make significant in-roads. Wireline serviceshave shown relatively negative growth -.5.66 percent (Feb 2010 to Feb 2011). Even themobile services space which has seen exponential growth in urban areas, has not yet reachedthe vast majority in rural areas with rural teledensity of approximately 40.31 percent (Feb2010 to Feb 2011), indicating huge untapped potential for the sector. Broadband is yet toreach a critical mass despite rapid growth; the numbers have risen from 6.98 million inAugust 2009 to 10.08 million by August 2010, registering a growth of 55 percent on anannual basis. With subscriber penetration under 2 percent, the sector has potential foraggressive growth in the future. Indian Telecom Industry classified in • Total Circle - 22 • Operator - 20 (16+4) • Service Area - 338CUIM Page 8
  9. 9. Mobile servicesThe Indian mobility market can be characterized as one with a very large subscriber base4(~671 million as of August 2010), high growth5 (addition of 16-18 million subscribers everymonth in last six months), low ARPUs (~INR 122 per month in June, 2010) and significantchurn rates. In the prepaid segment, ARPU declined by 6.2 percent from INR 113 in March,2010 to INR 106 in June, 2010. The Government of India opened up mobile services toprivate participation in 1994-95 by inviting bids for providing services in the fourmetropolitan cities and 18 non-metro circles. Services Ire introduced in 1995 with the hightariffs resulting in poor demand. The National Telecom Policy 1999 moved the industry to arevenue share model from the fixed license fee and the lower tariffs resulted in the addition of~ 12 million subscribers during the 1999-03 period as comparedTo less than a million subscribers added during the 1995-99 period. During this period thegovernment also set-up the Telecom Regulatory Authority of India (TRAI) in 1997 and‘Telecom Dispute Settlement and Appellate Tribunal (TDSAT)’ in 2000. Growth of wireless subscriber base (year end numbers) Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance IndicatorsCUIM Page 9
  10. 10. The Calling Party Pays regime was introduced in 2003- 04 which allowed free incoming callsfor the subscribers. This revolutionary change can be designated as one of the watershedmilestones in the growth of the Indian telecom sector. The 22 telecom circles in India havebeen classified into 4 categories viz. Metros, Category A, B and C. With penetration rates inmetros touching more then 100 percent, the market in Metros is nearly saturated. However,there is still immense potential in other circle categories, particularly B and C Mobile subscriber base and mobile teledensity across telecom circlesCUIM Page 10
  11. 11. Source: ‘Monthly Telecom Scenario – August 2010’, DoT, October 2010The current subscriber base of 707 million (August 2010) comprises 476 million urbansubscribers (teledensity of ~134 percent) and 230 million rural subscribers (teledensity of ~28percent) & 791 million (February 2011) comprises 525.17 million urban subscribers(teledensity of ~146.72 percent) and 266.21 million rural subscribers (teledensity of ~31.90percent) million overall teledensity is 66.36percent. The market is highly competitive withsome of the telecom circles having more than 14 operators. Competitive intensity in themarket has contributed to reduction in tariffs and launch of innovative schemes like lifetimeprepaid and low cost handset bundling which further reduced the entry. Wireline servicesWhile wireless has seen consistent growth over the years, wireline over the last few years hasactually seen a decline in the subscriber base. The total number6 of fixed line connections inIndia increased from 5.81 million in 1991-92 to 40.8 million in 2006-07. During 1999-2000to 2001-02, approximately 5-6 million customers Ire added to fixed-line services each year.However, with the drop in mobile tariffs and increase in coverage of mobile services, netadditions in fixed-line subscribers started slowing down from 2.5 million in 2002-03 goingdown to 0.5 million in 2004-05. Due to mobile substitution and lower tariffs, the fixed linesubscriber base actually decreased by 3.5 million between 2006-07 and 2008-09. This declinewas aggravated by slow rollout of fixed line services by Telco’s due to the significantlyhigher total cost of service provision for fixed line services compared to mobile wirelessservices, in February 2011 only 34 Million wireline subscribers are reported. It also comes in observation that rural subscriber are more interested in wireless incompression of wireline... However, the potential for wireline services remains large due tovery low penetration in the wireline industry and the ability of wireline to deliver broadbandat lower operating costs than wireless broadband. New players in the telecom space hadhitherto concentrated on wireless space leading to low competition and promotion of wirelineservices. Greater pan-India expansion by private players can significantly lead to growth ofwireline services. In addition, with combined offering of internet/ broadband and alliedservices like IPTV, the sector can bounce back in the future. But, the aggressiveness ofmobile operators in rural areas due to easier and cheaper rollout and newer offerings on BWAspectrum can further slow down the wireline penetration.CUIM Page 11
  12. 12. Wireline subscriber base Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance Indicator Broadband and internet servicesInternet subscriber base in India, though currently at a low level, has been experiencingsignificant growth over the last 2-3 years. This growth is being driven by the growingpopularity of broadband, increasing user comfort with usage of internet applications,continuous fall in PC prices and decreasing costs of internet/broadband access plans. Thisgrowth has been accompanied by an associated increase in the number of internet users whichhave attributed to the growth of public internet cafes and multiple members of a householdaccessing internet. Access technologies play a crucial role in broadband penetration. Right ofWay (Row) issues and costs of the existing broadband technologies has been a constraint forthe growth of internet. While there a number of technologies being used by service providersto provide broadband services, DSL continues to be the most preferred technology andconstitutes nearly 86.6 percent of total broadband subscribers7. Cable modem technologyfollows with 6.9 percent connection. On an overall basis for accessing internet, DSL leadswith 51 percent while dialup stands second at 33.3 percent7. Wireless technologies havecarved a unique niche in terms of connectivity to internet with a share of nearly 7.6 percentwhich is a significant shift in the last two years. Newer access technologies like BWA and 3GCUIM Page 12
  13. 13. can completely transform the character of Internet/ broadband scenario in India. BWA willovercome the key hindrance of Row in India, while 3G has the potential to make the mobilephone, a ubiquitous device for accessing the internet. Internet subscriber base Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance IndicatorsCUIM Page 13
  14. 14. New frontiers for growth3G and BWAThe last 5 years have been transformational for Indian telecom industry and the next fewyears are expected to bring about more stimulating and aggressive changes. One of the keyfrontiers which would make the journey in coming years even more exciting is the launch of3G and BWA technologies. The auction of 3G spectrum was concluded on May 19, 2010.While commercial usage is started from September 2010 onwards, the auction laid thegroundwork for faster internet connectivity and data transfer on mobile phones, boostingusage of data services in the cellular market. This was closely followed by auctioning ofBWA spectrum which also exceeded revenue expectations of the government. The highlysuccessful auctioning of 3G and BWA spectrums and entry of new telecom players in BWAauction has ensured that telecom market will see more exciting times going forward. Totalrevenues which the government earned from these two auctions stood at approximately, INR1,063 billion the market is likely to witness a wide variety of value added services beingoffered, which Ire not possible over the current 2G/2.5G network. The ARPU is expected toget a boost given the increased revenue contribution from data and value added services.Potential challenges that 3G players could face would span across the value chain coveringinnovative Product development, Network deployment and management, Sales andMarketing etc. In the first wave, operators would be able to provide rich data services toHNI’s, working professionals, enterprise customers and youth. They would be specificallytargeting current users of 2.5G and/or owners of 3G enabled handsets. At the same timeoperators would be actively looking at providing 3G services to other income groups, as thiswill help spread the investment in technology/license over a wider subscriber base. TheMinistry of Communications had specified that BWA spectrum allocation would betechnology neutral. High speed broadband on BWA spectrum also has the potential toprovide connectivity for the growing small and medium enterprises (‘SME’) segment; and beutilized for the return path bundled with the DTH platform.CUIM Page 14
  15. 15. NEXT GENERATION NETWORKSIn the Next Generation Networks, multiple access networks can connect customers to a corenetwork based on IP technology. These access networks include fibber optics or coaxial cablenetworks connected to fixed locations or customers connected through Wi-Fi as Ill as to 3Gnetworks connected to mobile users. As a result, in the future, it would be impossible toidentify whether the next generation network is a fixed or mobile network and the wirelessaccess broadband would be used both for fixed and mobile services. It would then be futile todifferentiate between fixed and mobile networks – both fixed and mobile users will accessservices through a single core network.Indian telecom networks are not as intensive as developed country’s telecom networks andIndias teledensity is low only in rural areas. 670,000 route kilometres (419,000 miles) ofoptical fibbers has been laid in India by the major operators, even in remote areas and theprocess continues. BSNL alone has laid optical fibber to 30,000 Telephone Exchanges out oftheir 36 Exchanges. Keeping in mind the viability of providing services in rural areas, anattractive solution appears to be one which offers multiple service facility at low costs. Arural network based on the extensive optical fibber network, using Internet Protocol andoffering a variety of services and the availability of open platforms for service development,viz. the Next Generation Network, appears to be an attractive proposition. Fiber network canbe easily converted to Next Generation network and then used for delivering multipleservices at cheap cost...CUIM Page 15
  16. 16. 1.3 Regulatory and Policy environment In India Regulatory and policy environmentOver the years, the Indian Telecommunication Policy and Regulatory framework has evolvedinto an Ill developed framework that facilitates effective policy formation and execution. Thegovernment has been making constant efforts to ensure that the regulatory framework isbeneficial for the consumers as Ill as the licensed operators. The policy and regulatoryframework for telecommunications in India consists of, among others, the following keybodies • The Department of Telecommunication (DoT) • The Telecom Regulatory Authority of India (TRAI) • The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) • Wireless Planning Commission (WPC) • Group on Telecom and IT (GoT – IT)TRAITelecom Regulatory Authority of India was established as an independent body under theTRAI Act of 1997. The act was later amended in 2000. The entry of private players into theindustry prompted the establishment of the act to effectively regulate the telecom players.TRAI safeguards the interests of the consumers through transparency, ensuring conformitywith service quality benchmarks, enforcing measures to safeguard national security, fixingtariffs for players, counselling the government on matters relating to telecommunicationdevelopment and tracking performance a d efforts of all players within the industry.DoTDoT is accountable for policy formulation, monitoring performance reviews, ensuringinternational co-operation, overlooking research and development and granting licenses tooperators, allowing them to provide basic and value added services in various cities andtelecom circles as per the approved government policies. The Department also allocatesspectrum and manages radio communications in close coordination with the Internationalbodies. It is also responsible for enforcing wireless regulatory measures and monitoring thewireless transmission of all users in the countryCUIM Page 16
  17. 17. Regulatory evolution Source: Press Search, KPMG Analysis As per TRAI total active Mobile Subscriber in November 2010 otal Subscriber Base 160 70% of Mobile Subscriber base is active 143.2 Reported Subscriber – 687.7 Million 140 127.9 Active Subscriber – 482 Million 115.5 120 96.4 100 86.6 79 80 72.5 67.3 65 59.1 Reported 60 46.5 42.9 35.6 Active 40 27.4 20 0 Business Line – Dated – 3 December 2010.CUIM Page 17
  18. 18. Mobile Number Portability (MNP)Number portability: TRAI announced the rules and regulations to be followed for the MobileNumber Portability in their draft release on 23 September 2009. Mobile Number Portability(MNP) allows users to retain their numbers, while shifting to a different service providerprovided they follow the guidelines set by TRAI. Users are expected to holding the mobilenumber with a given provider for at least 90 days, before they decide to move to the otherprovider. As per news reports, Government of India decided to implement MNP fromDecember 31, 2009 in Metros & category ‘A’ service areas and by March 20, 2010 in rest ofthe country.CUIM Page 18
  19. 19. Number Operator Total Sub Figures % Market Share 1 Airtel 15,89,98,869 20.09% 2 Reliance Comm. Ltd. (CDMA+ GSM) 13,21,76,914 16.70% 3 Vodafone 13,09,20,732 16.54% 4 BSNL (GSM + CDMA) 9,03,09,414 11.41% Tata Teleservices Ltd. (CDMA 8,76,54,472 5 +GSM) 11.08% 6 Idea 8,68,00,809 10.97% 7 Aircel 5,35,00,469 6.76% 8 Uninor 2,15,77,497 2.73% 9 MTS 96,12,738 1.21% 10 Videocon 65,64,083 0.83% 11 MTNL 54,54,846 0.69% 12 Loop Telecom Private Ltd. 30,79,281 0.39% 13 S-Tel LTD (GSM) 26,92,462 0.34% 14 HFCL (CDMA) 13,86,618 0.18% 15 Etisalat 6,52,370 0.08% Total 79,13,81,574CUIM Page 19
  20. 20. Videocon MTNL Loop S-Tel LTD HFCL (CDMA) 1% 1% Telecom (GSM) 0% Private Ltd. 0% MTS 0% Etisalat 1% 0% Uninor 3% Aircel Airtel 7% 20% Idea 11% Reliance Comm. Tata Teleservices Ltd. (CDMA+ GSM) Ltd. (CDMA +GSM) 17% 11% BSNL (GSM + CDMA) 11% Vodafone 17%CUIM Page 20
  21. 21. Chapter – 2Literature ReviewCUIM Page 21
  22. 22. Date - 22 /09/2010Source - Business LineSurvey Method - InterviewSample - Mr Debases Chatterji, CEO of Netxcell Ltd.Business Line’s editor Mr D.murli interviewed Mr Debases chatterji on the key challengesfaced by telecom operators.He was of the opinion that severe competition amongst voice service providers was leading toa few operators incurring huge losses. This might force consolidation in the industry in thefuture. As teledensity was already approaching 100% in urban centres, service providers werequickly moving to semi-urban and rural areas. In this segment, most customers prefer pre-paid services with very low average revenue per unit (less that Rs 200 per month). Theaverage prepaid topup in rural areas is around 20 rupees per recharge.Over the past one and a half years, India has been adding 10 to 14 million customers in amonth. Research has shown that 95% of them prefer pre-paid plans and are located in semi-urban areas.He was of the opinion that one area of growth could be subscribers pushing locally relevantcontent to cell phones of subscribers. This could range from local weather updates todiscounts at a shopping mall at a particular date and time.CUIM Page 22
  23. 23. Date - 20 /08/2010Source - CNBCSurvey Method - InterviewSample - Mr Sanjay Kapoor, CEO of Bharti AirtelBusiness Line’s editor Mr Sanjay Pugliya interviewed Mr Sanjay Kapoor, the CEO of BhartiAirtel on the topic. Finding from this interview is 480 minute/customerRural India is a big marketSubscription is approximately sameDependency of mobile phone because no significant alternativeProfitability is a main concernSpecial focus on revenue - 9-10 December 2010Source - KPMGSurvey Method - SurveySample - Telecom Industry of IndiaRural movement - Rural movement not seems as a solution for the revenue generationbecause as per following statics, generated revenue cannot cope up with operation cost it isdifficult to achieve breakeven point itself. There is wide variation in population density.Population density across villages IndiaVillage Density No. of VillagesBetween 1,000 - 2,000 129,000Between 500 - 1,000 144,000Between 0 - 500 219,000Source: IMA India Report, 2006 Page 23
  24. 24. Date - 18 /09/2010Source - CNBCSurvey Method - InterviewSample - Mr Sanjay Kapoor, CEO of Bharti AirtelCNBC interviewed Mr. Sanjay Kapoor, the CEO of Bharti Airtel on the topic “DialingGrowth”. In that interview Mr. Kapoor told that subscriber growth is not only a parameter,but the revenue from the activities is an important parameter for Bharti. He not agrees withactual growth shown in numbers as per him actual growth is half of provided numbers”. - 07 /03/2011Source - Economic TimesSurvey Method - Results of subscriber complaints published by TRAISample - Population of subscribers who used wireless servicesIndias largest mobile operator, Bharti Airtel is on top, also when it comes to subscribercomplaints related to billing, metering and tariff-related issues and activation of value-addedservices without customer consent. In the last three years, TRAI received as many as 3,571complaints from Bharti Airtel subscribers, 2,151 from Reliance customers and 1,896 fromVodafone Essars clientele. Tata Docomo and Idea Cellular customers seemed to be the leastdissatisfied, with 1,239 and 925 complaints, respectively, lodged against themCUIM Page 24
  25. 25. Date - 06 /04/2011 Source - TRAI press releasey Method - Results of subscriber population survey provided by service provider Sample - Population of subscribers who used wireless services As per “Highlights of Telecom Subscription” Data as on 28th February 2011 by TELECOM REGULATOR AUTHORITY OF INDIA New Delhi, 6th April 2011, TATA Teleservices is the 5th largest mobile operator in India having 8,76,54,472 subscriber contributing 11.08%. CUIM Page 25
  26. 26. Chapter – 3Problem Definition andObjectives of the ProjectCUIM Page 26
  27. 27. Problem Definition and Objectives of ProjectIn this project “Operational Comparatives Study of Indian Telecom Service”The Indian cellular subscriber base currently stands at 826.25 million. Due to this largemarket, the Indian cellular service providers are amongst the most competitive in the world.India can boast of the cheapest call rates to be found anywhere in the world.At present there is very high competition in the telecom sector which has intensified with theentry of new cellular players in the circles. Private operators hold 87.90% of the wirelessmarket share where as BSNL and MTNL, two major PSU operators hold only 12.10% marketshare. Around 14 operators are functioning in every circle & implementation of MobileNumber Portability has once again started the game of the “Survivable the fittest”.Even though The Telecom Regulatory Authority of India & other Independent Consultantsprovide guidelines and comparative analysis of the sector,CUIM Page 27
  28. 28. Chapter – 4Research MethodologyCUIM Page 28
  29. 29. Research DesignI intend to follow an exploratory approach towards meeting our goals. Since the telecomsector is too vast to be covered within the scope of our project, I decided to opt away fromdescriptive research and orient ourselves more towards exploratory research.The information that I will primarily be dealing with are official TRAI figures, customer andretailer responses to questionnaires. I will then analyze the available information with MS-Excel.The questionnaire is intended to cater to recipients and subscribers. There will be separatefor both the parties because questions intended for retailers will be more oriented towardswhy they sell or refer certain products and hold others back. I intend to investigate cellularcompanies provide to retailers and how retailers in turn market products of these cellularcompanies.To customers our questions will be directed at customer satisfaction with the service,preferences and satisfaction. About what brands they identify with and the reasons for theirchoices. The questionnaire will also attempt to gauge the level of attachments customers havewith their service provider. Ingredients of QuestionnairesQuestionnaires will be conducted in person with random people from locations across Indiathere will be no discrimination based on religion, caste, sex, and age or income level.The questionnaire will be limited to 20 minutes per person. It will consist of 20 questions thata respondent will have to answer. The questions asked will range from general to specific.Example –Question to customers –1) Which brand do you prefer the most?2) What brand are you using right now?3) Are you satisfied with the service provided?4) What are the reasons you might be dissatisfied? Service, network, rates.Note - (Detail Question are given in appendix Page 64-67)CUIM Page 29
  30. 30. Sampling size – I intend to interview 100 customers of from various parts of India focusingprimarily on Karnataka. This is so that I can cater to differing values and perceptions ofpeople from different regions.Sampling plan – Multi-stage & connivance sampling – In this form of sampling is similarto cluster sampling but involves selecting a sample within each chosen cluster. Clusters inthis case will be created on the basis of the States of Rajasthan, UP East, UP East, Karnataka,Delhi and Kolkata Circle.Note - (Responses can envisage in appendix Page 72)CUIM Page 30
  31. 31. Chapter – 5Findings & InterpretationsCUIM Page 31
  32. 32. 5.1 Comparatives Study of Telecom Service Provider109 respondents are interviewed for survey, to identify that what factor play a critical role inthe selection of Service Provider, factor are divided into 7 major category • Services • Cost-effectiveness • Network coverage • Low Cost is a major factor that attracts me to a service provider • Network Coverage of my service provider was a decisive factor that influenced my purchase • Advertisements played a major role in my decision to choose my service provider • Value added services are a major factor that attracts me to a service provider InterpretationNetwork Coverage, Service & Cost Effectiveness play a critical role, when the subscribergoes to choose the service provider.CUIM Page 32
  33. 33. Bharti AirtelInterpretation-Service - LinerCost effectiveness - PoorNetwork Coverage - Full fill the customer acceptanceCUIM Page 33
  34. 34. TATA TeleservicesInterpretationService - LinerCost effectiveness - HighNetwork Coverage - Below then customer acceptanceCUIM Page 34
  35. 35. Reliance CommunicationInterpretation-Service - PoorCost effectiveness - HighNetwork Coverage - Poor as Ill as below then customer acceptanceCUIM Page 35
  36. 36. VodafoneInterpretation-Service - LinerCost effectiveness - LinerNetwork Coverage - Liner & more than customer acceptanceNote- Vodafone has a perfect combination of all 3 critical parameter which is an idealsituationCUIM Page 36
  37. 37. IdeaInterpretation-Service - Below then averageCost effectiveness - HighNetwork Coverage - Liner & more than customer acceptanceCUIM Page 37
  38. 38. BSNL & OthersInterpretation-Service - LinerCost effectiveness - LinerNetwork Coverage - Liner but matched with customer acceptanceNote - (Detail Results can envisage in appendix Page 68-71)CUIM Page 38
  39. 39. What attracts you towards a service provider? [Network Coverage of my serviceprovider was a decisive factor that influenced my purchase]CUIM Page 39
  40. 40. CUIM Page 40
  41. 41. How would you rate your mobile service provider in terms of [Networkcoverage] ANOVA How would you rate your mobile service provider in terms of [Network coverage] Sum of Squares df Mean Square F Sig. Between Groups 21.299 5 4.260 4.320 .001 Within Groups 100.580 102 .986 Total 121.880 107CUIM Page 41
  42. 42. Chapter- 6ConclusionCUIM Page 42
  43. 43. As per survey it comes in observation that Network is a critical parameter which influencesthe customer, analysis done for the Pre purchase & Post purchase experience of customerwith service provider.A population of over a 1.5 billion individuals, India is a fast emerging economy on the worldscenario. One of the most significant growths in this decade has been observed in the cellphone industry. An industry which initially had many players. Now is the time I couldexperience the consolidation in the industry, but still left with quite a number of players.Consumers have been the ultimate king all the way through, and to know the consumers’insight is what no organization could miss.Consumers can be the kings but it is the Network team who committed for the qualityservice. So it is essential for any service provider to keep up to the pace of their team andprovide them what they require. In this growing mobile era it is very essential to keep yourteam technically upgraded and make the most of what is available.CUIM Page 43
  44. 44. Chapter- 7BibliographyCUIM Page 44
  45. 45. Bibliography • Richard A. Gershon (2009). Telecommunication & Business Strategy. Published by Routledge New York 10016. Richard A. Gershon is a Professor & co-founder of the Telecommunication & Information Management Program at Western Michigan University. • Rafael Aguayo (1990).Dr. Deming "The American who taught the Japanese about Quality."Published by "Fireside Rockefeller Center New York 10020. R.afale studied with W.Edwards Deming for seven year, has worked in the financial sector for fifteen year is a consultant in Quality & Management. • Akanksha Singh,Archana & Ritu Singh. "3G: Still Hazy." Voice & Data, May 2011: 42-47. • KPMG."Indian Telecom 2010.9-10 December 2010 New Delhi • Objective Assessment of Quality of Services for (QoS) for Basic (Wire line), Cellular (Wireless) and Broadband Service Providers Karnataka Circle. October-November- December - 2009. Telecom Regulatory Authority of India, By: eTech Group@IMRB A specialist unit of IMRB International.2010 <> • Highlights of Telecom Subscription” Data as on 28th February 2011 by Telecom Regulatory Authority of India, New Delhi, 6th April 2011. Page 45
  46. 46. Chapter- 8AppendixCUIM Page 46
  47. 47. QuestionnaireObjective: To gauge public opinion on services provided by various telecom operatorsNameCity: State:1) - Which mobile service provider are you using at the moment? Please tick the appropriateboxService Provider TickAirtelBSNLVodafoneIdeaTataRelianceOthers2) - How long have you been using your service provider? Please tick the appropriatecolumn. Duration Tick< 6 months6 to 12 months12 to 24 months24 to 48 months>48 monthsCUIM Page 47
  48. 48. 3)- How would you rate your service provider in terms of : Parameter Excellent Good Average Bad PoorAvailabilityOffersServicesCost-effectivenessNetwork Coverage4) - What services do you primarily avail of from your service provider? Please tick theappropriate box based on the degrees of usage. Services High Moderate Low NilVoice servicesInternet servicesMobile TV/Value added servicesMessaging services5) - What attracts you towards a service provider? Strongl Agre Neutra Disagre Strongly Parameter y agree e l e disagreeLow Cost is a major factor thatattracts me to a service provider.Value added services are a majorfactor that attracts me to a serviceproviderAdvertisements played a major rolein my decision to choose my serviceproviderCUIM Page 48
  49. 49. Network Coverage of my serviceprovider was a decisive factor thatinfluenced my purchaseMy service provider has numerousretail outlets that ensure availabilityand serviceabilityGood feedback from friendsinfluenced my decision to choose myprovider6)-How would you rate the service provider in terms of itsadvertisement campaign compared to its competitors? Service Provider Excellent Good Equal Bad PoorAirtelBSNLVodafoneIdeaTataReliance7) - If Mobile number portability is implemented, I would choose another serviceprovider?Yes NoCUIM Page 49
  50. 50. 7.1) - If yes, then which among these would be your first preference? Please tick theappropriate box Service Provider Tick Airtel BSNL Vodafone Idea Tata Reliance Others8) - How would you rate your reasons for not being satisfied with the service provider? Parameter Strongly agree Agree Neutral Disagree Strongly disagreeThe costs associated with myservice provider are higherthan those of other similarprovidersI am dissatisfied with theservices provided to me by myservice providerThe network coverage of myservice provider in my area issubstandard compared tocompetitorsMy service provider does nothave enough retail outlets inmy neighborhoodI have received negativefeedback about my serviceprovider from myacquaintancesNote – This Questionnaire is initially used to identify the “Declining Market Significance ofBharti Airtel Ltd.” in 7/12/2010CUIM Page 50
  51. 51. Post hoc tests are not performed for What attracts you towards a service provider? [Advertisements played a major role in my decision to choose my service provider] because at least one group has fewer than two cases.CUIM Page 51
  52. 52. Post hoc tests are not performed for What attracts you towards a service provider? [Network Coverage of my service provider was a decisive factor that influenced my purchase] because at least one group has fewer than two cases.CUIM Page 52
  53. 53. Post hoc tests are not performed for How would you rate your mobile service provider in terms of [Network coverage] because at least one group has fewer than two cases.CUIM Page 53
  54. 54. Post hoc tests are not performed for What attracts you towards a service provider? [Value added services are a major factor that attracts me to a service provider] because at least one group has fewer than two cases.CUIM Page 54