24644002 consumer-perseption-towards-telecom-services


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24644002 consumer-perseption-towards-telecom-services

  1. 1. ConsumerPerceptionTowards TelecomServicesIn Ahmedabad
  2. 2. SYNOPSISAim:The aim of this study is to analyze critically the Ahmedabad’s customer preference and theirsatisfaction in Telecom Sector.Objective of the Study: 1) To determine the technical factors which influence the purchasing behavior of mobile connection. 2) To determine the marketing process elements which influence the purchasing behavior of mobile connection.Commerercial Viability of Study:In today’s scenario communication has become much faster day by day bytelephone, internet, media etc. One of them is growth of Telecom sector. Todaymany organizations provide services for telecom purpose. This study will help tounderstand customer preferences and their satisfaction by the service provided bydifferent organizations in this sector. It will also help these organizations to formvarious strategies and getting the results from marketing efforts.
  3. 3. Research Methodology:This research consists of primary and secondary research.Primary Sources 1) Interaction with customers by filling up of questionnaires.Secondary Sources  Books  Internet  Articles  Magazines  Project reports  News papers
  4. 4. AcknowledgementThe success of this project depends upon the contributions of many people, especiallythose who shared their precious and valuable time in giving thoughtful suggestions toimprove our work.We would like to extend our sincere feelings towards our project guide Prof. KAVITASHARMA whose continuance guidance made this project a great success. Weespecially thank our institute called IBMR which gave us this golden opportunity toprove ourselves by doing something which is blend of both practical and theory.A very special thanks to our Honorable Dean R.K. BALYAN and some students &people who shared their opinion with us.UTKARSH SINGH YOGENDRA PRATAP SINGH BADORIYA
  5. 5. EXECUTIVE SUMMARYThe development of telecom sector has experienced a major process of transformationin terms of growth, technology content and market structure in the last decade throughpolicy reforms introduced by government. The impetus of these changes expected tocontinue, and at a much faster pace.The study aims to analyze that with the increase in competition in telecom services,higher level of consumer satisfaction with affordable prizes and better quality of servicesachieving or not. Wireless telephone and internet are expected to be the preferredmeans of communication as convergence of telecommunications, broadcasting andinformation technology progresses.Liberalization of telecom sector of Indian economy aims at improving accessibility,availability, reliability and connectivity through private sector participation and to bringabout much needed improvement in the quality of Services. Through increasedcompetition, the service providers expected to become more sensitive and responsive tothe customers needs and choices and endeavor to give him great satisfaction. TRAI hasthe mandate to safe the customer’s interest and to set the standards of quality ofservice. The rapid technological advances which have taken place in the telecom sectorhave brought about significant improvements in the quality of service provided tocustomers. With the digitization of exchanges and up gradation of external network thefault rate has come down.
  6. 6. INDEX1. Introduction 1.1 History 1.2 Quick Facts2. Evolution of the industry-Important Milestones3. Journey of telecom sector after 1991’s liberalization policy4. Government Policies 4.1 The specific targets mentioned in the NTP 1999 4.2 Rural Telecom Network 4.3 Expansion of Telephone network 4.4 Entry of private sector in both basic and VAS 4.5 VAS challenges5. TRAI 5.1 Functions of TRAI6. Major Players in different segments of Indian telecom industry 6.1 Airtel 6.2 Idea 6.3 Vodafone 6.4 BSNL 6.5 Reliance 6.6 Tata Teleservices 6.7 New entries7. Research objective 7.1 Approach to problem 7.2 Theory development
  7. 7. 7.3 Model development8. Research Design 8.1 Types of Research to be undertaken 8.2 Survey method 8.3 Scaling methods 8.4 Questionnaires development 8.5 Sampling technique 8.6 Field work 8.7 Limitation of study 8.8 Sample size 8.9 Assumptions9. Data analysis 9.1 Sampling 9.2 Observations10. Findings 10.1 Total Analysis 10.2 Company wise Analysis11. Conclusions and Recommendations12. List of figures13. Questionnaire14. Bibliography15. List of Abbreviations used
  8. 8. The telecom network in India is the fifth largest network in the world meeting up with globalstandards. Presently, the Indian telecom industry is currently slated to an estimated contributionof nearly 1% to India’s GDP. IntroductionThe Indian Telecommunications network with 110.01 million connections is the fifth largest inthe world and the second largest among the emerging economies of Asia. Today, it is thefastest growing market in the world and represents unique opportunities for U.S. companies inthe stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, isexpected to reach 250 million in 2007.According to Broadband Policy 2004, Government of India aims at 9 million broadbandconnections and 18 million internet connections by 2007. The wireless subscriber base hasjumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two outof every three new telephone subscribers were wireless subscribers. Consequently, wirelessnow accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per monthby 2007. The wireless technologies currently in use are Global System for MobileCommunications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSMand 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,covering 2000 towns across the country.
  9. 9. HISTORY 1851 Introduction of Telegraph services 1947 Foreign Telecom Companies nationalized to form PTT -Tele-density in 1980-81: 0.3% -Introduction of public pay phones 1980’s: The -Private Sector allowed Beginning -DoT, MTNL and VSNL formed Early to Mid -Telecom policy 199490’s: - Basic telephony service to private operators - 49% FDI A Messy Affair - 8 licensees began operations in Aug 1995 Late 90’s - Birth of a regulator: TRAI - NTP 1999 - (New Telecom Policy) 2000+ -CAGR of around 85% since 1999 - FDI: 74% (2005) -Having the worlds lowest call rates the fastest growth in the number of subscribers (45 million in 4 months), 2007-2009 - The fastest sale of million mobile phones (in a week), - The worlds cheapest mobile handset - The worlds most affordable colour phone Quick FactsTotal telecom subscribers : 429.72 million (March 2009)Wireless subscribers : 391.76 millionWire line subscribers : 37.94 millionTele density : 36.98 per centIndia’s service providers revenue in Q1 (2009) $8.2 billionIndia’s Rural Mobile Phone Users : 100 Million
  10. 10. Evolution of the industry-ImportantMilestones History of Indian Telecommunications Year 1851 First operational land lines were laid by the government near Calcutta (seat of British power) 1881 Telephone service introduced in India 1883 Merger with the postal system 1923 Formation of Indian Radio Telegraph Company (IRT) 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC) 1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the governments Ministry of Communications 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system) 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in Metropolitan areas. 1997 Telecom Regulatory Authority of India created. 2000 DoT becomes a corporation, BSNL 2008 3-G Service is launched 10
  11. 11. Journey of telecom sector after 1991’s liberalization policyThree forces--Telecommunication, Information and Globalization--are restructuringevery aspect of business and society. Telecom professionals are the key players in thistransformation. They play a crucial role as leaders in the changing dynamics of global 11
  12. 12. communications, internetworking, the Internet, e-commerce, mobile and wirelesscommunications strategy.Modern age is the age of convergence and fusion for telecommunications. This fusion oftelecommunications, broadcasting and information technologies has resulted in amazingdiscoveries. Voice over IP, television web casting over Internet and video on demand isa reality. Telecommunications is a key to modern economy infrastructure.Telecommunications when linked with computer becomes Information Technology,which is the most dominating technology of today as it influences the entire spectrum ofthe economy. IT practically covers all aspects of business, technology, manufacturingand other services.Today the networks and companies will no longer be categorized on the basis of onlyvoice, data or video services they provide. They have to become info-communicationscompanies providing a bundle of services.Telecommunication has now become the backbone of any modern economy due to itsall-pervasive nature of running through almost every human transaction - commercial,digital or even personal. The emerging new economy, powered by technology anddictated by the digital revolution is incredibly forcing the telecom industry to grow morethan ever before.The changing lifestyle of human beings enhanced by Internet, facilitated by mobilecommunications and enriched by e-commerce would give a real boost to this industry.As trade and industry grows, telecom services also have to expand commensuratelybecause it is one of the greatest infrastructure and life-blood for the modern trade andcommerce.Telecommunications services are used for a variety of purposes. Modern communitiesand businesses have come to rely on these services for:• Social contact such as keeping in touch with friends and relatives and for organising social activities; 12
  13. 13. • Business purposes which cover a wide range of uses from customer contact and business transactions to inter-company communications;• Emergency use for summoning police, ambulance and fire brigades;• Cultural and entertainment use;• Educational use where telecommunications services or applications replace or augment traditional delivery of education; and• On-line business transactions, education and entertainment using Internet access. In this report Internet access is considered as a separate telecommunications service. Government Policies The main guiding policy for the telecom sector is the New Telecom Policy (“NTP”) 1999. The objectives of the policy are as follows:- 1. Access to telecommunications is of utmost importance for achievement of the country’s social and economic goals. 2. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. 3. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country’s economy, 4. Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country. 13
  14. 14. 5. Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and assist emergence of India as an IT superpower, 6. Convert PCOs, wherever justified, into Public Tele-info Centres having multimedia capability like ISDN services, remote database access, and assist emergence of community information systems etc., 7. Transform the telecommunications sector in a time bound manner to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players, 8. Strengthen research and development efforts in the country and provide an impetus to build worldclass manufacturing capabilities, Achieve efficiency and transparency in spectrum management, 9. Protect defence and security interests of the country, 10.Enable Indian Telecom Companies to become truly global players. The specific targets mentioned in the NTP 1999 are:1. Make telephone available on demand by the year 2002 and sustain the position thereafter so as to achieve a tele-density of 7 by the year 2005 and 15 by the year 2010,2. Encourage development of telecom in rural areas making it more affordable by modifying the tariff structure suitably and making rural communication obligatory for all fixed service providers,3. Increase rural tele-density from the current level of 0.4 to 4 by the year 2010 and provide reliable transmission media in all rural areas,4. Achieve telecom coverage of all villages in the country and provide reliable media to all exchanges by the year 2002,5. Provide internet access to all district headquarters by the year 2000, 14
  15. 15. 6. Provide high speed data and multimedia capability using technologies including ISDN to all towns with a population greater than 2 lakhs by the year 2002. RURAL TELEPHONE NETWORK The objectives and targets of NTP 1999 for rural telephone network are as follows: 1. Encourage development of telecom in rural areas by making it more affordable through tariff restructure and making rural communication obligatory for all fixed service providers, 2. Rural tele-density to be raised to 4 per hundred by the year 2010, 3. Achieve 100% telecom coverage of villages by the year 2002 and provide reliable transmission media in all rural areas. Out of the 5,93, 485 villages in the country, 5,59,503 villages have been provided with Village Public Telephone (VPT). 33,982 villages are yet to be connected with a VPT. In percentage terms 94% villages have been covered by VPTs and 6% villages are yet to be covered. There was a decrease of 4572 VPTs during the financial year. The private operators share in these VPTs is very negligible and almost the entire VPTs have been installed by BSNL. The total no. of VPTs of BSNL was recorded at 5,19,616 in March 2008 as compared to 39,887 VPTs of private operators as on March 2007. Out of total 39.42 million subscriber base of wireline, the Rural Subscriber base was 11.64 million on 31st March 2008. The Rural teledensity as on 31st March 2008 was 9.20. 15
  16. 16. EXPANSION OF TELEPHONE NETWORKThe main objectives and targets of NTP 1999 with respect to expansion of telephonenetwork, other than rural network, which has been discussed above, are as follows:1. make telephone available on demand by year 2002 and achieve tele-density of 7 percent by the year 2005 and 15 percent by the year 2010,2. Provide internet access to all Districts Headquarters by the year 2000,3. Provide high speed data and multimedia capability using technologies including ISDN to all towns with population greater than 2 lakhsby the year 2002,4. Conversion of PCOs wherever justified, into Public Tele-Information Centres having multimedia capabilities like ISDN services, remote database access and information systems etc The subscriber base of basic services (Wireline) recorded marginaldecrease by 3.28% in 2007-08 over the previous year. The mobile industry haswitnessed annual growth rate of 58.12%. The growth in absolute numbers in mobilesubscribers during 2007-08 was 95.96 million a compared to 66.34 million in 2006-07. The total number of subscriber crossed 26149 million mark by the end of 16
  17. 17. financial year 2007-08. The total subscribers comprises of 192.7 million GSM and 68.37 million CDMA subscribers. Another service within the telecom sector, which recorded substantial growth, was Internet and Broadband services. While the total number of subscribers of Internet services increased from 9.27 million in March 2007 to 11.09 million at the end of March 2008 recording a growth rate of about 19.63%, the subscriber base of Broadband increased from 2.34 million in March 2007 to 3.87 million at the end of March, 2008. There has been significant expansion of the telecom network in the country as may be seen from the growth of various kinds of services mentioned above. The overall tele-density during the year rose to 26.22 on 31st March 2008 as compared to 18.23 on 31st March 2007. ENTRY OF PRIVATE SECTOR IN BOTH BASIC AND VALUE ADDED SERVICE Basic ServiceAfter the announcement of the NTP-94, in September, 1994, the Department ofTelecommunications issued Guidelines for private sector entry into basic telecomservice. In early 1995, bids were called for basic service and were received in August,1995. By March, 1996, the successful bidders were short-listed for providing basicservices and in 1997, license agreements with private basic service operators weresigned for six circles. However, unlike other services, the Basic Service did not take offsoon after the licenses were awarded. Subsequent to the announcement of the NTP1999, TRAI’ recommendations were sought for grant of fresh licenses for basic telecomservice in the 15 vacant telecom Circles and for additional licenses in six Circles wherelicenses had already been issued. TRAI had given its Recommendations to theGovernment on 31st August 2000. In line with the TRAI’s Recommendations, theGovernment issued the Guidelines for issue of Licence for Basic Service on 25thJanuary, 2001. These Guidelines provided for opening the Basic Telephone Servicewithout any restriction on the number of operators. 17
  18. 18. By the end of March 2008, 5 private BSO Groups namely, M/s Reliance Infocom Ltd.(21 circles), M/s Tata Teleservices Ltd. (20 circles), M/s Tata Teleservices(Maharashtra) Limited (2 circles), M/s Bharti Airtel Ltd. (17 circles), M/s Shyam TelelinkLtd. (Rajasthan circle) and M/s HFCL Infotel Ltd. (Punjab circle) are licensed operatorsproviding wireline service. All the five private operators had migrated to Unified AccessService Regime during 2003-04. Value Added ServicesTelecommunications had traditionally been a voice communication service. Theservices today have moved beyond their fundamental role of voice communications to aspectrum of non-core services, which in telecommunication parlance is called ValueAdded Service (VAS). VAS are provided either directly by the telecom operatorsthemselves or by a third party Value Added Service Provider (VASP). VASP connects tothe core equipment of telecom operators through interworking units using protocols likeshort message peer-to-peer protocol (SMPP), connecting either directly to the shortmessage service centre (SMSC) or to a messaging gateway that allows the telecomoperators to have control of the content. Unlike the core or basic services, the VAShave unique characteristics and they relate to other services in different ways. Theyalso provide benefits which the core services cannot provide. Basically, there are twotypes of Value Added Services – (i) Value Added Services that stand alone from operational perspective and (ii) Value Added Services provided as an optional service along with voice service.Non-Voice services like SMS are examples of stand alone value added services. TheValue Added Services presently being provided by the telecom operators are in thefollowing areas: 18
  19. 19. Sl. No. Type of Value Description Added Service 1. News National, International, Business, Entertainment , Sports News 2. Finance Stocks (NSE, BSE, NASDAQ), Forex 3. Entertainment Games, Mobile TV and Jokes 4. Travel Railways, Airlines 5. Downloads Logos, Ringtones, Caller tones etc. 6. Astrology service Personal Horoscope / Personalized prediction 7. Cricket Cricket scores, Match clippings, cricket commentary 8. Missed call alters Subscriber to get a SMS alert of incoming calls when the subscriber’s mobile phone is switched off / not reachable and busy 9. E-mail E-mail through SMS 10. Music on demand Dial a song 11. Contest Reality shows 12. GPRS / WAP Mobile Internet, Mobile Chat, Mobile TV 13. MMS Picture messages, picture clippings 14. Health Health tips, Beauty tips 15. M-commerce Transactions based services with multiple payment modes and support in multiple domains like WAP, GPRS, SMS, IVR and Web 16. Miscellaneous Devotional, Movies & Music, Fun, Navigation etc. VAS challenges…… 19
  20. 20. Operator Challenge User Challenge • Operators focusing on subscriber acquisition with no incentives to • Operators not driving users push VAS in light of current awareness to promote various spectrum allocation criteria VAS offerings • Spectrum constraints and delay in 3G roll-out has substantially limited • Ease of use, user interface and high-end VAS take-off familiarity with medium of access such as GPRS, IVR etc. Value Adde d Servi Revenue Challenge ces • Ongoing tussle between operators and VAS companies for revenue shareContent Localization Challenge continues • Since alternative models• Operators haven’t done much havent evolved yet, this has to customize content according hampered VAS innovation to consumer behaviour• • Limited availability of local Device Challenge web content and WAP versions of whatever is available • Providing feature-rich handsets at low cost is a big challenge with GPRS enabled handsets still around INR 2,599 (USD 63) • Pre-loading of applications by handset OEMs has not really caught on yet 20
  21. 21. 21
  22. 22. TRAI TELECOM REGULATORY AUTHORITY OF INDIATelecom Regulatory Authority Of India, a statutory and quasi-judicial body was formed by an Act in Indian Parliament to regulate the vast telecom sector. The necessity to form such a regulatory body in line with SEBI, IRDA etc. was felt when the telecom sector was open to private sector. Plainly speaking it’s job could be comparable to an umpires’ of a game field. It has been given the liberty to act without the intervention of bureaucracy or some self-serving politicians,The skirmishes encompassing TRAI came to limelight due to conflict among various telecom operators. That’s exactly the duty of this regulatory body, as has been entrusted with the statutory power, umpiring on behalf of the public for smooth telecom service.If one reviews the sequence of it’s orders/regulations, chronologically, to various telecom operators and the crucial policy changes with regards to service changes, the monopolistic and arbitrary attitude is clearly visible.Unfortunately, It’s a matter of concern that INTER CONNECT USAGE REGIME ordered by the same agency is being reviewed again by itself within two month’s of it’s enforcement. It could have been reviewed before it has been implemented or could have been kept for public perception or operator’s opinion. If an telecom regulator of a country having almost 7 crores telephone connections could act in such a haste manner without taking into consideration of aspects of technical feasibility, accounting, public psyche etc. into oblivion.Though operators have the requisite expertise technically and financially to provide cheaper telecom service, TRAI is there only to make it costlier. e.g. BSNL and RELIANCE . If they could offer cheaper telecom services them, TRAI should not prevent them in the name of ’PREDATORY PRICING ’.It’s appropriate time to review the role of TRAI and other Statutory Regulatory bodies by the public forum and parliament as well, rather than giving it a free reign to act on this way to the tune of certain players. 22
  23. 23. On April 25, 1997, the recently constituted Telecom Regulatory Authority of India (TRAI)gave its first judgment -- a landmark one, delivered with speed and style. This judgmentand its no-nonsense approach could well set the stage for things to come.TRAI quashed DoT’s (Department of Technology) order of January 29, which hadsought to hike rather steeply, the price of calls made by users of ordinary fixed linephones to cellular subscribers in the non-metro areas.Even the cellular operators, whose stand was accepted by the TRAI, would acceptprivately that the respondent DoT was poorly served by many of its officers and lawyerswho were entrusted with the task of representing DoT’s case.They seemed to have cut a very sorry figure before TRAI, ignoring or not beingprepared by reading pertinent papers, such as tender documents, the clarificationsoffered to would-be bidders, or the correspondence that DoT was having with theoperators later. Since the tender documents mentioned that tariffs would be the samefor circles and metros, it would have made sense for DoT to seek legal advice on how tocorrect a mistake, if that is what it was. An appeal to TRAI could perhaps have beenrecourse, as the body is in charge of tariffs.Fixed line users pay local call rates when they dial a cellular number in the four metros(Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically thesame as states) would be charged Rs10 per call for the same facility, if the DoT order inquestion had not been quashed.DoT had raised current rates on grounds that such charges were low and allowed usersin the circles which are much larger than metros, to make long distance calls withoutpaying STD charges. On the face of it, DoT is entitled to want to change this state ofaffairs. But in trying to correct one injustice to itself, it managed to inflict several on theusers and other service providers.The cellular operators lost no time in going to the courts, since TRAI did not then exist.The courts in turn took an enlightened decision to pass the matter on to TRAI on March3, as the body had been formally constituted by then. 23
  24. 24. TRAI took a few weeks to give its judgment and ruled against the Department ofTelecom. The body was not persuaded about the justness of DoT’s order.Nor was TRAI particularly impressed by the operator’s contention that DoT was notauthorized to raise these tariffs. The judgment clearly says that the order of DoT to raisethe tariff was passed before the TRAI was formally constituted and during the saidperiod in question, the DoT was the sole body with the power to amend tariffs. MissionTo ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society. Function of Telecom Regulatory Authority of India Functions of TRAI 1. Recommendatory Functions Need and timing for introduction of new service provider Terms and conditions of licence to a service provider Revocation of license for non-compliance of terms and conditions of license Measures to facilitate competition and promote efficiency in the operation to facilitate growth in industry Technological improvement in services by service providers Inspection of type of equipment used by service provider Efficient Management of available spectrum 2. Mandatory Functions 24
  25. 25.  Ensure compliance of terms and conditions of license Fix the terms and conditions of their inter connectivity between service providers Ensure Technical compatibility and effective inter-connection between different service providers. Regulate arrangements for sharing of revenues amongst service providers Lay-down the standards of QoS to be provided by service provider,ensure this by periodical survey Lay-down and ensure time period for providing local and long-distance circuits of telecommunication between different service providers 3. Other functions Levy fees and other charges as determined by regulations Perform administrative functions as entrusted to it by Central government or as per TRAI act Notify in Official Gazette the service rates and message rates within and outsideIndiaMajor Players in different segments of Indiantelecom industry 25
  26. 26. Basic Services GSM Services Operators Operators BSNL Airtel MTNL Vodafone Reliance Idea TTSL Reliance BSNL Internet Services CDMA Services Operators OperatorsBSNL RelianceMTNL TTSReliance TTSL Airtel 26
  27. 27. AirtelBharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is Indias largest andworlds third largest cellular service provider with more than 82 million subscribers as ofDecember 2008. It also offers fixed line services and broadband services. It offers itsTELECOM services under the Airtel brand and is headed by Sunil Mittal. The companyalso provides telephone services and Internet access over DSL in 14 circles. Thecompany complements its mobile, broadband & telephone services with national andinternational long distance services. The company also has a submarine cable landingstation at Chennai, which connects the submarine cable connecting Chennai andSingapore. The company provides end-to-end data and enterprise services to thecorporate customers through its nationwide fiber optic backbone, last mile connectivityin fixed-line and mobile circles, VSATs, ISP and international bandwidth access throughthe gateways and landing station. SingTel owns over 30% of the Bharti Telecom.Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sistercompany of the brand.Airtel is a brand of telecommunication services in India and Sri Lanka owned andoperated by Bharti Airtel. It is the largest cellular service provider in India in terms ofnumber of subscribers. Services are offered under the brand name Airtel: MobileServices (using GSM Technology), Broadband & Telephone Services (Fixed line,Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise 27
  28. 28. Services (Telecommunications Consulting for corporates). It has presence in all 23circles of the country and covers 71% of the current population. VISION AND MISSION OF THE COMPANY -:Vision:-• First private telecommunications company to launch long distance services.• Benchmarked by more business• Targeted by top talent• Loved by more customers• By 2010 Airtel will be the most admired brand in India -: Mission:-• We will meet the mobile communication needs of our customers through Error- freeservice delivery• Innovative products and services• Cost efficiency• Unified Messaging Solutions 28
  29. 29. IdeaIdea Cellular Limited (“Idea”) is a leading mobile services operator in India. Idea has asubscriber market share of 19.3 % in its 8 established service areas, and 12.9 % in its15 operating service areas. After inclusion of Spice Communications, brand !dea has47.1 mn subscribers, corresponding to a 11.0% national subscriber market share as onJune’09.A. Promoter GroupIdea is part of the Aditya Birla Group, Indias first truly multinational group. The Grouphas businesses in sectors ranging from metals, garments, cement, fertilisers, lifeinsurance and financial services among others. Over half of the Group’s revenues arederived from overseas operations. The group operates in 25 countries, and is anchoredby an extraordinary force of over 130,000 employees belonging to 30 nationalities. Thecurrent Group holding of 49.13% in Idea is made up of;Aditya Birla Nuvo Ltd. 27.02%Birla TMT Holdings Pvt. Ltd. 9.15%Hindalco Industries Ltd. 7.37%Grasim Industries Ltd. 5.52%IGH Holdings Pvt. Ltd. 0.08%Total 49.13%B. Key Shareholders 29
  30. 30. AXIATA Group Berhad (previously TM International Berhad), through its affiliates, has14.99% shareholding in Idea Cellular, and a 49.0% holding in Spice Communications.With the proposed merger of Spice Communications into Idea Cellular, the AxiataGroup holding in Idea Cellular would increase to around 20%. AXIATA has controllingstakes in its affiliates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, andsignificant stakes in India and Singapore. India and Indonesia are among the fastestgrowing markets in the world. As of March 2009, the Group has close to 94 millionmobile subscribers in Asia, and provides employment to over 25,000 people in 10countries. Providence Equity Partners, through its affiliates has a 10.6% shareholding inIdea, and has also invested INR 20982 mn in ABTL through Compulsorily ConvertiblePreference Shares.C. Mobile Coverage AreaBrand !dea covers 17 telecom service areas, viz, Maharashtra & Goa, Gujarat, AndhraPradesh, Madhya Pradesh & Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West& Uttaranchal, Uttar Pradesh East, Rajasthan, Himachal Pradesh, Mumbai, Bihar &Jharkhand, Orissa, Tamil Nadu, Punjab and Karnataka, covering ~ 90% of the all Indiasubscriber base Of these, the 3 service areas of UP East, Rajasthan and HimachalPradesh were rolled out during Sep-Nov’06, while the 2 service areas of Mumbai andBihar became operational during Aug-Oct‘08. The service areas of Punjab andKarnataka were added through Spice w.e.f October 16, 2008. Brand !dea has extendedit coverage to Orissa service area in April’09 and the Tamil Nadu service area (excl.Chennai) in May’09. Services in Chennai were launched in July’09. 30
  31. 31. VodafoneVodafone Essar in India is a subsidiary of Vodafone Group Plc and commencedoperations in 1994 when its predecessor Hutchison Telecom acquired the cellularlicence for Mumbai. Vodafone Essar now has operations in 20 circles with over54.63 million customers. Vodafone is the world’s leading international mobilecommunications company. It now has operations in 25 countries across 5 continentsand 40 partner networks with over 269 million customers worldwide. Vodafone haspartnered with the Essar Group as its principal joint venture partner for the Indianmarket. Market Strategy of Vodafone• Our strategic objective is - Innovate and deliver on customer’s total communications needs.• Vodafone too, needed to educate consumers about cellular telephony:- - Can I call std? - Can I use my phone in a lift? - what is airtime? Commercial Strategy of Vodafone 31
  32. 32. • Rebranding - Stores - Mass media coverage• Innovative distribution to reach the customer - Exclusive shops - Hub and spoke - Associate distributions• Customer service - Shops and call centers - Vans - Help desks BSNL 32
  33. 33. (BHARAT SANCHAR NIGAM LIMITED)BHARAT SANCHAR NIGAM LIMITED (BSNL) was formed on October 1, 2000 bycorporatisation of the erstwhile Department of Telecom operation & DepartmentTelecom Services. The company has taken over the erstwhile functions of theDepartment of Telecom in respect of provision of telecom services across the lengthand breadth of the country excluding Delhi and Mumbai. BSNL has one of large base ofskilled work force of around 3.0 lakh as on March 31, 2008. BSNL is a 100% Govt. ofIndia owned Public Sector Undertaking.BSNL is a technology-oriented company and provides all types of telecom servicesnamely telephone services on landline, WLL and mobile, Broadband, Internet, leasedcircuits and long distance telecom Service. The company has also been in the forefrontof technology with 100% digital new technology switching network. BSNL nation-widetelecom network covers all District headquarters, Sub-Divisional headquarters, Tehsilheadquarters and almost all the Block Headquarters. Telecommunications is a basicinfrastructure along with power and transportation and is thus recognized as the meansfor accelerating the economic growth in all the regions including remote andinaccessible areas in the country. Telecom in the modern world is expected to usher aconcept of global economy and single world market place. BSNL telecom network,therefore, is part of modern global network, providing access to countries around theworld for transporting information in the form of voice and data. 33
  34. 34. INTELLIGENT NETWORKWith the commissioning of 5 new technology IN Platforms (4 r General-Purpose and 1Mass Calling), IN Services are available throughout the country. Various IN servicesbeing offered by BSNL are ITC & Call Now (Prepaid Calling Cards), ACC (Account CardCalling), FPH (Free Phone), UAN (Universal Access Number), PRC (Premium RateCalling), Voice VPN (Virtual Private Network), UPN (Universal Personal Number) &Tele-voting & Fixed line Pre-Paid (FLPP) Service. Tele-voting service is provided byBSNLs Mass Calling IN platform at Hyderabad to programs such as Indian Idol, "KaunBanega Crorepati" (KBC)", "Sa re gama" etc. Fixed Line Pre-Paid (FLPP) telephonyservice for PCOs is available. FLPP Pre-paid over Post- paid service is available ontelephone connections. Combined Voice VPN including BSNL landline, BSNL CellOne& MTNL landline is available. BSNL has signed an interoperability agreement formaking available BSNLs Toll and UAN service through network of almost all the privateoperators. Online sale of Pre-paid cards of IN services is available. Achievements during 2008-09Sl. Parameter No. Unit Achievement Status as on during 2008-09 March 31, 20091 Wire line Connections Nos. 22,05,865 2,93,46,4312 WLL connections Nos. 8,55,306 54,33,0383 Mobile Connections Nos. 1,05,02,156 4,67,11,1964 Broadband Connections Nos. 15,35,035 35,57,4715 Internet connections Nos. 1,31,091 36,93,423 34
  35. 35. Reliance CommunicationReliance is a $16 billion integrated oil exploration to refinery to power and textilesconglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integratedtelecom service provider with licenses for mobile, fixed, domestic long distance andinternational services. Reliance Infocomm offers a complete range of telecom services,covering mobile and fixed line telephony including broadband, national and internationallong distance services, data services and a wide range of value added services andapplications. Reliance IndiaMobile, the first of Infocomms initiatives was launched onDecember 28, 2002. This marked the beginning of Reliances vision of ushering in adigital revolution in India by becoming a major catalyst in improving quality of life andchanging the face of India. Reliance Infocomm plans to extend its efforts beyond thetraditional value chain to develop and deploy telecom solutions for Indias farmers,businesses, hospitals, government and public sector organizations. Until recently,Reliance was permitted to provide only “limited mobility” services through its basicservices license. However, it has now acquired a unified access license for 18 circlesthat permits it to provide the full range of mobile services. It has rolled out its CDMAmobile network and enrolled more than 6 million subscribers in one year to become thecountry’s largest mobile operator. It now wants to increase its market share and has 35
  36. 36. recently launched pre-paid services. Having captured the voice market, it intends toattack the broadband market. Tata TeleservicesTata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over200,000 employees and more than 2.3 million shareholders. Tata Teleservices providesbasic (fixed line services), using CDMA technology in six circles:Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat,and Karnataka. It has over 800,000 subscribers. It has now migrated to unifiedaccess licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it toprovide fully mobile services as well. The company is also expanding its footprint, andhas paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC(interconnect usage charges) regime. The new licenses, coupled with the six circles inwhich it already operates, virtually gives the CDMA mobile operator a national footprintthat is almost on par with BSNL and Reliance Infocomm. The company hopes to startoff services in these 11 new circles by August 2004. These circles include Bihar,Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh(East) & West and West Bengal. 36
  37. 37. List of Related figuresMarket Share of GSM & CDMAMarket Share of GSM Players 37
  38. 38. Market Share of CDMA Players Market Share of All Players (Over all and Rural) 38
  39. 39. Subscriber Growth Tele DensityYear Urban Tele Density Rural Tele Density1999 2.33 0.58 39
  40. 40. 2000 2.86 0.68 2001 3.58 0.93 2002 4.29 1.21 2003 5.11 1.49 2004 7.02 1.55 2005 8.95 1.73 2006 12.74 2.34 2007 18.22 5.89 2008 26.22 9.46 2009 36.98 15.11 RESEARCH OBJECTIVESResearch objectives include the objective of research of the researcher before startingany research. The researcher should determine the objective or the goal of the researchfor the smooth functioning of study. Predetermine objective should be of such thatresearcher fulfils in the certain period of time at minimum cost.Following are the research objectives, which we have developed…  To determine the factors which influence the purchasing behavior of mobile connection.  To determine the marketing process elements which influence the purchasing behavior of mobile connection.  To understand the improvement and customer preference in telecom services. 40
  41. 41.  To study customer satisfaction and understand the current market scenario in telecom sector. Approach to the Problem Theory Development: To identify the determinant factors regarding purchasing behaviors of mobile connection that could improve the efficiency to get the customers or make the customers switch from the competitors’ products, I have initially identified some variables, which are significantly correlated with the purchase of mobile connections. When a customer decides to purchase a mobile connection, he normally considers tariffs, promotional activities, celebrity involvement, brand image, value added services, network, switching cost, after sales services, word of mouth, availability of complementary products and marketing mix. So buying a mobile connection is based on the simultaneous activation of these variables. These variables are to be described under the descriptive research. Non probability sampling technique (convenience sampling technique) has to be used. Then I will use T test, frequency distribution, graph and cross tabulation methods to analyze the data and then finding will be interpreting with the existing body of knowledge. When a customer decides to purchase a mobile connection, he normally Considers -1. Technology2. Tariffs3. Promotional activities4. Celebrity involvement5. Brand image 41
  42. 42. 6. Value added services7. Network8. After sales services9. Availability of complementary products Model Development: Need for communication with Status Factor in Society relatives/people Drive for immediate solution. Drive for immediate solution leads to immediate purchase of mobile connection Purchasing decision making based on some determinant factors 42
  43. 43. Specific mobile connection has been purchased and met the satisfaction Research DesignTypes of Research to be undertaken:Among the different types of researches I have chosen Descriptive research for thisproject. I have gone to conduct this project base on Descriptive research techniquebecause I want to test the significant level of the particular factors. Among two types ofDescriptive research techniques I have gone for Cross-Sectional design because I havewanted to collect data from the sample of population element only for one time. FromCross-Sectional designs I have taken Single cross-sectional design to carry out myresearch.(a) Primary Data Collection Method:  Survey method was used for primary data collection.  We used questionnaire as an instrument for survey method.  Structured questionnaire.(b) Secondary Data Collection method: 43
  44. 44.  Information from Related Peoples.  Information gathered from Different Sites of the companies.  Information gathered from TRAI Website.The nature of the research is basically of two types. • Basic Research • Applied Research“Basic Research is that intended to expand the body of knowledge in a field or to provide knowledge for the others.”“Applied Research is carried out for solving of a particular problem or for guiding aspecific decision, and usually its results are private.”“Basic Research is generally for common purpose and Applied research is for specific purpose.”Here the nature of the research is basic. The sources for data collection are bothprimary and secondary data sources.Survey method:Among four types of survey methods I have chosen the appropriate one that suited myresearch objectives. I have chosen the personal survey techniques. From the personaltechniques I have selected mall intercept technique. According to this technique I haveneeded to go directly to my sample unit and got the questionnaires filled. I have chosenMall intercept survey technique because it has higher Flexibility for data collection,Diversity of questions, Response rate, and Social desirability. And also it is higher inControl of data collection environment and moderate Use of physical stimuli. 44
  45. 45. Scaling Method:Since I have conducted descriptive research, I have chosen non-comparative scalingtechnique because I have wanted to measure the influence of each and every factor onthe purchasing behaviors of the target market separately. Only by Non-comparativescaling technique it can be done. And among two types non-comparative technique Ihave used itemize technique and from three itemize techniques I have taken Likertscaling which range from 1 to 5 point scale. Because I have wanted to do my researchbased on five dimensions which have been strongly disagree, disagree, neutral, agreeand strongly agree.Questionnaire development:First of all I have given the introduction. I have just introduced myself and the reasonswhy I am collecting data. Then I have given assurance that your information will be keptconfidential. I have gone for screening and then I have prepared the body of thequestionnaire. Lastly I make respondents profiles. Questionnaires have been structuredquestionnaires based on non comparative scales techniques.Sampling Technique:In case of my research my target population has been the students and the generalpeople of the Ahmedabad city. The students and general people who are using themobile connection or intended to purchase the mobile connection have been sampleunit. I have conducted my research through non-probability sampling techniques andamong non-probability sampling techniques I have gone for convenience samplingtechnique. Most importantly as it is an academic research it lacks money and time.That’s why for administering this research, the sample size has been 50. Then I have 45
  46. 46. carried out the research by myself very efficiently and accurately to come to an end witha solution of the marketing research problem statement.Field work:Field work is a general descriptive term for the collection of raw data. In the professionalresearch, research firm use its own people or external people to collect data for thesample. Since it is an academic and individual research I myself have to go and collectthe data from the respondents. I have gone to the people in the Ahmedabad city and getthe questionnaires filled.Limitations Of The Study:  Reluctance on the part of the respondents to provide exact details.  Sample size may not sufficient.  Chance of sampling mistake.Sample size:During the project study we attached to near about 400 people of Ahmedabad. Thesepeople belongs to the different parts of the city.Assumptions: 1) The area selected is assumed to represent whole universe of Indian rural telecom market. 46
  47. 47. 2) Data collected are assumed to be bias free from side of respondents, interviewer or any other mediaries.3) Whole research and analysis part based on data collected is carried out under unbiased environment and without any influence of any factor which can lead to deviation in result. Data Analysis (Methodology)SamplingSample Size : 200 47
  48. 48. Sample Frame : Ahmedabad CitySampling Method : Simple Random SamplingConstraints : Time, No. of respondent, Biased opinionSampling Error : Response - 172 Non-response - 28Survey : QuestionnaireObservations 1. Age and Gender : Normally consumers’ needs and wants change with age. There are certain types of mobile connection which attract different types of aged people as well as different sex. There some mobile connection (packages) which adopted by male people and there are some mobile connection (packages) which get adopted by female people. 10-20 36 21-40 106 More than 30 48
  49. 49. 40 1: Total samples (Age group) 17 21 % % 62 %According to the above bar diagram, among 100% respondents, These respondentshave informed their choosing factor for purchasing mobile connection. Form theirresponses I will be able to understand the various aspects of my research topic. Male 102 Female 70 2: Total samples (Gender Wise) 49
  50. 50. According to Graph-2 the majority of the respondents are male. Among 100%respondents, male is % and female is %. 2. Marital Status: Consumption and expectations on mobile from consumers changes according to the marital status. The consumption tactics of consumer depends on how they handling their relations. Single & married perceptions are different from each other. Single 110 Married 72 3: Total samples (Marital Status) 50
  51. 51. 3. Working Status:The purchasing behaviors depend on the occupation of the individuals. For My research I am simply interested about public service, private service, student, Housewife and for making my questionnaire non force I have kept an option blank. Student 80 House Wife 13 Public service 8 Private service 19 Businessman 52 4: Total samples according to working status 51
  52. 52. 30.5 46 % 11 7.5 5%Among 100% respondents, % students, % are private service holders, % arepublic service holders, % is housewife and % businessman. 4. Educational Qualification: Under Graduate 55 Graduate 48 Post Graduate 69 Others 0 5: Total samples according to educational status 52
  53. 53. 5. Service Provider BSNL 27 Airtel 24 Vodafone 46 Idea 33 Reliance 34 Tata Indicom 6 Others 2 6: Total Service Provider (% wise) 53
  54. 54. 3.5 1.2 % % 15.6 20 % 14 19 26.7 % %6. Time spend : Time spend with mobile connection shows how much customer is satisfied with their connection. This shows the level of post purchase services of telecom giants. 0 – 3 Months 0 4 – 6 Months 5 7 – 12 Months 18 1 – 2 Year 24 2 – 3 Year 69 More than 3 Years 56 54
  55. 55. 7: Total time spend by subscribers 3 % 10.5 32.5 % 14 % 40 % 7. Who influences most, the decision to purchase a telecommunication service in your family? This particular question helps companies to identify theircurrent marketing strategies position. According to the answers companiescan identify the segments whom they have for purchase intent. Self 72 Spouse 9 Parents 27 Children 13 Friends 45 Salesman 6 8: Purchase influence factors of subscriber 55
  56. 56. 8. What advertising media has influenced you in choosing a telecom operator? This particular question targets the medium ofadvertisement. Shows which medium stands where according to awarenesstowards consumers. Print Media 28 Radio 13 Television 80 Road side 7 Advertisement Word-of-Mouth 44 9: Affect of Advertisement on Telecom Purchase 56
  57. 57. Print Media9. How much you invest monthly on your phone? Up to Rs.500 76 Rs.501 – Rs.1000 54 Rs. 1001 – Rs.1500 30 More than 1500 12 10: Monthly investment on phone 57
  58. 58. 10. Do you prefer online payment through your mobile service provider? Yes 37 No 135 11: Chart showing Online payment statics 58
  59. 59. 11. What do you think about the competition in the market? No Choice 29 Some Choice 40 Enough 87 Choice Can’t Say 16 12: Chart showing market competition state according to customers 59
  60. 60. 12. Given a choice with same number which service provider will youselect? Airtel 8 Reliance 18 Vodafone 8 BSNL 1 Idea 6 Tata 3 No change 128 13: Preference to alternatives 60
  61. 61. Near about 75% of customers not interested in changingtheir service providers. This is a positive sign for companies. More theconsumer satisfied more they became loyal to company. Reliance has other positive signs as most want to switch over toit. So this may increase it’s market share in near future. 13. How long do you have to wait in customer care? Up to 1 Minute 83 2 Minutes 34 3-5 Minutes 30 61
  62. 62. 6-10 Minutes 23 11 Minutes or 2 more 14: Performance of customer care in eyes of customers14. What kind of expectations do you have with your service provider? Price 42 Voice Clearity 9 Network 58 Good Services 63 62
  63. 63. 15: Expectations from service providers15. What is your purchase intent for news alerts on mobile phone? Astrology 2 Sports 42 Business 40 General News 23 Entertainment 132 63
  64. 64. 16: Purchase intent from mobile phone16. Are you aware of the role of the telecom services in providing broadband without using cable network? Yes 130 No 42 64
  65. 65. 18. Are you aware of 3-G technology? Yes 105 No 67 65
  66. 66. Hypothesis 66
  67. 67. 1. Customers are self driven while purchasing a mobile connection. 2. Print media is the most effective advertisement medium which influence the customer to purchase a mobile connection. 3. Television is the most effective advertisement medium which influence the customer to purchase a mobile connection. 4. There is some choice in the market for telecom service providers. T – Test H0 : Null Hypothesis H1 : Alternative Hypothesis S : Standard Deviation α : Significance level df : Degree of freedoma)H0 : Customers are self driven while purchasing a mobile connection.H1 : Other factors drive customers to purchase a mobile connection.The significance level is alpha=0.05Using the data in our database, calculate the test statistic. 67
  68. 68. Using excel, we get Sample size 172 Sample mean 28.66 S 1.76 Standard error 0.13 Null hypothesis 72 α 0.05 df 171 t test statics -3.23 lower value 1.65 Decision Accept H0Since the null hypothesis is accepted so we can say that costomers are self driven whiledeciding the purchase of mobile connection.b)H0 : Print media is the most effective advertisement medium which influence thecustomer to purchase a mobile connection.H1 : Print media is not the most effective advertisement medium which influence thecustomer to purchase a mobile connection.The significance level is alpha=0.05Using the data in our database, calculate the test statistic.Using excel, we get 68
  69. 69. Sample size 172 Sample mean 34.4 S 1.78 standard error 0.14 null hypothesis 28 α 0.05 df 171 t test statics 0.47 lower value -1.65 Decision Reject H0Since the null hypothesis is rejected so we can say Print Media is not the perfectcommunication medium between customers and mobile service providers.c)H0 : Television is the most effective advertisement medium which influence thecustomer to purchase a mobile connection.H1 : Telivision is not the most effective advertisement medium which influence thecustomer to purchase a mobile connection.The significance level is alpha=0.05Using the data in our database, calculate the test statistic.Using excel, we get 69
  70. 70. Sample size 172 Sample mean 34.4 S 1.78 standard error 0.13 null hypothesis 80 α 0.05 df 171 t test statics -3.36 lower value -1.65 Decision Reject H0Since the null hypothesis is rejected so we can say Television is not the perfectcommunication medium between customers and mobile service providers but it the bestway one can attract the customer (According the data collected).d)H0 : There is some choice in the market for telecom service providers.H1 : There is no choice in the market for telecom service providers. There is enough choice in the market for telecom service providers.The significance level is alpha=0.10Using the data in our database, calculate the test statistic.Using excel, we get 70
  71. 71. Sample size 172 Sample mean 43 S 0.87 standard error 0.06 null hypothesis 40 α 0.1 Df 171 t test statics .45 lower value -1.65 Upper value 1.65 Decision Reject H0The null hypothesis is rejected. It is a two tailed taste. So according to customers in themarket there is enough choice in the market for telecom service providers. Table : Null Hypothesis and their acceptance level Acceptance S.N0. Null Hypothesis level Customers are self driven while purchasing a mobile 1. Accept H0 connection Print media is the most effective advertisement medium 2. which influence the customer to purchase a mobile Reject H0 connection Television is the most effective advertisement medium 3. which influence the customer to purchase a mobile Reject H0 connection There is some choice in the market for telecom service 4. Reject H0 providers Findings: 71
  72. 72. Total Analysis:Nowadays telecommunication sector is very competitive. Here every telecom companyhas to strive to get the prospects as many as possible. Every company uses differenttools to persuade the target markets to buy the products. They conduct market researchvery often to know about the choices of the target markets. I also come up withimportant findings after conducting a research.The target markets are influenced by Promotional activities for purchasing behaviors ofmobile connection. But target markets are not basically concerned about Celebrities forbuying the mobile connection. They do not get influenced by promotional activitieswhich include classical conditioning rather they get influenced by the promotion whichinclude operant conditioning. They give less importance on promotional activities thanother marketing mix such as products, distribution, price, process etc. The targetmarkets of the telecom industry seriously think of the tariff and put more importance onthe tariff than any other factors. They can even tolerate interrupted network service tosome extent as they put more importance on the tariff than network. They have chosentariff as a most important factor to by mobile connection than brand image. Targetmarkets do value complementary products’ availability. Target markets have chosenavailability of complementary product over network. It means that the target markets gofor that product which complementary are widely available regardless the networkcondition. According to target markets network is important factor to purchase themobile connection but not as important as tariff. But target market put importance onnetwork than brand image. Customers seriously consider the word of mouth. Theyrather prefer it than any promotional activities. After sale Services and value addedservices are the important factor to target market for purchasing the mobile connection.Target markets generally think of switching cost before purchasing a particular mobileconnection. One interesting finding is that target markets do not generally concernedabout Brand image. 72
  73. 73. After relating occupation with other important marketing research question the followingfindings has been found- 1. Among respondents Public service holders are the most sensitive towards to tariff price 2. Student and Housewife value the celebrities for purchasing the mobile connection. 3. Students and private service holders are concerned and value the brand image for purchasing the mobile connection. 4. In case of word of mouth, Students, housewives, private service holders value it for purchasing the mobile connection. 5. Public service holders, Students and housewives are highly influence by any discount, free sampling, rebate for purchasing the mobile connection. 6. Private Service holders are most concern about network for purchasing the mobile connection. Company wise Analysis: 73
  74. 74. a) Airtel-:1. Most of the company’s customers are driven through the ads on Television and Print Media. So more focus on these medium will beneficial.2. 3 out of 24 customers want to switch to other operators and 8 want to join it. So good positive signs to company.3. Customer wants affordable price, good services and network availability.4. Company should focus on news alerts related to Sports, Entertainment and Business.5. Fair chances in Broadband Services. b)BSNL1. Not popular in the age group of 10-20. Most popular in higher age group.2. Brand endorsement is working for company (Most influenced by television ads).3. Mostly used for Broadband Services.4. Voice clarity in between the calls is a issue company should focus.5. Need to enhance VAS.6. Switch over to other operators is a threat to company. 74
  75. 75. c) Reliance1. One of the fast growing service operators. As most want to switchover to it. So a bright future is waiting.2. Television and word of mouth working to boost sale.3. Entertainment as a VAS generating good revenue.4. Customers are price conscious so there should be a tight eye on it. This the feature attracting most of the customers. d) Idea1. In the city it is the most loved GSM operator. Popular in each age group and in every working status sample.2. Customer wants better services from the company as 20 out of 33 has expectations of Good Services.3. Some times Customer care may frustrate customers.4. Sports and Entertainment as VAS generating high revenue. e) Vodafone 75
  76. 76. 1. Most trusted Mobile brand in city. As 27% customers trust the brand.2. Most popular in Age group of 21-40.3. Zoo Zoo magic works in city. Satisfaction of customers is strength to the company.4. Customers have expectations in price, network and good services are coming as a priority and can be a major factor in near future.5. Reliance communication is a big threat to company as it growing fast in price war period.6. Like others Entertainment is a most revenue generating VAS. f) Others1. Not a good presence in the city. But arrival of new service operators may change the current scenario.2. Television, Print media and Radio should be focused as advertisement medium.3. As low prices boost Reliance Communication market in the city TATA Teleservices should catch this opportunity as they are the initiator of the price war in the country. Conclusions and Recommendations: 76
  77. 77. After talking to decision makers, taking interview of experts I have developed amanagement decision problem statement. Then I have developed Marketing researchProblem. And from the marketing research problem I have identified some factors thatinfluence the behaviors of mobile connection. The specific components have been-Marketing process, Technology, service ability switching cost etc. I have developed theresearch questions and finally I have developed the Hypotheses from the researchquestion. Then I have gone for Descriptive research and among different descriptiveresearches I have taken single cross-sectional design. And among deferent methods Ihave chosen in-home survey method. My target population has been the citizen of theDhaka city who are a customer or future prospects of mobile connection. The samplingtechnique I have used has been convenience sampling technique. I have used Likertscaling technique and finally I have analyzed one sample t test and cross tabulation torelate two variables. Then I have carried out the research.After analyzing the hypotheses I would like to offer some recommendation to influencethe decision of mobile purchasing of the target market. 1) The operator should focus on the tariff because target markets are still concerned about tariff than any other factors for purchasing mobile phone. Tariff is still the most dominant factor for purchasing the mobile connection. 2) Among different types of promotional techniques, target markets value the promotions those contain operant conditioning. Target markets put more importance on promotional activities that contain operant conditioning than those contain classical conditioning such as celebrities. So mobile operator must keep on providing rebates, discounts, free offer etc. 77
  78. 78. 3) The brand image is still less important to target markets than tariffs. So the mobile operator must build strong brand image so that target markets do not think much about tariff. 4) The complementary products must be available. 5) Network is also concern of the target markets. But target market can consider some disruption for the lower tariff. 6) Word of mouth influence the purchasing behavior of the target market so mobile operator should adopt some tactic to promote word of mouth promotion. 7) Mobile phone operators should launch multiple promotional activities to attract or meet different needs of different segment. They can go for promotion with operant conditioning for students or housewives segment to force them to buy the products. 8) Mobile operator can highlight the brand image for its products to students and private service holders as students and private service holders value brand image for purchasing the mobile phone. Companies should be careful while selling product to the segment of publicservice holder because they are most price sensitive customer among the targetmarkets. 78
  79. 79. List of figures S.No. Title Page No. 1 Journey of telecom sector……......... 11 2 Subscriber In different areas 16 3 VAS Challenge 20 4 Major Players…………………….. 25 5 Market Share of GSM and CDMA 36 6 Market Share of GSM Players 36 7 Market Share of CDMA Players 37 8 Market Share of All Players 37 9 Subscriber Growth 38 10 Model Development 40 11 Total samples (Age group) 47 12 Total samples (Gender Wise) 48 13 Total samples (Marital Status) 49 14 Total samples according to working status 50 15 Total samples according to educational status 51 16 Total Service Provider (% wise) 52 17 Total time spend by subscribers 53 18 Purchase influence factors of subscriber 54 19 Affect of Advertisement on Telecom Purchase 55 20 Monthly investment on phone 56 21 Chart showing Online payment statics 57 22 Chart showing market competition state according to customers 58 23 Preference to alternatives 59 24 Performance of customer care in eyes of customers 60 25 Expectations from service providers 61 26 Purchase intent from mobile phone 62 Questionnaire1. Respondent Name: Mr Ms Full Name ______________________________________2. Age Group 1 10-20 79
  80. 80. . 2 21-40 . 3 More than 40 .3. Marital Status: Single Married4. Working Status: Student; House-Wife; Public service; Private service; Businessman;5. Educational Qualification: Under Graduate Graduate Post GraduateProfessional Others: ____________6. Presently you are availing services from which operator (Tick more thanone, if applicable): BSNL Airtel Vodafone Reliance Tata Indicom Idea Virgin g) Time you spend with your current connection (Approx) 1. 0 – 3 Months 2. 4 – 6 Months 80
  81. 81. 3. 7 – 12 Months 4. 1 – 2 Year 5. 2 – 3 Year 6. More than 3 Years8. Who influences most, the decision to purchase a telecommunicationservice in your family? Self Spouse Parents Children FriendsSalesman9. What advertising media has influenced you in choosing a telecomoperator? Print Media; Radio Television Road side Advertisement Word-of-Mouth10. How much you invest monthly on your phone? Up to Rs.500 Rs.501 – Rs.1000 Rs. 1001 – Rs.1500 More than 150011. Do you prefer online payment through your mobile service provider? Yes No12. What do you think about the competition in the market? No Choice Some Choice Enough Choice Can’t Say13. Given a choice with same number which service provider will you select? Airtel Reliance Idea Tata Vodafone BSNL Vergin14. How long do you have to wait in customer care? Up to 1 Minute 2 Minutes 3-5 Minutes 6-10 Minutes 11 Minutes or more15. What kind of expectations do you have with your service provider? 81
  82. 82. Price Voice Clearity Network Good Services 16. What is your purchase intent for news alerts on mobile phone? Astrology Sports Business Entertainment General News 17. Are you aware of the role of the telecom services in providing broadband without using cable network? Yes No 18. Are you aware of 3-G technology? Yes No 19. Rank the following attributes in the order you service provider-Availabili Networ Voice Talk Call SMS Billing Schem Value ty k clearity time charge servic syste e Added and e m Services Validity (In the analysis part we didn’t include the Q. 19 because it became tough for respondents to answer it.) 82
  83. 83. BIBILOGRAPHY1) Reports a. TRAI 2008-09 b. Telecom Sector annual report 2008-09 c. Idea Unaudited results Q1 FY 10 d. Department of telecommunication Govt. of India Annual Report 2008-092) Articles a. Business Standard b. Times of India c. Idea press release d. Airtel press release e. RCom press release f. The Economic Times3) Websites a. www.trai.gov.in b. www.dot.gov.in c. www.coai.com d. www. Ideacellular.com e. www.airtel.in f. www.vodafone.in g. www.rcom.co.in h. www.teleservices.com 83
  84. 84. List of Abbreviations used3G Third GenerationARPU Average Revenue Per UserBSN Bharat Sanchar Nigam LimitedCDMA Code Division Multiple AssayCOAI Cellular Operators Association of IndiaDoT Department of TelecommunicationGPRS General Packet Radio ServiceGSM Global System of MobilesMTNL Mahanagar Telephone Nigam LimitedNGN Next Generation NetworkQoS Quality of ServiceSMS Short Messaging ServiceTRAI Telecom Regulatory Authority of IndiaVAS Value Added Services 84