A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com]

Writekraft Research & Publications LLP
(All Rights Reserved)
A STUDY OF CUSTOMER DELIGHT
OF MOBILE USERS IN WESTERN
MUMBAI WITH REFERENCE TO
AIRTEL AND VODAFONE
(Regd. No. AAI-1261)
Corporate Office: 67, UGF, Ganges Nagar (SRGP), 365 Hairis Ganj, Tatmill Chauraha, Kanpur, 208004
Phone: 0512-2328181
Mobile: 7753818181, 9838033084
Email: info@writekraft.com
Web: www.writekraft.com

A STUDY ON CUSTOMER DELIGHT OF MOBILE USERS IN WESTERN MUMBAI WITH REFERENCE TO AIRTEL AND VODAFONE
CHAPTER – ONE
AN OVERVIEW OF TELECOM SECTOR
1.1 INTRODUCTION:
Over the past two decades, India has grown rapidly from, a ―command and control‖
economy, to a ―Market-based economy. India is now closely integrated with the global‖
economy and is considered as, one of the pillars for the global economic growth. The
process of liberalization started in the mid-1980s and gathered momentum in the 1990s,
with the further opening of the economy and the creation of regulatory institutions to march
toward fully competitive markets. As a result of liberalization, India‘s GDP has been rising
by more than 7 per cent annually in the past decade, compared with 3.5 per cent annually
from 1950 to 1980. The Indian economy maintained a growth rate of more than 5 per cent,
even during the global recession, according to TRAI.
The production of agriculture and manufacturing product is contributing a small share to
economic output, while, the contribution of service sector is growing. The service sectors,
in India, account for more than 48 per cent of the economic activity and are likely to grow
at more pace in near future. A majority of service workers are engaged in the creation,
processing and distribution of information. The telecom sector therefore, has assumed a
major importance as an enabling infrastructure. The telecom sector in India witnessed rapid
changes in the last decade. There has been a far reaching developments in Information
Technology (IT), consumer electronics and media industries across the world.
The Telecom sector has been one of the fastest growing service industries in the world.
India started its telecommunication operations in 1851. India‘s 42 Million fixed line
telephone networks is the 8
th
largest network in the world and the 3
rd
largest among the
emerging Asian countries. Current Growth in terms of revenue is 13 per cent per annum
and in terms of subscribers 23 per cent per annum.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

The sector was adversely affected by over-capacity and recession during the year 2000.
The situation was further compounded by a few high profile bankruptcies and corporate
scams in 2002. However, the problems were confined to the developed markets of USA
and Europe, and the global telecom market grew at double digit rates, thanks to the robust
growth of developing markets such as China and India. Liberalization of Telecom sector
has moved at a fast clip, during the last 5 years, which witnessed rapid development and
increased investments (both domestic and FDI).With high level of private sector
participation, the industry has registered high growth in the recent past .Growth rate in
subscriber base ( past 5 years) 20 per cent to 25 per cent per annum. The private players
have entered into basic telephone services, i.e. National and International long distance
(NLD) services, in a big way, and the three major players are, Tata, Bharti and Reliance.
Thanks to intense competition, prices for all services have come down during the year
2002, STD / ISD call rates (fixed lines) have been fallen significantly; prices for mobile
services also came down.
In the National Telecom Policy (NTP 1999), the Government of India had envisaged the
provision of provide telecom facility in the rural areas to meet the Universal Service
Obligation (USO) by March 2002. This target has not been achieved; but there have been
substantial additions during the year 2004 -2006. Apart from the public sector i.e. BSNL,
the private sector players in the basic telephony sector, have also been provided with the
specific targets for the Village Public Telephones (VPTs). The target for VPT‘s, for
private players was nearly 98,000 by March.
The telecom sector in India comprises both, private players and public players. Private
players are classified as: Indian company and Foreign Investment Company and Public
players comprise MTNL and BSNL. Chart given below, gives graphical view about the
Indian Telecom Sector Structure.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

2
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Structure of Indian Telecom Sector
Indian
Telecom
Structure
Public Sector private Sector
MTNL BSNL
Indian
Foreign
Investment
Company
company
Source: D & B Research
The Indian telecom sector is divided into two sectors namely, private sector and public
sector. Over a period of time, number of private players increased over public players.
Public sector comprises MTNL and BSNL; whereas private sector covers Indian
company and foreign investment company.
1.2 MEANING AND DEFINITION OF TELECOMMUNICATION
At present the ―Telecom sector is worlds‘ most lucrative sector. It is one of the fastest‖
growing sectors among all the sector of the economy. Following are the definitions of the
telecommunication:
“the telegraphic or telephonic communication of audio, video, or digital information
over a distance by the means of radio waves, optical signals, etc, or along a transmission
line”.
-English Dictionary
“Communication at distance."
-Webster Dictionary
“The transmission of signal over long distance, such as by telegraph, radio, or
television.”
-The IEEE
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

From all the above definitions, it is cleared that, telecommunication is nothing but
communication with the help of various electronic gadgets. Telecommunication is also
known as ―Electronic Communication . An overall telecommunication network consists‖
of local network, inter-connected by long distance network.
3
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

―Telecommunication means service of any description provided by the means of any‖
transmission, emission, or reception of sign, signals, writing, images, and sound or
intelligence or information of any nature, by wire, radio, optical or other electro-magnetic
means or systems, including the related transfer or assignment of the right to use capacity
for such transmission, emission, or reception by a person who has been granted a licence
under the first provision to sub-section(1) of section 4 of the Indian Telegraph Act-1885.
1.3 BRIEF HISTORY OF TELECOMMUNICATION
For the first time, the technology for the telegraph was introduced in the year 1747, when
William Waston, successful in transmitting electronic impulses, that could be transmitted
over a long distance by wire. In 1837, Samule Morse has invented bearing his name,
detail message can be sent and received hundreds of miles away, and telegraph became
popular in the world. In 1875, Alexander Graham Bell invented ‗telephone‘. After that
radio, television and internet invented. After sometime, many innovations took place for
sending and receiving message. Today, in information era ample gadgets are introduced
for communication.
1.4 GENESIS OF TELECOM SECTOR IN INDIA
Begin with1991 to 2010 entire telecom sector scenario has been changed. Landmark
developments, in it the field made it one of the key sectors of economy. There are
numerous factors that contributed to the growth of telecom sector such as, National
telecom policy-1994, establishment of TRAI, Department of Telecommunication in 1985,
etc. Following table illustrate milestone development in telecom sector over a period of
time. Establishment of the TRAI has regulated entire telecom sector and made this sector
more organized then before. Increased in FDI limit has encouraged competition in the
telecom sector. Table given below shows some important milestones in the telecom
industry.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

4
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Table No 1.1
Time Line of Evolution of Telecom Industry
YEAR
EVENT
1991 Introduction of private participation in Delhi, Mumbai, Kolkata, Chennai
1994 National Telecom policy
1995 First Cellular mobile services started in Calcutta. Two Licenses were
awarded in 18 License Services area.
1997 Establishment of TRAI
1999 Introduction of Revenue share based license fee.
2001 BSNL and MTNL were given the 3rd mobile operator licenses
2003 Introduction of UASL. Receiving Party pays scheme.
2005 FDI limit raised to 74%
2007 Government awarded new licenses on a fixed fee basis
2008 DOT announced 3G guidelines
2010 3G and Broadband Wireless access spectrum auction
Mobile number portability started at Rohtak and Haryana.
2015 100% FDI Allowed
2015 Introduction of 4G
1.5 FACTORS RESPONSIBLE FOR THE GROWTH OF TELECOM SECTOR IN
INDIA
Various factors have contributed for the growth of telecom sector in India. Some of the
important factors are mentioned as below:
1. WIMAX5: WIMAX is a telecommunication technology that can transmit wireless
data over 500 has times faster than leading WIFI networks. This innovative technology
has the potential to revamp internet access and changed the use of cell.
2. Rural Telephone: Rural market is the next growth driver for operator with the
saturation of urban market. To capitalize on increase population and disposable income
of the rural masses, public – private partnership is the main reason.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

3. Infrastructure sharing: Public private partnership is another factor for the growth of
this sector.
5
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

3. Technology and Infrastructure sharing: Two major factors responsible for the
growth of telecommunications industry are, use of modern technology and market
competition. The growth of Indian telecommunication sector is highly driven by
encouraging government policies, emerging new technologies and changing consumer
behavior. Radically reduced call rates and astounding technologies like 3G, Android and
dawn of innovative products like iphone, Galaxy tab, and further developments are
expected in the coming years. One of the products of modern technologies is optical
fibers, which are being used as a medium of data transmission instead of using coaxial or
twisted pair cables.
4. 3G Technology: 3G is short form of 3
rd
generation technology. It is launched in India
on February 2009. 3G technology has advantage over 2G technology. It increases speed
of downloading. 3G network capable of delivering amazing access speeds to keep you
ahead, increasing bandwidth on your mobile to broadband speeds. 3G not only promises
faster web browsing and file downloads but also empowers demanding multimedia
applications such as video conferencing, Voice-over-IP (VoIP), full motion video and
streaming music.
1.6 THE FDI DILEMMA IN INDIAN TELECOM SECTOR
The ―FDI refers to ‗Foreign Direct Investment‘, investment made by foreigners on‖
Indian company. After liberalization of Indian economy, foreign investment gained
importance in India. The speedy growth of many sectors became possible, due to the FDI.
Earlier there were few players, which could be counted on figure tips. Over a period of
time, rise in the competition, entry of the private players and the government initiative
has changed the complete scenario of the telecom sector.
FDI is an important source of the capital, skill and technology. It also provides
employment opportunities directly and indirectly in the sector. NIP 1991, resulted in
liberalization of investment limits. Also various policy measures by government of India
to encourage investment. After 1991, ceiling on the FDI, in telecom sector has been
raised. 100 per cent FDI allowed in the telecom infrastructure. Investor friendly, FDI
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

policy framed slowly and gradually.FDI became the source of network expansion; by
fueling fund on time. During the year 2007-2008 total FDI inflow was Rs. 3901 crore. At
present, India is third largest recipient of FDI after finance and IT sector, which attracts
6
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

20.43 per cent and 15.21 per cent respectively (according to DOT Report on FDI inflow
in Telecom Sector). FDI in telecom sector has been raised from 49 per cent to 100 per
cent in infrastructure projects.
FDI in Telecom sector, 2000 - 2012
Source:TRAI Report: A Decade Profile
From 2007-2008 and 2009 2010 there is increase in FDI in India at high speed. However
between 2010-2011, FDI investment reduced due to the inflation and infrastructure
bottlenecks at domestic level. In 2011-2012, FDI investment increased, which is, still
going on. FDI had solved problem of finance to the certain level.
1.7 EFFECTS OF FDI
6. Inflow of the foreign currency and the technology.
7. Increase in the competition between the local players, which ultimately benefit to
the consumers.
8. Telecom services now available at the subsidized prices.
9. Telecom facilities are available reasonable and affordable price.
10. Technology inflow resulted in improved voice and data quality.
11. Import of telecom instruments at lesser price.
12. It has created positive impact on the many related sectors of the economy.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

7
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1.7 THE INDIAN TELECOM AUTHORITIES
Structure of Telecom Sector
Ministry of
Communication
& IT
Telecom TDSAT
DOT TRAI
WPC
Commission (Dispute (Spectrum
(Regulatory)(policy Making) Settlement (Licencing) Allocation &
Body) Mangement)
Source: The Indian Telecom Sector, Legal & Regulatory Framework by Nishith Desai, July 2014.
Telecom Commission: it is the one of the high level government body. The essential
functions of Telecom commission are:
8. Policy formulation, licensing and co ordination of matters relating to telegraphs
telephones, wireless data, fax and other services.
9. Active co-operation with international companies for the matter related to telecom.
10. Encourage research and development in telecom sector.
11. Promotion of private investment in the telecom sector.
12. Prepares budget for the DOT and surveillance its operation.
DOT
The central government has authority to grant license for establishing, maintaining and
working of the telegraph and wireless telegraph equipments. Some of the important
functions of the DOTs are:
12. Issue license.
13. Co-operation with the foreign nation for the matter related to the
telecom (i.e. international Telecomm Union - ITU).
14. Promotion of the private investment.
15. Encourages standardization, research and development in the telecom sector.
TRAI
TRAI is autonomous statutory body, established under Telecom Regulatory Authority of
India Act, 1977. The main purpose of the TRAI is to provide a fair and transparent policy
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

8
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

environment, which facilitates fair competition among the telecom players. Only TRAI
has sole authority to take binding decision on the fixation of tariffs.
WPC
WPC was established in the year 1952 and it is a wing of the Dot, which is responsible
for the Frequency Spectrum Management. It performs statutory functions of the central
government. It represents India at the international level. WPC is headed by the Wireless
Advisor to the Government of India. It issue licence to establish, maintain operate
wireless stations. WPC is divided into three functional groups;
13. Licensing and Regulation
14. New Technology Group
15. Standing Advisory Committee on Radio Frequency allocation
Telecom Dispute Settlement and Appellate Tribunal (TDSAT)
TDSAT was established in the year 2000. It is established with the power to settle dispute
between DOT (licensor) and licensee, service provider, service providers and group of
customers. Decision of TDSAT can be challenge only in the Supreme Court of India.
1.9 THE SUCCESS FACTORS/ GROWTH DRIVERS OF THE
TELECOM SECTOR
It is clearly understood by the service providers that to survive and succeed in the market
for the longer time, it is crucial to remain innovative. Service providers started taking
proactive decisions. Technology update and CRM helps to keep customers happy,
contented and loyal. Following are growth drivers of telecom sector:
14. Indian government has reduced custom duty from 10 per cent to 5 per cent, which
resulted in import of the telecom equipment at the reduced price.
15. Low Call Cost has increased the number of connections.
16. Reduced cost of handset, increased access of middle and lower class people, so
increased in mobile users.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

17. The National roaming charges are reduced, which further added to the increased
demand for mobile.
9
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

17. Quick connectivity in the fixed line telephone and mobile.
18. Increased demand for the internet among all the class of people has given option
for the computer.
19. Global Calling Card (GCC), provided by the telecom sector has helped the
subscribers to make calls from the foreign country and save up to 80 per cent to 90
per cent on the international calling.
20. CDMA and GSM featured with mobility, internet and easy access.
Bernhard Goldberger had identified two success factors
18.Shall Have Factors
19. Must Have Factors
Success Factors
Success
Factor
Shall Have Factors
Must Have factorsSocial Relationship
3 Minute ValuePower
SimplicityEsier, quicker, More(EQM)
Additional BenefitsEntertainment
Customer friendly tariff structureSecurity
According to the author, in shall have factors, at least one factor must be met by the
service providers. It is not compulsory to offer all the features. In must have factors it is
obligatory for the service providers to offer all the features in his service.
For every service providers this shall have and must have factors are different. One need
to decide this factor depending on its position in the market and other factors.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

10
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1.10 WIRELESS AND WIRE LINE GROWTH
Table No1. 2
Growth of the Subscriber base (in million)
Year Subscriber base
2005 75.1
2006 146.4
2007 228.9
2008 341.3
2009 519.2
2010 746.6
2011 890.0
2012 929.0
2013 868.0
2014 905.0
2015 975.0
Graph 1
Graphical View about Subscriber Base
1200
890 929 868 905
975
1000
800 746.6
600 519.2
341.3
400
146.4
228.9
200 75.1
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: COAI Report 2015
Total Number of Telecom Subscriber in India from 1981-2011
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Source: TRAI Report 2012: A Decade Profile
11
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Telecom sector growth taken place in three stages:
20. Before 1990: State owned Stage.
21. 1991-2000: No Wireless phone.
22. Post 2001: Era of Wireless.
Between 1981-1990 telecom sector registered sluggish growth rate. In 1992, telecom
sector opened up for the private sector and gave birth to competition. In 2004, mobile
phone connection has taken over land line connection. Total telephone subscriber in India
increased from 28.53 million in 2000 to 943.49 million in 2012.
Total Number of Wire line Subscriber and Growth Rate from 1981-2011
Wire line subscribers rise from 2.3 million in 1981 to reach its peak at 50.18 million in
2006. Thereafter, it started noting negative growth. End of February 2012, wire line
subscriptions came down to 32.33 million. India started has following the worldwide
trend, where the mobile phone is a substitute to fixed line phone, through competition has
compelled the landline services to become more efficient in terms of quality of services.
The landline network quality has improved and landline connections are now usually
available on demand.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1
2
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Total Number of Wireless Subscribers and Growth Rate
Above diagram depicts that, in first two years 1996-1997 growth rate was phenomenal,
after that it suddenly came down which increase in the year 2003. Again in 2007-20011,
growth rate started reducing. In India 95% cellular services are prepaid and GSM
technology is dominating in India. At the end of the December 2011, GSM based mobile
connection accounted for 87.9%.
Tele-density, March 2001-February 2012
Over a period of time number of wireless subscribers increased, which contributed to
increase in total tele-density. Growth of fixed line telephone was stagnant between 2000-
2012, while that of wireless connections were increased considerably. In 2008- 2012
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

growth of wireless subscription was at peak. From 2001-2012, growth of tele-density is
positive.
13
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1.11 INTRODUCTION OF MOBILE
The use of mobile phone has become very common among all groups of the citizen.
Mobile phone has created remarkable impact on all of us life; it is now, inseparable part
of our life. Over a period of time, the fixed line telephone users are reduced and numbers
of mobile phone user are increased. In the year 2011, there are over 6 billion mobile users
in world and 893,862,478 in India. Mobile phone has replaced many gadgets like pager,
clock, computer, radio, letters, telephones, etc. The Android application in the mobile has
completely changed the use of face of mobile.
What is Mobile Phone?
It refers to a phone that can make and receive telephone calls over a radio link, while
moving around a wide geographical area.
“a small telephone that people can take with them and use outside their home‖
Merriam Webster Dictionary
―A telephone with access to a cellular radio system, so it can be used over a wide area,
without a physical connection to a network .‖
It is also referred as ‗handset‘, ‗cell phone‘, and ‗phone‘.
Meaning: Cellular Service Provider:
The cellular mobile service provider means, - ―a licensee authorized to provide cellular
Mobile Telephone Service under a licence granted under section 4 of the Indian telegraph
act, 1885, in a specific service area. (www.necptrai.gov.in)‖ .The Service providers
operates in the four circles, design by the TRAI. The various service providers operate in
India includes, Bharti Airtel, Vodafone, Reliance, Tata Decoma, Airtel, Loop, Videocon,
Idea, etc. The table given below depicts four circles for the cellular operators in India.
Table No-1.3
Circle for the Cellular Operators in India.
Metros Category A Category B Category C
Kerala
Himachal Pradesh
Delhi Maharashtra Punjab
Bihar
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Mumbai Gujarat Hariyana
Orissa
Chennai Andhra pradesh UP
Assam
Kolkata Karnatak MP
North East Jammu
Tamil Nadu Rajasthan
Kashmir
West Bengal
14
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

In India, the cellular mobile Service Providers are licensed to operate in designated
geographical operating areas, referred to as ‗circles‘. In India, there are 23 circles. These
circles are named as metros, category A, B, C respectively. Circles are designed on the
basis of population of the area.
Table No-1.4
Trends in Mobile Cellular Telephone subscribers and Tele-density in India
Mobile Cellular Telephone subscriptions Mobile Cellular Telephone
subscriptions
Per 100 inhabitant
Year Subscribers Subscribers
2001 6,540,000 00.61
2002 13,000,000 01.19
2003 33,690,000 03.05
2004 52,220,000 04.65
2005 90,140,000 07.91
2006 166,050,000 14.35
2007 233,620,000 19.90
2008 346,890,000 29.13
2009 525,090,000 43.48
2010 752,190,000 61.42
2011 893,862,478 72.00
2012 906620000 79.00
2013 867800000 74.00
2014 904510000 77.00
2015 980810000 79.00
Source: Indian Department of Telecommunication (upto February 2015)
Above table depicts Mobile cellular Telephone subscriptions per 100 inhabitants for a
decade. In the year 2001 there were only 6,540,000 subscribers in number and 0.61% in
absolute terms. Over a period of time there is increase in numbers of subscribers and in
2011 it reached to 893,862,478 subscribers. Increased number shows increase in numbers
of mobile users. As on June 2015 mobile density increased to 79 and wireless subscriber
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

stood 980.81 million.
1
5
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Liberalization of Indian economy and increased in profit encouraged many players to
penetrate the market. Number of players and their market share increased over a period of
time due to various reasons. Following table gives information about service providers in
India with their market share. Bharti Airtel stands first with 30.2 percentage followed by
Vodafone and Idea 23 per cent, 91 per cent and 15.13percentage respectively as per the
TRAI report.
Table No-1.5
Market Share of Service Providers
Sr No Mobile operator Percentage
1 Bharti Airtel 23.23
2 Vodafone 18.99
3 Idea 16.18
4 Reliance 11.23
5 Aircel 08.38
6 BSNL 08.08
7 TATA 06.93
8 Telewings 04.70
9 Sistema 00.92
10 Videocon 00.72
11 MTNL 00.36
12 Quadrant 00.28
Total All India 100.00%
Source : TRAI Report 2015 (28 Feb)
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

16
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Market Share of the Service Providers as on Feb 2015
1%1%
0% 0%
Bharti Airtel
7%
5%
23% Vodafone
8%
Idea
9% Reliance
11%
19% Aircel
BSNL
16% TATA
Telewings
Sistema
In beginning there were service providers like - Orange, BPL, MTNL, etc. Only few
providers were presented. Establishment of TRAI and encouraging government policy
resulted in entry of many service providers in India. Above table shows that, at present
Airtel is the market leader among all with 30.25 percentages and 127619313 subscribers
based as on December 2010 followed by Vodafone with the market share of 23.91% in
same period. Indian service providers had also made their presence in foreign country,
which made them more competitive at the international level. Increase in competition has
led to invention of new technology and improved quality services to the subscribers.
Segmentation of Customer in Telecom Sector
CUSTOMER
YOUTH
YOUNG
SME SPECIAL FAMILY
PROFESSIONAL
Above diagram represent customer segment, as at the each stage of the life requirement is
different. Marketer can fabricate various schemes on the basis of their requirements. The
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

different segments are explained as below
22. Youth: This segment consist major (approx 45 per cent) of the total population of
the India. Generally youngster have large friend circle and like to remain
17
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

connected. They prefer prepaid service, with value added services like SMS,
ringtones, movies, MMS, internet etc. Face book and what‘s up is famous among
all group of youngsters.
4. Youth Professionals: generally, this segment people have high mobility, so they
generally prefer post paid schemes, with value added services like stock market
news, business news, corporate updates, etc. Many corporate plans are introduced
to match their requirements.
5. Small and Medium Enterprise: This segment consists of the people who switch
to mobile phones. Their focus is on economy package rather than value added
services.
6. Family: This segment consist more number of the dependents compared to any
other segment. As families are geographically scattered, they are tied through the
same cellular service provider, as it offers cost advantage.
7. Special: Special category includes group of people like film stars, politicians,
CEOs and rich people. This group of people prefer special service request like
private number, special number.
8. Market Factor: It is basically composed of two factors, strategic factor and
economic factor. It is based on market and competition. Proper blending of 4ps of
marketing brings success result.
1.12 CHALLENGES FACED BY THE SERVICE PROVIDERS IN
INDIA
There is no doubt, the telecom sector is today, growing with high speed; but still, it is in
its nascent stage. There are various issues, which creates hurdle for the growth of telecom
sector. Following are the challenges faced by the service provider;
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

18
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

9. Declining Average Revenue Per User (ARPU)
Over a period of time, number of service providers penetration increased, which has
generated competition in the sector. The Service providers are creating product
differentiation on the basis of price and value added service. Due to price war in the
industry, average revenue is reducing continuously. Service providers are more
focusing on the quality of the network to meet deficit in the revenue. Increased
operation cost and reduce in profit has thrown real challenge for the service providers.
Furthermore, the auction price for the spectrum allocation is also increased, which has
resulted in the rise in the call charges.
10. Lack of Telecom Infrastructure:
Good infrastructure is the backbone of the any economy. To encourage the private
players for investment and FDI in telecom sector, good infrastructure is essential
requisite, which is lacks India. The service provider need to incur huge operation cost,
which further added to this cost. The challenges posed by lack of supporting
infrastructure are, poor road condition and scarcity of electricity supply. No doubt,
government of India has taken number of initiative to develop infrastructure, but still
it is sufficient to fill current deficit, especially in rural areas.
11. Mobile Number Portability (MNP):
MNP in India introduced on 20
th
January 2011. In this feature one can change the
service provider without changing mobile number. As the number remains same in
MNP, often, subscribers started changing service provider due to price factor. Now, it
is challenge for the service providers to retain their existing subscribers. If service
provider increases call charges, the subscribers immediately switch to other service
providers. So in any case, service provider cannot increase the price though operation
cost is increasing.
12. Increased Competition:
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

There was a time when subscribers were waiting for the long time to get telephone
and mobile connection. Operators were not able to fulfill the demand. Though, at
present the telecom sector is in its nascent stage, it is growing at the fast speed. Due
19
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

to the high profit in the sector, many players entered in the telecom sector. Earlier
there were players like BPL, Hutch, MTNL, Orange, etc. over a period of time many
operators entered in the market. At present, we see there is fierce competition in the
market. Subscriber gets easy connection, and has choice to select any service
provider.
1.13 THE MODERN THEORY OF PHYSICAL NEEDS
Self Actualisation
Mobile
Ego Need
Social Need Shelter
Security Need
Food
Physical Need
Maslow‘s Need Theory Modern Physical Need
In 1943, American Psychologist, Abraham Maslow has propounded, a ―Need Hierarchy
Theory of human being. In this theory, five sets of needs are arranged in hierarchy of‖
their importance to the individuals as shown in the above diagram. Physical need (food,
Clothing and Shelter) is basic need which should be fulfilled first. Physical needs are
followed by safety and security needs and social needs.
In 2010, Maslow‘s Theory replaced by the ―Modern Need Theory , in which basic‖
needs of the human being includes food, shelter, clothing and mobile. This shows
pervasiveness of the mobile phone. Basically, mobile serves communication purposes but
over a period of time, it is used for multiple purposes. Due to the globalization and
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

expansion of the Indian business, quick communication became mandatory and the
landline replaced with the mobile phone as landline doesn‘t have mobility. Increase in the
young population and craze of new gadgets further added to the growth of this sector.
2
0
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1.14 INTRODUCTION - MUMBAI
―Mumbai is the financial capital of India and probably the best-known face of India to‖
the international community. Nearly one-third of the country's foreign trade, in terms of
value, is handled here, and a similar proportion of India's software exports originate from
Mumbai. In India, Mumbai's socio-economic structure has undergone a sea change over
the years. The manufacturing activities in the city have gradually given way to higher
value added services, mainly the financial services. While this process partly reflects a
similar transformation in practically all-major urban centers across the globe, it has
accelerated in Mumbai because of the peculiar geographic conditions. Further, the city's
per capita income is about twice that of Maharashtra and about three times the average
for the country. Such high purchasing power of the city offers an obvious attraction for
the marketers. According to the Business Intelligence Unit (BIU) study, Mumbai has the
highest purchasing power among all the major cities of India. Interestingly, about 52
percentages of the city's purchasing power originates from households with annual
income above rupees 112 thousand. More than 34 per cent of the city‘s households come
into this income bracket once again, a proportion higher than all other major cities in the
country. Mumbai is rapidly emerging as the centre of financial services, information
technology and entertainment services. Mumbai is always attraction for millions of
people.
1.15 INTRODUCTION - MUMBAI SUBURBAN DISTRICT
The Mumbai Suburban district is a district of the state of Maharashtra in western India.
Its headquarters is in Bandra( Marathi : Vandre ). It consists of three administrative
subdivisions or tehsils: Kurla, Andheri, and Borivali. The district along with Mumbai
City district makes up the metropolis of Mumbai. The district occupies an area of 369
km². It has 227 constituencies. This is the second smallest district of Maharashtra,
administratively comes under Konkan Division. The jurisdiction of Mumbai Suburban
District is from Bandra to Dahisar, from Kurla (ChunaBhatti) to Mulund and from Kurla
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

up to Trombay Creek.
2
1
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Mumbai Suburban District is one of the largest districts in the country by population. The
current population is 8,587,561, according to 2001 census, making it the fifth most
populous district in India (out of 640). The Mithi River is the main river in the
district.*(www.wikipedia.org)
Highlights of Mumbai City:
12. Over 12 Million People staying in 437 - 460 sq. km.
13. Average density: 28000 per sq. km.
14. 66% of Mumbai region is occupied by water.
15. Northward movement of population in terms of housing
16. 55% slims on private land
17. Daily trips of local train - 70 lakhs per annum
18. Daily trips of Mumbai Electricity and suburban Transport buses - 52 lakhs per
annum.
Table No-1.6
Information on Growth of Mumbai in 110 Years
Years Population
1911 1,018,388
1921 1,244,934
1931 1,268,936
1941 1,686,127
1951 2,966,902
1961 4,152,056
1971 5,970,575
1981 8,227,382
1991 9,900,30+2,600,30 Thane =12,500,000 (Greater Mumbai + Thane)
2001 11,900000 (Mumbai City)16,368,084 (Greater Mumbai + Thane)
2011 12,478,447 i.e. 1.24 crores
18,414,288 i.e. 1.84 crores (Greater Mumbai)
*Source : International Seminar on Mumbai Fort A By Professor Vibhuti Patel (12/1/13)
As the population increases mathematically, demand increases geometrically. Mumbai‘s
population increased from 16,368,084 to 18,414,288 just in the span of decade. Increase
in Population is one of the factors responsible for the growth of telecom sector in
Mumbai.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

22
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Table No-1.7
Demographic profile of Mumbai City
Year
2001 2011
Sex Ratio (Per 1000) 838 777
Child Sex Ratio (0 – 6 Age) 874 922
Average Literacy 86.04 88.48
Male Literacy 90.23 90.54
Female Literacy 81.38 86.03
Total Child Population (0 - 6 Age) 262,229 339,723
Male Population (0 – 6 Age) 139,906 176,789
Female Population (0 – 6 Age) 122,323 162,934
Proportion of Children (0 – 6 Age) 8.34% 10.18%
Proportion of Boys (0 – 6 Age) 8.17% 9.41%
Proportion of Girl (0 – 6 Age) 8.53% 11.16`%
Source : International Seminar on Mumbai Fort A By Professor Vibhuti Patel (12/1/13)
In any economy, demographic population plays very important role for economic
development. Young population is essential for the growth of the economy. There is
direct relation between young population and demand for the fashionable goods and
technical gadgets. Mobile is became lifeline of the today‘s‘ young population. Above
table depicts change in India‘s demographic profile between the periods of 2001 to 2010.
Table No-1.8
Education Scenario in Mumbai
Schools / Colleges Numbers
Universities in Mumbai 0012
CBSE affiliated schools in Mumbai 0058
BMED run schools 1991
Secondary schools 3075
Junior Colleges in Mumbai 0330
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Engineering Colleges 0038
Architecture Colleges 0007
Pharmacy Colleges 0009
Source: International Seminar on Mumbai Fort A By Professor Vibhuti Patel (12/1/13)
23
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

As literacy level increases, consumption also increases. Over a period of time growth has
been seen in the literacy level of Mumbai. Above table shows increase in schools,
colleges, universities in Mumbai.
Table No-1.9
Overall Sex Ratio (No. of Women per 1000 Man) Of Greater Mumbai
Year Thane Mumbai Suburban Total
1901 939 652 1581
1911 947 570 1417
1921 937 561 1498
1931 935 592 1527
1941 940 616 1556
1951 920 712 1632
1961 919 744 1663
1971 894 769 1663
1981 883 801 1681
1991 879 831 1710
2001 858 822 1680
2012 880 857 1737
Source: International Seminar on Mumbai Fort A By Professor Vibhuti Patel (12/1/13)
Employment Pattern
14. In 2001, out of total population of 178.46 lakhs in urban, the total residents
workers were 66.16 lakhs in the year 2001 i.e. 37.07%. In case of Greater
Mumbai, Share of total worker in its total population was 38 % in 20001.
15. As Mumbai moved from a primarily manufacturing to a service based economy,
jobs are slowly moving out of the congested city.
Increase in employment creates more and more demand for the mobile as it
became important tool for the communication.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

24
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

1.16 TELECOMMUNICATION COMPANIES IN WESTERN
MUMBAI
The city of Mumbai has basic landline operators as well as Cell phone operators.
Landline numbers are 8 digits long, whereas GSM/CDMA cellular operators are 10
digits.
Landline Operators:
10. MTNL: It is the one of the largest and oldest operator in Mumbai. It is owned and
managed by central government, i.e. Mahanagar Telecom Nigam Limited
(MTNL).
11. Tata Indicom: Formerly known as Hughes Telecom. It is a new company entered
in the sector, with the initial minor subscriber base of 200,000.
12. Reliance Infocomm: It is also known as Reliance Communication. First entry they
had made in landline space.
13. Airtel Broadband and Telephones: This is one of the latest ventures by the Bharti
group. Even though exposure is limited, but they are expanding their business in
many parts of the city.
CDMA Operators
CDMA operations make use of Wireless Local Loop (WLL). CDMA operations were
launched in 2002.
12. Reliance Infocomm: Reliance Infocomm is a CDMA operator in India. It has
developed a good subscriber base and at present it is one of the largest competing
mobile operator in Mumbai. It has launched its service in 2003.
13. Tata Indicom: Tata Indicom, like Reliance also offers CDMA connections. Tata is
now providing service at national scale.
14. Garuda: The pioneer in WLL technology is run by the state owned MTNL.
Operations started in 1999. But now it is not in existence.
15. Virgin Mobile using Tata network they
16. MTS is a new network at present.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

GSM Operators
23. Airtel - Airtel, the largest GSM operator (2G & 3G) started its operations in
Mumbai in 2002-2003.
25
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

2. Vodafone-The 2nd largest GSM operator in Mumbai is Vodafone (formerly
Hutch/Orange/MaxTouch). It has a large user base and has a large network (2G &
3G).
3. Loop Mobile - Loop Mobile has been bought over by the Essar group and was to
be integrated into Hutch by March 2006 but the deal failed. BPL has changed its
brand name to Loop and with this new name claims to be the newest entrant to
Mumbai circle.
4. Dolphin - Dolphin is the GSM branch of MTNL. The Postpaid mobile service
brand is Dolphin while in Prepaid GSM service the Brand name is Trump. MTNL
GSM service Dolphin along with Trump is operator of Mumbai which provide 2G
and 3G both Mobile service.
5. Idea- Idea is the GSM branch of Aditya Birla Group.
6. Reliance - Reliance launched its GSM operations on 30 December 2008.
7. Aircel - Aircel is the latest entrant to Mumbai circle. It has launched its operations
in the month of April 2009.
8. Tata Docomo -Tata Docomo came into operations in the month of July 2009.
9. Etisalat - latest network in Mumbai.
10. Uninor: Uninor is the latest competitor to Mumbai circle.
11. Videocon: latest entrant. Shares Loop Mobile network in Mumbai.
*(www.wikipedia.org)
Table1.10
Mumbai Wireless Telecom Data and Service Providers
Total Market Active Active
Active
Player Rank market
Subscribers Share % Subscribers Rank
Share
Aitel 3,828,755 12.6% 3 95.5% 3,656,844 15.5% 3
Vodafone 6,413,152 21.1% 1 90.0% 5,773,119 24.4% 1
Reliance 6,124,823 20.2% 2 92.9% 5,689,348 24.1% 2
Idea 3,109,952 10.2% 5 90.4% 2,812,330 11.9% 4
Tata 3,509,471 11.6% 4 66.8% 2,344,678 09.9% 5
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Aircel 1,548,230 05.1% 7 58.0% 0898,593 03.8% 7
MTNL 2,405,455 07.9% 6 39.1% 0939,330 04.0% 6
Others 3,432,955 11.3% -- 44.1% 1,512,754 06.4% --
Total 30,372,793 100% -- 77.8% 23,626,996 100.0% --
Source:http://www.boneless.in/search/label/2013
26
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

In Mumbai wireless telecom market, Vodafone leads with 21.1% share in terms of total
subscriber base followed by Reliance (20.2%) and Airtel (12.6%).
 In terms of active subscriber base, market share followed by Vodafone (24.1%),
Airtel (15.5%), Idea (11.9%) and Tata (9.9%).
 MTNL with meager 4.0% share of active users is fast approaching a status of
extinct species in Mumbai. MTNL‘s active user percentage is 39.1% showing
bulk of its user base is dead.
 Top 5 players accounts for 85.8% of Mumbai‘s active mobile subscriber base.
 By March 2013, Mumbai is 15
th
largest wireless telecom market in India
accounting for 3.27% of total active subscriber base.
1.17 BHARATI AIRTEL LIMITED
‗Bharati Airtel limited‘ commonly known as ‗Airtel‘, is an Indian Public Ltd
Multinational Telecommunication services provider company. Its head office is situated
at New Delhi, India. It was founded by Sunil Bharati Mittal in the year, 7
th
July 2001. It
is the largest provider of mobile provider of mobile telephone and second largest provider
of fixed telephone. Airtel is the largest telecommunication company with 261 million
subscribers across 20 countries as on august 2012. Bharati Airtel, formerly known as
Bharati Tele- Ventures Limited (BTVL), is India‘s largest and world‘s third largest
cellular services provider with more than 82 million subscribers as of December 2008. It
also offers fixed line services and broadband services. SingTel owns over 30% of the
Bharati Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus,
making it a sister company of the brand Airtel comes to us from Bharati Airtel Limited,
India‘s largest integrated and the first private telecom services provider with a footprint
in all the 23 telecom circles. Bharati Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country with its world
class products and services. The business at Bharti Airtel has been structured into three
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

2
7
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

individual strategic business units (SBU‘s) – Mobile Services, Airtel Tele-media Services
and Enterprise Services.
Today Airtel is the fourth largest mobile service provider in the world. It also provides
broadband internet and provider of digital television services. It offers all the services
under Airtel brand. Airtel is the first Indian telecom service provider to achieve CISCO
Gold Certification. As on 2012 Airtel has 21,299 employee and equity share of US$
10.82 billion and net asset value of US$ 31.85 billion and net profit of US$ 863 million.
Airtel has GSM network operates in 20 countries across South Asia, Africa and providing
2G, 3G and 4G services depending upon the country of operations. Airtel has 183 million
wireless subscribers. It has market share of 20.62% at the end of November 2012. ―The
Brand Trust Report , Published by ―Trust Research Advisory , places Airtel as the only‖ ‖
mobile operator in the most trusted brand in India. In 2002 a new Airtel Logo came, A R
Rahman became the brand ambassador and gave out the Airtel tune ―Live every
moment which was the most downloaded ringtone in the telecommunications history.‖
Today, Airtel is the largest cellular service provider in India and the fourth largest in the
world.
Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'Minutes Factory'
model of low cost and high volumes. Its network—base stations, microwave links, etc. is
maintained by Ericsson and Nokia Siemens Network whereas business support is
provided by IBM, and transmission towers are maintained by another company (Bharti
Infratel Ltd. in India). The company has a submarine cable landing station at Chennai,
which connects the submarine cable connecting Chennai and Singapore.*
*(www.wikipedia.org)
Vision and Mission of Airtel
Vision:
―To be globally admired for telecom services that delight customers .‖
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Mission:
―Will meet the mobile communication needs of our customers through error -free service
28
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

delivery innovative products and services .‖
Timeline
Year Events
1992 Mittal won a bid to build a cellular phone network in Delhi.
1995 Mittal incorporated the cellular operations as Bharti Tele-Ventures and
launched service in Delhi.
1996 Cellular service was extended to Himachal Pradesh.
1999 Bharti Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh.
2000 Bharti acquired control of Sky cell Communications, in Chennai.
2001 The company acquired control of Spice Cell in Calcutta. Bharti Enterprises
went public.
2002 The company was listed on Bombay Stock Exchange and National Stock
Exchange of India.
2003 The cellular phone operations were rebranded under the single Airtel brand.
2004 Bharti acquired control of Hexacom and entered in Rajasthan.
2005 Bharti extended its network to Andaman and Nicobar. This expansion allowed
it to offer voice services all across India.
2009 Airtel launched its first international mobile network in Sri Lanka.
2012 Airtel launched a mobile operation in Rwanda. Airtel and Axis Bank signed a
deal to provide mobile banking services in unbanked area.
2013 Airtel introduced mEducation – Apna Chaupal .‖
2014 Airtel launched Indias‘first 4G on mobile
Today, Airtel is the largest cellular service provider in India and the third largest in the
world. On 26 February 2013, Airtel announced that it had deployed Ericsson‘s Mobile
Broadband Charging (MBC) solution and completely modernized its prepaid services for
its subscribers in India. As a part of the deal, Ericsson‘s multi service MBC suite allows
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

prepaid customers to have personalized profile based data charging plans. Prepaid
customers will be able to customize their data plans across mobility, fixed line and
broadband by cross bundling across multiple domains (2G, 3G, 4G/LTE & Wi-Fi). It will
29
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

also offer flexible multi service charging in geographical redundant mode, making Airtel
the first operator to implement geographical redundancy at such a large scale.
Area of operation
Airtel is the first largest mobile operator in the world in terms of subscriber base and has
a commercial presence in 20 countries and the Channel Islands. Its area of operations
includes:
 The Indian Subcontinent:
o Airtel Bangla, in Bangladesh
o Airtel, in India
o Airtel Sri Lanka, in Sri Lanka
 Airtel Africa, which operates in 17 African countries:
o Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the
Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria,
Rwanda, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.
 The British Crown Dependency islands of Jersey and Guernsey, under the brand
name Airtel-Vodafone, through an agreement with Vodafone.
Products and services provided by airtel
1) 3G :
Airtel brings to you a world class 3G network capable of delivering amazing
access speeds to keep you ahead, increasing bandwidth on your mobile to
broadband speeds. 3G not only promises faster web browsing and file downloads
but also empowers demanding multimedia applications such as video
conferencing, Voice-over-IP (VoIP), full motion video and streaming music.
Experience a whole new world of applications with amazing speed on airtel 3G.
2) 4G :
This System would allow for significantly higher bit rate per user and support
interoperability of diverse and heterogeneous wireless in mobile network .One of
the promising standard for 4G is worldwide interoperability for microwave
access.
3) Wi- Fi :
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Airtel has plans to launch Wi-Fi services in India. It intends to start offering Wi-
Fi services in Delhi NCR, Mumbai and Bangalore in initial phase. All plans will
3
0
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

be on secure wireless broadband internet with unlimited usage and will be session
or time based. Users can use the service by finding a hotspot, selecting 'Airtel Wi-
Fi Zone', activating the voucher and then login to start browsing.
4) Airtel Money or M-Commerce :
Airtel has started a new M-Commerce platform called Airtel Money in
collaboration with Infosys and Smart Trust (now Giesecke & Devrient). The
platform was launched on April 5, 2012, at Infosys' headquarters in Bangalore.
Using Airtel Money, users can transfer money, pay bills and perform other
financial transactions directly on the mobile phone.
5) Digital Television :
On 9 October 2008 Airtel started The Digital TV business which provides Direct-
to-Home (DTH) TV service under the brand name ―Airtel digital service . At the‖
end of December 2012, it has about 7.9 million customers.
6) Smart Drive :
Smart Drive is a navigation app exclusive to Airtel customers. The app features
voice-based real time information update on traffic, approximate time of the travel
on the basis of the traffic situation on the various routes and also lets users see
their location on the map and plan the journey accordingly. It also suggests the
subscriber an alternate route in case of traffic congestion on the normal route.
7) Enterprise business solutions :
There are two kinds of solutions offered by Airtel. One is GPRS based Solutions
like mobile applications tools for enterprise, Track Mate, automatic meter reading
solutions etc. and the other is SMS based Solutions like interactive SMA, bulk
SMS, inbound call center solutions.
8) Mobile data service :
Airtel Data Card that gives the liberty to access the internet anytime, easy mail is
a platform that provides access to personal/corporate e-mails independent of
handset operating system and application services that shorten the queues at the
billing section off-load the pressure on the billing staff and bring convenience to
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

the users.
3
1
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

9) Tele-media Services :
Bharti provides all telecom services including fixed line services under a common
brand Airtel. As of September 2012, Airtel provides Tele-media services to 3.3
million customers in 87 cities. As on 30 November 2012, Airtel had 1.39 million
broadband subscribers.
10) One Network :
One Network is a borderless mobile phone network across all Airtel operating
countries which enable customers to move freely between the countries in which
Airtel operates, and be treated as ―virtual local customers of the visited network‖
in terms of pricing, while retaining their home network service functionality. It is
the world‘s first free intercontinental incoming roaming service.
11) iphone 3G :
Airtel introduced iphone 3G in India in the year 2008. Because of its high price
and contract bond, discouraged the consumer to purchase the iphone3G; Due to
this it was unsuccessful as compared to other market in the world. Airtel
introduced the iphone 4 on 27 May 2011 and the iphone on 2, November 2012.
12) Other services :
Airtel provides other services like Short Message Services, voice messaging,
Tele-conferences, multi-media message services etc.
Subscriber Base:
The Airtel wireless subscriber base according to Telecom Regulatory Authority of India
(TRAI) as of November 2012 was:
“Metro” Circle
Bangalore 9,999,999
Delhi 9,105,718
Mumbai 3,58,7060
Kolkata 3,606,616
Chennai 3,428,293
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

3
2
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

“A” Circle
Andhra Pradesh 18,041,904
Gujarat 6,927,459
Karnataka 16,044,964
Maharashtra 9,849,973
Tamil Nadu 10,094,293
Source: Wikipedia
"B" Circle
Haryana 2,267,166
Kerala 3,393,868
Madhya Pradesh 9,675,239
Punjab 6,851,338
Rajasthan 14,385,762
Uttar Pradesh (East) 15,105,455
Uttar Pradesh (West) 6,556,052
West Bengal 9,084,371
Source: Wikipedia
"C" Circle
Assam 3,809,218
Bihar 18,527,460
Himachal Pradesh 1,915,405
Jammu and Kashmir 2,300,268
North East India 2,551,134
Orissa 6,696,681
Today Airtel is the market leader in India with about 183 million wireless subscribers in
India or about 20.62% market share at the end of November 2012. The Brand Trust
Report*(WWW.Wikipedia) published by Trust Research Advisory, places Airtel as the
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

only mobile operator in the top 10 most trusted brands in India.
33
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Marketing strategy and vivid schemes of Airtel:
In late 2002, Bharti Cellular Ltd. Released a television commercial (TVC), Instead of
using the usual movie star or sports celebrities, it chooses the country‘s most successful
music composer, A.R Rahman to promote its brand. The campaign attracted considerable
media attention. The television commercial was a part of the brand repositioning and
restructuring efforts for Airtel, as part of which, Bharti changed the tagline nearly 2002
from ―Touch Tomorrow to ―Live Every Moment . The signature tune of Airtel is‖ ‖
composed by Indian musician A.R Rahman. The tune became hugely popular and is the
world's most downloaded mobile music with over 150 million downloads.
In 2011, Airtel introduced a jingle in TV commercials ―Har ek friend zaroori hota hai .‖
It reflects that all types of friends are important in once life. Hence it encourage the youth
to connect with every friends.
On 18 November 2010, Airtel rebranded itself in India, in the first phase of a global
rebranding strategy. The company unveiled a new logo with 'airtel' written in lower case.
Designed by London-based brand agency, The Brand Union, the new logo is the letter 'a'
in lowercase, with 'airtel' written in lowercase under the logo.
 Brand Positioning: ―An aspiration and lifestyle brand . (1995).‖
 Value Preposition: ―Power to keep in touch (1995 – 1999).‖
 Re-positioning: ―Brand of masses (1999).‖
 Value Preposition: ―Touch tomorrow (1999 – 2002).‖
 Re-positioning: ―Youth Brand (2002).‖
 Value Preposition: ―Live every moment (2002 – 2003).‖
 Value Preposition: ―Express Yourself (2003 – 2010).‖
 Re-positioning: ―The Most Loved Brand (2010).‖
 Value Preposition : ― Dil jo Chahe Pass Laye (2010)‖
Communication strategies
 In 1995, Airtel campaign begins with teaser hoardings across the city with only
company name without explaining what it was.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

34
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

 In next phase, Airtel was related with mobile services of Bharti vans with Airtel
logos roamed in the city, Distributing brochure about the company‘s services to
the consumer. About 50,000 direct callers were sent out.
 When the name Airtel, well deep-rooted in Delhi citizens, Airtel focused on
communicating the utility of mobile and started ―Leadership Campaign through‖
commercials depicting the business executive travelling in cars and using laptop
are also using Airtel mobile. It also sponsored golf tournament to communicate its
positioning.
 In 2002, it signed, music composer A.R. Rehman as a brand ambassador and
started ―Live Every Moment campaign to connect to the masses and youth.‖
 In next Phase Airtel created some highly acclaimed campaigns;
 Quality time campaign.
 Magic dalo campaign.
 Say hello campaign.
 Magic hai to mumkin hai campaign.
 For add campaign Airtel signed various brand ambassadors like shahrukh khan in
2002, Sachin Tendulkar in 2003, this associated the leadership position of Airtel
as they are the leader of their fields. Also Saif–Kareena (2006), Vidyabalan
(2008), was the hottest couples of those days. So, they associated Airtel connect
with youths by communicating itself as brand for youth and reflected itself as a
brand providing premium services.
 On 9
th
May 2009, Airtel signed a major deal with Manchester united. As a result
of the deal, Airtel received right to broadcast the matches played by the team to its
customers.
 In 2010, When Airtel repositioned itself; it launched a new TVC of the new
signature tune composed by A.R. Rehman. Which communicate about the new
identity of the brand. This was initiated of ―Thematic Brand Campaign‖
launched by Airtel.
 In 2011 Airtel sponsored Formula 1 grand prix racing tournament in India to
associate its positioning among youths.
 In 2011, a new campaign commercial was launched ―Hare Ek friend zaruri hota
hai an extension of thematic brand campaign.‖
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

3
5
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Airtel Servicces
Airtel
Business
Airtel Airtel
Airtel
Telemedi
Mobile Services a
Airtel TV
Different Schemes and Services of Airtel
 10 % Discount on bill payments of mobile post paid and fixed landline.
 Recharge with Rs.35.00 enjoy low tariff on national roaming.
 Airtel provides 35,000 entertainment video with just Rs.1.00 per mobile video.
 Different attractive schemes for local and STD calls.
 Internet Voice 399 Plan
 Solitaire 1599 plan
 Voice net 3G combo 399 plan
 Airtel delight 399 Plan
 Airtel budget 149 plan
1.17 VODAFONE
INTRODUCTION TO VODAFONE
Vodafone is the world‘s leading international mobile communications company. It now
operates in 25 countries across 5 continents and 40 partners networks with over 200
million customers worldwide. Vodafone has partnered with the Essar Group as its
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

principal joint venture partner for the Indian market. Vodafone across India had launched
their brand on 21
st
September 2007.
36
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Vodafone Essar in India is a Subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its forerunner Hutchison Telecom acquired the cellular license
for Mumbai. Vodafone Essar now operates in 16 circles covering 86% of India‘s mobile
customer base, with over 34.1 million customers. Vodafone Essar, under the Hutch
brand, has been named the most Respected Telecom Company Best Mobile Services in
the country Most Creative and Most Effective Advertiser of the year.
On July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its
Indian mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to
take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning
74% of the Indian business, while the other 26% will be owned by Indian investors, in
compliance with Indian law. On 11 February, 2007, Vodafone agreed to acquire the
controlling interest of 67% held by Li Ka Shing holdings in Hutch-Essar for US$11.1
billion, piping Reliance Communications, Hinduja Group, and Essar Group, which is the
owner of the remaining 33%. The world economy was valued at USD 18.8 billon. The
transaction closed on 8 May 2007.
Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology. Vodafone India launched 3Gservices in the country in the January-March
quarter of 2011 and plans to spend up to $500 million within two years on its 3G
networks.
Vision and Mission of Vodafone:
The Vodafone mission is “to be the communications leader in an increasingly connected
world enriching customer lives, helping individuals, business and communities and more
connected by delivering their total communication needs”.
Vodafone‘s logo is a true representation of that belief, start of new conversation, a
trigger, a catalyst, a mark of true pioneering.
History of Vodafone
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

 Acquired controlling interest in May 2007 for $10.9bn
 Expanded from 16 circles to nationwide in 2008/09
 Over 100m customers in March 2010
3
7
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

 3G launched in February 2011
 Agreement to purchase Essar stake announced on July 2011.
Timeline
Year Event
1992 Hutchison Whampoa and MAX group establish Hutchison Max
2000 Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and
Gujarat markets through Essar acquisition.
2001 Won auction for licenses to operate GSM services in Karnataka, Andhra
Pradesh and Chennai.
2003 Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which operated
in Rajasthan, Uttar Pradesh East and Haryana telecom circles and
rebranded it 'Hutch'.
2004 Launched in three additional telecom circles of India namely Punjab, Uttar
Pradesh (West) and West Bengal.
2005 Acquired BPL Mobile operations in 3 circles. This left BPL with
operations only in Mumbai, where it still operates under the brand 'Loop
Mobile'.
2007 Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The
company is renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.
2008 Vodafone acquires the licenses in remaining 7 circles and has starts its
pending operations in Madhya Pradesh circle, as well as in Orissa, Assam,
North East and Bihar.
2010 On 19 May 2010, the 3G spectrum auction in India ended. Vodafone
paid 11617.86 million (the second highest amount in the auctions) for
spectrum in 10 circles.
2011 Vodafone Group buys out its partner Essar from its Indian mobile phone
business. It paid $5.46 billion to take Essar out of its 33% stake in the
Indian subsidiary. It left Vodafone owning 74% of the Indian business.
2012 Vodafone acquires additional spectrum in 14 circles in the 2G spectrum.
2014 Vodafone India is fully owned by Vodafone group.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

38
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Marketing strategy
Positioning ―Where You Go the Network Follows You Hutch, as a brand, always tried‖
to connect with consumers in a simple, honest and real manner, while Vodafone is a more
young and fun brand. So, consumers will see a shift dazzling, a more vibrant brand, The‖
actor Irfan Khan retained for the brand promotion. They talk exclusivity about the
network and the services they are offering to the customers.
In 2003 featured a pug named Cheeka following a boy around in unlikely places, with the
tagline, "Wherever You Go, Our Network Follows." The simple yet powerful
advertisement campaigns won many admirers. Ads featuring the pug were continued by
Vodafone even after rebranding. The brand subsequently introduced ―ZooZoos”, which
gained even higher popularity than was created by the Pug. Vodafone's creative agency is
O&M while Harit Nagpal was the Marketing Director during the various phases of its
brand evolution.
Competitive Analysis Vodafone has towards warmth and emotions. Vodafone uses the
powerful visual aspects of advertisement like ZooZoos and emotional aspect of dog.
They are targeting middle class person as well as the elite as class as their target
audience. The idea of using the best friend of human (DOG) to resemble their network
didn‘t drop the puppy advertisement of Hutch to maintain the trust of later fans. Using a
simple, yet meaningful visual, ZooZoos has captured rural as well as urban population.
Products and services provided by Vodafone
Vodafone offers a wide range of products and services including Voice Call, Messaging,
Data, and fixed line solution and devices to assist customer in meeting their
communication requirement.
Mobile Handset: Mobile Handset available for wide variety of customer from price point
of view and with variety of design. Vodafone also sells CDMA based mobile handset. It
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

has its own brand mobile phone with basic features. It also provide smart phone such as
Apple‘s I phone and Samsung Galaxy Series. 66 New model of mobile were launched
during financial year 2010 and 23 exclusive handsets were launched.
3
9
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Smart Phones
 A handset offering advanced features like including access to email and the
internet.
 All leading brands represented including iPhone in 14 countries.
 Launched two tailor made Vodafone 360 handsets: Samsung H1 and Samsung
M1.
Vodafone branded handsets
 Enabling millions of people in emerging markets to share the benefits of mobile
technology.
 Prices start from less than Rs1000=00.
 16 new models released under Vodafone brand.
 Low cost combined with high end features, such as touch screen and mobile
internet capability.
 Voice & messaging services.
Vodafone provide value focused pricing through unlimited bundles of voice and text
services. Voice services incorporate revenue for national, international and roaming calls.
SMS services include text messages as well as multiple media, such as pictures, music,
sound, video and text.
The core functionality and use of handsets continues to be voice and text messaging
services. Many different tariffs and propositions are available, targeted at different
customer segments, and include a range of unlimited usage offers which have been
particularly appealing to customers.
With sophisticated handsets becoming readily available, customers are increasingly using
their mobile phones to complement their lives in new and innovative ways. Data usage
continues to grow rapidly fuelled by large numbers of intuitive internet enabled devices
(‗smart phones‘), many with touch screens such as the iphone and BlackBerry® Storm™,
and transparent pricing available through our ―internet on your mobile unlimited browsing‖
tariff. Instant messaging is available with Yahoo! and MSN and we offer
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

4
0
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

integrated services from leading internet brand partners including YouTube, eBay,
Google™ and Google Maps™. Our partnership agreements with leading companies, such
as RIM, Samsung and Google, have enabled us to be first to market with cutting edge
devices such as the BlackBerry Storm, Samsung H1 and Samsung M1 (our two tailor
made handsets that support our Vodafone 360 proposition) and Google Nexus One.
Available in 31 markets including partner markets, Vodafone branded devices are
designed to meet a range of customer needs and preferences – from low cost phones
offering simple voice and text, through fashion and design influenced, to competitively
priced mobile internet devices with cutting edge smart phone functionality including
touch screen and mobile internet capability. During the 2010 financial year Vodafone
launched its most affordable handset to date, the Vodafone 150, which retails for less
than US$15 unsubsidized, giving millions of people in emerging markets the opportunity
to share in the benefits of mobile technology for the first time. Mobile Services: It
provides 2G and 3G services Satellite Services Managed data and Internet Services.
Area of Operation and Subscriber Base
Following is the Vodafone India subscriber base statistics as on January, 2013
Table 1.11
Vodafone Subscriber Base
Telecom Circle No. of Subscribers
Gujarat 1,58,01,116
Uttar Pradesh (East) 1,45,26,236
Maharashtra 1,29,77,123
West Bengal 1,11,65,667
Tamil Nadu 97,77,927
Rajasthan 85,65,366
Uttar Pradesh (West) 89,99,073
Andhra Pradesh 60,80,916
Delhi 84,49,120
Goa 7,134,576
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Karnataka 64,52,620
Kerala 60,67,506
Kolkata 40,84,284
4
1
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

Punjab 43,09,853
Bihar 63,81,278
Haryana 44,37,015
Madhya Pradesh and Chhattisgarh 41,01,877
Chennai 20,91,411
Orissa 27,89,575
Assam 21,88,073
North east 9,28,563
Jammu Kashmir 6,66,009
Himachal Pradesh 4,75,329
Mumbai 61,60,353
Source: wikipedia
Total number of Vodafone Subscribers: 141,519,840 i.e. 22.44% of the
total 65,71,58,013 mobile phone subscribers.
Above table shows that Vodafone highest subscriber base in Gujarat followed by Madhya
Pradesh.
1.19 INTRODUCTION TO CUSTOMER DELIGHT
In the words of Maya Angelou, “People will forget what you said, people will forget
what you did, but people will never forget how you made them feel”.
The Management system defines the customer delight as “the result of delivering a
product or service that exceeds customer expectations”.
Customer delight brings customers coming back for more. It causes new customers to
come. It takes to out of the realm of being the same as all the others and places you
clearly at the top. It distinguishes you from the rest. It allows you to sell your product or
service for more money than the competition. It allows you to make more return on your
investment. It allows you to reward your employees.
Phone: 0512-2328181
Mobile: 7753818181, 9838033084

A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com]

A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com]

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Similar to A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com]

Similar to A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com] (20)

More from WriteKraft Dissertations

More from WriteKraft Dissertations (20)

Recently uploaded

Recently uploaded (20)

A study of customer delight of mobile users in western mumbai with reference to airtel and vodafone [www.writekraft.com]