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Project Report
A SUMMER INTERNSHIP PROJECT FOR PARTIAL FULFILMENT OF REQUIREMENT OF MBA-1ST [BUSINESS APPLICATION] 2008-2009
UNDER THE GUIDANCE OF MISS. RIDDHI DESHPANDE CENTUM LEARNING CENTER, NAGPUR AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI
CERTIFICATE
I hereby certify that this project report entitled MARKETING OF IDEA POSTPAID SERVICES AT CELL CONCEPT, WARDHA submitted by Mr. Praful M. Morey to Centum Learning Center [CLC], Nagpur are bonafied and original research work carried out under my guidance and supervision. It is a peace of research of sufficiently high standard to warrant its submission to college for the award of said degree. No part of the thesis has been submitted any degree or diploma or published in any other form. The assistance and the help rendered during the course of their investigation in the form of basic source material and the information have been duly acknowledged.
Date: Place:
ACKNOWLEDGEMENT
I present this project report on MARKETING OF IDEA POSTPAID SERVICES AT CELL CONCEPT WARDHA with a sense of great pleasure and satisfaction. I undersign with pleasure take this opportunity to thank all those related directly or indirectly in preparation of this project report. I started working on this project under the invaluable guidance of Honorable Miss. Riddhi Deshpande for which I am very much thankful for her valued time given for the purpose. Without her co-operation my project work would have been difficult to complete. I express my sincere thanks to Mr. Sachin [sales manager] in Cell Concept, Wardha and the clerical staff in that organization. I am also thankful to Mr. Sanjay Chaure [Director of our college] and Mrs. Smita Chaure [Project In charge] to allow me to carry out this project.
DECLARATION
I undersign the students of MBA-1st [Business Application] hereby declare that the project report entitled MARKETING OF IDEA POSTPAID SERVICES AT CELL CONCEPT WARDHA is my own work and completed by me, which is based on our my work experience during Summer Internship training period, I am submitting this report for partial fulfillment for the degree of MBA-1st [B.A.], conducted by Centum Learning Center, Nagpur Affiliated by Annamalai University, Chennai. I have not submitted this project report for fulfillment of any examination in any college or University for any degree or diploma.
Date: Place:
CONTENT
SR. NO. CHAPTER 1 TOPIC COMPANY PROFILE 1.1 Introduction of Idea Company 1.2 History of Idea 1.3 Future Perspective PROJECT INTRODUCTION 2.1 Project Introduction 2.2 Meaning of Marketing 2.3 Definitions of Marketing PROJECT RESEARCH 3.1 Postpaid plans of Idea 3.2 Marketing Strategies 3.3 Complaints of Customers 3.4 Features of Idea Postpaid DATA ANALYSYS AND NTERPRETATION 4.1 Data Analysis and Interpretation FINDINGS AND COMPETITORS 5.1 Findings 5.2 Competitors SUGGETIONS AND CONCLUSION 6.1 Suggestion 6.2 Conclusion BIBLIOGRAPHY ANNEXURE PAGE NO. 1 3 5 7 7 7 9 17 18 18 20
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
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CHAPTER 6
29 29 30 31
CHAPTER 7 CHAPTER 8
Jharkhand in Q3, and Orissa and Tamilnadu (including Chennai) towards the end of the calendar year, Ideas footprint will soon cover approximately 90% of Indias telephony potential. Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India. Registered Address: Suman Gandhinagar, Gujarat: 382011 Tower, Plot No. 18,,Sector-11,
Corporate Office: 11/1, Sharada Center Off Karve Road Pune411004 Maharashtra - India Management of Idea Cellular: Name Mr. Kumar Mangalam Birla Mr. Arun Thiagarajan Mr. Mohan Gyani Mr. Biswajit A Subramanian Mr. Saurabh Misra Mr. R C Bhargava Mr. Hans Wijayasuriya Mr. Rajashree Birla Mr. Gian Prakash Gupta Mr. Tarjani Vakil Mr. M R Prasanna Mr. Sanjeev Aga Mr. P Murari Mr. M R Prasanna Designation Chairman / Chair Person Independent Director Independent Director Non Executive Director Non Executive Director Independent Director Non Executive Director Non Executive Director Independent Director Independent Director Non Executive Director Managing Director Independent Director Director
Idea Cellular was incorporated as Birla Communications Limited on March 14, 1995 and granted a certificate of commencement of business on August 11, 1995. Its registered office was in Mumbai, Maharashtra. Its name was changed to Birla AT&T Communications Limited on May 30, 1996 following the execution of a joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited pursuant to which the Aditya Birla Group held 51% of its Equity Share capital and AWS Group held 49% of its Equity Share capital. The registered office was transferred from Industry House, 1st Floor, 159 Church Gate Reclamation, Mumbai 400 020, Maharashtra to Suman Tower, Plot No. 18, Sector 11, Gandhinagar 382011 Gujarat on October 22, 1996. With effect from January 1, 2001 following merger with Tata Cellular Limited the joint venture agreement between AT&T Corporation and Grasim Industries Limited dated December 5, 1995 was replaced by a share holders agreement dated December 15, 2000 entered into between Grasim Industries Limited on behalf of the Aditya Birla Group, Tata Industries Limited on behalf of the Tata Group and AT&T Wireless Services Inc. on behalf of the AWS Group following which its name was changed to Birla Tata AT&T Limited on November 6, 2001. Consequent to the introduction of the Idea brand, its name was changed to Idea Cellular Limited on May 1, 2002. The AWS Group exited from the Company on September 28, 2005 by selling 371,780,740 Equity Shares of the Company, which constituted 50% of the holding of AT&T Cellular Private Limited in equity share capital, to ABNL and by transferring the remaining 371,780,750 Equity Shares to Tata Industries Limited. The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when Tata Industries limited and Apex Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular Private Limited) sold all their shares in the Company to the Aditya Birla Group. On October 26, 2006, P5 Asia Investments (Mauritius) Limited (P5 Asia) acquired 14.60% of our Equity Share capital. Under a Governance and Exit Rights Agreement dated October 23, 2006 between P5 Asia, ABNL and Birla TMT, so long as an initial public offering has not occurred and P5 Asia holds no less than 10% of Equity Shares, ABNL and Birla TMT are required to procure that (a) Company and its Subsidiaries shall not take or pursue any of the following actions without P5 Asias prior consent (such consent to be obtained in a board and/or shareholders resolution) including in respect of (i) Any merger with, acquisition of, or amalgamation or consolidation with another company or business; (ii) assuming or permitting to exist any borrowings or indebtedness in the nature of borrowings if the amount of all such borrowings of Company and its Subsidiaries would exceed Rs. 6,800 million; (iii) entering into a new line of business; (iv) increasing our authorized or issued share capital; or (v) entering into a joint venture and (b) our Company makes available to P5 Asia certain financial information relating to our Company and its Subsidiaries such as monthly management accounts, quarterly unconsolidated balance sheet and profit and loss account and the annual audited consolidated
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balance sheets and profit and loss accounts. P5 Asia also has a right to appoint one director to our Board so long as it holds at least 10% of our total issued and outstanding Equity Shares. Mr. Biswajit Subramanian has been appointed to our Board by P5 Asia pursuant to the exercise of the above right. In addition, any IPO of our Equity Shares requires P5 Asias written consent, and, further, in any such IPO, P5 Asia has the right to offer for sale such number of Equity Shares representing up to 10% of the total Equity Shares which are held by it. By its letters dated December 2, 2006 to ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and has confirmed that it does not intend to offer for sale any of the Equity Shares held by it in such Issue. We, either directly or through our Subsidiaries, provide mobile services in the Andhra Pradesh, Delhi, Gujarat, Haryana, Kerala, Madhiya Pradesh, Maharashtra and Uttar Pradesh (West) Circles, and have recently launched services and as such are in the process of fully rolling-out our network in the Uttar Pradesh (East), Rajasthan and Himachal Pradesh Circles pursuant to licenses issued by the DoT. MAJOR EVENTS The chronology of key events of the Company from incorporation is set out below: 1995: Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process 1996: Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation 1997: Commenced operations in the Gujarat and Maharashtra Circles 1999: Migrated to revenues share license fee regime under New Telecommunications Policy (NTP) 2000: Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle. 2001: Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited 2001: Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSM license bidding process 2002: Changed name to Idea Cellular Limited and launched Idea brand name Commenced commercial operations in Delhi Circle, Reached the one million subscriber mark
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2003: Reached the two million subscriber mark 2004: Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) First operator in India to commercially launch EDGE services 2005: Reached the five million subscriber mark, Turned profit positive Won an award for the Bill Flash service at the GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards 2006: Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited)
Speaking on the occasion of launch of services in the city, Mr. Himanshu Kapania, Director - Operations, IDEA Cellular Ltd., said, IDEA aims to provide the citizens of Chennai and other parts of Tamil Nadu, superior connectivity, whisper clear audio quality, zero call congestion and high capacity, ahead of time. IDEAs 2.75G capable & 3G ready core network provides for all future technological enhancements. We welcome the people of Chennai and other towns and villages of Tamil Nadu to join IDEAs pan-India network. IDEA will develop customer service with a robust retail network comprising of exclusive My Idea Stores, Idea Points and other outlets. The service network will be expanded to over 25,000 retail outlets and 60 IDEA showrooms in the state, shortly. Aimed at achieving visibility and real time experience, these customer touch points will significantly enhance IDEAs distribution network and help reach out to its discerning customers across all segments.
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Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to sell goods or services.
and services to create exchanges that satisfy individual and organizational objectives Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing research is the function that links the consumer, customer, and public to the marketer through information: information used to identify and define marketing opportunities and problems; generate, define, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the result, and communicates and findings and their implications.
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Plan Advantage: Activation Rs. 250/- Waived PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: One Photograph
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Company I Card and Latest Salary Slip or company Letter, or Confirming employment (Photo copy) Latest Telephone Bill / Electricity Bill in customers name.
Different Bank employee gets this plan by different names which are mentioned as follows. 1. HDFC bank 2. Bank of India 3. Axis bank 4. IDBI bank 5. SBI bank 6. ING Vysya
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MONTHLY RENT LOCAL CALLS CUG Idea To Other GSM Land Line and WLL STD CALLS Mobile to Mobile- Land Line and To WLL SMS Local and National FREEBIES Local Minutes (Local LL/Mobile/WLL) SMS Free (local and National)
149
1.25/min
0.30 Paise
Plan Advantage: Activation Rs. 250/ PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
MONTHLY RENT
199
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LOCAL CALLS CUG Idea To Other GSM Land Line and WLL STD CALLS Mobile to Mobile- Land Line and To WLL SMS Local and National FREEBIES Local Minutes (Local LL/Mobile/WLL) SMS Free (local and National) 200 Mins Free 100 Nos. 0.30 Paise 1.25/min FREE 0.40/min 0.80/min
Plan Advantage: Activation Rs. 250/ PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
4.1
MONTHLY RENT
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LOCAL CALLS CUG Idea To Other GSM Land Line and WLL STD CALLS Mobile to Mobile- Land Line and To WLL SMS Local and National 0.30 Paise Rs. 1.00/min FREE 0.30/min Rs. 1.00/min
Plan Advantage: Activation Rs. 250/ PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
4.2
Idea To Other GSM Land Line and WLL STD CALLS Mobile to Mobile- Land Line and To WLL Idea to Idea SMS Local and National International SMS Free Minutes Local and STD First 1000 Idea to Idea Local Minutes First 150 Idea to Other GSM/ LL/WLL
0.30/min Rs. 1.00/min Rs. 1.99/min Rs. 1/ min 0.30 Paise Rs. 5 Free Free
First 125 STD Minutes (Cell to Cell + Cell Free to LL) ADDITIONAL FEATURES Detail Bill Rs. 75/- per Month Free
Plan Advantage: Activation Rs. 250/ PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
5. PLAN FOR BAJAJ ALLIANZ EMPLOYEES
175
FREE 0.40/min
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Land Line and WLL STD CALLS Mobile to Mobile- Land Line and To WLL SMS Local and National FREEBIES Local Minutes(Local LL/Mobile/WLL) SMS Free (Local and National)
0.80/min
Rs. 1.25/min
0.30 Paise
Plan Advantage: Activation Rs. 250/ PEF Rs. 250/- Waived No CLIP Charges. STD deposit Rs. 500/- Waived. Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
6. PLAN FOR OTHER (SUPER 6 PLAN) SUPER 6 Activation Fees Security Deposit Monthly Rental CUG CUG Idea To Other GSM Land Line and WLL FREE 0.30/min Rs. 0.60/min
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STD CALLS Mobile to Mobile- Land Line and To WLL Rs. 1.00/min SMS Local Rs. 1/National Rs. 2/International Rs. 5/Roaming Calls Incoming Rs. 1/Outgoing Local Rs. 1/Outgoing STD Rs. 1.5/Plan Benefits Free Talk Time (Within Home 666 I2I Local Mins; Network) 222 M2M Local Mins; 222 M2M STD Mins; 222 Local/ National SMS Plan Advantage: Rs. 75/- Itemized Billing Charges Waived 32k Idea Power SIM card free Documents Required: Photo ID: Driving License, PAN card, Voter card, One Passport size Photograph Company I Card and Latest Salary Slip or company Letter, or letter Confirming employment (Photo copy) Address Proof: Latest Telephone Bill / Electricity Bill in customers name.
3.2 MERKETING STRATEGIS 1. STRATEGY REGARDING ROAMING Roaming in Chile and Malaysia: Postpaid subscribers of IDEA Delhi & Claro Chile and Malaysia can Roam into each others networks. Chile: Zone 2, Malaysia: Zone 3. IDEA Delhi announces GPRS Roaming with Oman Mobile Oman: IDEA Delhi & Oman Mobile Oman subscribers will now be charged for accessing GPRS services while roaming into each others networks.
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Roaming in Portugal: Postpaid subscribers of IDEA Delhi & Optimums Portugal can Roam into each others networks. Portugal: Zone 2 IDEA Delhi launches Roaming with IDEA Mumbai: Now, IDEA Delhi Postpaid & Prepaid subscribers can use their own IDEA network while Roaming in Mumbai.
2. Strategic Acquisitions:
Through our acquisition activities, Oracle seeks to strengthen its product offerings, accelerate innovation, meet customer demand more rapidly, and expand partner opportunities. An integral part of Oracle's Mergers and Acquisitions philosophy is our consistent commitment to customer service and product support while achieving our financial return objectives and creating value for our shareholders.
3.3 COMPLAINTS OF CUSTOMERS Problem in Conversion of Prepaid Number to Postpaid Sim card activation delayed Forced misselling & misbehave by the representative's Delay in service Charging more money Obscene calls in another name Connection not getting activated Complaints Regarding Services Getting Very poor service Unfair Billing
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Getting Bill but customer have already cancelled connection from Sales Guy Facing problem in ISD Services Worst response from customer service representative Outgoing barred without any reason
3.4 Features of Idea Postpaid Easy Payment Options Anytime Anywhere We can choose from a host of convenient payment options only with Idea. We can do our payments by cash, credit card, cheque and ECS Credit Limit Pre-set credit limit mentioned on monthly bill helps to keep mobile charges in control, keeps track of usage and ensures that mobile phones is not misused. When we exceed our limit, we will be informed via a voice or a non-voice message to make an interim payment and reduce account balance below credit limit. We may also choose to pay an additional refundable deposit to enhance credit limit or opt for our convenient payment method of credit card standing instruction, we can also make use of ECS facility Strong Network Coverage It offers world class technology and unbreakable network coverage and complete clarity when calling. Long Distance Calling Facility Call long distance calls in India and overseas with STD/ISD facility on Idea phone.
Widest Roaming- National and International Idea service allows to stay connected and use mobile phone to make or receive calls from almost anywhere in India and also over various countries, abroad. GPRS Roaming Use Idea postpaid GPRS services, while roaming, to access the internet and office mails from almost anywhere in India and abroad.
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Graphical Representation:
2. Respondent by profession:
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Graphical Representation:
R S OND NT B P OF S ION EP E S Y R ES
60% 50% 40% 30% 20% 10% 0% Em ployed Businessm an Student RESPONDENTS BY PROFESSION
50
100%
Graphical Representation:
RE P S OND NT B P F RE P ANS E S Y RE E D L
60% 50% 40% 30% 20% 10% 0% Governm ent Bank Super Six Pvt Companies RESPONDENTS BY PREFERED PLANS
4. Respondent by reason to purchase plan. Objective: To know why the customer has purchased the plan.
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Sr. No. 1 2
Respondent 9 41
Percentage 18 % 82 %
50
100%
Graphical Representation:
Conclusion: 82 % customers use the services because the company has provided the service.
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Objective: To know whether customer is satisfied with network coverage provided or not.
Sr. No. 1 2 Response Yes No Total Respondent 46 4 50 Percentage 92 % 8% 100%
Graphical Representation:
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Graphical Representation:
Conclusion: 80 % customers are satisfied with call rates applied ad 20 % are not satisfied.
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Objective: To know whether customers are satisfied with postpaid services or not.
Sr. No. 1 2 Response Yes No Total Respondent 32 18 50 Percentage 64 % 36 % 100%
Graphical Representation:
Conclusion: 64 % customers are satisfied with postpaid services and 36 % are not satisfied.
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Objective: To know whether customers are satisfied with postpaid services or not.
Sr. No. 1 2 3 4 Response Cash Cheque Credit Card ECS Total Respondent 40 8 2 0 50 Percentage 80 % 16 % 4% 0% 100%
Graphical Representation:
Conclusion: 80 % customers are using cash payment system and remaining schemes are rarely used.
5.1 FINDINGS
Major competitors of Idea are Airtel, BSNL and Reliance Peoples who are in profession line preferred Idea due to its perfect network coverage. Maximum customers are due to the connections provided by the organizations where they are employed. Call rates applied are affordable by the customers.
CHAPTER 6
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CHAPTER 7 BIBLIOGRAPHY
7.1 BIBLIOGRAPHY SR. NO. 1 REFERENCE Career Adviser Program Work Book 2 3 -Idea Postpaid services
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CHAPTER 8 ANNEXTURE
MARKETING OF IDEA POSTPAID SERVICES AT CELL CONCEPT WARDHA CUSTOMER QUESTIONNAIRE
Name: _______________________________________________ Age: ___________ Address: _____________________________________________________________ Plan you are using: ______________________________ Reason: ___________ If salaried then department: __________________________________________
1. Are you satisfied with network provided?
[Yes / No]
[Yes / No]
[Yes / No]
5. Billing scheme you are using? a. Cash b. Cheque c. Credit Card d. ECS
***************
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