P. 1
Comparative Study of Life Time Plans in Cellular Companies

Comparative Study of Life Time Plans in Cellular Companies

5.0

|Views: 435|Likes:
Published by neonradhika
COMPARITIVE STUDY OF THE LIFETIME PLANS OF THE CELLULAR COMPANIES IN BHOPAL
COMPARITIVE STUDY OF THE LIFETIME PLANS OF THE CELLULAR COMPANIES IN BHOPAL

More info:

Categories:Types, School Work
Published by: neonradhika on Mar 24, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

10/13/2012

pdf

text

original

A PROJECT REPORT on COMPARITIVE STUDY OF THE LIFETIME PLANS OF THE CELLULAR COMPANIES IN BHOPAL FOR THE PARTIAL FULFILLMENT

OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY ANURAG SAHU MBA II SEMESTER GUIDED BY Mr. OWAIS AHMED QURESHI INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH (BARKATULLAH UNIVERSITY, BHOPAL) 2007-2009

ACKNOWLEDGEMENT

This Project has been made possible through the direct and indirect Co-operation of various persons, who have inspired me at every step of my work. It is a matter of pride for me to acknowledge my profound gratitude to my respected Director Dr. J.P. Sahu who always facilitates me in gaining practical knowledge.

I am very much obliged and thankful to my esteemed Project Guide Mr. OWAIS AHMED QURESHI for his valuable Cooperation and Guidance.

And above all, I am beholden to my Parents and other family members for their blessing and encouragement in completing this task.

ANURAG SAHU

PREFACE
The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the technical session. Research also helps the student to devote his/her skill to analyze the problem to suggest alternative solutions, to evaluate them and to provide feasible recommendations on the provided data.

The research is on the topic of “COMPARITIVE STUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN BHOPAL”. Although I have tried my level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy.

DECLARATION
I here by declare that the following documented Project Report titled “COMPARITIVE STUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN BHOPAL” is an authentic work done by me.

The Study was undertaken as a part of the course curriculum of MBA Full Time Program of Barkatullah University, Bhopal.

ANURAG SAHU

CONTENTS
CHAPTERS CHAPTER-1 • • INTRODUCTION OBJECTIVES OF THE STUDY

CHAPTER-2 • • INTRODUCTION OF TELECOM SECTOR INTRODUCTION TO CELLULAR COMPANIES

CHAPTER-3 • • • • RESEARCH METHODOLOGY RESEARCH DESIGN SAMPLE DESIGN LIMITATIONS OF THE STUDY

CHATPER-4 • DATA ANALYSIS AND INTERPRETATION

CHAPTER-5 • • • OBSERVATION & FINDINGS CONCLUSIONS SUGGESTIONS

BIBLOGRAPHY ANNEXURE

CHAPTER-1

INTRODUCTION
Comparative research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. This technique is often utilizes multiple disciplines in one study. When it comes to method, the majority agreement is that there is no methodology peculiar to comparative research. The multidisciplinary approach is good for the flexibility it offers, yet comparative programs do have a case to answer against the call that their research lacks a “seamless whole”. There are certainly methods far more common than others in comparative studies, however. Quantitative analysis is much more frequently perused than qualitative, and this is seen in the majority of comparative studies can be use quantitative data. The general method of comparing things is the same for comparative research as it is in our everyday practice of comparisons. Like cases are treated alike, and cases are treated differently; the extent of difference determines how differently cases are treated. The point here is that if one is able to sufficiently distinguish two cases, comparative research conclusions will not be very helpful. Secondary analysis of quantitative data is relatively widespread in comparative research, undoubtedly in part because of the cost of obtaining primary data for such large things as a country’s policy environment. A typical method of comparing welfare state is to take balance their levels of spending on social welfare.

In line with how a lot of theorizing has gone in the last century, comparative research does not tend to investigate ‘grand theories’ such as Marxism. It instead occupies itself with middle-range theories – theories that do not purport to describe our social system in its entirely, but a subset of it. A good example of this is the common research programs that looks for differences between two or more social systems, then look at these differences in relation to some other variable coexisting in those societies to see if it is related. The classic cases of this is Esping-Anderson’s research on social welfare systems, and compared them based on there levels of deco modification of social welfare goods. He found that he was able to class welfare states in four types, based on their deco modification. She further theorized from this that deco modification was based on a combination of class collisions and mobilization, and regime legacy. Here EspingAnderson is using comparative research: he takes many western countries and compared their level of deco modification, then develops a theory of the divergence based on his findings. Comparative research is a methodology in the social sciences that aims to make comparisons across different countries and cultures. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently.

OBJECTIVES
1. To find out the perception of the general people towards the land line &

mobile phone. 2. To find out the hidden information in lifetime plans of cellular services. 3. To find out the consumer satisfaction towards the lifetime plans.

CHAPTER-2

Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. - Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. - India‘s mobile phone subscriber base is growing at a rate of 82.2%. - China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India ’s share in Asia Pacific Mobile Phone market is 6.4%. Considering the fact that India and China have almost comparable populations, India’s low mobile penetration offers huge scope for growth. History of Indian Telecommunications Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector.

National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. Classification of Telecommunication services 1. Basic services 2. Cellular services 3. Internet Service Provider (ISP)

Cellular Service

Overview
There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. 2. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle.
1.

Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

The Key players in the Telecom Market in India
Cellular Service provider: 1. BSNL 2. Airtel 3. Vodafone 4. Idea 5. Reliance 6. Tata indicom 7. Aircel 8. Spice 9. MTNL Subscribers Wireless subscribers crosses 200 million mark Tele density reaches 21.20% The total number of telephone subscribers has reached 241.02 million at the end of August 2007 as compared to 232.87 million in July 2007. The overall teledensity has increased to 21.20% in August 2007 as compared to 20.52% in July 2007. In the wireless segment, 8.31 million subscribers have been added in August 2007 while 8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of August 2007. The wireline segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end of August 2007. Circle wise wire line subscriber base of service providers is given at following chart ..

Market Share of the telecom Company in India

INTRODUCTION OF CELLULAR COMPANIES

Company Profile

INTRODUCTION
“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 60 million subscriptions as of 13th February 2008.[2] It offers its mobile services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network.[3] In August 2007, the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers.

INTRODUCTION
As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles. With a customer base of over 17 million, IDEA Cellular has operations in Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50% of the potential telecom-market. As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first cellular company to launch music messaging with 'Cellular Jockey', 'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services. Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging Tata Cellular and Birla AT&T Communications. Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR). The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to offer flexible tarrif plans for prepaid customers. It also offers GPRS services in urban areas.

Holding
Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each. Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMAbased mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter could not have more than 10% stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai when Idea filed for its license.

The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family owned company.Currently, Birla Group holds 98.3% of the total shares of the company. Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal Pradesh and UP (East) to make itself a pan-India player. Recently, Idea got licenses to operate in Mumbai & Bihar. They are awaiting the spectrum from DoT.

INTRODUCTION

A DREAM COME TRUE
The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life. Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company.[1]Reliance Infocomm is an Indian telecommunications company. It is the flagship company of the RelianceAnil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology

HISTORY Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002 Reliance Infocomm built 60,000 km of fibre optic backbone in India. This network was commissioned on December 28, 2002. FOOTPRINT At present, Reliance Telecom's GSM cellular services are available in 340 towns within its eight-circle footprint. Reliance's CDMA services are available in 19 states and cover about 65% of the country, state wise. Reliance Infocomm also offered for the first time in India, mobile data services through its R-World mobile portal. This portal leverages the data capability of the CDMA 1X network. BUSINESS REVIEW During the twelve months ended March 31, 2007, revenues of the Wireless business increased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$ 1,709 million). Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore (US$ 522 million). Margins expanded to 37% from 31%. EBITDA of the Global business increased by 98% during the twelve months ended March 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to 24% from 12% last year. In the same period, the Broadband business achieved revenue growth of 123% to Rs. 1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519 crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months ended March 31, 2007, from 15% in the corresponding period in the previous year.

TATA TELESERVICES
INTRODUCTION
Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of India. The company forms part of the Tata Group's prescence in the Telecommunication Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL. TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services in India, specifically in the state of Andhra Pradesh. In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd. which was renamed Tata Teleservices (Maharashtra) Limited. In September 2007, Tata Indicom launched the Talk World plan, an International Long Distance Plan. Tata is the direct competitor with Reliance, both CDMA operators in India. The company provides unified telecommunication solutions including mobile, fixed wireless, fixed line and broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL providing GSM based mobile telephony. The company was first in India to provide free intra network calling within city limits. They launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed wireless for a one time charge. Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29 billion) Tata Group, that has over 87 companies, over 250,000 employees and more than 2.8 million shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom value chain. Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network. The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc. Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their offering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive free incoming calls. Tata Teleservices today has India’s largest branded telecom retail chain and is the first service provider in the country to offer an online channel www.ichoose.in to offer postpaid mobile connections in the country. Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs. Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 21 million customers in over 4000 towns. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices offers world-class technology and user-friendly services in 20 circles.

INTRODUCTION
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector communications company in India. It is the India's largest telecommunication company with 25.14% market share as on December 31, 2007. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10 % to public. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL serves its customers with its wide bouquet of telecom services. BSNL is numero uno operator of India in all services in its license area. The company offers vide ranging & most transparent tariff schemes designed to suite every customer.

BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers. That means that almost every fourth mobile user in the country has a BSNL connection. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms. BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband customers. The company has vast experience in Planning, Installation, network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute. Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion). BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three years. The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.

History
The foundation of Telecom Network in India was laid by the British sometime in 19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for almost entire 20th century, the Telecom in India was operated as a Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms.Subsequently in 1990s the telecom sector was opened up by the Government for Private investment, therefore it became necessary to separate the Government's policy wing from Operations wing. The Government of India corporatised the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.

What is prepaid mobile service?
Prepaid cellular services are getting very popular these days. Many people now prefer prepaid services since they offer a variety of advantages related to lifestyle and cost control that simply are not available through post-paid contract based services. Prepaid cell phones have a distinct advantage over regular subscriptions. They offer cost control with a fixed price per minute, control over costs with cell phones distributed by parents, no credit check and increased anonymity.

Get you own cell phone with no credit check! It's today's safe, convenient, and flexible way to manage your spending on cellular phones. Prepaid cell phones are convenient and easy to get because there are: * no contracts * no credit checks * no deposits * no monthly bills * no activation or early termination fees You will be safer and more secure when you own a prepaid cell phone without paying hefty monthly fees. Great Cost Control with No surprises! Increasing consumer demand for prepaid cellular phones Prepaid cellular services are currently the fastest-growing segment of the wireless phone market, perhaps because wireless service can be started up with no subscription fee for well under $100. More and more people are using this service to control spending than to get around credit problems. In Europe, already more thatn 60 % of subscribers are on a prepaid wireless plan, while in the United States, only 8 to 10 percent of users have chosen that system. But it's growing fast: in Canada, for example, some providers see their prepaid subscribers base increase 50% faster than those of an ordinary monthly billed service.

Prepaid cellular phones are ideal in the following situations: * If you want to budget your cell phone use, or * If you want a phone for occasional use but don't want to pay a monthly service fee or enter a long-term agreement, or * If you have no credit history or past credit problems, or * If your usage varies from month to month, or * If you want to buy your children a phone for emergency use but restrict the amount of calls they can make, or * If you are looking for a gift. or * If you don't feeling comfortable providing information for a carrier credit check, or * If you want to learn about your usage patterns before committing to a long-term monthly billing wireless contract.

What is lifetime validity?
Lifetime prepaid means that your cell-phone connection remains valid for life. You also get a minimal talktime, ranging from Rs 10 to Rs 100 .The good part is that all subsequent recharges give you full talk time. There will be no processing charges, something that is a big turn-off for prepaid customers. For instance, out of the Rs 335 an Airtel prepaid customer in Delhi pays to recharge his connection for 30 days, Rs 150 go into processing fees. Another Rs. 31 goes to the government as tax and he gets airtime worth only Rs 154. If he takes the lifetime validity offer, the same Rs 335 recharge will give him talk time worth Rs 302 — and that’s for life. By saving on the Rs 150 processing fee, he will recover the one-time charge for lifetime validity in a few months. Lifetime plans allow pre-paid subscribers to have lifetime validity for a one-time payment. The user can then continue to receive calls without having to recharge.

Life time plans of the cellular companies

The Life Time Plan of Airtel
Airtel Presents Rs. 295 Lifetime Prepaid with 1 Rupee Outgoing Local Tariff Slashes local outgoing call rate by 50% for Rs. 295/- Lifetime Prepaid users Local outgoing tariff reduced to Re. 1/- for life to all networks (mobile & landline) from Rs. 1.99/- for Rs. 295/- Lifetime Prepaid customers. · All existing customers of Rs. 295/- Lifetime Prepaid to be migrated to Re. 1/- call rates, without any extra charges. Bharti Airtel, India’s leading telecom service provider, today announced the Rs. 495/Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all local outgoing calls (mobile and landline) to Re. 1/- from the existing Rs. 1.99/- per minute call rate. Bharti Airtel, which was also the first service provider to introduce the Lifetime Prepaid in India, announced this revolutionary tariff cut for customers that was earlier applicable to only the Rs. 999/- Lifetime customers. With effect from february 15, 2008, all Rs. 295/Lifetime Prepaid customers will be able to make local outgoing calls (Mobile & Landline) at Re. 1/- per minute and all existing customers will be migrated to the revised tariff plan without any extra charges. Customers will have to recharge with a minimum amount of Rs. 200/- at least once in every 180 days to enjoy the lifetime validity and tariff benefits.

Airtel ka Super Lifetime Validity

Pulse Rate 60 sec Price of Pack (Rs.) 295 Free Airtime on Pack (Rs.) 150 Incoming Calls (Rs.) Airtel GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 1 (night tariff from 11pm to 7 am @ 10 paise) 1 1 STD RATES (Rs./min) 2.65 2.65 2.65 ISD (Rs./min) USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. 6.40 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world 9.20 Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands,

Other Details PF on subsequent talktime recharges to be as per bands specified i.e. Rs 1-100: 25%, Rs 101-199: 15%, Rs 200 & above: NIL. This is waived for the first 90 days from 25th Feb 08. Min recharge condition of Rs 200/- in 180 running day

Idea - Lifelong Validity Recharge Voucher
IDEA ka Lifelong Validity offer

Pulse Rate 60 sec Price of Pack (Rs.) 195 (sim charges exclude) Free Airtime on Pack (Rs.) 5 Incoming Calls (Rs.) - free for lifelong idea GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 1 1 1 STD RATES (Rs./min) 2.75 2.75 2.75 ISD (Rs./min) USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Rs.6.99 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Rs.9.99 Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk

Promotional Offer For New Activations*

All new customers taking 195 rs recharge on the date of activation, will get Full TT in all recharges of Rs. 125/-(Till 30th April,2008.) Total TT111.25. Online TT-86.25, Offline TT-25 Rs. (within 48 hrs.)

Reliance “Sath Zindagi Bhar Ka”(lifetime) offer
RCom’s new gambit is Rs 199 lifetime prepaid Reliance Communications, the code-division multiple access major, which was the first to launch the lifetime plan almost two years ago at a one-time cost of Rs 999, plans to announce a similar scheme at one-fourth the price —- Rs 199. For making outgoing calls, the standard local tariff will be 99 paise per minute. Various other calling tariff options will also be available to the users, depending on the trend of one’s usage. RCom’s move looks like a replay of 2006, when mobile telephony players were intensely competing with each other over lifetime pre-paid schemes. Spectrum war, however, kept the operators busy all through 2007, and one didn’t hear about lifetime plans at all.

Rcom’s “SATH ZINDAGI BHAR KA” plan

Pulse Rate 60 sec Price of Pack (Rs.) 195 (sim charges exclude) Free Airtime on Pack (Rs.) 5 Incoming Calls (Rs.) - free for lifelong Rel. GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 0.99 0.99 0.99 STD RATES (Rs./min) 2.75 2.75 2.75 ISD (Rs./min) USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Rs.6

}17 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia,

BSNL’s Excel ANANT plan
BSNL’s “Excel Anant” plan

Pulse Rate 60 sec Price of Pack (Rs.) 495 (sim charges include) Free Airtime on Pack (Rs.) 65 Incoming Calls (Rs.) - free for lifelong BSNL GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 1.00 1.40 1.00 STD RATES (Rs./min) 2.75 2.75 2.75 ISD (Rs./min) USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Rs.7.20 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Rs.9.60 Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk

In case of Anant, the Life Time Validity means the License Period of the Operator. The License Period for Cellular Services of BSNL is 20 years w. e. f. 29.02.2000. However, the License is understood to be renewable further on its expiry.

TATA Indicom’s “GO LIFE” plan
TATA indicom’s “GO LIFE” plan

Pulse Rate 60 sec Price of Pack (Rs.) 489 Free Airtime on Pack (Rs.) 1 Incoming Calls (Rs.) - free for lifetime indicom GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 1.50 2.00 2.00 STD RATES (Rs./min) 2.75 2.75 3.00 ISD (Rs./min) USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand.

}Rs. 17.20 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe,

Lifetime validity is subject to the license period till of Tata Teleservices ltd. d. Connections with no usage (incoming, outgoing or recharge) for a continuous period of 180 days will be churned/deactivated.

Comparison of lifetime plans of all cellular
companies
Charges ( call rates ) (Rs.) Own network Other network STD International SMS L/N/I

Cellular co.s

Lifetime plan Rs.

Airtel BSNL R’com Tata Indicom

295 495 199 489

1 1 0.99 1.50

1 1.40 0.99 2

2.65 2.75 2.99 2.75

6.4/9.2/40 1/2/5 7.2/9.6/12 1/2/5 6/17 17.20 1/2/5 1/2/5

TRAI on Lifetime validity plans
TRAI asks mobile operators to disclose key issues of lifetime plans TRAI has asked the mobile operators offering lifetime connectivity plans to disclose 'risk factors', like change in tariff plans and their remaining license period duration, in their announcement. The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguards to protect consumer interest in the lifetime validity tariff schemes being offered by phone companies. These include a restriction on the companies from hiking the tariff on any item specified in the plans and an obligation to inform the subscribers of the month and year of the expiry of current license. The amendment to the Telecommunication Tariff Order thus addresses a moral issue that had arisen after phone companies began promoting lifetime schemes — their licenses are for a limited span ranging from seven to 15 years while they were offering a tariff that went well beyond the license period. It also answered a question in the minds of the subscribers whether there would be subsequent demands from phone companies after the initial upfront payment. TRAI made it clear that in the case of tariff plans offered or marketed as having lifetime or unlimited validity, the subscribers should get the service as long as the phone company is permitted to provide such telecom service under the current license or renewed license. TRAI has also reiterated the right of the subscribers to choose any tariff plan at any point of time. TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy.' With no stakeholder replying to the consultation paper on billing issues that also contained a code of practice for metering and billing accuracy, TRAI decided to issue the regulation. It has directed companies before enrolling a customer to inform in writing, within a week of activation of service, the complete details of the tariff plan. Charges for a value added service (download of film clip, ring tone and the like) or entry to an interactive service (such as a game) must be provided before the customer commits to use the service.

CHAPTER-3

RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. The characteristics of research presented below will be examined in greater details later are:  Systematic problem solving which identifies variables and tests relationships between them,  Collecting, organizing and evaluating data.  Logical, so procedures can be duplicated or understood by others  Empirical, so decisions are based on data collected  Reductive, so it investigates a small sample which can be generalized to a larger population  Replicable, so others may test the findings by repeating it.  Discovering new facts or verify and test old facts.  Developing new scientific tools, concepts and theories, which would facilitate to take decision. For the proper analysis of data simple statistical techniques such as percentage were use. It helps in making more generalization from the data available. The data which was collected from a sample of population, was assumed to be representing entire

population was interest. Demographic factors like age, income and educational background was used for the classification purpose.

Sample size
For carrying out any research or study on any subject it is very difficult to cover even 10% of the total population. Therefore the sample size has to be decided for a meaningful conclusion. For designing the sample size, it was thought proper to cover a very small percentage of population in various age groups.

The method used for sample technique was non probability convenience sampling method. This method is used because it is known previously as to whether a particular person will be asked to fill the questionnaire. Convenient sampling is used because only those people will be asked to fill the questionnaires who were easily accessible and available to the researcher.

Considering the constraints, it was decided to conduct the study based on sample size of 100 people in specific age groups. Scientific method is not adopted in this study because of financial constraints and also because of lack of time; also the basic aim of doing the research is academic, hence most convenient way is selected.

TYPES & TECHNIQUES
The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision which is precise and rational. The study is conclusive because after doing the study the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. The study is statistical because throughout the study all the similar samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated. Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision.

TOOLS USED
To know the response I have used the questionnaire method in sample survey. If one wishes to find what people think or know, the logical procedure is to ask them. This has lead marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaires were structured nondisguised questionnaire because the questions, which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant. The questionnaire, were non-disguised because the questionnaire were constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they asked to fill the questionnaire.

LIMITATIONS OF THE STUDY
• • • • • • The research will be conducted in a limited area. The internet information can be irrelevant. Time will be a major constraint. The respondent will be limited so cannot be treated as a whole population. The respondent may be biased. Due to language problem it is possible that the respondents are not be able to understand the questionnaire and can cause misleading results.

CHAPTER-4 DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS & INTERPRETATION
Q1. Which telecom service do you use? Options Mobile Landline Both Percentage of respondents 55 5 40

Q2. Which cellular service do you use? Options Airtel idea Reliance BSNL Tata indicom Percentage of respondents 34 28 17 16 5

Q3. Which service you r using? Options Prepaid Postpaid Percentage of respondents 95 5

Q4. Are you using lifetime or general plan? Option Lifetime General Percentage of respondents 73 27

Q5. Are you satisfied with the call rates of the Lifetime plan? Option Yes No Percentage of respondents 64 36

Q6. Which facility attracts you most in the lifetime plan? Option Call rates Massage Tariff Night Tariff Validity Percentage of respondents 15 1 1
83

Q7 Are you satisfied with the lifetime plan which you are using? Option Percentage of respondents

Yes No

78 22

Q8. Rate of the satisfaction level with the services of your present lifetime plan? Option Fully satisfied Satisfied Average Dissatisfied Highly dissatisfied Percentage of respondents 14 47 27 8 2

Q9. Why you chose lifetime plan? Option For incoming purpose only Percentage of respondents 23

For money saving For the facilities provided in the plan

48 29

Q10. Do you know about the license of the cellular companies? Option Yes No Percentage of respondents 24 76

CHAPTER-5

OBSERVATION & FINDINGS
 55% of the people use only mobile, and 40% of respondents use both the services & only 5% people use the telephone service. It shows the popularity of cellular phone services.  34% of respondents are using the Airtel services, which is the highest percentage of users of cellular phone. Idea takes 2nd place in Bhopal with 28% of users. Then comes reliance and BSNL, and tata indicom having least customers in the Bhopal.  Prepaid service is most popular in the cellular services with 95% of customers. The remained uses postpaid services.  In current situation 73% of respondents are using lifetime plans, where the rest are using general plan of the cellular companies.  64% of respondents are satisfied with the call rates of the lifetime plans, it is because telecom companies have slashed their call rates few months ago. Still in this situation 36% of respondents did not satisfy with the call rates which service they are using.  In the lifetime plan of cellular companies most of the respondents are using this service because of its validity period with 83% of answer. Where 15% of people like this services because of its call rates.  78% of customer satisfied with the lifetime plans of cellular companies, and which are not satisfy with the service they are mostly BSNL and TATA indicom users.

 Most of the people are using lifetime services because of money savings with the percentage of 48. Where 29% of people like this service because of the facilities provided by the operators. And 23% of people are using this service because of incoming only.  When it was asked to the respondents that did they know about the license of the cellular company, then most of the people replied NO. it means people are not aware about the license related bound of the cellular companies which is implemented by TRAI, that cellular companies can deliver their services until their license have validity, they have to renew it for providing further service.

CONCLUSIONS
In Bhopal it is found that Airtel is the market leader in the lifetime plan segment. People like the lifetime plans provided by the companies. And Idea having 2nd highest customers in Bhopal TATA indicom having least customers in Bhopal, where Reliance and BSNL having almost equal percent of customer But they are not aware about the bound of cellular companies with TRAI, that cellular companies can deliver their services till their license have validity, they have to renew it for providing further service.

SUGGESTIONS
 In the lifetime plans, cellular companies should reduce the call rates.  They should provide other facilities like massage and minimum call rates in the same network.  They should make aware the customers that they have limited license period.  They should not take other hidden charges.  There should not be any compulsion that customer have to recharge their card in 180 days with certain amount. This is the main drawback of the lifetime validity plan.

BIBLOGRAPHY
Books: • • • • • Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli. C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi. Saxena Rajan ‘marketing management’ Tata Mcgraw-hill publicating Co. Ltd. New Delhi. H. V. Verma ‘marketing of services’ Global business press, New Delhi. Business today magazine of February issue,2008.

Web Resources:
www.trai.gov.in http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea http://www.bsnl.co.in/about.htm http://www.bsnl.co.in/service/tariff_excel_pre.htm http://210.212.144.243/utility/tariff.htm http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf
www.airtel.in www.totalnetwork.co.in .

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

ANNEXURE

Questionnaire Name Age Sex Education1)18-40 1) Male □ □ 2)41-70 2) Female □ □ 3) Post graduate □ □ □ 3)70 above □

1) Under graduate □ 2) Graduate □ 4) Other □ 1) Job □ 2) Business

OccupationIncome-

□ 3) Self employ □ □ □ □ d) BSNL 3) 20k

1) 10K □ 4) Above 20k □ 1) Rural □

2) Above10k

Address-

2) Urban

Q1. Which telecom service do you use? a) Mobile □ b) Landline □ c) Both Q2. Which cellular service do you use? a) Airtel □ b) idea □ c) Reliance e) Tata indicom □ Q3. Which service you r using? a) □ b) Postpaid Q4. Are you using lifetime or general plan? a) Lifetime □ b) General □

Q5. Are you satisfied with the call rates of the Lifetime plan?

a) Yes

b) No

□ c) Night Tariff

Q6. Which facility attracts you most in the lifetime plan? a) Call rates □ b) Massage Tariff □ d) Validity □

Q7 Are you satisfied with the lifetime plan which you are using? a) Yes □ b) No Q8. Rate of the satisfaction level with the services of your lifetime plan? a) Fully satisfied □ b) Satisfied □ c) Average □ d) Dissatisfied □ e) Highly dissatisfied □ Q9. Why you chose lifetime plan? a) For incoming purpose only □ b) For money saving c) For the facilities provided in the plan □ Q10. Do you know about the license of the cellular companies? a) Yes □ b) No □ □

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->