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“STUDY OF NETWORK, CONSUMER BEHAVIOUR

AND COMPETITOR’S ANALYSIS”

A DIVISION OF

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ACKNOWLEDGEMENT

THIS IS OUR FIRST EXPOSURE FROM THE KNOWLEDGE OF BOOKS TO THE


PRAGMATIC WORLD OF INDUSTRY. WE WANT TO EXPRESS OUR SINCERE
GRATITUDE TOWARDS “BHARTI ENTERPRISES” WHO GAVE US
OPPORTUNITY TO COMPLETE THIS PROJECT. WE WOULD LIKE TO THANK
MR.SARABJIT BAXI (ASSISTANT MANAGER) FOR CHEERFULLY AND
GENEROUSLY GIVING HIS TIME, ADVICE AND EFFORTS WHICH HELPED US
TO INCREASE OUR AWARENESS LEVEL AND CONFIDENCE AND WITHOUT
WHOSE INVALUABLE SUGGESTIONS AND GUIDANCE THIS PROJECT WOULD
NOT HAVE BEEN COMPLETED.

WE ALSO WANT TO THANK OUR COLLEAGUES WHO HELPED US A LOT TO


CARRY ON THIS WORK.

LAST BUT NOT THE LEAST WE WOULD LIKE TO THANK ALL THE
RESPONDENTS WHO HAVE DIRECTLY CONTRIBUTED THEIR IDEAS AND
ENERGIES TO THIS PROJECT.

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TABLE OF CONTENTS

Executive Summary 1-2

CHAPTER 1
Introduction
 Objective of the Study 4-5
 Company Profile 6-9
Industry Profile 10-14
 Research Methodology 15-17
 Back- ground of the problem 18
 Limitation of the Study 19

CHAPTER 2
Analysis and Findings
Market condition Analysis 21-23
Competitor Analysis 24-25
Analysis of Consumer Behaviour 26
Network Study 27-35
 SWOT Analysis 36

CHAPTER 3
Suggestions and Recommendations 37
Conclusion 38-39

CHAPTER 4
Appendix
Bibliography 41
 Glossary 42

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Executive summary

We have undergone a marketing research project to gauge the factors affecting the

behaviour of consumer(s) while choosing a teleservice. For the same we focused on

various categories of respondents, which consisted of:

EXISTING MTNL CUSTOMER (S)

EXISTING BTNL CUSTOMER (S)

POTENTIAL CUSTOMER (S)

For the same we have used the Area sampling for the area of Gautam Nagar. Our sample

size was 167 units. The target was a fair representation of the entire sector. To get the

response from respondent we adopted the method of unstructured questionnaire.

The major problem was about brand awareness. People are not well aware of touchtel.

People using touchtel services are facing the problem of interconnectivity while someone

makes a call to a touchtel number from a BSNL number or abroad.

Another major issue is that people facing problem(s) with MTNL are not shifting to

Touchtel because they are reluctant to get rid of their existing telephone numbers

especially in case of SME’s and Corporate(s).

Based on findings we can recommend following:

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 As Touchtel is covering Delhi, area wise, and company may not go for

advertisement in newspaper or television. Company should go for area specific

advertisement, publicity and some social activities in prospective areas to create

brand awareness.

 Interconnectivity is an issue that requires immediate and proper solution.

 People are reluctant to get rid of MTNL numbers because of existing numbers. As a

solution to this, company should have some flexible policy like providing last 3-4

digits according to their old MTNL number.

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CHAPTER 1

OBJECTIVES OF STUDY

“STUDY OF TELECOMMUNICATION NETWORK, CONSUMER

BEHAVIOUR AND COMPETITOR’S ANALYSIS”.

 Competition analysis of major market players in telecom industry

 To study consumer behaviour

 Network study of Touchtel in specified area

 Sales of Touchtel services in the following segment:

1. Residential

2. Sme’s

3. Corporate

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4. Institution

CASE WORK

 Consumer Perception About TOUCHTEL

 Total Market Size Of Area

 Market Share

 Segment Share

 Revenue Share Of Each Segment

 Revenue Of Each Segment

 SWOT Analysis Of The Area

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COMPANY PROFILE

Bharti Enterprises has been at the forefront of technology and has revolutionised

telecommunications with its world-class products and services. Established in 1985,

Bharti has been a pioneering force in the telecom sector with many firsts and

innovations to its credit, ranging from being the first cellular service in Delhi, first

private basic telephone service provider in the country, first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private

sector service provider to launch NLD Services in India.

Bharti has fixed-line operations in the states of Madhya Pradesh, Chattisgarh,

Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long

distance networks. Bharti has launched national long distance services by offering

data transmission services and voice transmission services for calls originating and

terminating on most of India's cellular networks. The Company has also

implemented a submarine cable project connecting Chennai-Singapore for providing

international bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals and cordless

phones. Apart from being the largest manufacturer of telephone instruments, it is also

the first telecom company to export its products to the USA.

India's largest private integrated telecom group with over two decades of presence in

the business. As winners of the 'Best Telecom Services' award four times in a row,

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Bharti has ushered a new era of telecommunications in India. Bharti has brought into

the country cutting edge technology in mobile and fixed line telephony, long

distance, Internet, broadband and other telecom services making communication a

pleasurable experience. Bharti provides a range of telecom services and solutions

from customer premise equipment to customised data solutions, Bharti comes with

an entire range spanning the entire spectrum of telephony. And all this is made

possible with:

• Airtel - India's leading cellular service.

• Bharti Broadband end-to-end telecom solutions.

• Mantra - the first ISP with its own gateways.

• Network i2i - India's first international submarine cable.

• IndiaOne- India's first private long distance operator.

• Beetel - India's number one push button telephone brand.

• Touchtel - Largest network of private fixed line telephone service

solutions in India.

Bharti Enterprises has set industry standards in all the areas of its operation. And

with Touchtel, Bharti is raising the benchmark once again.

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TOUCHTEL - AN OVERVIEW

A new world of telephone service and solutions, a world of innovations in the fields

of technology, service and customer care. Touchtel has a world-class network of

Fixed Line Services, Data & Broadband Services, catering to the unique needs of

customers starting from corporate with high-end solutions to home users with value-

added services.

The 1st company to launch private telephone service in India in 1998, Touchtel a

brand of Bharti Enterprises - India's largest private integrated telecom company.

Bharti, with its expertise in the field of telecommunication, has brought next

generation technology to the telecom spectrum. Touchtel is providing fix line service

in five-circle Delhi, Haryana, Karnataka, Madhya Pradesh, Chattisgarh and

Tamilnadu.

Delhi's first private fixed line telephone service - Touchtel. With its world-class

infrastructure and expertise in telecom solutions, Touchtel promises to take

telephony experience to a new level. Drawing from Bharti's strength of leadership,

knowledge and innovation it will strive towards not just meeting but surpassing the

communication needs of the people of Delhi.

As the national capital, Delhi is a vital hub in the country's vast telecom network and

Touchtel is at the forefront providing reliable, high quality telephone service &

solutions.

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Currently, Touchtel are ready to serve the following areas.

DSL Covered Areas/To be Covered Areas

• Greater Kailash I - All areas and blocks will be covered under GK I except

Zamrudpur village

• Greater Kailash II - All Blocks covered

• Okhla Industrial Area Phase I, II and III - All areas and blocks will be covered in

Okhla Phase I, II and III, except area near Tehkhand School

• Vasant Vihar and Shanti Niketan - All areas and blocks will be covered in Vasant

Vihar, including Shanti Niketan

• South Extension II - All areas and blocks will be covered in South Extension II

• Safdarjang Enclave - All areas and blocks will be covered

• Connaught Place - Connaught Circus Covered except 'P' block

• East of Kailash and Nehru Place

• ITO

• Hotels

• New Friends Colony - All Blocks Covered

Products

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Coming from Bharti enterprises, India's largest private integrated telecom company,

Touchtel brings the latest in cutting edge technology in the telecom spectrum. Its

data and broadband services especially cater to the unique needs of the corporate

sector. As a company, Bharti believes in 'building telecom, building partnerships'.

We help in improving the way you do business by drawing from our expertise in

connectivity employing voice, data and video technology.

Prepaid Calling Cards (PCC)

MeetXpress Your express way to audio conferences

DSL Covered Areas/To be Covered Areas

New Dialling Codes

General Directory Inquiry

INDUSTRY PROFILE

India's nearly 54 million line telephone network, including mobile, is one of the

largest in the world and second largest among emerging economies (after China)

with a wide range of services-basic, cellular, internet, paging, v-sat etc. Given the

low telephone penetration rate-about 5 per hundred population, which is much below

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the global average, India offers vast scope for growth. It is therefore not surprising

that India has one of the fastest growing telecommunication systems in the world

with an average growth of about 22% for basic telephone services and over 100% for

cellular and Internet services. Telephone lines added to the basic services network

over the last 5 years have been one and a half times that added over the preceding

five decades.

Recognizing that telecom sector is one of the prime movers of economy, the

Government's regulatory and policy initiatives have been directed towards

establishing a world-class telecommunications infrastructure in the country.

• 6th largest network in the world with a wide range of services - Basic, Cellular,

Internet, Paging, VSAT, etc

• Network growing annually at an average rate of approximately 22 percent for basic

services and more than 100 percent for cellular and internet services

• Lines added to the basic services network over the last 5 years are one-and-a-half

times that added over the preceding 5 decades

• 40.7 million basic telephones and 12.7 million mobile telephones

• Current tele-density of approximately 5 percent, proposed (as per New Telecom

Policy 1999) to be increased to 7 percent (75 million telephone connections) by 2005

and 15 percent (175 million telephone connections) by 2010

• This translates into an investment requirement of approximately US$37 billion by

2005 and approximately US$69 billion by 2010

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• Current players include state-owned operators as well as private operators, operating

on a 'level-playing field'

• Independent regulatory body (Telecom Regulatory Authority of India) and dispute

settlement body (Telecom Dispute Settlement and Appellate Tribunal)

Telecom network status in India

Number of telephone connections 53.4 million


Number of telephone exchanges 36,628
Switching capacity 54.56 million
Village public phones 504,945
STD stations 31,363
Cellular subscribers 12.69 million
Paging subscribers 0.37 million
Internet subscribers 3.8 million
Optical fibre cable 402,083 Rkms

Already growing Indian telecommunications sector is experiencing the era of

liberalization, adding fuel to the fire. Due to open competition, private companies

can setup networks with state-of-the-art convergence technologies and establish

themselves directly as info-communication companies. This advantage allows them

to directly compete with the established and traditional telcos. In India, VSNL

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(Videsh Sanchar Nigam Limited), DTS (Department of Telecom Services) and

MTNL (Mahanagar Telephone Nigam Ltd) are traditional telcos.

VSNL had the monopoly in international telephony and internet gateways till

recently but with its privatization, it is now due for a taste of real competition from

private companies. It has around 20000 voice circuits and around 200Mbps

bandwidth for international connectivity. It is part of many international consortium

projects like Inmarsat, SEA-ME-WE, etc. and on the other; it is also an ISP

providing dial-up Internet access to some subscribers.

MTNL provides basic telephony in Delhi and Mumbai along with some dial-up

Internet access. It is well positioned to become a major LMA company since it has

around 400 local exchanges providing around 4 million connections to subscribers.

Its plans to take-over telephony market in Madras and Calcutta from DTS should

supplement its strength as an LMA company. Indeed it makes sense to bring VSNL's

Internet access business too under MTNL's umbrella. As MTNL takes over profitable

urban markets from DTS, it should have some alliance with DTS-LMA in terms of

cross holding and technological cooperation to prop up DTS-LMA's commercial

viability and its universal service obligations.

The Government of India has allocated Rs. 720 crore as budgetary support for village

public telephony programme to Bharat Sanchar Nigam (BSNL). Tata Teleservices is

planning to invest Rs. 1000 crore to launch basic services in Karnataka and is

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expected to generate employment for up to 8,000 people within the company and

among TTL’s franchisees. Though TTL plans to cover the entire state, it will initially

roll out its services in Bangalore, Mangalore, Hubli, Mysore, and then extend it to

over 30 towns in phase I by August 2003. As part of this plan TTL’s product

offerings will include wireline, fixed wireless, CDMA mobility, integrated data

solutions and specialized products and services to the corporate sector including

virtual private networks, data center services, network management services, and

disaster recovery solutions.

It also plans to offer CDMA (code division multiple access) based mobile telephony

to subscribers. It is understood that this service will not attract any airtime charge and

call charges will be as low as Rs 1.20 for three minutes. TTL has also designed

public telephone booths under the brand name Tatatelesmart, which are India’s first

smart-card based telephones. The company has been operating basic telecom services

in Andhra Pradesh for the last three years, with a customer base of over 1.5 lakh. It

has invested over Rs 1,400 crore in the state to build its network, which includes an

OFC backbone of 1,050 kilometers. TTL operates in 10 cities in the state with over

9,000 people and is likely to generate employment for 7,000 more people by 2007.

DESPITE the rapid strides made in the telecom sector in recent years, the

Economic Survey has warned that India continues to lag behind many other

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developing countries including China in teledensity, hinting at more policy

incentives to boost its growth.

"The two important goals of the telecom sector are delivering a low-cost voice

telephony to the largest possible number of individuals and delivering low-cost high

speed computer networking to the largest number of firms. The number of phone

lines per 100 persons, which is called teledensity, has improved from 3.6 in March

2001 to 4.9 in December 2002. However this is still at a level which greatly lags

other developing countries, in particular China," it has noted.

Stating that the year witnessed continued progress in telecom policies, it noted

growth of new telephone connections by 17 per cent and significant fall in long

distance tariffs. Looking forward, the telecom sector will feature lively competition

between multiple private firms, with a strong role for TRAI to establish pro-

competitive policies, the Survey has noted.

Cautioning that rise in modern telecom has raised fresh concerns about ``digital

divide'' where the rural areas are disadvantaged through inadequate telecom services,

it noted that the private operators had only provided 7,123 Village Public Telephones

(VPTs) by December 2002, against the target of 97,806 VPTs in first three years as

per the licence terms, it stated.

RESEARCH METHODOLOGY

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The research is a systematic gathering, recording and analyzing the data related to the

problems in marketing of goods and services.

Marketing research involves the diagnosis of the information, needs and the selection of

relevant interrelated variables about which valid and reliable information is gathered,

recorded and analyzed.

Research is the only way to find out the potential of the products in the market. It helps us

to find the market condition of any product and choice of the end user. Because the

survival of large number of companies has become hard in this competitive age.

Customer is attracted only towards the product with low price and high quality. So the

company that will satisfy both, primary and secondary motives of customer can only

survive in this new millennium.

Research design is the determination and statement of the general research approach or

strategy adopted for a particular project. It is the heart of planning.

If the design adheres to the research objective it will ensure that the client’s need is served.

The study of the consumer’s behaviour is Exploratory and Descriptive type of research,

which is useful to find the most likely alternatives.

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Data source & characteristics of sources of data

Data source:

 Primary source

 Secondary source

The data collected will be primary as well as secondary in nature. The tool used for this

research is personal interview.

Questionnaire

Type: Non- Structured

Non- Disguised

Data collection method:

The data was collected by face-to-face interaction with the respondents.

Sample Size

Size : 167

Focusing mainly on goutam nagar,delhi.

Sampling Type

Sampling type : Area sampling

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Data Analysis

Univariate tabulation percentage, graphs and arithmetic mean were used for data analysis.

FRAME WORK

To draw up a frame work there are following aspect to be considered for the

sampling plan.

1. Who is to be surveyed? (Data source)

2. How many are to be surveyed? (Limitation of time)

3. How are they to be selected? (Type of sampling method)

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4. How are they to be reached? (Method employed)

A plan is drawn for framework in which all the work can be done according

to research design.

In which the following factors are considered:

 Objective of the project

 Duration of the project

 Research design for the study

BACKGROUND OF PROBLEM

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Telephone has become a very essential communication media in almost all the Indian

lower, middle and upper class families. Telephones are designed to make our life a much

easier and Perhaps more comfortable.

We carried out a study of telecommunication network, consumer behaviour and competitor

analysis.

In consumer behaviour, we made an attempt to find out the satisfaction level of

respondents and map their perception about Touchtel with their existing telephone

connections. These include MTNL, TOUCHTEL etc and if they are not satisfied with the

services of their provider, are they interested in switching over or not. If not, why? With

the help of DSR.

In competitor’s analysis, we tried to find out the total market size of that area, market

share, segment share, revenue share of each segment, swot analysis of that area.

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LIMITATIONS

During the research full care was taken to keep the research as objective as possible and

limit the factors of bias to the minimum. The project undertaken was done with all

necessary precautions but still there were some factors, which could not be ruled out, and

these created some hindrance in the proceedings of the project and that might have

hampered the objectivity of the research. Any research study has these constraints namely

time, cost and accuracy. The degree of accuracy obtained would be directly affected by the

sample size and in general the methodology adopted for the study.

A few limitations of our study are:

1. Time was a very big limiting factor

2. Unresponsiveness and biased response were also some of the limitations. Thus the

possibility of human bias cannot be ruled out.

3. The lack of network feasibility in the area was also a limiting factor

4. Some areas where feasibility was not a problem were also a limiting factor because

they were partially occupied.

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CHAPTER 2

TABLE-01
SEGMENT SHARE
SME 76
OTHERS 2
CORPORATE 32
RESIDENTIAL 52
INSTITUTIONAL 5
TOTAL 167

SEGMENTAL MARKET SIZE

3%
SME
31%
46% OTHERS
CORPORATE
RESIDENTIAL
INSTITUTIONAL
19% 1%

Fig-01

SME's are having the mejority of the share in Gautamnagar area that is 45% of the total
market and immidiately followed by residential segment that occupies 31%. The
Institutional segment and others stand at a lowly 3% and 2% respectively.

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TABLE-02

SEGMENT REVENUE
SME 12550
CORPORATE 17900
RESIDENTIAL 12550
INSTITUTIONAL 5700
OTHERS 0
TOTAL 48700

REVENUE SHARE OF TOUCHTEL

0% 12%
26% OTHERS
26% INSTITUTIONAL
SME
CORPORATE
RESIDENTIAL
36%

Fig-02

Although the SME's and Residential are having bigger market size still the corporate sector
outperforms them in the revenue share of Touchtel. The segment others have 0% share in
the revenue since these are the govt. enterprises that do not entertain Touchtel services.

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TABLE-03

AWARENESS OF TOUCHTEL NO OF RESPONDENTS


AWARE 78
NOT AWARE 66

AWARENESS LEVEL OF TOUCHTEL

46%
AWARE
NOT AWARE
54%

Fig-03

Only 54% respondents are aware of the brand Touchtel. Despite of the fact that Touchtel is
a subsidiary of BHARTI and has been in the market for more than one year and almost half
the number of total number of respondent are not aware of the service provider. This
reflects the lack of publicity.

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TABLE-04

SERVICE PROVIDER NO. OF LINES


MTNL 218
BTNL 82

MARKET SHARE

27%

MTNL
BTNL

73%

Fig-04

MTNL has 73% market share while TOUCHTEL has managed to acquire 27 % market
share.

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TABLE-05

SEGMENT MTNL TOUCHTEL SHARE


SME 101 39 76
OTHERS 3 0 2
CORPORATE 71 22 32
RESIDENTIAL 37 17 52
INSTITUTIONAL 6 4 5

TOTAL 218 82 167

SECTORIAL MARKET SHARE

SEGMENT SHARE
120 80
NO. OF LINES

100 70
60 Series2
80 50
60 40 Series1
40 30
20 Series3
20 10
0 0
AL
AL
E
S
E

AT
ER

N
SM

TI

O
R
TH

EN

TI
PO

U
ID
O

IT
R

ES
O

ST
C

IN

SEGMENT

Fig-05

In the above two dimensional graph it is observed that SME's are leaders in the market
share of both MTNL and Touchtel along with occupying major market size. Although the
residential segment occupies higher market size still the corporate sector has higher market
share both in MTNL and Touchtel as compare to the residential segment.

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TABLE-06

SATISFIED WITH TOUCHTEL 26


NOT SATISFIED WITH TOUCHTEL 11
SATISFIED WITH MTNL 58
NOT SATISFIED WITH MTNL 25
SATISFIED WITH BOTH 9
TOTAL 129

SATISFACTION LEVEL

7% SATISFIED WITH
20%
TOUCHTEL
19% NOT SATISFIED WITH
TOUCHTEL
9% SATISFIED WITH
MTNL
NOT SATISFIED WITH
MTNL
SATISFIED WITH
BOTH
45%

Fig-06

19% respondents who are not satisfied with MTNL services, when ask to these respondent
why don’t they shift to other services or Touchtel. The respondent gave these reasons for
not shifting to Touchtel:
Refund of security money from MTNL
Changing of the existing telephone number
Lack of trust in private operators.

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YUSUF SARAI MARKET

PILLAR- (SE2 14)

SUB PILLAR-1

BLOCK COVERED- NDMC MARKET

NUMBER OF SELLABLE UNIT- 10

TOTAL REVENUE - 11550

AVERAGE REVENUE- 1443.75

NO. OF SELLABLE UNIT TAKEN INTO A/C- 8

NO.OF MTNL LINES- 8

NO. OF TOUCHTEL LINES 4

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DDA MARKET GAUTAM NAGAR

PILLAR- (SE2 12)

SUB PILLAR-1

BLOCK COVERED- DDA MARKET

NUMBER OF SELLABLE UNIT- 13

TOTAL REVENUE - 15900

AVERAGE REVENUE- 1987.50

NO. OF SELLABLE UNIT TAKEN INTO A/C- 8

NO.OF MTNL LINES- 18

NO. OF TOUCHTEL LINES 0

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YUSUF SARAI MAIN MARKET

PILLAR- (SE2 12)

SUB PILLAR-2

BLOCK COVERED- Y S MAIN MARKET

NUMBER OF SELLABLE UNIT- 26

TOTAL REVENUE - 38750

AVERAGE REVENUE- 1937.50

NO. OF SELLABLE UNIT TAKEN INTO A/C- 20

NO.OF MTNL LINES- 44

NO. OF TOUCHTEL LINES 3

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ORIENTAL HOUSE, GAUTAM NAGAR

PILLAR- (SE2 12)

SUB PILLAR-3

BLOCK COVERED- ORIENTAL HOUSE

NUMBER OF SELLABLE UNIT- 15

TOTAL REVENUE - 16650

AVERAGE REVENUE- 2081.25

NO. OF SELLABLE UNIT TAKEN INTO A/C- 8

NO.OF MTNL LINES- 25

NO. OF TOUCHTEL LINES 0

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BHANOT HOUSE, COMMUNITY CENTRE

PILLAR- (SE2 12)

SUB PILLAR-4

BLOCK COVERED- BHANOT HOUSE

NUMBER OF SELLABLE UNIT- 9

TOTAL REVENUE - 43000

AVERAGE REVENUE- 6142.86

NO. OF SELLABLE UNIT TAKEN INTO A/C- 7

NO.OF MTNL LINES- 16

NO. OF TOUCHTEL LINES 3

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GAUTAM NAGAR

PILLAR- (SE2 13)

SUB PILLAR-1

BLOCK COVERED-

NUMBER OF SELLABLE UNIT- 7

TOTAL REVENUE - 6000

AVERAGE REVENUE- 1200

NO. OF SELLABLE UNIT TAKEN INTO A/C- 5

NO.OF MTNL LINES- 9

NO. OF TOUCHTEL LINES 0

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GAUTAM NAGAR

PILLAR- (SE2 13)

SUB PILLAR-2

BLOCK COVERED-

NUMBER OF SELLABLE UNIT- 6

TOTAL REVENUE - 6000

AVERAGE REVENUE- 1500

NO. OF SELLABLE UNIT TAKEN INTO A/C- 4

NO.OF MTNL LINES- 8

NO. OF TOUCHTEL LINES 22

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GAUTAM NAGAR
PILLAR- (SE2 13)

SUB PILLAR-3

BLOCK COVERED-

NUMBER OF SELLABLE UNIT- 14

TOTAL REVENUE - 18500

AVERAGE REVENUE- 1541.66

NO. OF SELLABLE UNIT TAKEN INTO A/C- 12

NO.OF MTNL LINES- 15

NO. OF TOUCHTEL LINES 3

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GAUTAM NAGAR

PILLAR- (SE2 13)

SUB PILLAR-4

BLOCK COVERED-

NUMBER OF SELLABLE UNIT- 19

TOTAL REVENUE - 29850

AVERAGE REVENUE- 3731.25

NO. OF SELLABLE UNIT TAKEN INTO A/C- 8

NO.OF MTNL LINES- 21

NO. OF TOUCHTEL LINES 6

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SWOT ANALYSIS
Strength
 Leadership, Knowledge And Innovation
 Internet service provider (Mantra online) a brand of BHARTI
TELECOM, ISPs count on net telephony to stay in the race
 Brand image of AIRTEL
 Joint Venture with Singapore Telecom for National Long Distance
Operations
 India's first private sector national long distance service, IndiaOne
launched.

Weakness
 Problems in interconnectivity from BSNL number to a Touchtel
number
 Connectivity problem when a person from abroad makes a call to a
Touchtel number.
 Chances of going to another service provider because of the lack of
network covering entire Delhi.

Opportunities

 Try to capture the rural segment by offering them quality services at


competitive prices.
 Low telephone penetration rate-about 5 per hundred population.

Threats
 Value added services like CDMA technology of other players like Tata
is a growing threat to Touchtel.
 Lack of awareness among people
 Regulatory and tariff changes especially in the cellular operations are
constant threats.
Economic protectionism and continuous political changes plays against
everybody’s favor and affects the good intentions of players.
CHAPTER 3

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Suggestions and Recommendations
In this competitive scenario not only quality of the products but also awareness and
brand recall decides the fate of the product.

The main drawback of Touchtel lies in its poor publicity and their by poor recall of
the brand.

1. Being a subsidiary of BHARTI which is a well known company having another


successful brand like AIRTEL, Touchtel has to be promoted extensively through the
medium of advertising.

2. People, especially the SME’s and Corporate, are reluctant to switchover to


Touchtel as they have floated their existing numbers in the market. So touchtel should
make an effort to provide them a similar number having last 3-4 digits same as of their
existing numbers.

3. There are a substantial percentage of customers receiving abrupt bills. The


company should maintain its billing cycle.

4. MTNL is a govt. concern in which people feel secure, more so people have
developed a tendency to avoid private operators due to a spat of fluctuation in the tariff
plans recently so Touchtel should try to build confidence and trust among customers.

5. Interconnectivity is an issue that requires immediate and proper solution.

6. Although USP of Touchtel is its customer care but with the decline in its quality
people are facing problem. The promptness of customer care is fading; this should be
tackled with and immediately improved.

7. The people who drop their cheques in drop in boxes have to face a lot of
problems in case of the loss of the cheques. This occurs, as they don’t have the receipt
of the deposit. So a receipt should be issued at the time of deposition of cheque.

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CONCLUSION
India has tremendous potential and strength in telecom sector. The Indian
telecommunication infrastructure is very poor. In India the low telephone
penetration rate-about 5 per hundred populations, which is much below the
global average this is a big opportunity.

India needs to reform its rules, create more global awareness, change its policies
in favor of more opportunities and encourage its major players to invest in the
economy.
According to former World Bank economist Surjit Bhalla, every 10 million new
phones lines add 0.5% to annual economic output.

Touchtel is providing excellent services in basic fix line telephony. The tariff
plans and the services of Touchtel are consumer oriented. It is providing quality
dial up Internet services and many other value added services like:
Centrex facility
Three party conferencing
Caller id identification service etc.

The growth of Touchtel has been steady since its incorporation but it has to be
increased. Ithe widening of the network and improvisation in the following areas
would help it in its rapid growth:
Brand awareness
Problem of interconnectivity

43
This project hopefully has provided the necessary cushion to take the study
further and encourage the company to consider expanding its network and
increasing its subscriber’s base.

44
45
CHAPTER 4

BIBLIOGRAPHY
Marketing Management by PHILIP KOTLER

• Marketing Research by BOYD and WESTFALL

• Market Research by SYAM B. VYAS

• Voice and Data (magazine)

• Economic times

• Website:

Google.com

Touchtelindia.com

46
GLOSSARY:
LMA Last Mile Access
NLDA National Long Distance Access
DOT Department Of Telecommunications
TELCOS Telephone Companies
MTNL Mahanagar Telephone Nigam Ltd.
VSNL Videsh Sanchar Nigam Ltd.
BSNL Bharti Sanchar Nigam Ltd.
DTS Department of Telecom Services
TRAI Telecom. Regulatory Authority of India
TDSAT Telecom Disputes and Settlement Appellate Tribunal
ILD International Long Distance
DLD Domestic Long Distance
NLD National Long Distance
IT Information Technology
ISDN Integrated Services Digital Network
ISP Internet Service Provider
CDMA Code Division Multiple Access
OFC Optical Fiber Cable
DSL Digital Subscriber Line
VPTs Village Public Telephones

47
QUESTIONNAIRE

NAME: ____________________________________

ADDRESS: ____________________________________

OCCUPATION: ____________________________________

1. Do you believe that India is potentially one of

the most exciting mobile service providers in the

world?

Company Yes No
Airtel
Vodafone
Idea
MTNL

2. Do you find that the government’s telecom policy

has had the most radical impact on the development

of mobile service providers?

Company Yes No
Airtel
Vodafone
Idea
MTNL

48
3. Do you believe that one of the challenges facing mobile
operators in India is the diversity of the coverage regions?
Company Yes No
Airtel
Vodafone
Idea
MTNL

4. To what extent, does you find that mobile service providers is


a very complex standard?
Company To some To great extent

(6-10)
extent

(1-5)
Airtel
Vodafone
Idea
MTNL

49
CONSUMER LEVEL
1. Do you believe that mobile service providers comes close to
fulfilling the requirements for a personal communication
system?
Company Yes No
Airtel
Vodafone
Idea
MTNL

2. Do you find that mobile service providers as the most exciting and

satisfying mobile standard?

Company Yes No
Airtel
Vodafone
Idea
MTNL

3. Do you believe that your service provider has a genuine commitment

to creating a modern and efficient communications?

Company Yes No
Airtel
Vodafone
Idea
MTNL

50

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