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Group Project On Comparative Study of Lifetime plans With Special Reference to Telecom Sector

SUBMITTED TO

Institute of higher education
Under the guidance of Mrs. Kavita shukla SUBMITTED BY Abhishek Dwivedi Anish Gandhi Babita Panda Megha Chhapariya Nitesh Gori priyanka

ACKNOWLEDGEMENT
This Project has been made possible through the direct and indirect Co-operation of various persons, who have inspired us at every step of our work. It is a matter of pride for us to acknowledge our profound gratitude to our respected teacher Mrs. Kavita Shukla who always facilitates us in gaining practical knowledge.

And above all, we all beholden to each of our group members for their blessing and encouragement in completing this task.

PREFACE
The research provides an opportunity to students 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 GURGAON‖. Although we have tried our level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy.

DECLARATION
We hereby declare that the following documented Project Report titled ―COMPARITIVE STUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN GURGAON‖ is an authentic work done by us.

The Study was undertaken as a part of the course curriculum of MBA Full Time Program of IILM GUGRAON

CONTENTS

1. 2. 3. 4. 5.

INTRODUCTION OBJECTIVES OF THE STUDY INTRODUCTION OF TELECOM SECTOR INTRODUCTION TO CELLULAR COMPANIES RESEARCH METHODOLOGY  RESEARCH DESIGN  SAMPLE DESIGN LIMITATIONS OF THE STUDY DATA ANALYSIS AND INTERPRETATION OBSERVATION & FINDINGS CONCLUSIONS

6. 7. 8. 9.

10. SUGGESTIONS 11. BIBLOGRAPHY ANNEXURE

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

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

. To find out the perception of the general people towards the landline & Mobile phone. 2. To find out the consumer satisfaction towards the lifetime plans.OBJECTIVES 1. 3. To find out the hidden information in lifetime plans of cellular services.

In fact. This means that one out of every three Indians has a telephone connection. and telecom companies expect this pace of growth to continue in 2009 as well .26 million new customers in 2008.Telecom Industry in India The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010 India added 113. . in April 2008. Considering the fact that India and China have almost comparable populations. . the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008.Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. the country‘s cellular base witnessed close to 50 per cent growth in 2008.2%.India‗s mobile phone subscriber base is growing at a rate of 82.China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. the largest globally. Compared to that India‘s share in Asia Pacific Mobile Phone market is 6.5 million customers added every month.4%. with an average 9. taking the telecom penetration to over 33 per cent. . India‘s low mobile penetration offers huge scope for growth. According to the Telecom Regulatory Authority of India (TRAI). To put this growth into perspective. India had already overtaken the US as the second largest wireless market.

Indian Radio Telegraph Company (IRT) was formed in 1923. and Idea Cellular. Department of Telecommunications (DOT) was established.History of Indian Telecommunications Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). closed user group and videoconferencing. private services focus on the business/corporate sector. all the foreign telecommunication companies were nationalized to form the Posts. Fixed line services consist of basic services. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). 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. Also. After independence in 1947. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.end services. such as leased lines. However. ISDN. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. Vodafone-Hutch. The state operators (BSNL and MTNL). In 1986. Telephone and Telegraph (PTT). national or domestic long distance and international long distance services. and offer reliable. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. examples of telecom revolution in many other countries. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. and Cellular Services. The GSM sector is dominated by Airtel. Cellular operators get substantial revenue . account for almost 90 per cent of revenues from basic services. Telecom Regulatory Authority of India (TRAI) was created. In 1990s. while the CDMA sector is dominated by Reliance and Tata Indicom. high. which resulted in better quality of service and lower tariffs. In 1883 telephone services were merged with the postal system. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). telecommunications sector benefited from the general opening up of the economy. led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs). The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. a monopoly run by the government's Ministry of Communications. and collectively account for less than 5 per cent of subscriptions. In 1985. Telephone services were introduced in India in 1881. Private sector services are presently available in selective urban areas. In 1997.

Classification of Telecommunication services 1. international long distance. Cellular services 3. which along with rental was the main source of revenue. Internet Service Provider (ISP) . and handset prices has driven demand. and compensate them for reduction in tariffs on airtime.From these services. national long distance. The reduction in tariffs for airtime. Basic services 2.

. The reduction in tariffs for airtime. international long distance. which along with rental was the main source of revenue. and handset prices has driven demand. 2. they were only allowed to buy companies outside their circle. and compensate them for reduction in tariffs on air time. Previously. national long distance. There are five private service operators in each area. Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Almost 80% of the cellular subscriber base belongs to the pre-paid segment.Cellular Service Overview 1. and an incumbent state operator. 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. Cellular operators now get substantial revenue from these services.

The wire line segment subscriber base stood at 39.73 million with a decrease of 0. BSNL 2. Circle wise wire line subscriber base of service providers is given at following chart. . MTNL Subscribers Wireless subscribers crosses 342 million mark Tele density reaches 21.02 (million) in August 2007. Spice 8.20% The total number of telephone subscribers has reached 347mn at the end of 2008 as compared to 241.16 million at the end of August 2008. 15. CDMA & WLL (F)) base reaches 362.41 million at the end of Jan 2009 subscribers have been added in.. Vodafone 4.20% in Dec 2008.The Key players in the Telecom Market in India Cellular Service provider: 1. The total wireless subscribers (GSM.. Reliance 6. Idea 5. Airtel 3.30 million at the end of Jan 2009. The overall teledensity has increased to 34. In the wireless segment.50% in Jan 2009 as compared to 33. Tata indicom 7.

Market Share of the Telecom Company in India .

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

Andhra Pradesh. Initially having a very limited footprint in the GSM arena. Haryana. Gujarat. Madhya Pradesh. cropped differences between the Tatas and the Birlas. Maharashtra. IDEA Cellular has operations in Delhi. It is the first cellular company to launch music messaging with 'Cellular Jockey'. 'Group Talk'. The company has its retail outlets under the "Idea n' U" banner. the Tatas and AT&T Wireless each held one-third equity in the company. This stake was bought by both the Tatas and Birlas at 16. Goa. INTRODUCTION As India's leading GSM Mobile Services operator. Chhattisgarh. Haryana. Chhattisgarh. This was because as per Department of Telecom (DOT) license norms. The company has also been the first to offer flexible tariff plans for prepaid customers.customized version of Google search engine that will provide an 'array of services' to its broadband customers. IDEA Cellular has licenses to operate in 11 circles. Tata Indicom. Goa. Gujarat. It initially started in 1995 as a join venture between the Tatas.45% each. Aditya Birla Group and AT&T by merging Tata Cellular and Birla AT&T Communications. Rajasthan and Delhi (inclusive of NCR). Innovation is central to IDEA's VAS Factory. the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai). Cingular decided to sell its 32. UP-West. But following AT&T Wireless' merger with Cingular Wireless in 2004. Uttar Pradesh (East and West). 'Background Tones'. With a customer base of over 17 million. Uttaranchal. This dual holding by the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai. Idea Cellular is a wireless telephony company operating in various states in India.9% stake in Idea. As a leader in Value Added Services. Himachal Pradesh and Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50% of the potential telecom-market. Holding Initially the Birlas. Andhra Pradesh. a CDMA-based mobile provider. Madhya Pradesh. a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services. Kerala. one promoter could not have more . It also offers GPRS services in urban areas. Tata's foray into the cellular market with its own subsidiary.

They are awaiting the spectrum from DoT.3% of the total shares of the company. a company in-charge of the Birlas' new business initiatives. the remaining stake was acquired by Birla TMT holdings Private Ltd.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. an AV Birla family owned company. Birla Group holds 98. While 15% of the 48. and the Tatas replied by saying that they would exit Idea but only for a good price. Idea got licenses to operate in Mumbai & Bihar. . The Birlas thus approached the DOT and sought its intervention. Idea has successfully launched 3 more new circles (states) in India viz. 44. On April 10. Recently. Currently.51 a share amounting to Rs.18% stake held by the Tatas at Rs. Rajasthan.06 billion. the Aditya Birla Group announced its acquisition of the 48. Himachal Pradesh and UP (East) to make itself a pan-India player.. 40. 2006.14% stake was acquired by Aditya Birla Nuvo.

36 billion shares of the company.75 per cent of the company. Reliance Communications has a reliable. Reliance Communications is revolutionizing the way India communicates and networks. Dhirubhai. It uses CDMA2000 1x technology . though sadly after his unexpected demise on 6 July 2002. Reliance Communications (formerly Reliance Infocomm). financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Anil Ambani controls 66. applications. data and video) digital network. They will overcome the handicaps of illiteracy and lack of mobility. comprising of power (Reliance Energy). integrated (both wireless and wireline) and convergent (voice. Reliance Infocom is currently managed by Anil Dhirubhai Ambani. According to National Stock Exchange data. Today. which accounts for more than 1. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain.000 route kilometres of a pan-India fibre optic backbone. [1]Reliance Infocomm is an Indian telecommunications company. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group. had stated as early as 1999: ―Make the tools of information and communication available to people at an affordable cost. truly bringing about a new way of life. the auspicious occasion of Dhirubhai‘s 70th birthday. and consulting. This backbone was commissioned on 28 December 2002.‖ It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60. who single-handedly built India‘s largest private sector company virtually from scratch. high-capacity. along with Reliance Telecom and Flag Telecom. including infrastructure and services — for enterprises as well as individuals.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. is part of Reliance Communications Ventures (RCoVL).

In the same period. 2008. Reliance Infocomm also offered for the first time in India. 3. to Rs. Between 1999 to 2002 Reliance Infocomm built 60. 1. 2002. the Broadband business achieved revenue growth of 123% to Rs. 2. from 15% in the corresponding period in the previous year.364 crore (US$ 1. 2008. BUSINESS REVIEW During the twelve months ended March 31. Reliance's CDMA services are available in 19 states and cover about 65% of the country. . 10. and EBITDA increased by more than 6 times.709 million). 7.489 million) from Rs.144 crore (US$ 265 million). 2008 to Rs. This network was commissioned on December 28.000 km of fibre optic backbone in India.250 crore (US$ 522 million).HISTORY Reliance Infocomm was founded by Dhirubhai Ambani. revenues of the Wireless business increased by 46% to Rs. Wireless EBITDA increased to Rs. mobile data services through its R-World mobile portal. state wise. EBITDA of the Global business increased by 98% during the twelve months ended March 31.271 crore (US$ 295 million).728 crore (US$ 2. 1.984 crore (US$ 924 million) from Rs. This portal leverages the data capability of the CDMA 1X network. FOOTPRINT At present. 519 crore (US$ 120 million). Reliance Telecom's GSM cellular services are available in 340 towns within its eight-circle footprint. Margins expanded to 37% from 31%. The EBITDA margin crossed 45% in the twelve months ended March 31. EBITDA margins increased to 24% from 12% last year.

the company acquired the erstwhile Hughes Telecom (India) Ltd. an Indian Conglomerate. The company provides unified telecommunication solutions including mobile. Tata Teleservices spearheads the Group‘s presence in the telecom sector. 119000 Crore (US$ 29 billion) Tata Group. TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services in India. both CDMA operators in India. an International Long Distance Plan. the Group has a formidable presence across the telecom value chain. In December 2002.5 billion) in Telecom (FY 2006). over 250. Tata is the direct competitor with Reliance. Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Aircel. that has over 87 companies. With a committed investment of INR 36. Tata Indicom launched the Talk World plan. Other competitors are Vodafone. which was renamed Tata Teleservices (Maharashtra) Limited.000 Crore (US$ 7. fixed line and broadband. specifically in the state of Andhra Pradesh. and BSNL providing GSM based mobile telephony. It runs the brand name Tata Indicom in India in various telecom circles of India. Idea. The company forms part of the Tata Group's presence in the Telecommunication Industry in India. MTNL. In September 2007.8 million shareholders. Incorporated in 1996.TATA TELESERVICES INTRODUCTION Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies. Starting with the major acquisition of Hughes Tele. Airtel. fixed wireless. They launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed wireless for a one time charge.com (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the . The company was first in India to provide free intra network calling within city limits. along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL. Tata Teleservices is part of the INR Rs.000 employees and more than 2.

With the total Investment of Rs 19. Tamil Nadu. Wi-Fi Internet. Gujarat. which will include 10. Mumbai.in to offer postpaid mobile connections in the country.924 Crore. TTSL has created more than 20. Delhi.000 jobs. Today. Haryana. Rajasthan. etc. cricket. Lucent and ECI Telecom for the deployment of a reliable. Kerala. Tata Teleservices has created a Pan India presence spread across 20 circles that include Andhra Pradesh. The company. Tata Teleservices‘ bouquet of telephony services includes Mobile services. Ericsson. post-paid Internet services. In addition. Public Booth Telephony and Wireline services. astrology. Kolkata. public phone booths. is today the market leader in the fixed wireless telephony market with a total customer base of over 3. Other services include value added services like voice portal. USB Modem. Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 21 million customers in over 4000 towns. interactive applications like news. It has partnered with Motorola. data cards.000 indirect jobs through outsourcing of its manpower needs. Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. roaming. Karnataka. 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. Having pioneered the CDMA 3G1x technology platform in India. Uttar Pradesh (W). Chennai. new mobile handsets and new voice & data services such as BREW games. Himachal Pradesh. Wireless Desktop Phones.8 million. calling card services and enterprise services. by unveiling their offering – Tata Indicom ‗Non Stop Mobile‘ which allows customers to receive free incoming calls. Orissa. polyphonic ring tones. Bihar. . Tata Indicom redefined the existing prepaid mobile market in India. Maharashtra.ichoose. which heralded convergence technologies in the Indian telecom sector.Company swung into an expansion mode. picture messaging. 3-way conferencing. Some of the other products launched by the company include prepaid wireless desktop phones. Voice Portal. Madhya Pradesh and West Bengal. group calling. technologically advanced network. Tata Teleservices has a strong workforce of 6000. Uttar Pradesh (E). Tata Teleservices offers world-class technology and user-friendly services in 20 circles. Punjab. With an ambitious rollout plan Both within existing circles and across new circles.

BSNL is the only service provider. Currently BSNL has a customer base of 68. As on December 31. CellOne. MPLS-VPN. 4 million WLL capacity.90 billion). Its headquarters are at Bharat Sanchar Bhawan.7 million Wireline. It has the status of Mini-ratna .8 million cellular customers. 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. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. Carrier service. expanding the network. CDMA mobile. Harish Chandra Mathur Lane.3 million line basic telephone capacity. 63730 Rkm of Microwave Network connecting 602 Districts.1 million CDMA-WLL and 32.14% market share as on December 31. India Communications Corporation Limited) is a public sector communications company in India. VSAT.06b (US$ 1. Broadband. 20.INTRODUCTION Bharat Sanchar Nigam Limited (known as BSNL. has more than 17. BSNL is India's largest Telco and one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. it has about 47. 287 Satellite Stations.7 million GSM Mobile subscribers. BSNL has installed Quality Telecom Network in the country and now focusing on improving it. 18000 BTS. more than 37382 fixed exchanges. Janpath.1 Million GSM Capacity. 2000. introducing new telecom services with ICT applications in villages and wining customer's confidence. making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. Today. Within a span of five years it has become one of the largest public sector units in India. 7330 cities/towns and 5. BSNL is India's oldest and largest Communication Service Provider (CSP). New Delhi. 480196 Rkm of OFC Cable. 2007 BSNL commanded a customer base of 31.15b (US$ 9. That means that . The company is planning an IPO with in 6 months to offload 10 % to public. garnering 24 percent of all mobile users as its subscribers. BSNL's earnings for the Financial Year ending March 31.5 Lakhs villages. 2007 stood at INR 397.5 million (Basic & Mobile telephony). Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. GSM Mobile. Today. Internet. BSNL cellular service.67 b) with net profit of INR 78. BSNL serves its customers with its wide bouquet of telecom services. 2007.a status assigned to reputed Public Sector companies in India. VoIP services. formed in October. 4. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline. IN Services etc. Bharat Sanchar Nigam Ltd. It is the India's largest telecommunication company with 25.

390 million (US $ 2. In 19th century and for almost entire 20th century. BSNL has more than 2. data and video through the same Backbone and Broadband Access Network.6 million DataOne broadband customers. the present turnover of BSNL is more than Rs.000 million (US $ 14.99.e. The Government of India corporatized the operations wing of DoT on October 01. 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.820 million (US $ 8 billion) with net profit to the tune of Rs. Scaling new heights of success. In basic services.1 million Basic Phone subscribers i. BSNL is miles ahead of its rivals. nationwide coverage. the Telecom in India was operated as a Government of India wing.630. BSNL has set up a world class multi-gigabit. The company has vast experience in Planning.5 million WLL subscribers and 2. Earlier it was part of erstwhile Post & Telegraph Department (P&T). 1 Telecom Company of India. Subsequently in 1990s the telecom sector was opened up by the Government for Private Investment. Account Less Internet(CLI).67 million) in the next three years. with 35. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms. Dial-up. network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute. 733 crores (US$ 16. 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Installation. In 1975 the Department of Telecom (DoT) was separated from P&T. 85 per cent share of the subscriber base and 92 percent share in revenue terms. DIAS. comprehensive range of telecom services and the desire to excel has made BSNL the No.5 million Internet Customers who access Internet through various modes viz. At present there are 0. The infrastructure asset on telephone alone is worth about Rs. .Almost every fourth mobile user in the country has a BSNL connection. BSNL has been adjudged as the NUMBER ONE ISP in the country. History The foundation of Telecom Network in India was laid by the British sometime in 19th century. reach.37 billion). The history of BSNL is linked with the beginning of Telecom in India. The turnover.351. 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. therefore it became necessary to separate the Government's policy wing from Operations wing.26 billion) for last financial year.BSNL operates as a public sector. multi-protocol convergent IP infrastructure that provides convergent services like voice. Leased Line.

They offer cost control with a fixed price per minute. Get you own cell phone with no credit check! It's today's safe. 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. 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. while in the United States. already more than 60 % of subscribers are on a prepaid wireless plan. convenient. .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. only 8 to 10 percent of users have chosen that system. for example. control over costs with cell phones distributed by parents. and flexible way to manage your spending on cellular phones. More and more people are using this service to control spending than to get around credit problems. In Europe. Prepaid cell phones have a distinct advantage over regular subscriptions. some providers see their prepaid subscriber‘s base increase 50% faster than those of an ordinary monthly billed service. perhaps because wireless service can be started up with no subscription fee for well under $100. no credit check and increased anonymity. But it's growing fast: in Canada.

or * If you have no credit history or past credit problems. or * If you want to learn about your usage patterns before committing to a longterm monthly billing wireless contract. If he takes the lifetime validity offer. 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 are looking for a gift. There will be no processing charges. What is lifetime validity? Lifetime prepaid means that your cell-phone connection remains valid for life. By saving on the Rs 150 processing fee. . something that is a big turn-off for prepaid customers. out of the Rs 335 an Airtel prepaid customer in Delhi pays to recharge his connection for 30 days. ranging from Rs 10 to Rs 100 . Or * If you don't feeling comfortable providing information for a carrier credit check. the same Rs 335 recharge will give him talk time worth Rs 302 — and that‘s for life. For instance. The user can then continue to receive calls without having to recharge. Rs 150 go into processing fees. You also get a minimal talktime.Prepaid cellular phones are ideal in the following situations: * If you want to budget your cell phone use. Lifetime plans allow pre-paid subscribers to have lifetime validity for a one-time payment. or * If your usage varies from month to month. 31 goes to the government as tax and he gets airtime worth only Rs 154. Another Rs. he will recover the one-time charge for lifetime validity in a few months.The good part is that all subsequent recharges give you full talk time. or * If you want to buy your children a phone for emergency use but restrict the amount of calls they can make.

· All existing customers of Rs. 1/.99/per minute call rate. 1/. Bharti Airtel. Bharti Airtel.call rates. 295 Lifetime Prepaid with 1 Rupee Outgoing Local Tariff Slashes local outgoing call rate by 50% for Rs. 1/.at least once in every 180 days to enjoy the lifetime validity and tariff benefits. Customers will have to recharge with a minimum amount of Rs. 1.per minute and all existing customers will be migrated to the revised tariff plan without any extra charges. India‘s leading telecom service provider. without any extra charges. With effect from February 15. announced this revolutionary tariff cut for customers that was earlier applicable to only the Rs. today announced the Rs. 295/. all Rs.for Rs.Lifetime customers. 1/./min) 1. 495/.) Free Airtime on Pack (Rs. 2008.) 60 sec 295 150 Airtel GSM / CDMA (10 Digit) Landline / WLL LOCAL RATES (Rs./min) 1 (night tariff 1 from 11pm to 7 am @ 10 paisa) 1. 999/. 295/.) Incoming Calls (Rs.50 1. 295/.Lifetime Prepaid users Local outgoing tariff reduced to Re.Lifetime Prepaid customers will be able to make local outgoing calls (Mobile & Landline) at Re.50 1 STD RATES (Rs.Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all local outgoing calls (mobile and landline) to Re.50 .Lifetime Prepaid customers. 295/.Lifetime Prepaid to be migrated to Re. 1.Life time plans of the cellular companies The Life Time Plan of Airtel Airtel Presents Rs.from the existing Rs. Airtel ka Super Lifetime Validity Pulse Rate Price of Pack (Rs. 200/.99/.for life to all networks (mobile & landline) from Rs. which was also the first service provider to introduce the Lifetime Prepaid in India.

Nauru.e. Indonesia. Rs 1100: 25%. Cook Islands. Australia. Europe (Mobile). Malaysia.40 9. Norfolk Island. Singapore. 40 Guinea Bissau.in 180 running day 1 2 5 60 sec 295 150 - .) Free Airtime on Pack (Rs. Tuvalu. Sakhalin SMS (Rs. Hong Kong. Thailand. Vanuatu. Sao Tome & Principe. Diego Garcia./min) USA. This is waived for the first 90 days from 25th Feb 08. Min recharge condition of Rs 200/. Europe (Fixed Line).) Local National International Pulse Rate Price of Pack (Rs.) Other Details PF on subsequent talktime recharges to be as per bands specified i. Rs 101-199: 15%.ISD (Rs. Rs 200 & above: NIL. SAARC countries. Tokelau. Africa & Rest of the world 6.) Incoming Calls (Rs. Canada. Solomon Islands. New Zealand. Gulf.20 Cuba.

Online TT-86.) Incoming Calls (Rs. 125/-(Till 30th April.99s Rs.99 Guinea Bissau. Nauru. Europe (Fixed Line)./min) STD RATES (Rs. Offline TT-25 Rs. Norfolk Island. New Zealand. Malaysia.) Free Airtime on Pack (Rs.9./min) USA.) Total TT-111.99 Cuba. Singapore.39. Canada.50 Landline / WLL LOCAL RATES (Rs. Gulf./min) ISD (Rs. Africa & Rest of the world 1 1. Indonesia. Thailand.) . Diego Garcia.) 60 sec 22 (sim charges exclude) 3 .Lifelong Validity Recharge Voucher IDEA ka Lifelong Validity offer Pulse Rate Price of Pack (Rs.25. 2008.50 1 1. Solomon Islands. Tuvalu. Rs. Europe (Mobile). Hong Kong.) Local National International 1 2 5 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. (within 48 hrs.25. Tokelau.Idea . Cook Islands. Australia. Sao Tome & Principe.6.50 Rs. Sakhalin SMS (Rs. SAARC countries. Vanuatu.free for lifelong Idea GSM / CDMA (10 Digit) 1 1.

99 paisa Rs.00 Landline / WLL 0. Africa & Rest of the world . plans to announce a similar scheme at one-fourth the price —. and one didn‘t hear about lifetime plans at all. For making outgoing calls. Spectrum war. Canada. depending on the trend of one‘s usage. Indonesia.) RCom’s “SATH ZINDAGI BHAR KA” plan 60 sec 100 (sim charges exclude) Rs.Reliance ―Sath Zindagi Bhar Ka‖ (lifetime) offer RCom‘s new gambit is Rs 100 lifetime prepaid Reliance Communications.00 USA. New Zealand. the code-division multiple access major. Malaysia. Europe (Mobile). SAARC countries. Singapore. the standard local tariff will be 50 paisa per minute. Europe (Fixed Line)./min) STD RATES (Rs.25paisa Rs.1. however. RCom‘s move looks like a replay of 2006. Rs. GSM / CDMA (10 Digit) 0.Rs 100. which was the first to launch the lifetime plan almost two years ago at a one-time cost of Rs 999. }17 Gulf.6 Australia.24 . when mobile telephony players were intensely competing with each other over lifetime pre-paid schemes.) Incoming Calls (Rs. Hong Kong.1.00 Free Airtime on Pack (Rs. Thailand.2.free for lifelong Rel. RCom‘s ―SATH ZINDAGI BHAR KA‖ plan Pulse Rate Price of Pack (Rs. Various other calling tariff options will also be available to the users./min) 0./min) ISD (Rs.1.) LOCAL RATES (Rs. kept the operators busy all through 2007.50 paisa Rs.

Sao Tome & Principe.) Local National International 1 2 5 . Cook Islands. Norfolk Island. Nauru. Guinea Bissau. Tuvalu. Solomon Islands. Sakhalin SMS (Rs. Vanuatu.Cuba. Diego Garcia. Tokelau.

Tokelau. SAARC countries. Sakhalin SMS (Rs.02./min) STD RATES (Rs.99 0.20 0. Hong Kong. Guinea Bissau. Nauru. Thailand. Europe (Mobile).50 GSM / CDMA (10 Digit) 0. the Life Time Validity means the License Period of the Operator.12./min) USA. Cook Islands.75 Landline / WLL 0. The License Period for Cellular Services of BSNL is 20 years w.99 Rs.BSNL‘s Excel ANANT plan BSNL’s “Excel Anant” plan Pulse Rate Price of Pack (Rs. New Zealand. 29. Gulf. the License is understood to be renewable further on its expiry.99 0. Norfolk Island. Sao Tome & Principe.7. Australia. Europe (Fixed Line).) Local National International 1 2 5 Rs.2022. Tuvalu.) Free Airtime on Pack (Rs.99 0. Solomon Islands.9. Diego Garcia. Singapore. Indonesia.00 In case of Anant. However. Africa & Rest of the world Cuba. Canada. e. f./min) ISD (Rs.60 Rs.) Incoming Calls (Rs.free for lifelong BSNL LOCAL RATES (Rs.30 . Malaysia.) 60 sec 249 (sim charges include) RS. . Vanuatu.

00 1. Sao Tome & Principe. New Zealand. Africa & Rest of the world Cuba. d./min) STD RATES (Rs. Norfolk Island. Singapore./min) USA. 17. Vanuatu. Europe (Mobile).00 1. Diego Garcia. Canada.20 Gulf. Connections with no usage (incoming.TATA Indicom‘s ―GO LIFE‖ plan TATA Indicom’s “GO LIFE” plan Pulse Rate Price of Pack (Rs.50 Lifetime validity is subject to the license period till of Tata Teleservices ltd. Tokelau.) Local National International 1 2 5 1. outgoing or recharge) for a continuous period of 180 days will be churned/deactivated.free for lifetime Indicom LOCAL RATES (Rs.) Incoming Calls (Rs.50 Landline / WLL 1. Malaysia. Nauru. Thailand./min) ISD (Rs.) Free Airtime on Pack (Rs. Tuvalu. Solomon Islands. Europe (Fixed Line). SAARC countries. Sakhalin SMS (Rs. Cook Islands. Guinea Bissau.50 GSM / CDMA (10 Digit) 1. Indonesia. Australia. }Rs. . Hong Kong.00 1.) 60 sec 200 10 .

25 6.4/9.2/9.25 0.99 1.20 1/2/5 1/2/5 .50 0.50 0.25 1 0.Comparison of lifetime plans of all cellular companies Cellular co’s Lifetime plan Rs.6/12 1/2/5 6/17 17.2/40 1/2/5 7.50 0. Charges ( call rates ) (Rs.) Own network Other network STD International SMS L/N/I Airtel BSNL R’com Tata Indicom 100 249 100 489 1 0.75 1.00 1.50 0.

within a week of activation of service. 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. 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. 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. TRAI has also reiterated the right of the subscribers to choose any tariff plan at any point of time. 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. 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.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'. . in their announcement. the complete details of the tariff plan. Charges for a value added service (download of film clip.' 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. 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. TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy. It has directed companies before enrolling a customer to inform in writing. like change in tariff plans and their remaining license period duration.

income and educational background was used for the classification purpose. For the proper analysis of data simple statistical techniques such as percentage were use.RESEARCH METHODOLOGY Definition of Research The word research is derived from the Latin word meaning to know. within specified boundaries. so procedures can be duplicated or understood by others  Empirical.  Developing new scientific tools. this would facilitate to take decision.  Logical. organizing and evaluating data. so others may test the findings by repeating it. so it investigates a small sample which can be generalized to a larger population  Replicable. It helps in making more generalization from the data available. so decisions are based on data collected  Reductive. Demographic factors like age. The data which was collected from a sample of population. 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. It disseminates the findings to contribute to generalize able knowledge. . It is a systematic and a replicable process.  Collecting. concepts and theories.  Discovering new facts or verify and test old facts. was assumed to be representing entire population was interest. It employs well-designed method to collect the data and analyses the results. which identifies and defines problems.

The method used for sample technique was non probability convenience sampling method.Sample size For carrying out any research or study on any subject it is very difficult to cover even 10% of the total population. All the similar responses are taken together as one and their percentages are calculated. Thus. Considering the constraints. The study is statistical because throughout the study all the similar samples are selected and group together. this. For designing the sample size. the researcher comes to the decision which is precise and rational. Convenient sampling is used because only those people will be asked to fill the questionnaires that were easily accessible and available to the researcher. hence most convenient way is selected. it was decided to conduct the study based on sample size of 100 people in specific age groups. it was thought proper to cover a very small percentage of population in various age groups. Therefore the sample size has to be decided for a meaningful conclusion. This method is used because it is known previously as to whether a particular person will be asked to fill the questionnaire. RESEARCH TYPES & TECHNIQUES The study conducted is a conclusive descriptive statistical study. Scientific method is not adopted in this study because of financial constraints and also because of lack of time. 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. also the basic aim of doing the research is academic. 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. .

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

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

DATA ANALYSIS & INTERPRETATION Q1. Which telecom service do you use? Options Mobile Landline Both Percentage of respondents 55 5 40 Postpaid 0% 5% 0% Prepaid 95% .

Q2. Which cellular service do you use? Options Airtel idea Reliance BSNL Tata indicom BSNL 16% Percentage of respondents 34 28 17 16 5 TATA indicom 5% Airtel 34% Reliance 17% idea 28% Q3. Which service you r using? Options Prepaid Postpaid Postpaid 5% Percentage of respondents 95 5 0% Prepaid 95% .

Are you satisfied with the call rates of the Lifetime plan? Option Yes No Percentage of respondents 64 36 0% 0% No 36% Yes 64% .Q4. Are you using lifetime or general plan? Option Lifetime General Percentage of respondents 73 27 General 28% 0% lifetime 72% Q5.

Which facility attracts you most in the lifetime plan? Option Call rates Massage Tariff Night Tariff Validity Percentage of respondents 15 1 1 83 Call Rates 15% Night Terrif 1% Massage Tarrif 1% Validity 83% Q7 Are you satisfied with the lifetime plan which you are using? Option Yes No Percentage of respondents 78 22 No 22% 0% 0% YES 78% .Q6.

Why you chose lifetime plan? Option For incoming purpose only For money saving For the facilities provided in the plan Percentage of respondents 23 48 29 For the facilities provided in the plan 29% 0% For incoming purpose only 23% For money saving 48% .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 Dissatisfied 2% Average 30% Highly dissatisfied 2% Fully satisfied 15% Satisfied 51% Q9.

Do you know about the license of the cellular companies? Option Yes No Percentage of respondents 24 76 0% 0% Yes 24% No 76% .Q10.

 34% of respondents are using the Airtel services.  In the lifetime plan of cellular companies most of the respondents are using this service because of its validity period with 83% of answer. Then comes reliance and BSNL.  Prepaid service is most popular in the cellular services with 95% of customers. and which are not satisfy with the service they are mostly BSNL and TATA indicom users. It means people are not aware about the license related bound of the cellular companies which is implemented by TRAI.  In current situation 73% of respondents are using lifetime plans. where the rest are using general plan of the cellular companies. Where 15% of people like this services because of its call rates. that cellular companies can deliver their services until their license have validity. they have to renew it for providing further service.  78% of customer satisfied with the lifetime plans of cellular companies. which is the highest percentage of users of cellular phone. The remained uses postpaid services. and 40% of respondents use both the services & only 5% people use the telephone service.  When it was asked to the respondents that did they know about the license of the cellular company. It shows the popularity of cellular phone services.OBSERVATION & FINDINGS  55% of the people use only mobile. Where 29% of people like this service because of the facilities provided by the operators.  64% of respondents are satisfied with the call rates of the lifetime plans. and tata indicom having least customers in the Gurgaon. Idea takes 2nd place in Gurgaon with 28% of users. then most of the people replied NO. it is because telecom companies have slashed their call rates few months ago.  Most of the people are using lifetime services because of money savings with the percentage of 48. Still in this situation 36% of respondents did not satisfy with the call rates which service they are using. . And 23% of people are using this service because of incoming only.

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

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

144.co.airtel. New Dehli. New Delhi.totalnetwork.co.rcom.trai.gov. ‗marketing management‘ prentice Hall of India Pvt.bsnl.in http://www.ideacellular.243/utility/tariff.gov.com/t-aboutus-ttsl-organization. http://www.co.portal?_nfpb=true&_pageLabel=IDEA_Page_ AboutIdea http://www.aspx http://www. C. vishwa publication.212.in www.in/trai/upload/PressReleases/15/pr16jan06. R.jsp .in/about. Kothari ‗Research methodology‘.in/webapp/Communications/rcom/Aboutus/aboutus_home.htm http://210.co. Ltd. Business today magazine of February issue.com/IDEA. Web Resources: www.j sp http://www.BIBLOGRAPHY Books: Philip Kotler.rcom.tataindicom. 2008.pdf www.in .htm http://www.in/webapp/Communications/rcom/index.bsnl.htm http://www.in/service/tariff_excel_pre.trai.co.

ANNEXURE .

Questionnaire Dear Respondent. Which cellular service do you use? a) Airtel [ ] b) idea [ ] c) Reliance d) BSNL [ ] e) Tata indicom [ ] Q3. We are conducting a survey on Sales Promotional Offers in IT products. Which service you r using? a) Prepaid [ ] b) Postpaid [ ] [ ] Q4. Are you using lifetime or general plan? a) Lifetime [ ] b) General [ ] . Please feel free to ask though. Name Age Sex :- :18-40 [ ] 41-70 [ ] 70 above [ ] Male [ ] Female [ ] :- Education :Occupation :Income :- Under graduate [ ] Graduate [ ] Post graduate [ ] Other [ ] Job [ ] Business [ ] Self employ 20k [ ] [ ] 10K [ ] Above10k [ ] Above 20k [ ] Rural [ ] Urban [ ] Hometown :- Q1. This survey would help us in serving you better. The questionnaire has instructions to facilitate you while filling up the questionnaire. Please fill the questionnaire with due care and attentiveness and to the best of your knowledge to help us gauge your likes and dislikes. Which telecom service do you use? a) Mobile [ ] b) Landline [ ] c) Both [ ] Q2. wherever necessary.

Which facility attracts you most in the lifetime plan? a) Call rates [ ] b) Massage Tariff [ ] c) Night Tariff d) Validity [ ] Q7 Are you satisfied with the lifetime plan which you are using? a) Yes [ ] b) No [ ] Q8.Q5. Why you chose lifetime plan? a) For incoming purpose only [ ] b) For money saving [ ] c) For the facilities provided in the plan [ ] Q10. Rate the satisfaction level with the services of your lifetime plan? a) Fully satisfied [ ] b) Satisfied [ ] c) Average [ ] d) Dissatisfied [ ] e) Highly dissatisfied [ ] Q9. Are you satisfied with the call rates of the Lifetime plan? a) Yes [ ] b) No [ ] Q6. Do you know about the license of the cellular companies? a) Yes [ ] b) No [ ] [ ] .

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