Mba-Final - Project 2011 - Customer Stisfaction On Mobile Service Providers by Zamir Smu Roll No. 540910634

SMU-RIYADH CENTRE
A PROJECT REPORT ON
CUSTOMER SATISFACTION ON MOBILE SERVICE PROVIDERS

SUBMITTED BY ZAMIR AHMAD
MBA [SEMESTER-4]
SUBMITTED TO
SIKKIM MANIPAL UNIVERSITY

DISTANCE EDUCATION RIYADH CENTER
ACADEMIC YEAR
2011
PROJECT GUIDE MR. SAHUL HAMID
DATE OF SUBMISSION: ROLL NO. 540910634
[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]
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DECLARATION I am Mr. Zamir Ahmad student of Sikkim Manipal University-Riyadh Center (Distance Education) hereby declare that I have completed my project, titled Customer Satisfaction on Mobile Service Providers in K.S.A in the Academic Year 2011. The information submitted herein is true and original to the best of my knowledge.
________________ Signature of Student

Zamir Ahmad
CERTIFICATE I am Mr. Sahul Hamid hereby certify that Mr. Zamir Ahmad student of Sikkim Manipal University has completed his project, titled Customer Satisfaction on Mobile Service Providers in K.S.A in the academic year 2011. The information submitted herein is true and original to the best of my knowledge.
Signature of the Principal
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ACKNOWLEDGEMENT First of all I would like to take this opportunity to thank the Sikkim Manipal University for having projects as a part of the MBA curriculum. I wish to express my heartfelt gratitude to the following individuals who have played a crucial role in the research for this project. Without their active cooperation the preparation of this project could not have been completed within the specified time limit. The first person I would like to acknowledge is my guide who supported me throughout this project with utmost cooperation and patience. I am very much thankful to them for sparing their precious time for me and for helping me in doing this project. Next I would like to thank my friends for their strong support and cooperation. My one friends brother who owns and manages a number of website and has been in Internet marketing field since long was a bonus for my project as he was always there to guide me and correct me whenever I was wrong. He had not only provided me the information but also introduced to few people who were working in this field. I am thankful to Dr.Saleh Saeed Al Khayar (Executive Director in Knoah Technology Pipe Manufacturing Factory.) who helped me in all possible ways. I am also thankful to Mr.Arman ul Nasar ( Radio Engineer , Modern Media System , Abranch of Fasaliah Group , Riyadh .) who support me all effort for collection of data ete.
Last but not the least I would like to thank the Almighty for always helping me.
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EXECUTIVE SUMMARY
The Saudi Arabian telecoms market is perhaps the most interesting in the Middle East. It is more competitive than most others and all the big regional players have at least a toehold in the market. Saudi Arabian incumbent STC is the largest telecoms company in the Middle East when measured by either revenue or by market capitalisation. It has been joined in the Saudi Arabian mobile market by the second and third largest Middle Eastern regional players Etisalat of the UAE and Zain of Kuwait. Etisalat has considerably more than a toehold in the market. It won the second GSM/3G mobile licence and, operating as Mobily, now has over one-third of the GSM market and three-quarters of the 3G market. It has also bought Bayanat Al Oula, a major ISP/data comms licence holder, and has invested in considerable fibre and WiMAX infrastructure. Zain won the third GSM/3G licence in 2007 and launched operations in August 2008. It paid a huge US$6.1 billion fee, almost twice the price paid by Etisalat for the second mobile licence (US$3.45 billion) in 2004. At the time it was the worlds highest licence fee on a per capita basis, at US$226 per Saudi inhabitant. These three giants have been joined in the market by Batelco of Bahrain and Qtel of Qatar. Batelco is a major investor in a consortium, Etihad Atheeb, which has won a fixed-line licence. Finally, the remaining large regional player, Qtel, has a major share in the small iDEN mobile operator, PTC, through its Wataniya subsidiary. What makes Saudi Arabia so attractive to all these operators the combination of its population-size and wealth. While its total population is nowhere near as high as that of Turkey or Iran, its GDP per capita is much higher and while the smaller gulf countries are richer per capita, their populations are tiny. In addition, its market has been slower to develop than some others in the region such as the UAE or Qatar, leaving room for growth. Fixed-line penetration has remained steady for some years rather than falling as it has in some other countries in the region. Internet user penetration is nearly 40% but DSL broadband subscriber penetration is only around 5%. However, the number of DSL subscribers doubled in the two years to end-2009. STC also started work on a FttH network in early 2009.
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Mobily and Atheeb Telecom are planning to make extensive use of WiMAX. Mobily had coverage of 20 cities by early 2010. It launched a WiMAX service for residential subscribers branded broadband@home in September 2008 at speeds up to 2Mb/s. Mobile subscribers have grown rapidly in the competitive market and penetration rates have now reached 175%. Mobily is making an extensive push with mobile broadband. Mobily claimed to have over one million mobile broadband subscribers in early 2010. As competition becomes fierce in its home market, STC has used its considerable resources to expand abroad. It has direct interests in Malaysia, Kuwait and Bahrain and, through its purchase of a 35% share in Oger Telecom, also in Turkey and South Africa
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TABLE OF CONTENTS TABLE OF CONTENTS...................................................................................6 INTRODUCTION............................................................................................11 THEORETICAL BACKGROUND OF THE TOPIC.....................................11 CUSTOMER SATISFACTION...................................................................11 CUSTOMER SATISFACTION IN 7 STEPS..............................................12 SKILLS OF MARKETERS.........................................................................14 METHOD TO MEASURE CUSTOMER SATISFACTION......................15 MARKETING STRATEGY :.........................................................................18 PUBLIC POLICY:...........................................................................................18 IDEAS:............................................................................................................18 BETTER CONSUMERS. ...............................................................................18 3.1. THE GLOBAL MARKET PLACE..........................................................19 3.2. ECONOMICS OF INTERNATIONAL TRADE.....................................21 3.3. POLITICAL AND LEGAL INFLUENCES:...........................................23 3.4. CROSS-CULTURAL MARKET RESEARCH:......................................25 4. THE HISTORY OF THE TELEPHONE:.................................................27 4.1 ALEXANDER GRAHAM BELL - EVOLUTION OF THE .............................................27 ALEXANDER GRAHAM BELL ...............................................................27 4.2.1. FIRST SOUNDS TWANG:............................................................28 4.2.3. ALEXANDER GRAHAM BELL - BRIEF BIOGRAPHY:..............28 5. HISTORY OF CELL PHONES:.................................................................29 5.1. FIRST GENERATION CELL PHONES:................................................30 5.2. SECOND GENERATION CELLULAR PHONES.................................31 5.3. THIRD GENERATION CELLULAR PHONES.....................................31 5.4. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA ........32 6. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA: .......42 6.1. INTRODUCTION: ............................................................................42 6.2. PHONES OVERVIEW :.....................................................................42 6.3. TALKING SANDS .................................................................................43 6.4. CELL-PHONES AND ROMANCE:.......................................................44 6.5. SOCIAL AMPLIFICATIONS:...............................................................45 6.6. STCS MISSION:.....................................................................................46
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6.7. SERVICES AND USAGE;......................................................................46 6.8.THE BUNDLED SERVICES FOR ALJAWAL: .....................................47 6.9. SADA :.....................................................................................................48 6.10. MY BACKUP:........................................................................................48 6.12. TADAWUL AL JAWAL......................................................................48 6.13. VOICE MESSAGING:...........................................................................49 6.14. STC STRATEGY .................................................................................49 7. DEVELOPMENT OF MOBILE PHONE:.................................................49 INTERNET IN SAUDI ARABIA ...................................................................54 8.1. OVERVIEW: ...........................................................................................55 8.2 . GATEWAYS TO INTERNATIONAL INTERNET...............................55 8.3.INFRASTRUCTURE OF PHYSICAL NETWORK ...............................55 8.4. INTERNET SERVICE PROVIDERS (ISPS).........................................55 8.5. DOMAIN NAMES ..................................................................................56 8.6. FILTERING..............................................................................................56 8.7. FUTURE OF INTERNET IN SAUDI ARABIA ....................................56 8.7.1. STC BROADBAND, STC MOBILE CONNECTION VIA QUICKNET, STC AL HATIF INTERNET CONNECTION ....................57 8.7.2. MOBILY BROADBAND CONNECTION ......................................57 8.7.3. GO OF ETIHAD ATHEEB TELECOM COMPANY. .....................57 8.7.4. ZAIN INTERNET CONNECTION. .................................................57 9. MOBILE SERVICE PROVIDERS:...........................................................57 9.1. SAUDI TELECOM COMPANY: ..........................................................58 9.1.1. MARKETS:.......................................................................................58 9.1.2. SERVICES:........................................................................................58 9.1.3. STC AND SOCIAL RESPONSIBILITY:..........................................58 9.2. BRAVO TELECOM ( INTRODUCTION )............................................59 9.2.1. PUBLIC TELECOMMUNICATINS CO. LTD. (BRAVO!):...........59 9.3. MOBILY: ................................................................................................60 9.3.5. MOBILY REGISTERED 34% INCREASE IN NET PROFIT FOR THE .............................................................................................................68 9.3.6. MOBILY Q2 PROFIT RISES 29% TO SR1.164BN:........................71 9.3.7. ETIHAD ETISALAT (MOBILY) ANNOUNCED ITS AWARD:...74 9.4. ZAIN GROUP : .......................................................................................75 9.4.1. ZAIN SAUDI REPORTS 36% RISE IN Q1 REVENUES:...............76
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9.4.2. GO TAPS ZTE FOR METRO FIBRE RING:...................................77 9.4.3. ZAIN ACCEPTS JOINT BID FROM KHC AND ............................78 9.4.4. ZAIN AWARDED RURAL EXPANSION ......................................79 9.4.5. MARKET HIGHLIGHTS:.................................................................81 9.4.6. FINANCIAL AND OPERETIONAL HIGHLIGHTS.......................82 9.4.7. REVENUES CNTRIBUTIONS:........................................................83 10. ITC:..............................................................................................................95 10.1.21. ITC L2 VPN ................................................................................100 11.METHODOLOGY:...................................................................................109 11 .1. MEANING OF RESEARCH:.............................................................109 11.2. THE FUNCTION OF MARKETING RESEARCH:.........................109 11.4. SEGMENTATION, TARGETING, AND POSITIONING :...............122 11.6. FAMILIES AND FAMILY DECISION MAKING.............................130 11.7. GROUP INFLUENCES.......................................................................134 11.8. PERCEPTION .....................................................................................135 11.9. LEARNING AND MEMORY.............................................................137 11.10. DIFFUSION OF INNOVATION.......................................................144 12.3. COUNTRY ENTRY: DECISIONS AND STRATEGIES:..................159 12.4. PRODUCT ISSUES IN INTERNATIONAL MARKETING..............165 12.5. INTERNATIONAL PROMOTION.....................................................169 12.6. PRICING ISSUES IN INTERNATIONAL MARKETING................175 12.7. INTERNATIONAL DISTRIBUTION.................................................178 12.8. FIRM, BRAND, AND PRODUCT LINE OBJECTIVES....................182 12.9. SOME OTHER TYPES OF RESEARCH: .........................................184 12.10. RESEARCH PURPOSE:....................................................................185 12.11. LITERATURE:...................................................................................186 12.12. RESEARCH APPROACHES:...........................................................186 12.13. RESEARCH STEATEGY:.................................................................187 12.14. SIGNIFICANCE OF RESEARCH:...................................................188 12.15. RESEARCH AND SCIENTIFIC METHOD:....................................190 12.16. SAMPLE SELECTION:....................................................................191 12.17. DATA COLLECTION:.....................................................................191 12.18. VALIDITY & RELIABILITY:..........................................................192 12.19.RESEARCH LIMITATION................................................................193
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13.MAIN TEXT LITERATURE REVIEW.................................................194 13.1. ROBINS (2008)....................................................................................194 13.2. DEBNATH ( 2008 )..............................................................................194 13.3. BHATT (2008),....................................................................................195 13.4. JHA ( 2008 ).........................................................................................195 13.5. KALAVANI (2006)..............................................................................195 13.6. KUMAR (2008),...................................................................................196 13.7. SETH ET AL (2008),...........................................................................196 13.8. FERNANDEZ (2007)...........................................................................196 13.9. BISMUT (2006)....................................................................................196 13.10. KALPANA AND CHINNADURAI (2006).......................................197 13.11. FREDRIC (2008)................................................................................197 14. RESEARCH METHODOLOGY:...........................................................198 14.1. RESEARCH DESIGN:.........................................................................198 14.2. DATA COLLECTION:........................................................................198 14.3. SAMPLE UNIVERSE:.........................................................................198 14.4. SAMPLING TECHNIQUE:................................................................198 15. FINDINGS AND ANALYSIS:................................................................198 15.1. PART A ATTITUDE TOWARDS ADVERTISEMENTS.................198 15.2. INFLUENCER BEHIND DECISION MAKING...............................200 15.3. GEERT HOFSTED CULTURAL DIMENSIONS.............................200 15.4. CONSUMER PREFERENCE OF ADVERTISING...........................202 15.5. CONSUMERS TRUST ON ADVERTISING.....................................203 15.6. PART II: TIME SPENT..................................................................203 15.7. REMEMBRANCE & RECALL:.........................................................205 15.8. THE SOCIAL WEBS NEW COMMUNICATION FORMS DRAW .......................................................................................................................206 12.9. TECHNOLOGY-POWERED COMMUNICATIONS ......................206 ......................................................................................................................208 16. GROWTH OF INTERNET USAGE AND E-COMMERCE:..............208 16.1. INTERNET USAGE STATISTICS:....................................................209 17. DATA ANALYSIS...................................................................................211 17.1. DATA ANALYSIS AND INTERPRETATION.................................211 17.3. FIXED TELEPHONY MARKET :......................................................217
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17.4. BROADBAND SERVICES MARKET:..............................................218 17.5. INTERNET SERVICES MARKET:....................................................220 17.6. TELECOM SERVICES SECTOR REVENUES:................................222 17.7. FORECASTING 37 MILLION SUBCRIPTION.................................222 17.8. FIG.SAUDI ARABIA, ACTIVE MOBILE SUBSCRIPTIONS .........223 18. ICT INFRASTRUCTURE.......................................................................223 18.1. TABLE 1. NUMBER OF FIXED TELEPHONE LINES...................224 18.2. TABLE 2. NUMBER OF MOBILE SUBSCRIBERS........................225 18.3. TABLE 3. NUMBER OF INTERNET AND BROADBAND ............226 18.4. NO.OF BROADBAND SUBCRIBERS...............................................226 18.7. MARKET SEGMENTATION OF TELECOM INDUSTRY ..........230 19. STC, MOBILY AND ZAIN ARE NOW ................................................231 19.1. COMPARISION SHEET STC, MOBILY & ZAIN MB PER 1 SR.. .232 ......................................................................................................................232 19.2. COMPARISION SHEET STC, MOBILY & ZAIN PRICE WISE.....232 20. MOBILE CONNECTION RESPONSE ................................................233 .........................................................................................................................233 .........................................................................................................................234 21. CONCLUSION.........................................................................................247 22. GLOSSORY :............................................................................................249 23. BIBLIOGRAPHY.....................................................................................326 ......................................................................................................................326
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INTRODUCTION THEORETICAL BACKGROUND OF THE TOPIC CUSTOMER SATISFACTION

According to Philip Kotler, satisfaction is a persons feelings of pressure or disappointment resulting from products perceived performance (outcome) in relation to his or her expectations. Customer satisfaction is the level of a persons felt state resulting from comparing a products perceived performance (outcome) in relation to the persons expectations. This satisfaction level is a function of difference between perceived performance and expectations. If the products performance, exceed expectation the customer highly satisfied or delighted. If the performance matches the expectations the customer is satisfied. If the products performance fall shorts of expectations the customer is dissatisfied.
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CUSTOMER SATISFACTION IN 7 STEPS

Its a well known fact that no business can exist without customers. In the business of Website design, its important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because its critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved.
. ENCOURAGE FACE-TO-FACE DEALINGS

This is the most daunting and downright scary part of interacting with a customer. If youre not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. Its important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone theyve actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, youre well on your way to a sale.
RESPOND TO MESSAGES PROMPTLY & KEEP YOUR CLIENTS INFORMED: This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers queries within the space of a few hours, but at least email or call them back and let them know youve received their message and youll contact them about customer know youre working on it. A good example of this is my Web host. Theyve had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologised repeatedly, which was nice. Now if they server had just gone down with no explanation I think Id have been pretty annoyed and may have moved my business elsewhere. But because they it as soon as possible. Even if youre not able to solve a problem right away, let the
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took time to keep me informed, it didnt seem so bad, and I at least knew they were doing something about the problems. That to me is a service. BE FRIENDLY AND APPROACHABLE A fellow SitePointer once told me that you can hear a smile through the phone. This is very true. Its very important to be friendly, courteous and to make your clients feel like youre their friend and youre there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object it happens to all of us. Its vital that you keep a clear head, respond to your clients wishes as best you can, and at all times remain polite and courteous. HAVE A CLEARLY-DEFINED CUSTOMER SERVICE POLICY This may not be too important when youre just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesnt work, then what? Should they contact different people for billing and technical enquiries? If theyre not satisfied with any aspect of your customer service, who should they tell? Theres nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site and anywhere else it may be useful. ATTENTION TO DETAIL (ALSO KNOWN AS THE LITTLE NICETIES) Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and arent always cost effective, but remember to do them. Even if its as small as sending a Happy Holidays email to all your customers, its something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
prime
example
of
customer
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ANTICIPATE YOUR CLIENTS NEEDS & GO OUT OF YOUR WAY TO HELP THEM OUT Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship.Take this as an example: youre working on the front-end for your clients exciting new ecommerce endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images youve used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics Ive used on the site. Hopefully youll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way. HONOUR YOUR PROMISES Its possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates.Clients dont like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors dont always deliver on time. In this case a quick apology and assurance itll be ready ASAP wouldnt go amiss.
SKILLS OF MARKETERS
Marketers have 4 main skill sets that they bring to an enterprise: 1.1.3.1. OPPORTUNITY IDENTIFICATION:
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Marketing begins before there is a product to sell. Many people think marketing is just selling whatever comes out of the manufacturing plant. It's the job of marketing to decide WHAT comes out of the manufacturing plant in the first place. Before a business can make money there must be opportunities for money to be made and it's marketing's job to define what those opportunities are. Marketers analyze markets, market gaps, trends, products, competition, and distribution channels to come up with opportunities to make money.
1.1.3.2.
COMPETITIVE STRATEGY/POSITIONING:
Markets consist of groups of competitors competing for a customer's business. The job of marketing is to decide how to create a defensible sustainable competitive advantage against competitors. Marketers conceive strategies, tactics, and business models to make it hard if not impossible for competition to take away customers from their business. 1.1.3.3. DEMAND GENERATION/MANAGEMENT
It's the job of marketing to create and sustain demand for a company's products. Marketers manage demand for a company's products by influencing the probability and frequency of their customer's purchase behavior. 1.1.3.4. SALES:
The ultimate goal of marketing is to make money for a business. In most companys sales is a different discipline and department from marketing. But in order for salespeople to have any long term success in a company they must be led by marketing. The better job a company does of identifying opportunities, creating a differential sustainable competitive advantage, and generating demand for their products the easier it will be for salespeople to make sales.
METHOD TO MEASURE CUSTOMER SATISFACTION

Companies use the following methods to measure customer satisfaction.
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1.1.4.1.
COMPLAINTS AND SUGGESTION SYSTEM:
Companies obtaining complaints through their customer service centres, and further suggestions were given by customers to satisfy their desires. 1.1.4.2. CUSTOMER SATISFACTION SURVEYS
Responsive companies obtain a direct measure of customer satisfaction by periodic surveys. They send questionnaires to random sample of their customers to find out how they feel about various aspects of the companys performance and also solicit views on their competitors performance. It is useful to measure the customers willingness to recommend the company and brand to other persons. 1.1.4.3. LOST CUSTOMER ANALYSIS.
Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened. 1.1.4.4. CONSUMER BEHAVIOR VS CONSUMPTION BEHAVIOR
Consumer behavior refers to the manner in which an individual reaches decision related to the selection, purchases and use of goods and services. Walters and Paul says that, consumer behavior is the process where by the individuals decides what, when, how and from whom to purchase goods & services. Consumer behavior relates to an individual person (Micro behavior) where as consumption behavior relates to and to the mass or aggregate of individuals (Macro behavior) consumers behavior as a study focuses on the decision process of the individual consumer or consuming unit such as the family. In contrast the consumption behavior as a study is to do with the explanation of the behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot, around which the entire system of marketing revolves. The study of buyer behavior is one of the most important keys to successful mark 1
CONSUMER BEHAVIOR:
1.1 THE PSYCHOLOGY OF MARKETING The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how
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The psychology of how consumers think, feel, reason, and select between different The psychology of how the consumer is influenced by his or her environment (e.g., The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence How consumer motivation and decision strategies differ between products that differ How marketers can adapt and improve their marketing campaigns and marketing
alternatives (e.g., brands, products, and retailers);
culture, family, signs, media);

decisions and marketing outcome;
in their level of importance or interest that they entail for the consumer; and
strategies to more effectively reach the consumer. One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts this definition, it brings up some useful points:
that
these
processes have on the consumer and society." Although it is not necessary to memorize
Behavior occurs either for the individual, or in the context of a group (e.g., friends
influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of products as well as the study of
how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example,
aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.
There are four main applications of consumer behavior:
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MARKETING STRATEGY :
The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices.
PUBLIC POLICY:
A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.
IDEAS:
Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. BETTER CONSUMERS. As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger
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quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm To assess a competing firms potential threat, we need to examine its assets(e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically. that targets babies, a shrinking market, is likely to consider repositioning toward our market.
3. INTERNATIONAL MARKETING
3.1. THE GLOBAL MARKET PLACE Globalization of Markets and Competition: Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also
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increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU). Stages in the International Involvement of a Firm. We discussed several stages through which a firm may go as it becomes increasingly involved across borders. A purely domestic firm focuses only on its home market, has no current ambitions of expanding abroad, and does not perceive any significant competitive threat from abroad. Such a firm may eventually get some orders from abroad, which are seen either as an irritation (for small orders, there may be a great deal of effort and cost involved in obtaining relatively modest revenue) or as "icing on the cake." As the firm begins to export more, it enters the export stage, where little effort is made to market the product abroad, although an increasing number of foreign orders are filled. In the international stage, as certain country markets begin to appear especially attractive with more foreign orders originating there, the firm may go into countries on an ad hoc basisthat is, each country may be entered sequentially, but with relatively little learning and marketing efforts being shared across countries. In the multi-national stage, some efficiencies are pursued by standardizing across a region (e.g., Central America, West Africa, or Northern Europe). Finally, in the global stage, the focus centers on the entire World market, with decisions made optimize the products position across marketsthe home country is no longer the center of the product. An example of a truly global company is Coca Cola. Note that these stages represent points on a continuum from a purely domestic orientation to a truly global one; companies may fall in between these discrete stages, and different parts of the firm may have characteristics of various stagesfor example, the pickup truck division of an auto-manufacturer may be largely domestically focused, while the passenger car division is globally focused. Although a global focus is generally appropriate for most large firms, note that it may not be ideal for all companies to pursue the global stage. For example, manufacturers of ice cubes may do well as domestic, or even locally centered, firms.
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Some forces in international trade. The text contains a rather long-winded appendix discussing some relatively simple ideas. Comparative advantage, discussed in more detail in the economics notes, suggests trade between countries is beneficial because these countries differ in their relative economic strengthssome have more advanced technology and some have lower costs. The International Product Life Cycle suggests that countries will differ in their timing of the demand for various products. Products tend to be adopted more quickly in the United States and Japan, for example, so once the demand for a product (say, VCRs) is in the decline in these markets, an increasing market potential might exist in other countries (e.g., Europe and the rest of Asia). Internalization/transaction costs refers to the fact that developing certain very large scale projects, such as an automobile intended for the World market, may entail such large costs that these must be spread over several countries. 3.2. ECONOMICS OF INTERNATIONAL TRADE Exchange rates come in two forms:
Floatinghere, currencies are set on the open market based on the supply of and
demand for each currency. For example, all other things being equal, if the U.S. imports more from Japan than it exports there, there will be less demand for U.S. dollars (they are not desired for purchasing goods) and more demand for Japanese yenthus, the price of the yen, in dollars, will increase, so you will get fewer yen for a dollar.
Fixedcurrencies may be pegged to another currency (e.g., the Argentine
currency is guaranteed in terms of a dollar value), to a composite of currencies (i.e., to avoid making the currency dependent entirely on the U.S. dollar, the value might be 0.25*U.S. dollar+4*Mexican peso+50*Japanese yen+0.2*German mark+0.1*British pound), or to some other valuable such as gold. Note that it is very difficult to maintain these fixed exchange ratesgovernments must buy or sell currency on the open market when currencies go outside the accepted ranges. Fixed exchange rates, although they produce stability and predictability, tend to get in the way of market forcesif a currency is kept artificially low, a country will tend to export too much and import too little. Trade balances and exchange rates. When exchange rates are allowed to fluctuate, the currency of a country that tends to run a trade deficit will tend to decline over time,
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since there will be less demand for that currency. This reduced exchange rate will then tend to make exports more attractive in other countries, and imports less attractive at home. Measuring country wealth. There are two ways to measure the wealth of a country. The nominal per capita gross domestic product (GDP) refers to the value of goods and services produced per person in a country if this value in local currency were to be exchanged into dollars. Suppose, for example, that the per capita GDP of Japan is 3,500,000 yen and the dollar exchanges for 100 yen, so that the per capita GDP is (3,500,000/100)=$35,000. However, that $35,000 will not buy as much in Japanfood and housing are much more expensive there. Therefore, we introduce the idea of purchase parity adjusted per capita GDP, which reflects what this money can buy in the country. This is typically based on the relative costs of a weighted basket of goods in a country (e.g., 35% of the cost of housing, 40% the cost of food, 10% the cost of clothing, and 15% cost of other items). If it turns out that this measure of cost of living is 30% higher in Japan, the purchase parity adjusted GPD in Japan would then be ($35,000/(130%) = $26,923. (The Gross Domestic Product (GPD) and Gross National Product (GNP) are almost identical figures. The GNP, for example, includes income made by citizens working abroad, and does not include the income of foreigners working in the country. Traditionally, the GNP was more prevalent; today the GPD is more commonly usedin practice, the two measures fall within a few percent of each other.)
In general, the nominal per capita GPD is more useful for determining local consumers ability to buy imported goods, the cost of which are determined in large measure by the costs in the home market, while the purchase parity adjusted measure is more useful when products are produced, at local costs, in the country of purchase. For example, the
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ability of Argentinians to purchase micro computer chips, which are produced mostly in the U.S. and Japan, is better predicted by nominal income, while the ability to purchase toothpaste made by a U.S. firm in a factory in Argentina is better predicted by purchase parity adjusted income. It should be noted that, in some countries, income is quite unevenly distributed so that these average measures may not be very meaningful. In Brazil, for example, there is a very large underclass making significantly less than the national average, and thus, the national figure is not a good indicator of the purchase power of the mass market. Similarly, great regional differences exist within some countriesincome is much higher in northern Germany than it is in the former East Germany, and income in southern Italy is much lower than in northern Italy.
3.3. POLITICAL AND LEGAL INFLUENCES:

The political situation. The political relations between a firms country of headquarters (or other significant operations) and another one may, through no fault of the firms, become a major issue. For example, oil companies which invested in Iraq or Libya became victims of these countries misconduct that led to bans on trade. Similarly, American firms may be disliked in parts of Latin America or Iran where the U.S. either had a colonial history or supported unpopular leaders such as the former shah. Certain issues in the political environment are particularly significant. Some countries, such as Russia, have relatively unstable governments, whose policies may change dramatically if new leaders come to power by democratic or other means. Some countries have little tradition of democracy, and thus it may be difficult to implement. For example, even though Russia is supposed to become a democratic country, the history of dictatorships by the communists and the czars has left country of corruption and strong influence of criminal elements. Laws across borders. When laws of two countries differ, it may be possible in a contract to specify in advance which laws will apply, although this agreement may not be consistently enforceable. Alternatively, jurisdiction may be settled by treaties, and some governments, such as that of the U.S., often apply their laws to actions, such as anticompetitive behavior, perpetrated outside their borders (extra-territorial application).
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By the doctrine known as compulsion, a firm that violates U.S. law abroad may be able to claim as a defense that it was forced to do so by the local government; such violations must, however, be compelledthat they are merely legal or accepted in the host country is not sufficient. The reality of legal systems. Some legal systems, such as that of the U.S., are relatively transparentthat is, the law tends to be what its plain meaning would suggest. In some countries, however, there are laws on the books which are not enforced (e.g., although Japan has antitrust laws similar to those of the U.S., collusion is openly tolerated). Further, the amount of discretion left to government officials tends to vary. In Japan, through the doctrine of administrative guidance, great latitude is left to government officials, who effectively make up the laws. One serious problem in some countries is a limited access to the legal systems as a means to redress grievances against other parties. While the U.S. may rely excessively on lawsuits, the inability to effectively hold contractual partners to their agreement tends to inhibit business deals. In many jurisdictions, pre-trial discovery is limited, making it difficult to make a case against a firm whose internal documents would reveal guilt. This is one reason why personal relationships in some cultures are considered more significant than in the U.S.since enforcing contracts may be difficult, you must be sure in advance that you can trust the other party. Legal systems of the World. There are four main approaches to law across the World, with some differences within each: 2. Common law, the system in effect in the U.S., is based on a legal tradition of precedent. Each case that raises new issues is considered on its own merits, and then becomes a precedent for future decisions on that same issue. Although the legislature can override judicial decisions by changing the law or passing specific standards through legislation, reasonable court decisions tend to stand by default. 3. Code law, which is common in Europe, gives considerably shorter leeway to judges, who are charged with matching specific laws to situationsthey cannot come up with innovative solutions when new issues such as patentability of biotechnology come up. There are also certain differences in standards. For example, in the U.S. a supplier
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whose factory is hit with a strike is expected to deliver on provisions of a contract, while in code law this responsibility may be nullified by such an act of God. 4. Islamic law is based on the teachings of the Koran, which puts forward mandates such as a prohibition of usury, or excessive interest rates. This has led some Islamic countries to ban interest entirely; in others, it may be tolerated within reason. Islamic law is ultimately based on the need to please God, so getting around the law is generally not acceptable. Attorneys may be consulted about what might please God rather than what is an explicit requirements of the government.
3.4. CROSS-CULTURAL MARKET RESEARCH: 1. Primary vs. secondary research. There are two kinds of market research: Primary research refers to the research that a firm conducts for its own needs (e.g., focus groups, surveys, interviews, or observation) while secondary research involves finding information compiled by someone else. In general, secondary research is less expensive and is faster to conduct, but it may not answer the specific questions the firm seeks to have answered (e.g., how do consumers perceive our product?), and its reliability may be in question. 2. Secondary sources. A number of secondary sources of country information are available. One of the most convenient sources is an almanac, containing a great deal of country information. Almanacs can typically be bought for $10.00 or less. The U.S. government also publishes a guide to each country, and the handbook International Business Information: How to Find It, How to Use It (HF 54.5.P33 [1998] in the Reference Department of the Gelman Library), provides leads on numerous sources by topic. Stat-USA, a database compiled by the U.S. Department of Commerce and available through the Gelman Library (you can access it through the Links section of my web-site), contains a great deal of statistical information online. Excellent full text searchable indices to periodicals include Lexis-Nexis and RDS Business and Industry, also available through Gelman. Several experts may be available. Anthropologists and economists in universities may have built up a great deal of knowledge and may be available for consulting.
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Consultants specializing in various regions or industries are typically considerably more expensive. One should be careful about relying on the opinions of expatriates (whose views may be biased or outdated) or ones own experience (which may relate to only part of a country or a certain subsegment) and may also suffer from the limitation of being a sample of size 1.
2. Hard vs. soft data. Hard data refers to relatively quantifiable measures such as a countrys GDP, number of telephones per thousand residents, and birth rates (although even these supposedly objective factors may be subject to some controversy due to differing definitions and measurement approaches across countries). In contrast, soft data refers to more subjective issues such as country history or culture. It should be noted that while the hard data is often more convenient and seemingly objective, the soft data is frequently as important, if not more so, in understanding a market. 3. Data reliability. The accuracy and objectivity of data depend on several factors. One significant one is the motivation of the entity that releases it. For example, some countries may want to exaggerate their citizens literacy rates owing to national pride, and an organization promoting economic development may paint an overly rosy picture in order to attract investment. Some data may be dated (e.g., a census may be conducted rarely in some regions), and some countries may lack the ability to collect data (it is difficult to reach people in the interior regions of Latin America, for example). Differences in how constructs are defined in different countries (e.g., is military personnel counted in people who are employed?) may make figures of different jurisdictions non-comparable. 4. Cost of data. Much government data, or data released by organizations such as the World Bank or the United Nations, is free or inexpensive, while consultants may charge very high rates. 5. Issues in primary research. Cultural factors often influence how people respond to research. While Americans are used to market research and tend to find this relatively un-threatening, consumers in other countries may fear that the data will be reported to the government, and may thus not give accurate responses. In some cultures, criticism or confrontation are considered rude, so consumers may not respond honestly when they dislike a product. Technology such as scanner data is not as widely available outside the
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United States. Local customs and geography may make it difficult to interview desired respondents; for example, in some countries, women may not be allowed to talk to strangers.
4. THE HISTORY OF THE TELEPHONE:

4.1 Alexander Graham Bell - Evolution of the Telegraph into the Telephone: The telegraph and telephone are both wire-based electrical systems, and Alexander Graham Bell's success with the telephone came as a direct result of his attempts to improve the telegraph. When Bell began experimenting with electrical signals, the telegraph had been an established means of communication for some 30 years. Although a highly successful system, the telegraph, with its dot-and-dash Morse code, was basically limited to receiving and sending one message at a time. Bell's extensive knowledge of the nature of sound and his understanding of music enabled him to conjecture the possibility of transmitting multiple messages over the same wire at the same time. Although the idea of a multiple telegraph had been in existence for some time, Bell offered his own musical or harmonic approach as a possible practical solution. His "harmonic telegraph" was based on the principle that several notes could be sent simultaneously along the same wire if the notes or signals differed in pitch.
ALEXANDER GRAHAM BELL

TALK WITH ELECTRICITY: By October 1874, Bell's research had progressed to the extent that he could inform his future father-in-law, Boston attorney Gardiner Greene Hubbard, about the possibility of a multiple telegraph. Hubbard, who resented the absolute control then exerted by the Western Union Telegraph Company, instantly saw the potential for breaking such a monopoly and gave Bell the financial backing he needed. Bell proceeded with his work on the multiple telegraph, but he did not tell Hubbard that he and Thomas Watson, a young electrician whose services he had enlisted, were also exploring an idea that had occurred to him that summer - that of developing a device that would transmit speech electrically.
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While Alexander Graham Bell and Thomas Watson worked on the harmonic telegraph at the insistent urging of Hubbard and other backers, Bell nonetheless met in March 1875 with Joseph Henry, the respected director of the Smithsonian Institution, who listened to Bell's ideas for a telephone and offered encouraging words. Spurred on by Henry's positive opinion, Bell and Watson continued their work. By June 1875 the goal of creating a device that would transmit speech electrically was about to be realized. They had proven that different tones would vary the strength of an electric current in a wire. To achieve success they therefore needed only to build a working transmitter with a membrane capable of varying electronic currents and a receiver that would reproduce these variations in audible frequencies.
4.2.1. FIRST SOUNDS TWANG:

On June 2, 1875, Alexander Graham Bell while experimenting with his technique called "harmonic telegraph" discovered he could hear sound over a wire. The sound was that of a twanging clock spring. Bell's greatest success was achieved on March 10, 1876, marked not only the birth of the telephone but the death of the multiple telegraph as well. The communications potential contained in his demonstration of being able to "talk with electricity" far outweighed anything that simply increasing the capability of a dot-anddash system could imply. 4.2.2. FIRST VOICE - MR. WATSON, COME HERE. I WANT TO SEE YOU: Alexander Graham Bell's notebook entry of 10 March 1876 describes his successful experiment with the telephone. Speaking through the instrument to his assistant, Thomas A. Watson, in the next room, Bell utters these famous first words, "Mr. Watson -- come here -- I want to see you."
4.2.3. ALEXANDER GRAHAM BELL - BRIEF BIOGRAPHY:

Born on March 3, 1847, in Edinburgh, Scotland, Alexander Graham Bell was the son and grandson of authorities in elocution and the correction of speech. Educated to pursue a career in the same specialty, his knowledge of the nature of sound led him not only to teach the deaf, but also to invent the telephone.
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4.2.4. ALEXANDER GRAHAM BELL - OTHER INVENTIONS Bell's unceasing scientific curiosity led to invention of the photophone, to significant commercial improvements in Thomas Edison's phonograph, and to development of his own flying machine just six years after the Wright Brothers launched their plane at Kitty Hawk. As President James Garfield lay dying of an assassin's bullet in 1881, Bell hurriedly invented a metal detector in an unsuccessful attempt to locate the fatal slug.
5. HISTORY OF CELL PHONES:

The beginning history of cell phones is based upon radio technology that was developed from the 1940's onward. For instance the beginning of cell phones can be traced to the innovation in taxi cabs, police cars and other service vehicles where two way radios were used to communicate with one another or with a central base. Early cell phone communication technology could be even traced back to individuals with special radios that can patch into a phone line via live operator to make a phone call. The first official mobile phone was used in Sweden by the Swedish police in 1946. The technology was connected to the telephone network and was distinctive of two way radio technology. The phone was not very practical; it was only able to make 6 phone calls before the car's battery was drained. The technology of modern cell phones started with the creation of hexagonal cells for mobile phones by D.H. Ring from Bell Labs in 1947, later on another engineer from Bell Labs conceived of cell towers that would transmit and receive signals in three directions instead of normal bi directional antennas. However, although some technologies have been developed, electronics and other technologies would take decades to mature and to be developed. For instance, the electronics that were used in the first cell phones were first developed in the 1960's
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By 1967, mobile phone technology was available; however, the user had to stay within one cell area. Cell areas which were serviced by a base station were unable to hand off cellular phone calls from one base station to another. While you could make a phone, call, you weren't able to continue the call after you reached a set range. In 1970, Amos Edward Joel, who also was an engineer at Bell Labs, developed the call handoff system. This technology facilitated continuity of a phone call from one area to another without dropping the phone call. While the technology had been developed, it wasn't until 1971 that AT&T submitted a request to the FCC for cellular service. It took more than 10 years for an approval and in 1982; the FCC allocated the frequencies of 824-894 MHZ Band to Advanced Mobile Phone Service (AMPS). From 1982 to 1990, AMPS was an analog service, Digital AMPS came online as of 1990. Throughout the decades, there have been many technologies that existed that made mobile phones available. Most of the time, these phones were installed in vehicles due to the large battery requirements. For instance, the MTA (Mobile Telephone System A) developed by Eriksson was available in Sweden in 1950's. Unfortunately, it weighed over 80 pounds, later versions however weighed around the 20 pound range, still making it ineffective for truly portable devices that are used today.
5.1. FIRST GENERATION CELL PHONES:

In 1983, Motorola unveiled to the world, the first truly portable cellular phone. It was called the Motorola DynaTAC 8000X. It was approved for use in the United States by the FCC. Motorola developed the technology for cellular phones for decades and this particular phone took 15 years to come to market at an expense of over 100 million dollars in research costs. The DynaTAC800X was extremely lightweight for its time and only weighed about 28 ounces. It was 13 inches x 1.75 inches x 3.5 inches and was known as the Brick for its shape. It was largely developed with the help of Dr. Martin Cooper of Motorola. From 1983 to the end of the 1980's cell phones grew in popularity due to the innovations in cellular networks that were able to handle phone calls in either one area or hand them off to other areas. While most cell phones weren't made to be carried in
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your hand, all phones were made for permanent installation in the car. For a while the term "car phone" was extremely popular. Besides car phones, there were a few models that came in tote bag type configurations that can easily hook up to a car's battery, via the DC outlet to make calls. There were also a few models that came as briefcases, to hold large batteries necssary to make phone calls.
5.2. SECOND GENERATION CELLULAR PHONES

Cellular phones from the early 1990's are considered being second generation (2G) and they were able to work on mobile phone systems such as GSM, IS136 (TDMA) and IS-95 (CDMA). Digital mobile phone networks were in use in the United States in 1990 and in Europe by 1991. 2G mobile phones use digital circuit switched transmissions. This ultimately enabled quicker network signaling, lowering the amount of dropped calls and increasing call quality. As 2G digital networks were online, most of the time, they replaced analog network frequencies, effectively making them obsolete. Phones based on 2G technology were much smaller than the brick telephones of the mid to late 80's. Most 2G cellular phones were usually in the range of 100 to 200 grams, plus they were hand held devices that were truly portable without the need for a large battery. Advances in battery technology, as well as computer chip technology also helped to make 2G cell phones much smaller than their predecessors. With these innovations, cell phone usage soared.
5.3. THIRD GENERATION CELLULAR PHONES

Third Generation cellular phones is the technology that is currently available today and it is commonly referred to as 3G. While 3G came only a few years after 2G, mainly due to many innovations in technology and services, standards for 3G are usually different depending on the network. It is usually stated that 3G is not necessarily a rigid standard, but is a set of requirements that most networks and cell phone providers follow. There are two main requirements; they include 2 Megabits of maximum data rate indoors and 384 kbits for outdoor use. 3G mobile phones usually include innovations to receive much more than phone calls, for instance, SMS text is available and some 3G phones also offer email and Internet access.
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Currently technologies are continuing to improve and new innovations such as streaming radio and TV, as well as Wifi are currently breaking into the market.
5.4. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA

In my previous paper I shed the light on how the mobile technology has evolved and how it affects the Saudi society in general. I started by providing a brief history about landline, wireless, portable, and car phones. Also, I had examined the monopoly phone company STC (Saudi Telecom Company) and stated its strategy and services. In addition, I attached some numbers and statistics regarding the uses of mobile technology vs. other technologies such as the uses of internet and landline phones. Last but not least, I pointed out some social changes regarding dating and flirting after the emergence of mobile phone technology. In this series of papers, I will explore the uses of mobile technology in the present time and the future of this technology in the region. It is very important to know what are the technologies and services that this culture adopts now and will adopt in the future and why. To know the effective media of such and an extremist and conservative society is very important to alter some wrong believes and norms. Also, I will elaborate on the negative impact of using this technology on the conservative kingdom. This negative impact has mainly derived from the misuse of mobile enablers such as the misuse of Bluetooth and camera phone.
5.5. MOBILE PHONE MARKET : Mobile phone market penetration is an excellent measure of technology uptake in different regions around the world and according to new analysis from Wireless Intelligence the Middle East has surged to become the second-fastest growing mobile phone market in the world. With penetration set to cross the 50% mark, over 150 million handsets in circulation and a 30% growth rate in 2006, the Middle East is now only
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trailing Africa as the fastest-growing market. Turkey, Iran and Saudi Arabia represent almost 70% of total connections in the Middle East. In these markets, the average market penetration is around 67%, which is above the average market penetration rate for the region (50%). And as I noted before in my previous paper that the adoption of mobile technology is accelerating dramatically in Saudi Arabia, it is very evident in here by the increasing number of buyers in the mobile phone market. Saudi Arabia is the second biggest market in the Middle East; it represents about 15% of total connections in the region. At the end of 2006, Saudi Arabia passed the 20 million connections mark, and the market is expected to grow by almost 20% this year. EAE Mobily (the second operator company) has been the fastest growing operator with 38% growth of its installed base between Q1 2006 and Q1 2007. It is the second biggest operator in the country with a market share of 29% this quarter. The Saudi telecom market has grown rapidly from a relatively low base over the past four years, largely as a result of liberalization. However, fixed-line penetration remains low by regional standards, at only 16.3%, according to figures provided by CITC, and broadband penetration is particularly poor, at only 1.5%. The mobile sector has expanded rapidly both before and after the award of a second license to a Saudi-UAE consortium, with Etisalat as the operator. Etisalats Mobily service, which was launched in May 2005, had acquired 2.3m subscribers by end-2005, compared with 11m for Saudi Telecom, giving an overall penetration rate of 57.1%. According to Arthur D Little, a US consultant advising CITC on the development of the industry, the 45% growth rate of mobile-phone subscribers in 2005 was primarily a result of new users, rather than churn from the existing operator to Mobily. Over the past five years total revenue from telecom services has grown by 15% per year, reaching US$9.1bn in 2005, of which mobile services accounted for US$7.8bn. CELLULAR CONNECTIONS VS. PENETRATION RATE
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5.6. 3G MOBILE TELECOMMUNICATION : I suppose that in many respects, adopting 3G technology would make sense. Saudi Arabia is a wealthy enough country, and they need data just like everyone else coming down to their mobile devices. Also, the lack of entertainment activities plays an important role in adopting this technology. So, I guess that seeing a developing market for 3G would work effectively. 3G, the third generation of developments in wireless
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technology, and its high-speed upgrades offer Web access some 100 times faster than normal fixed lines and 350 times faster than GSM, the widely used digital mobile-phone system. 3G also allows television reception. Saudi Telecommunications Company (STC) officially announced the commercial launch of 3G HSDPA services on May, 24 2006. The operator launched trial services in January 2005, and currently has more than 3,000 customers using the offering. The Kingdom of Saudi Arabia represents a promising market for GSM and 3G mobile
telecommunications services combining scale, best-in-class wealth and excellent growth prospects. The country has more than 24 million inhabitants, over 6 million are foreign residents, and its GDP per capita of US$ 8,500 is the highest in the Middle East & North Africa region for countries with a population of over 5 million. Moneimne said the number of mobile-phone users in Saudi Arabia was set to rise to 22 million in 2009 from 10 million in 2002. Oil-rich Saudi Arabia, with its gadget-obsessed population and low Internet-penetration rate, offers particularly good opportunities for mobile phones with third-generation technology. The mobile penetration rate in the KSA is approximately 31% and is expected to be more than double over the next few years. Saudi operators hope that interest in 3G could also benefit from the kingdoms low Internet penetration compared to other Gulf countries, said: Mobilys IT chief Ahmed Al-Oraini.
5.7. MOBILE TV:

It is the most talked about and invested in content type over the past two years. As we emerge from the research and test phases, we are beginning to learn what really works, what the consumer want from Mobile TV and realistically how much we can invest to earn a fair return. Find out how to develop a business model for a successful and profitable launch, learn from the latest case studies and debate future business
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models for ad-funded mobile TV as well as incorporating interactivity and user generated content. Many mobile operators already offer on-demand and downloaded video content. Broadcast Mobile TV goes a giant step further, empowering broadcasters and mobile network operators to offer high-quality live video programming to their customers wherever they want it. But as incredible as it is, Mobile TVs place-shifting functionality is only its initial benefit. Unleashing interactivity by fully integrating Mobile TV with a robust software platform is the key to taking the user experience to another level altogether. It is also a key to capturing the mainstream market with interactive applications like shopping, advertising, instant replays, online voting and beyond. Mobile TV has the potential to revolutionize the lives of consumers and become a key component of the next great platform for social interaction. Around the world, mobile TV and video services have been product offerings for several years. Wireless operators are moving out of the experimentation phase as trials wrap up, broadcasting technologies are chosen, and additional TV and video content is offered. With S2M, Mobile TV is a lot more than TV on your mobile. S2M offers a unique personalized and interactive TV experience to consumers anywhere, anytime and everywhere they go. S2Ms broadcasting TV solution will deliver abundant channels of high quality on any type of mobile devices:

Mobile phones Portable media players In-car media devices Laptops computers
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S2M Mobile TV will be available anywhere and anytime to users throughout the Middle East and North Africa.

Spare time: Watch TV while waiting or traveling on cars, trains, planes, and buses Must see: Dont ever miss your favorite show Catch up: Keep updated wherever you are Quick escape: Entertain yourself during your breaks Background radio / video: Use mobile TV as background entertainment at work or
home Users will be able to interact with their favorite shows more easily than ever:
Video and Music on demand: Customized and Selectable Content (e.g. music and
video downloads, sports updates)

Interactive Advertising: Customized, Interactive and Selectable Advertising Interactive Messaging: TV Voting, TV Gaming, and TV Chatting Interactive Media: Shopping TV, Travel TV, and Education TV
5.8. SOCIAL AMPLIFICATIONS :

A very noticeable and important outcome of such a conservative society is the misuse of Bluetooth technology by young men and women is increasing in Saudi Arabia. A recent study found that pornographic material accounted for nearly 70 percent of messages exchanged by teenagers. Abdullah ibn Mohammed Al-Rasheed, associate professor at the College of Dawa and Information in Riyadh, who conducted the study,
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said 88 percent of girls had been victims of such misuse. Rasheed presented his study at a seminar organized by the King Fahd Security Academy. The study focused on teenage boys detained by the Commission for the Promotion of Virtue and Prevention of Vice for harassing girls in the Qasim region. The flash memory of mobile phones taken from teenagers showed 69.7 percent of 1,470 files saved in them were pornographic and 8.6 percent were related to violence, said Rasheed. About 99.2 percent of people surveyed, mostly students, military officers and businessmen, used Bluetooth in public gatherings. Hard to tell if the 70% figure is based on all teenagers or just that demographic of busyhand boys that the study focused on. As written, it sounds like its the former, especially since they also surveyed teenaged girls. Speaking of which: 99 percent believed that the device had broken the barrier of social taboo and traditions. Al-Eqtisadiah newspaper reported on Thursday that Saudi Arabia will overturn a ban on the import and sale of cell-phones with built-in camera in the conservative Muslim kingdom. Although widely used across the country, camera phones are illegal in Saudi Arabia and have been condemned by religious leaders who say they are used to invade privacy, particularly of women. Al-Eqtisadiah quoted unnamed sources as saying authorities had asked the Interior Ministry to put in place regulations to prevent the negative use of the camera equipment in the phone. Female Students who are carrying cell-phones on campus in any college in Saudi Arabia could face a SR500 fine ~$133, taking the cell-phone for at least a week, and a 3-year suspension under recent regulations issued by the Ministry of Education. -Woman fired over mobile snapshots- this was an article about a Saudi woman who has been expelled from her university for taking pictures of unveiled colleagues with a camera-equipped mobile phone posting them on the Internet.
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When the Saudi people finally rise up in revolt and throw out the House of Saud, fellow Saudi blogger, Alhamedi Alanezi says: it wont be for democratic reform, and it wont be for an Islamic republic. Itll be about mobile phones. Saudi Arabia enforces ban on camera phones, the Saudi government began enforcing a ban on the sale of cameraequipped mobile phones. This results in creating a black market to sell banned camera phones.
5.9. THE FUTURE OF MOBILE MARKETING: Advertisers are continually seeking alternative and more effective means to reach and connect directly with their target audiences. The convergence of the telecom and media industries is leading to new opportunities in infotainment-related value added services, including mobile marketing. This development could prove to be an effective way to invigorate the historically underdeveloped direct marketing industry in the region and open an attractive new option for advertisers.The rise of the mobile value-added services industry is already evident from the proliferation of mobile ring tones and logos and the emergence of services such as SMS breaking news from Al Jazeera TV. The wide range of media, technology and telecom players are involved at the various stages of the value-added services value chain in order for content to eventually reach the mobile phone screen. Content supplied by the likes of Disney and Rotana channels is delivered by service providers using specialized IT applications via mobile operator networks to be displayed and manipulated on mobile devices. Half of the current market value is in the form of mobile personalization services such as ring tones, logos, wallpapers, etc. Operators, media owners, and independent value-added services providers are already tapping into this market. As a result, future growth is expected to
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come from value-added services categories such as general entertainment, interactive media services, gaming, and information, bringing the total market to over US$1.7 billion by 2010.Gabriel Chahine, Principal with Booz Allen Hamilton and a member of the Global Communications, Media, and Technology group based in Dubai, said: Augmenting the mobile value-added services industry with the classical direct marketing activities of customer database management, creative, and campaign services management instantly creates an altogether new industry for mobile marketing. Mobile marketing seems to be one of the most attractive options for advertisers. The upside potential and unique nature of mobile marketing at the intersection of media, telecom, and advertising is attracting four types of players with varying business models. Telecom operators are attempting to leverage existing application and service provisioning to build direct marketing capabilities. Operators key advantage lies in their existing mobile portals, billing relationships, large customer databases, and their position on the value chain as the gatekeeper to customer access. However, operators are not advertising agencies and have no experience in designing and running campaigns. Therefore, many have been content to focus on simple format, high volume consumer campaigns, such as TV voting or selling SMS in bulk to corporate clients. Notwithstanding the above, some operators have created new mobile marketing divisions such as O2 Interactive and Vodafone Target. Similarly, NTT DoCoMo created D2 Communications as a wireless advertising subsidiary to deliver advertising on i-Mode. Advertising Agencies are extending their traditional media services offerings into the mobile marketing space. The key strategic objective is to complement traditional media campaigns with mobile marketing vehicles such as SMS in order to
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differentiate their offerings to existing clients and attract new brand relationships. Most agencies, such as Carat Interactive and Oglivy One, are partnering with content and application service providers to secure technology and delivery capabilities. Some new entrant players, such as 12Snap, aim to position themselves as new media agencies specialized in interactive mobile marketing by focusing on mobile marketing creative services and partnering with application service providers such as Lucent and NeoMedia for mobile software and patented technologies, such as PaperClick an application to capture bar codes and ISDN product codes through a Nokia mobile camera and retrieve product information including the retail price in alternative outlets. Operator Partner Companies are spin offs from mobile operators in order to prevent the momentum of the much larger core business from subduing the creativity and entrepreneurial spirit of their new mobile marketing ventures. Mindmatics, a mobile marketing market leader in Germany, has T-Venture (the venture capital arm of T-Mobile) as one of its main investors. Mindmatics has built up extensive in-house marketing and creative services capabilities, as well as a wide range of mobile applications as part of its core portfolio. At the same time, a strategic alliance with TMobile allowed Mindmatics to co-develop a 6-million-profile database in the UK along 100 different selection criteria and to leverage T-Mobiles pan-European network connectivity while maintaining enough independence to work with all mobile operators in any given market. Independent players are green field entrants offering specialized mobile marketing applications, content, and services including integrated creative and campaign management services. For example, Flytxt is developing multiple proprietary application platforms and offering business strategy, marketing, and technology consulting services as shown in figure 4 below. Players such as 12Snap are more
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focused on creative services and aim to position themselves as new media agencies specialized in interactive mobile marketing. In the Middle East, players such as Spot Cell are starting to build their own consumer databases, develop creative services capabilities, and procure sophisticated marketing applications from international vendors. Over the last 2 decades, Saudi Arabia and other oil-rich Gulf countries have gained control of the most influential publications in the Arab world and expanded their influence to Europe. They have managed to force independent voices from the Muslim world using market manipulation, bribery, and sheer intimidation. But media manipulation is having opposite effects. The Muslim masses have learned to decode skeptically messages from their discredited media organs. As a result, the messages of the co-opted media are either not heard or are read quite differently than intended.
6. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA:

6.1.INTRODUCTION:
For years, people in Saudi Arabia were able to communicate very effectively after the introduction of phones in general. Through out the years, phones have been evolved in Saudi Arabia as well as in many countries around the world. After the vast use of landline, wireless, and portable phones, cell-phones (mobile phones) were introduced in early 1997. This chain of phone evolution was quite remarkable in Saudi Arabia; therefore, I would like to study how mobile phones have been evolved in Saudi Arabia and also to consider the widespread use of this technology. The use of mobile phones has been increased dramatically over the past decade in the kingdom; mobile phones are now an essential part of business, commerce and society.
6.2. PHONES OVERVIEW :

Actually, it wont be adequate if I start talking about cell-phones and its impact on the society without considering previous phone technologies. For years, people in Saudi Arabia were able to communicate with each others using landline phones. It was very effective way to connect the society members together socially and economically. Landline Phones (Al-Hatif), which is provided by STC (Saudi Telecom
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Company), were the backbone of communication within the country or internationally whether you are calling your family, friends and/or a business contact. In 1983, Saudi Arabia was experiencing the emergence of the portable phones two-way radio systems which were invented by Motorola. The car radiotelephone industry was greatly introduced to the region to implement social and business purposes. Although Saudi Arabia is a very conservative country, it was not a shock for such a community to adopt this portable technology, due to the fact that this culture is very luxurious.Motorola produced mobile telephones in cars or car phones, as they came to be called. Radiotelephones essentially were two-way radios connected to the landline telephone system. However, problems with car radiotelephone systems emerged as their popularity grew. Due to the limited number of available frequencies, car phone systems allowed only a few calls at one time. Frustrated callers often experienced long waits. In addition, radio channels could not be reused in nearby areas because of interference from the highpowered base stations. In addition, no privacy was insured using car phones; some specific scanners can penetrate car phones calls. In Saudi Arabia, people have shown a great potential in the mobile technology. Since the emergence of cell-phones, which was10 years ago, people have used cell-phones in a large scale after years of communicating via landline, portable, and car phones. In a country like Saudi Arabia, providing a new technology is not an issue as long as people can afford it. Indeed, the luxurious life style in Saudi Arabia compels people to adopt the most recent and expensive way of communication not only for communicating purposes but also for their social image, sometimes, the social image is more important_ you can see people with two or three cell-phones with unique numbers as a sign of luxury.
6.3. TALKING SANDS

In general, people in Saudi Arabia are sociable and private at the same time; with no doubt, cell-phones enable them to communicate any where and at any time. It is not a joke when I say people in Saudi Arabia spend a lot of time and money on phone calls. Gossip plays a crucial role in the social environment, and mainly it takes place over cell-phones rather than meeting in person. I can illustrate many reasons for which Saudi people prefer using cell-phones. First, the hot climate in Saudi Arabia compels the residents to stay in their houses rather than gathering outdoors. It is very rare to see
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people are walking down the street; everyone travels in his/her own vehicles. Another contributory factor in the vast using of cell-phones is the fact that women dont drive cars. Although every household in Saudi Arabia has at least one driver, it is considered a burden not to be able to drive any time in the day. Therefore, cell-phones made women who are in the same social or educational environment are more connected to each others. Also, we have to consider the fact that Saudi Arabia has no entertainment activities, such as movie theaters or night clubs for religious reasons. So, people in Saudi Arabia tend to adopt cell-phones and other entertaining tools more likely than other nations in the world. Last reason is the fact that people over there are very much concerned with the life style and the social image. Saudies usually compete on carrying the latest cell-phone device and/or to be updated with the newest services. The Saudi society always appreciates people with updated technologies. Cell-phones have a great impact on the social level especially among the younger generation.
6.4.
CELL-PHONES AND ROMANCE:

Jeddah, Saudi Arabia -3:00 a.m., two luxury cars side by side on an empty
street, slicing through the sticky seaside air at 100 miles per hour, a girl in a gold Lexus waved at a guy (HusamThobaity). She was in the back seat, covered by a black veil that hid everything but her eyes. She had the most beautiful eyes I had ever seen, Thobaity recalled. So I gave her my number by Bluetooth. Thobaity, 23 years old pushed a button on his cell-phone and activated Bluetooth, a short-range wireless function that is standard on most new cell-phones. Within seconds, the girls Bluetooth screen name popped up on his cells glowing display. He laughed: She called herself Spoiled, which matched the flashy Daddys Girl car. Excited, flustered, using his left hand to steer, he clicked on her name and sent her a text message with his phone number. The big Lexus roared off down another road. It would be a week before Thobaity heard from the girl with those eyes, the woman he loves. Cell-phone technology is changing the way young people meet and date in the Kingdom of Saudi Arabia. Calls, Texting, and more recently Bluetooth are breaking down age-old barriers and giving young men and women discreet new ways around the sentries of romance in the most insular, conservative and religiously strict societies in the world.
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6.5.
SOCIAL AMPLIFICATIONS:
A very noticeable and important outcome of such a conservative society is the misuse of Bluetooth technology by young men and women is increasing in Saudi Arabia. A recent study found that pornographic material accounted for nearly 70 percent of messages exchanged by teenagers. Abdullah ibn Mohammed Al-Rasheed, associate professor at the College of Dawa and Information in Riyadh, who conducted the study, said 88 percent of girls had been victims of such misuse. Rasheed presented his study at a seminar organized by the King Fahd Security Academy. The study focused on teenage boys detained by the Commission for the Promotion of Virtue and Prevention of Vice for harassing girls in the Qasim region. The flash memory of mobile phones taken from teenagers showed 69.7 percent of 1,470 files saved in them were pornographic and 8.6 percent were related to violence, said Rasheed. About 99.2 percent of people surveyed, mostly students, military officers and businessmen, used Bluetooth in public gatherings. Hard to tell if the 70% figure is based on all teenagers or just that demographic of busyhand boys that the study focused on. As written, it sounds like its the former, especially since they also surveyed teenaged girls. Speaking of which: Ninety-nine percent believed that the device had broken the barrier of social taboo and traditions. Al-Eqtisadiah newspaper reported on Thursday that Saudi Arabia will overturn a ban on the import and sale of cell-phones with built-in camera in the conservative Muslim kingdom. Although widely used across the country, camera phones are illegal in Saudi Arabia and have been condemned by religious leaders who say they are used to invade privacy, particularly of women. Al-Eqtisadiah quoted unnamed sources as saying authorities had asked the Interior Ministry to put in place regulations to prevent the negative use of the camera equipment in the phone. Female Students who are carrying cell-phones on campus in any college in Saudi Arabia could face a SR500 fine ~$133, taking the cell-phone for at least a week, and a 3-year suspension under recent regulations issued by the Ministry of Education. Woman fired over mobile snapshots this was an article about a Saudi woman who has been expelled from her university for taking pictures of unveiled colleagues with a camera-equipped mobile phone posting them on the Internet. When the Saudi people finally rise up in revolt and throw out the House of Saud, fellow Saudi blogger, AlhamediAlanezi says: it wont be for democratic reform, and it wont be for an Islamic republic. Itll be about mobile phones. Saudi Arabia enforces ban on camera phones, the Saudi government began enforcing a ban on the sale of camera[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]
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equipped mobile phones. This results in creating a black market to sell banned camera phones.
6.6. STCS MISSION:

Saudi Arabia has one main carrier which is STC (Saudi Telecom Company), this institution is governmental. STC has established in 1998 and delivered a range of positive results after providing better services to customers. This has been achieved through an ambitious transformation & restructuring program compound with an extensive expansion of the network and infrastructure. Saudi Telecom Company is aiming to be the leading Saudi mobile voice and data service provider, with the widest coverage, expanding our customers horizons while proudly respect their culture and values. In the last two years, another telephone company has been launched in Saudi Arabia which is called Mobily, it is a private organization. But in this case study, I will consider facts from STC only. By the end of 2002, the Saudi Government announced that 30% of Saudi Telecom Shares will be released for sale to Saudi citizens & organizations; Saudi citizens (20%), General Organization of Social Insurance (GOSI) (5%), and Pension Fund Organization (5%). By the end of the subscription period, requests for shares exceeded the number offered by 3.5 times. This is a clear indication that Saudi people are confident of Saudi Telecoms success and trusts in its future. The General Assembly Meeting of Saudi Telecom new shareholders held at the end of April 2003.
6.7.
SERVICES AND USAGE;

STC is very keen to keep up with the latest technology by offering more than
the basic GSM voice service. Therefore, they offer their valued customers additional value added services based on these new technologies enabling them to partner with STC. STC thrive to maintain the highest customer satisfaction. They generously invest within their dedicated manpower to contribute in a great manner to the telecom world. Even more they do their best to offer any new and practical service to make them the most reliable GSM operator in the world based on their innovative approach of being truthful and transparent towards their valued customers according to their values and traditions. The power and flexibility of Aljawal (cell-phone) is available for anyone for
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small sum of SR 50~$13 to connect (a one off payment), and a payment each month of SR 35~$9. Aljawal comes with free bundled services included. People in Saudi Arabia dont tend to use all services that the carrier provides. According to this culture some services are very widely used and some are poorly used, such as the poor use of voice messaging _ I dont know exactly why, but people over there dont like to leave voice messages. On the contrary, they show a great potential in using text messaging. The average bill for a Saudi individual use is 1500-2000 SR ~ 400-530 $ a month. They exchange photographs, video clips, and sound files with each other, as well as to publish them to public or private websites.
6.8.THE BUNDLED SERVICES FOR ALJAWAL:

Call Divert Call Waiting Caller Identification Fixed Numbers Conference Call Bill Reminder Credit reminder
Aljawal also provides the clients a variety of value added services they can buy by calling Aljawal Center:

Mawjood&Mawjood Extra Call Barring Adding International calls Increase or Decrease Credit Limit Bill Info International Roaming Changing P.O Box Address Temporary Line Suspension based on customer request Reconnection after temporary suspension based on customer request Reactivation of outgoing calls after suspension when reaching credit limit Reactivation of line after temporary suspension due to unpaid bill 700 Numbers SIM card delivery outside the Kingdom
Aljawal offers its valued customers a variety of monthly subscription plans and minutes rates to meet each customers needs and help them manage and control their calls budgets.
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6.9.
SADA :
STC dedicate a special ring to a special person or to a group. Note that Sada
will work on any mobile since all your rings are stored on the Sada service system and will be played by the service itself.
6.10. MY BACKUP:
My backup is a service designed to allows Aljawal customers to saving and retrieve all personal information such as: contacts, calendar, tasks, SMS, MMS, tones, and photo that stored in their phones. This services use GPRS, EDGE, and UTMS for that you need to be Jawalnet subscribers. 6.11. MIRSAL AL JAWAL (SMS) MirsalAljawal or SMS Text Messaging is a service that lets you send and receive messages to and from any other mobile. The message can contain a maximum of 160 Latin letters or 70 Arabic letters. Benefits Private and reliable SMS messages will be delivered immediately to the person you are contacting whether their calls are diverted to another number, their phone is busy or if the mobile you are sending the message to is switched off the message is received when the phone is switched on again. Cost effective

6.12. TADAWUL AL JAWAL

This service allows Aljawal customers to receive detailed information related to the Saudi stock market. Those who are interested in keeping track of the stock market activities will be able to receive real-time information about stocks quotes through SMS or MMS. This service is in collaboration with Saudi Stock Market (Tadawul).
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6.13. VOICE MESSAGING:

Voicemail is a personal answering machine. With this service, you do not miss calls, people can deposit messages on your mailbox when:

There is no answer Your line is busy Your phone is off There is no coverage
Benefits

Always reachable You choose when to listen to messages Easy to use
6.14. STC STRATEGY

STC has continued in adopting balance scorecard principle based on balancing of financial objectives with other non-financial objectives and comparing its services & performance with the performance indicators of global telecom companies. This will have a positive impact on improving STC performance, as well as increasing the customers base, customer satisfaction and meeting all the requirements and needs of the local market. STC endeavors in the next stage to develop and protect its achieved revenues, evaluates, and utilizes the available local & regional chances for developing business. STC is also working in reviewing the market segmentation and immediate response to market changes, customer needs and timely provision of solutions and new services to meet the requirements of STC current and future customers as well as placing innovated sales basis, beside continuous revision to the service tariff structure to ensure its consistency with company structure. Follow up the development of the related customer retention and satisfaction programs.
7. DEVELOPMENT OF MOBILE PHONE:

From the time of conception, to the time of invention and till this current time the mobile phone has undergone drastic changes.Changes that were seen as fictional and unrealistic have now become common in this present day. In this section we will learn
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about the evolution of the mobile phone and the stages it went through to get to where we are today.
The evolution of mobile phones can be divided into four stages: 1. 2 3 4 First Generation Second Generation 2.5 Generation Third Generation
These four stages of evolution are discussed below.
7.1.
FIRST GENERATION MOBILE SYSTEMS (1G)

The first generation of mobile phones
were introduced in the late 1980s. These mobile phone systems were analogue instead of digital like the ones we have nowadays. The idea of cellular phones based on cellular networks was first formulated in the United States at Bell Labs in the early 1970s. However, In September1981, the first cell phone network with automatic roaming was started in Saudi Arabia; it was an analogue Nordic Mobile Telephone (NMT) system. One month later, the Nordic countries (i.e. Denmark, Finland, Iceland, Norway and Sweden) started an NMT network with automatic roaming between countries. The Nordic countries were the first to introduce cellular available in services the USA for and in commercial most parts use. of Europe. In addition, in 1985, the analogue Total Access Communication System (TACS) became During this period, mobile phones were somewhat larger than current ones, and at first, all were designed for permanent installation in cars (hence the term car phone). Soon,
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some of these bulky units were converted for use as "transportable" phones the size of a briefcase. Motorola introduced the first truly portable, hand held phone.The use of analogue systems did not last because the growing capacity of needs involved in implementing the analogue systems became too expensive. Thus, the digital system was adapted and welcomed in the second generation of mobile systems. Mobile Systems such as NMT, TACS, Advanced Mobile Phone System (AMPS), Radio Telefono Mobile Integrato (RTMI) and Radiocom 2000) later became known as first generation (1G) mobile phones.
7.2.SECOND GENERATION MOBILE SYSTEMS (2G):
An Example of a 2G phone
In order to combat the problem that analogue systems presented, the second generation of mobile systems were digital. The advantages of digital systems over analogue systems include ease of signalling, lower levels of interference, integration of transmission and switching, and increased ability to meet capacity demands. A new design was introduced into the mobile switching centre of secondgeneration systems. In particular, the use of Base Station Controllers (BSCs) lightens the load placed on the mobile switching centre (MSC) found in first-generation systems. This design allows the interface between the MSC and BSC to be standardized, thus the phone-to-network signalling is quicker, compared to the first generation of mobile phone systems. The first digital cellular phone call was made in the United States in 1990, and the first GSM network opened in Europe in 1991. Some examples of second-generation mobile systems are the Global System for Mobile
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Communications (GSM), Cordless telephone (CT2), Personal Access Communication systems (PACS) and Digital European Cordless Telephone (DECT). The major difference between the first and second generation of mobile systems is that, while first-generation systems support primarily voice traffic, second-generation systems support voice, paging, data, and fax services. Due to this advantage, the 1G mobile systems were closed down to make space for the 2G mobile systems. 2G mobile phone systems are still very much in use nowadays. 2.5 GENERATION MOBILE SYSTEMS (2.5G) The 2.5-generation mobile systems were developed mainly as extensions to the secondgeneration mobile systems. These systems provide some of the features of 3G without fulfilling the promised high data rates or full range of multimedia services. The move into the 2.5G world began with the General Packet Radio Service (GPRS). GPRS is a radio technology for GSM networks that adds packet-switching protocols, shorter set-up time for Internet Service Provider (ISP) connections, and the possibility to charge by the amount of data sent, rather than connection time. Packet switching is a technique whereby the information (voice or data) to be sent is broken up into packets, of at most a few Kbytes each, which are then routed by the network between different destinations based on the addressing data within each packet. Use of network resources is optimised, as the resources are needed only during the handling of each packet. Another example of a 2.5G system is the Enhanced Data rate for GSM Evolution (EDGE). This application builds up on the GPRS. It will allow GSM operators to use existing GSM radio bands to offer wireless multimedia Internet Protocol (IP) based services and applications at theoretical maximum speeds of 384kbps. EDGE has been introduced into GSM networks around the world since 2003, initially in North America. GPRS is the most significant step towards the third generation of mobile systems because it supports flexible data transmission and it allows continuous connection to the network.
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7.3.
THIRD GENERATION MOBILE SYSTEMS (3G)
An Example of a 3G pho The third generation of mobile systems are the newest and most sophisticated form of mobile systems that have been introduced. 3G mobile systems are much more sophisticated than the other systems that have been introduced because they perform more highly advanced activities. 3G phones will enable increased data-handling rates. This will allow mobile telephones to offer new features such as video streaming, videoconference calling, multi-media communication (e.g. watching TV on your telephone), transmission of video calls, and enhanced e-mail and web-browsing capabilities. This mobile system also allows roaming and it has the capability to determine geographic position of mobiles and report it to both the network and the mobile terminal. The possibilities of a 3G mobile phone are seemingly endless as more and more facilities are being developed. When mobile phones were originally introduced, they were not very popular because they were very high priced and targeted at business users. Even so, many businesses refused to adopt the mobile phone system on a corporate basis. Instead, a few individual business staff patronised the mobile phone system, and then gradually, they showed their colleagues the benefits and advantages of having a mobile phone. Thus slowly, the whole business industry became aware of the usefulness of mobile phones, and they began to support and pay for mobile services. Nevertheless, there was still the problem of the high prices of these mobile phone services. However, once the mobile phone system became familiar to the public at large, through the business corporations, there was a huge boom in its technology. There was an un-expected rise and rapid growth in the consumer demand for mobile phones. This rise was so rapid, that in the mid-nineties to the late-nineties, mobile phones were being purchased not only for their use, but also as a fashion statement.
Today, the smallest mobile phone has as much computing power in it as the largest, most
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expensive computer did less than a generation ago. We live in an age of intelligent machines that are in perpetual communication, creating new networks of knowledge, information and empowerment across the globe. And from mobile phones with constant internet access to smart cars that help you find your way home, mobile phones are helping build a future thats safer, simpler and more smartly synchronized. However, at the heart of any technological change is the human experience, and it is in understanding how the digital world is being experienced by all of us, as friends, colleagues and families that we can gain the most insight into the shape of things to come. The use and purchase of mobile phones continues to grow as the production of more sophisticated and advanced phones with cool new technologies keeps users hooked on and wanting more.
INTERNET IN SAUDI ARABIA

Internet was first introduced to Kingdom of Saudi Arabia 1994 when state academic, medical, and research institutions got access to it. Internet was officially made available in Kingdom of Saudi Arabia in 1997 by a ministerial decision and the public access finally debuted in 1999. In December 2000 there were ca. 200 000 Internet users in Saudi Arabia. By 2005 the number of Internet users in KSA had grown to 2,54 million, making the growth 1170 % and KSA one of the fastest growing Internet markets. (source: http://www.internetworldstats.com/middle.htm#sa).2006 some major changes were made to the structure of Internet in KSA. These changes are likely to aid
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the expansion of Internet usage in KSA even more. it is predicted that the number of users will reach 3.8 million in 2007.
8.1. OVERVIEW:
When Internet was first made available for the public in KSA at the end of 1990s, it was supervised by King Abdulaziz City for Science and Technology (KACST) and the Internet Service Unit (ISU) a department of KACST. ISU acted as a Saudi Internet exchange point and worked in raising the public awareness with the Internet. It also formulated the rules and regulations that govern the use of the Internet in the country and took care of the Saudi domain name system. The Internet was provided to the public through many number of commercial ISPs who were licensed by KACST.
8.2 . GATEWAYS TO INTERNATIONAL INTERNET

KACST provided the gateway to the International Internet for ISPs as well as all the Saudi universities and governmental research centers.
8.3.INFRASTRUCTURE OF PHYSICAL NETWORK

The STC provided the communication infrastructure in the country. The Asynchronous Transfer Mode (ATM) network formed the Internet backbone in Saudi Arabia. ATM network covers most of the country and was used to connect the ISPs with KACST and with their dialup and ADSL clients. The DDN (Digital Data Network) was used for connect ISPs with their leased-lines customers; it was also used by some organization to connect their different branches. PSTN (Public Switched Telephone Network) was used for dialup and ADSL customers.All the modems were owned buy STC and could be accessed by dialing a special number that start with 360xxxx. Each ISP has his own 360xxxx which works from any place in the country without the need to use any area code.
8.4. INTERNET SERVICE PROVIDERS (ISPS)

ISPs bought the International Internet bandwidth service from KACST and local bandwidth from STC and sold the Internet access to their users.
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8.5. DOMAIN NAMES

ISU was in charge of managing the ccTLD (Country Code Top Level Domain) for Saudi Arabia (.sa). The .sa is divided into several sub domains: .com.sa, .org.sa, .net.sa, .gov.sa, etc. The registration for domain names under .sa is free of charge, but there are certain requirements that the registrant should meet.
8.6. FILTERING
In KSA the Internet is filtered. That means that the users cant access websites that contain material that can be harmful or offensive to an Internet user. When Internet was first introduced to the public in KSA, the filtering took place at the servers of KACST and was supervised by ISU.
8.7. FUTURE OF INTERNET IN SAUDI ARABIA

It is estimated that the Internet usage will keep on growing rapidly in the KSA. In addition to the new Internet structure that can cut the prices of Internet access, there are also other factors that can speed up the growth of Internet usage in Saudi Arabia.One reason for the growth is that 60 % of the Saudi population comprises teenagers and young adults who are adapting to new technologies faster than expected.As the usage of Internet grows in all the Arabic countries, the amount of Arabic content on the Internet will grow as well. This in turn will attract more and more Saudis to join the Internet. Several universities and colleges in KSA are now adopting e-learning as a part of their curriculum. It is estimated that the Saudi Arabias e-learning market will expand by 33% annually over the next five years and hit US$125 million by 2008. As more banks and companies will offer more of their services online, more customers are drawn to use these services. It is estimated that in the GCC (Gulf Cooperation Council) countries the ecommerce will cross altogether the US$1 billion mark by the year 2008, with Saudi Arabia taking the lions share of these revenues. There are numerous ways to be connected in World Wide Web in Saudi Arabia. You may connect as follows:
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8.7.1.
STC
BROADBAND,
STC
MOBILE
CONNECTION
VIA
QUICKNET,
STC AL HATIF INTERNET CONNECTION
8.7.2. MOBILY BROADBAND CONNECTION 8.7.3. GO OF ETIHAD ATHEEB TELECOM COMPANY. 8.7.4. ZAIN INTERNET CONNECTION.
Be informed that Saudi Arabia Internet censorship is considered as one of the most extensive in the world.In addition to those mentioned above; Saudi Arabian Telecommunication company also enables connection thru 3G connection. My Galaxy Tab is connected through STC Maak (Quicknet) with 5 GB of data for SAR 100. (There is also an option of having 1 GB for 50 Riyals). It is a promotion connected to my STC Al Hatif Landline. This is in addition to my monthly payment for internet connection in my house.I cant say that internet fee is cheaper in Saudi Arabia compared to other country. The signal strength will depend on your house location, some other areas have strong signal and some does not have a good one. When connection are wired like with STC, just hope your house is located in areas where cables are new ( jadid in arabic word ) or else you will have lots of noise in your internet connection, which result to lower download speed.For STC user, be sure to know the number of the phone box located outside your house. This is the number that STC operators will ask. And let somebody translates the iqama number. As a tip, ask first your neighbor about the best net connection in your area before deciding on what to use. And for our existing readers, you might want to share your experiences in your particular location so that it could help new visitors in Saudi.
9. MOBILE SERVICE PROVIDERS: 9.1. Saudi Telecom Company 9.2. Bravo Telecom Company 9.3. Mobily Telecom Company 9.4. Zain Telecom Company
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9.1. SAUDI TELECOM COMPANY:

Saudi Telecom Company was established in 1998, following the Council of Ministers Decree No. 213 dated 23 December 1418 H, approving of the establishment of a SaudiStock Company under the name of Saudi Telecom Company. Accordingly, STC adopted a challenging program with the aim of transforming its business from a government system to the recognized commercial business standards. The company has developed clear strategies focusing on internal re-organization, re-skilling and development of its staff, enhancement of its internal processes while carefully researching its customers needs and requirements. STC is the leading national provider of telecommunication services in the Kingdom of Saudi Arabia. The company is working continuously to fulfill and satisfy the market requirements, keeping pace with the emerging technologies in the telecommunications sector and satisfying its customer's needs. STC believes this is the way to reinforce its position and identity in view of a changing world where the role and usage of telecommunications have become more significant. 9.1.1. MARKETS: In the last few years, STC has gone beyond its local borders to the international markets, forming a network of businesses and investments in a number The company is now present has Africa and Bahrain which of GCC countries, Asia and Africa.
in Kuwait, India, Indonesia, Malaysia,Turkey, South
enabled STC to serve a larger number of customers internationally.
9.1.2. SERVICES: STC services are divided into three broad categories: Jawal (mobile network), Hatif (landline network), and Internet services. Each category is subdivided into a series of advanced and innovative individual and business services with the aim of making the consumer's life easier 9.1.3. STC AND SOCIAL RESPONSIBILITY: STC's authentic sense of belonging to the Saudi society and the Kingdom is manifested in its keen participation in all national occasions as well as its support for various development projects endorsed by the government for both the public and private sectors. STC loyalty programs include "Wafaa Health Program" which was launched to
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equip 22 health centers in all cities of the Kingdom for a cost of SR 100 million. The program also provides education and training for more than 1300 male and female students in various colleges.
9.2. BRAVO TELECOM ( INTRODUCTION ) 9.2.1. PUBLIC TELECOMMUNICATINS CO. LTD. (BRAVO!): BravO! Telecom is a digital radio trunking operator in Saudi Arabia under a B.O.Tagreement with the incumbent operator STC. It was launched in third quarter of 2005 using Motorola's proprietary iDEN technology operating on the SMR-800 frequency band. bravO! is mainly focused in offering professional radio service to the corporate and governmental sector, with no consumer-centric prepaid offering because network is in partnership with the incumbent operator STC which runs its own GSM & 3G network under the commercial name of Aljawal which primarily addresses this sector. The other two cellular operators launch a PTT service similar in function to the one uniquely offered by bravO! through its digital trunking network, but the former companies used a technology called PoC to facilitate this offering, however; bravO! push-to-talk service remains the fastest and most reliable in the industry given the dedicated and optimized nature of the iDEN network being used specifically for this purpose. bravO!'s sister company in neighboring Jordan XPress operates the same system, which enables customers in both sides to place international PTT calls, a similar service to the one operated between Sprint Nextel's iDEN subscribers and their counterparts in other operators in the Americas such as Telus iDEN customers in Canada and Mexico's Nextel subscribers. The company is currently owned by only two shareholders, a local company called NASCO and the Dubai based Wataniya Int'lwhich was later wholly acquired by Qatari based Qtel during the second quarter of 2007.
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9.3. MOBILY: Mobily is the trade name of Saudi Arabia's Etihad-Etisalat secondTelecommunications company,
consortium (Arabic: .) Thecompany, as the winning bidder for Saudi Arabia's second GSM licence, provides mobile telecom services nationwide, breaking Saudi Telecom's monopoly in the wireless business. The company launched 3.5G services on the 27th of June 2006.The consortium is led by UAE firm Etisalat who owns 35%, with 45% held by 6 strategic local partners. The remaining 20% was put up for public subscription in an IPO that was massively oversubscribed. The GSM Associations "GSM Association Newsletter" Dec. 2004 edition described Mobily as the fastest growing mobile operator in the Middle East & North Africa. In 2006, Mobily reached more than 4,800,000 subscribers. As of 20 January 2007, mobily had 6 million subscribers and 0.5 million 3G users. Mobily introduced in 2004 the first telecommunication franchise business model in the Gulf Region, the Fully Branded outlet-(FBO), assuring rapid and cost effective expansion of its network of outlets. Since entering the Saudi market in 2004 Mobily adopted a solid expansion strategy, based on a direct and indirect sales channels. This strategy allowed Mobily to quickly expand and establish the Mobily Brand throughout Saudi Arabia, and as a result achieve its set target for 2006, both in terms of sales and revenue targets. Mobilys employees include a sales team via its own flagship branches, Fully Branded Outlets, Co-Branded outlets, Kiosks and thousands of dealers scattered throughout the country, covering the majority of the population. This network of outlets and dealers was a major factor in mobilys' rapid growth and customer acquisition. As a result Mobily has earned a significant market share since launching operations on May 25, 2005. Mobily has launched a mobile push-to-talk service (PTT) under the brand name 'Mobily Hawwel' in Saudi Arabia. The PTT service provides users with a different user experience to the traditional voice service, delivering a 'walkie-talkie' like experience only one person can talk at a time. However, it is not limited in distance as with normal
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walkie-talkies, as the conversation is carried across the mobile GSM network. This service is being offered for the first time in the country. The service can provide a one to one voice service or up to 10 people at the same time as group calling, allowing a user to know who is online through small icons appearing with certain colours. Mobily said that the service will be available for postpaid and pre-paid subscribers at monthly fees. Mobily Hawwel conversations are encrypted over GPRS data or 3G network to avoid cross-talk or listening-in. This will be accomplished with the execution of an ambitious expansion plans for its own network of flagships, as well as introducing a new franchise retail concept (MiniFBO). The new concept (Mini-FBO) will complement the existing Mobily retail and channel partner outlets, and will cover more than 60 cities and towns, which will help achieve its targets, both in terms of sales and customer experience. Those outlets, as is the case with the Mobily flagships, will provide the full range of products and services to the current and future customers of Mobily. 9.3.1. OWNERSHIP : The consortium is led by UAE firm Etisalat who owns 35%, with 45% held by 6 strategic local partners. The remaining 20% was put up for public subscription in an IPO that was massively oversubscribed 9.3.2. GROWTH : The GSM Associations "GSM Association Newsletter" Dec. 2004 edition described Mobily as the fastest growing mobile operator in the Middle East & North Africa. In 2006, Mobily reached more than 4,800,000 subscribers. As of 20 January 2007, mobily had 6 million subscribers and 0.5 million 3G users. Mobily introduced in 2004 the first telecommunication franchise business model in the Gulf Region, the Fully Branded outlet-(FBO), assuring rapid and cost effective expansion of its network of outlets. Since entering the Saudi market in 2004 Mobily adopted a solid expansion strategy, based on a direct and indirect sales channels. This strategy allowed Mobily to quickly expand and establish the Mobily Brand throughout Saudi Arabia, and as a result achieve its set target for 2006, both in terms of sales and revenue targets.
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Mobilys employees include a sales team via its own flagship branches, Fully Branded Outlets, Co-Branded outlets, Kiosks and thousands of dealers scattered throughout the country, covering the majority of the population. This network of outlets and dealers was a major factor in mobilys' rapid growth and customer acquisition. As a result Mobily has earned a significant market share since launching operations on May 25, 2005. Mobily has launched a mobile push-to-talk service (PTT) under the brand name 'Mobily Hawwel' in Saudi Arabia. The PTT service provides users with a different user experience to the traditional voice service, delivering a 'walkie-talkie' like experience only one person can talk at a time. However, it is not limited in distance as with normal walkie-talkies, as the conversation is carried across the mobile GSM network. This service is being offered for the first time in the country. The service can provide a one to one voice service or up to 10 people at the same time as group calling, allowing a user to know who is online through small icons appearing with certain colours. Mobily said that the service will be available for postpaid and pre-paid subscribers at monthly fees. Mobily Hawwel conversations are encrypted over GPRS data or 3G network to avoid cross-talk or listening-in. This will be accomplished with the execution of an ambitious expansion plans for its own network of flagships, as well as introducing a new franchise retail concept (MiniFBO). The new concept (Mini-FBO) will complement the existing Mobily retail and channel partner outlets, and will cover more than 60 cities and towns, which will help achieve its targets, both in terms of sales and customer experience. Those outlets, as is the case with the Mobily flagships, will provide the full range of products and services to the current and future customers of Mobily. Etisalat operates in 18 countries across Asia, the Middle East and Africa, servicing over 100m customers out of a total population of approximately 1.9bn people. In 2009, Etisalat reported annual Net Revenues of AED 30.831billion and Net Profits of AED 8.836 billion marking a 5% and 16% increase respectively, compared to 2008. Etisalat is rated by Moodys' Aa3/ Fitch A+ / S&P AA-. Etisalat is a comprehensive telecommunications provider offering a one-stop shop for mobile and fixed-line voice and data services to individuals, enterprises and international telecommunications companies, ISPs, content providers and mobile operators. It offers a variety of hi-tech complimentary services to the telecommunications industry including managerial and technical training, SIM card manufacturing, payment solutions, clearing house services,
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peering, voice and data transit, and submarine and land cable services.Etisalat has a reputation for launching the right service to the right audience at the right market at the right time. This has been seen time and again, with the introduction of mobile, GSM, Internet, NGN fixed and mobile broadband services into the Middle East, Asia and Africa.Etisalat is also the major hub in the Middle East, for internet, voice, mobile broadband, broadcast, roaming and corporate data services, with an extensive regional and intercontinental network. It is the largest carrier of international voice traffic in the Middle East and Africa and the 12th largest voice carrier in the world. Etisalat is the largest comprehensive provider of carrier and wholesale services in the region with Points of Presence (PoP) in New York, London, Amsterdam, Frankfurt, Paris and Singapore providing a truly global reach. Etisalat has 525 roaming agreements connecting 185 countries enabling BlackBerry, 3G and voice roaming. Etisalat is a major investor in Thuraya, one of the worlds leading satellite geo-mobile communication systems covering approximately two thirds of the planets surface. In 2009 the Etisalat group received seventeen industry awards and including three for innovation and three for customer service. It has been named Best Overall Operator in the Middle East six times since 2006 and was named Best International Carrier at the World Communications Awards in 2008. Mobily is the official brand name of Etihad Etisalat, the second mobile service provider in the Kingdom of Saudi Arabia. Etisalat is a 27.4% shareholder in the company. Mobily launched its services on 25th May 2005 and in less than a year attracted 3.8 million subscribers, growing to over 17 million after the first half of this year. Today, Mobilys network covers all cities and major towns in the Kingdom and more than 22,000 km of highways. Mobily introduced 3.5G services into Saudi Arabia on June 2006, covering 19 cities in the Kingdom. Mobily GSM coverage is 97% of populated areas. 3.75G coverage is 80% of populated areas (more 326 cities, town, villages and streets) . 9.3.3. MOBILY ALL SET TO ROLL OUT 4G SERVICES: Mobilys network has the share of more than 70 percent market of all mobile broadband subscriptions and 36 percent of all broadband connections in the Kingdom.The company also announced that after last years successful trials of LTE (Long Term Evolution) technology, it would be launching LTE in the next few months, also known as the 4G.Once implemented, the fourth generation (4G) network will provide data speeds up to 100mbps instead of the 20-40mbps the 3G is providing, says
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Mobily Chief Business Officer Marwan Al-Ahmadi.He explains that this will enable individuals and businesses alike to use high-speed data services with mobility. And mobility combined with communication provides unprecedented services such as navigation, vehicle tracking of operating fleet vehicles, etc.Thus, Al-Ahmadi points out, Mobilys 4G delivery of a combination of mobility and high performance data services will enable various applications and operational models in a unique way. Since entering the Saudi market in 2004, Mobily adopted a solid expansion strategy, based on direct and indirect sales channels.This strategy allowed Mobily to quickly expand and establish the brand throughout Saudi Arabia, and as a result, achieved its set target for 2006, both in terms of market share and revenue targets.AlAhmadi said growth, efficiency and differentiation (GED) strategys results were being delivered by focusing on excelling services to various market segments of which the business segment is being served by a dedicated business unit in Mobily.Though Mobily is growing in all segments, a great deal of the GED growth is expected to come from the business segment in the next few years, he said.Moreover, he indicates, the business segment is rapidly expanding due to two main factors; the growing Saudi economy and the very high growth rate of data traffic in the Kingdom, which is one of the highest in the world as recent market studies have shown. I believe that Mobily is uniquely positioned to leverage this mega trend locally, for it has immensely invested in information and communications technology (ICT) infrastructure and services ranging from plain simple voice and data connectivity and Internet access to more advanced data center services and managed services.Therefore, Al-Ahmadi stresses, Mobily views the business segment as a vital value driver that boosts the organizations growth. This helps Mobily focus on its business segment, the cornerstone of its GED strategy.In the business unit, our focus is to help our customers reach a high level of productivity while reducing their cost through offering advanced reliable ICT services targeting both goals.Today, a major competitive advantage to both individuals and organizations is in continuous improvement of productivity. Therefore, he adds, improving productivity can be achieved either through better employee training and providing the staff with essential tools to perform better.For example, we currently offer services that aim at eliminating ICT capital expenditures by turning them into operational expenses, where you pay only for the services that you only use, says AlAhmadi.According to the CBO, providing reliable solutions with a superior experience for the private and government sectors, especially in regards to infrastructure and
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services associated with it such as communication, enables those sectors to improve their performance with less upfront capital expenses.Mobilys business unit, in association with its strategic local, regional, and international partners, focuses on various segments of businesses, such as small to medium enterprises, large enterprises, public and private sectors, etc.It is also teaming with real estate developers to invest in intelligent buildings and cities, another emerging trend where Mobily is increasingly gaining traction.We are a profitable organization and the profit margin of investing in this field is reasonable, but our aim is to be a part of this sensitive and important field, says Al-Ahmadi.In addition to the major real estate projects in the country, the 500,000 units the government is building as per the directives of Custodian of The Two Holly Mosques King Abdullah, will need communication and information technology solutions like their requirement in other utilities. The injection of capital into the economy coming from the increased government spending on projects and social programs, and improving the employment level will definitely lead to more spending on ICT services by both individuals (larger smart phone penetration) and businesses, Al-Ahmadi said, adding that that those services are in the course of becoming essentials for both individuals and businesses.In light of the changes in the economy in the Kingdom, the market demand for specialized companies in ICT solutions continues to increase.The Kingdom needs industry-specific solution providers to leverage ICT services to offer tailored products and services for various verticals such as health and education, says Al-Ahmadi.For example, round-theclock mobile health services could have a great impact on the quality of health awareness among the people, he said. Instead of targeting an already saturated business areas, there is a better chance for success if companies focus on less explored areas that are considered less crowded niches made possible by the ubiquitous availability of ICT services, Al-Ahmadi added.
9.3.4. MOBILY PROVIDES RAFAL REAL-ESTATE DEVELOPMENT The signing ceremony took place at Ettihad Ettisalat Mobily offices in Riyadh on Tuesday, July 14, 2009. Mobily and RAFAL signed an agreement in which Bayanat Al-Oula (a subsidiary of Mobily), will develop and provide Information and
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Communication Technologies (ICT) services through fiber-optics infrastructure for Blncyah community in Riyadh. The agreement was signed by Eng. Khaled Alkaf, Mobily CEO and MD and Mr. Mohammad Abunayyan, RAFAL board-member. According to the agreement, Bayanat Al Oula will design and build a fiber-optics network infrastructure for Blncyah community in Riyadh to provide smart telecommunications technologies and Value Added Smart Services (VASS); and facilitate IPTV, state-of-the-art CCTV and telecommunications wired and wireless broadband. This will enable Mobily become the main provider of smart services at Blncyah, thus, creating the first smart residential community in Riyadh. Furthermore, Mobily will prepare the economic feasibility of the design, implementation and operation of the most modern integrated systems for the luxurious Burj RAFAL, which will be constructed in Assahafa District, north of Riyadh, King Fahd Road, and it will be one of the most important landmarks in the cosmopolitan city of Riyadh. Dr. Eyas Al-Hajiri, Bayanat Al-Oula MD, assured that RAFALs adoption of the choice to provide its communities with smart integrated system was based on its desire to maintain high-quality standards in its communities making it easier for its tenants to enjoy the desired lifestyle.
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Mr. Majed Al-Hogail, RAFAL CEO and board-member of, elaborated on how pleased he was with this agreement and is confident of the smart telecommunications technologies and services and integrated systems that Mobily will provide, emphasizing on RAFALs vision in delivering the best services and highest quality standards that had become an integral part of our daily lifestyle and understanding our clients needs and wants. He added: RAFAL is working hard to provide the latest audio and video and smart communication facilities as well as home entertainment technologies. This will makes Blncyah and Burj RAFAL smart, secured and unique communities. 9.3.4. ETIHAD ETISALAT CO., BETTER KNOWN AS MOBILY, Etihad Etisalat Co., better known as Mobily, achieved many successful goals across the ever-expanding Saudi telecom market, especially in the past six years. Financially, Mobilys revenues in the first-quarter were 40 percent higher than in the same quarter of last year, beating most analysts forecasts. Mobilys network has the share of more than 70 percent market of all mobile broadband subscriptions and 36 percent of all broadband connections in the Kingdom. The company also announced that after last years successful trials of LTE (Long Term Evolution) technology, it would be launching LTE in the next few months, also known as the 4G. Once implemented, the fourth generation (4G) network will provide data speeds up to 100mbps instead of the 20-40mbps the 3G is providing, says Mobily Chief Business Officer Marwan Al-Ahmadi. He explains that this will enable individuals and businesses alike to use high-speed data services with mobility. And mobility combined with communication provides unprecedented services such as navigation, vehicle tracking of operating fleet vehicles, etc. Thus, Al-Ahmadi points out, Mobilys 4G delivery of a combination of mobility and high performance data services will enable various applications and operational models in a unique way.
Since entering the Saudi market in 2004, Mobily adopted a solid expansion strategy, based on direct and indirect sales channels. This strategy allowed Mobily to quickly expand and establish the brand throughout Saudi Arabia, and as a result, achieved its set target for 2006, both in terms of market share and revenue targets. Al-Ahmadi said growth, efficiency and differentiation (GED) strategys results were being delivered by focusing on excelling services to various market segments of which the business segment is being served by a dedicated business unit in Mobily. Though Mobily is growing in all
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segments, a great deal of the GED growth is expected to come from the business segment in the next few years, he said. Moreover, he indicates, the business segment is rapidly expanding due to two main factors; the growing Saudi economy and the very high growth rate of data traffic in the Kingdom, which is one of the highest in the world as recent market studies have shown. I believe that Mobily is uniquely positioned to leverage this mega trend locally, for it has immensely invested in information and communications technology (ICT) infrastructure and services ranging from plain simple voice and data connectivity and Internet access to more advanced data center services and managed services. 9.3.5. MOBILY REGISTERED 34% INCREASE IN NET PROFIT FOR THE FIRST 6 MONTHS OF 2011 Riyadh, KSA (Teletechwire): Mobily announced interim consolidated financial results for the first 6 month period of the year ended 30 June, 2011, where revenues for the first half of 2011 amounted to SAR9,611m, as compared to SAR7,554m for the same period last year, with an increase of 27%. The increase in revenues is attributable to higher minutes of usage, data transmission and increase in Smartphone sales. In spite of the intense competition in data services, data revenues showed a remarkable increase of 46% in the first half of the year 2011, as compared to the same period last year. Data revenues reached 20% of the total revenues of the first half of year 2011, as compared to 17% for the same period last year. Postpaid revenues recorded an increase of 32% in the first half of this year, as compared to the same period last year. EBITDA for the first half of 2011 amounted to SAR3,337m, as compared to SAR2,568m for the same period last year, with an increase of 30%. The EBITDA margin for the first half of this year reached 35%, as compared to 34% for the same period last year. Net income for Q2 2011 amounted to SAR1,164m, as compared to SAR901m for the same period last year, with a growth of 29%, and a growth of 17% over Q1 2011 results of SAR998m. Net profit for the first 6 month period amounted to SAR2,162m, as compared to SAR1,615m for the same period last year, with a growth of 34%.
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Earnings per share (EPS) for the first 6 month period amounted to SAR3.09 as compared to SAR 2.31 for the same period last year. On the other hand, the Board of Directors is scheduled to meet on Thursday 21/07/2011 to determine the amount of interim dividends for the first half of the year 2011, after the General Assembly held on 26/2/2011 had authorized the Board of Directors to distribute semi-annual dividends starting from the fiscal year 2011.
Engineer Abdulaziz Saleh Alsaghyir, Chairman of the Board stated that Mobily is developing and enhancing its infrastructure through its networks expansion, which will help the Company keep growing as per its declared business strategy. He indicated that Smartphone penetration in the Kingdom is estimated at 11% according to some studies - and is still growing as more affordable mid-range and low end smart phones will be marketed to reach a wider audience and prices are going to drop on high-end models. He also highlighted the substantial increase in utility and usage of connected smart devices and the range of social networking websites applications, like Facebook, Twitter and YouTube, which is a major driver of demand for Internet connectivity in a youth-dominated society, especially some social media platforms releasing Arabic versions.
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Eng. Alsaghyir maintained that the number of broadband users had exceeded 5 million, that Mobily has an estimated 75% share of mobile broadband subscriptions in the Kingdom, that daily Mobily 3G network traffic exceeded 100 terabyte and that WiMAX network carry the same volume of daily data traffic. In order to keep up with all these variables, Mobily adopted its strategic decision to add LTE services which will be a major factor for excellence and differentiation with the potential for broadband market share gains; because of LTE ability to provide higher capacity, higher data transfer speeds, higher peak rates, higher spectral efficiency, more scalability and lower latency, which will improve the customer experience and enable home users in the Kingdom, including communities beyond the reach of a fixed-line infrastructure, to have access to fast broadband speeds that exceed speeds of a fixed line connection. He added that Mobily LTE network operation is expected to start before the end of 2011, pointing out that the major cities of the Kingdom will be covered first and the remaining cities will be covered as per a well studied plan depending on many technical and marketing factors. Eng. Alsaghyir continued that Bayanat Al Oula, the data arm of Mobily, signed an agreement for the construction of an advanced fiber optic network (FTTX) inside major cities at a cost of SAR400m. The agreement is intended to roll out 4,000 km fiber network reaching 70,000 homes within four major cities, namely Riyadh, Jeddah, Dammam and Al Khobar as a first phase of the project. The Board Chairman stressed that despite the continuation of the Company's capital expenditure, free cash flow will remain on the rise, which is a positive indication of Mobily's ability to increase its dividends. Eng. Alsaghyir reiterated Mobily's continuing determination to encourage technical innovation and enrich the Arabic content on the Internet, pointing out that the Company has launched an award for Mobily software developers in many areas, in the light of the growing numbers of subscribers looking for cultural, educational and recreational applications. Eng. Alsaghyir said that business sector revenues registered 47% growth when compared to last year's first half results, and that Mobily pays a special attention to this
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sector, providing a number of advanced products and services to companies and enterprises. It is to be mentioned that Mobily has recently linked a number of Saudi Basic Industries Corporation (SABIC) sites in major cities with Internet Protocol Virtual Private Network (IP VPN) and a strategic partnership agreement was signed with General Organization for Social Insurance (GOSI), whereby Mobily operates and manages the infrastructure of ICT networks in Granada Oasis project in Riyadh. In addition, Mobily provides hosting services and a number of other managed services to institutions. With respect to Company's social responsibility, Eng. Alsaghyir stated that Mobily has signed a strategic cooperation agreement with the Disabled Children Association to support the Association's plans through Mobily's customer loyalty program 'Neqaty', which enables the subscribers to convert their earned points to financial support to the benefit of the Association, adding that Mobily has collected more than SAR6.7m as revenues from the charity auction to sell platinum numbers for the benefit of 10 charities. 9.3.6. MOBILY Q2 PROFIT RISES 29% TO SR1.164BN: JEDDAH, Jul 19, 2011 (Arab News - McClatchy-Tribune Information Services via COMTEX) -- Etihad Etisalat Co. (Mobily) announced on Tuesday that its net income for the second quarter of this year rose by 29 percent to SR1.164 billion as compared to SR901 million for the same period last year.The latest figure is also an increase of 17 percent over Q1, 2011 results of SR998 million,according to a company statement.Net profit for the first six-month period amounted to SR2.162 billion, as compared to SR1.62 billion for the same period last year, with a growth of 34 percent.Earnings per share (EPS) for the first six-month period amounted to SR3.09 as compared to SR2.31 for the same period last year.Mobily announced on Tuesday its interim consolidated financial results for the first six-month period of the year ended June 30, 2011, where revenues for the first half of 2011 amounted to SR9.61 billion, as compared to SR7.55 billion for the same period last year, with an increase of 27 percent.The increase in revenues is attributable to higher minutes of usage, data transmission and increase in Smartphone sales.In spite of the intense competition in data services, data revenues showed a remarkable increase of 46 percent in the first half of the year 2011, as compared to the same period last year.
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Data revenues reached 20 percent of the total revenues of the first half of year 2011, as compared to 17 percent for the same period last year.Postpaid revenues recorded an increase of 32 percent in the first half of this year, as compared to the same period last year.EBITDA for the first half of 2011 amounted to SR3.337 billion, as compared to SR2.568 billion for the same period last year, with an increase of 30 percent The EBITDA margin for the first half of this year reached 35 percent as compared to 34 percent for the same period last year.On the other hand, the board of directors is scheduled to meet on Thursday July 21 to determine the amount of interim dividends for the first half of the year 2011, after the General Assembly held on Feb. 26, 2011 had authorized the board of directors to distribute semi-annual dividends starting from the fiscal year 2011.Abdulaziz Saleh Alsaghyir, chairman of the board, said Mobily is developing and enhancing its infrastructure through its networks expansion, which will help the Company keep growing as per its declared business strategy. He indicated that Smartphone penetration in the Kingdom is estimated at 11 percent -- according to some studies -- and is still growing as more affordable mid-range and low end smart phones will be marketed to reach a wider audience and prices are going to drop on high-end models. He also highlighted the substantial increase in utility and usage of connected smart devices and the range of social networking websites applications such as Facebook, Twitter and YouTube, which is a major driver of demand for Internet connectivity in a youth-dominated society, especially some social media platforms releasing Arabic versions. Alsaghyir maintained that the number of broadband users had exceeded five million, that Mobily has an estimated 75 percent share of mobile broadband subscriptions in the Kingdom, that daily Mobily 3G network traffic exceeded 100 terabyte and that WiMAX network carry the same volume of daily data traffic.In order to keep up with all these variables, Mobily adopted its strategic decision to add LTE services which will be a major factor for excellence and differentiation with the potential for broadband market share gains; because of LTE ability to provide higher capacity, higher data transfer speeds, higher peak rates, higher spectral efficiency, more scalability and lower latency, which will improve the customer experience and enable home users in the Kingdom, including communities beyond the reach of a fixed-line infrastructure, to have access to fast broadband speeds that exceed speeds of a fixed line connection.He said Mobily LTE
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network operation is expected to start before the end of 2011, pointing out that the major cities of the Kingdom will be covered first and the remaining cities will be covered as per a well studied plan depending on many technical and marketing factors.Alsaghyir continued that Bayanat Al Oula, the data arm of Mobily, signed an agreement for the construction of an advanced fiber optic network (FTTX) inside major cities at a cost of SR400 million.The agreement is intended to roll out 4,000 km fiber network reaching 70,000 homes within four major cities, namely Riyadh, Jeddah, Dammam and Alkhobar as a first phase of the project.The board chairman stressed that despite the continuation of the Company's capital expenditure, free cash flow will remain on the rise, which is a positive indication of Mobily's ability to increase its dividends.Alsaghyir reiterated Mobily's continuing determination to encourage technical innovation and enrich the Arabic content on the Internet, pointing out that the company has launched an award for Mobily software developers in many areas, in the light of the growing numbers of subscribers looking for cultural, educational and recreational applications.Alsaghyir said business sector revenues registered 47 percent growth when compared to last year's first half results, and that Mobily pays a special attention to this sector, providing a number of advanced products and services to companies and enterprises.It is to be mentioned that Mobily has recently linked a number of Saudi Basic Industries Corp. (SABIC) sites in major cities with Internet Protocol Virtual Private Network (IP VPN) and a strategic partnership agreement was signed with General Organization for Social Insurance (GOSI), whereby Mobily operates and manages the infrastructure of ICT networks in Granada Oasis project in Riyadh.In addition, Mobily provides hosting services and a number of other managed services to institutions.With respect to company's social responsibility, Alsaghyir said Mobily has signed a strategic cooperation agreement with the Disabled Children Association to support the Association's plans through Mobily's customer loyalty program "Neqaty," which enables the subscribers to convert their earned points to financial support to the benefit of the Association, adding that Mobily has collected more than SR6.7 million as revenues from the charity auction to sell platinum numbers for the benefit of 10 charities.Mobily was recently named the best telecom company in Saudi Arabia for the year 2011 by business monthly "Arabian Business." To see more of the Arab News or to subscribe to the newspaper, go to http://www.arabnews.com. Copyright (c) 2011, Arab News, Jeddah, Saudi Arabia Distributed by McClatchy-Tribune Information Services. For more information about the
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content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com.
9.3.7. ETIHAD ETISALAT (MOBILY) ANNOUNCED ITS AWARD: Etihad Etisalat (Mobily) announced its award of two contracts worth SAR 450 million ($ 120 million) for the construction and rollout of its long term evolved (LTE) infrastructure in several of cities and regions in the Kingdom, making it the first operator to embrace LTE. Mobily made the announcement on the sidelines of the Mobile World Congress in Barcelona, Spain, adding that the contracts signed with the worlds two infrastructure giants Samsung and Huawei are for the commissioning of its networks in 30 plus cities and an upgrade of Bayanat Al Oulas existing WiMAX infrastructure which will make it largest LTE network in the region. Mobily based the vision for its infrastructure investment on the landscape and opportunities available in the telecommunications sector in the Kingdom, Eng. Abdulaziz Alsaghyir Chairman of Mobily, Taking this into account, LTE is the technology of choice for providing advanced high data communication services at affordable costs, half those of 3rd Generation mobile. Mobily is committed to investing in broadband technology infrastructure, fixed and mobile, to bring the latest products and services to the consumer and business segments, he added. Alsaghyir further pointed out Mobily would be the first company in the region to operate an LTE and WiMax network using the same towers at high quality and reliability, both of which will be used to provide broadband service to densely populated areas to achieve the companys growth, efficiency and differentiation based strategy by offering integrated fixed and mobile telecommunication solutions to maintain leadership in the data communication segment of the market. The LTE based infrastructure is expected to allow Mobily to provide data communication speeds that reach 100 megabits per second to meet the developing
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aspirations of Mobilys growing broadband base, last reported as five million customers, among them 2.3 million subscribed to Mobilys high-volume data bundles. Mobily is an innovative operator, led by people who have place top priority on providing the best quality service even taking challenges. Although rolling out a dual standard network of LTE and WiMax demands highly expertise, Samsung will make every effort to make Mobily become 4G leader in the Middle East with Samsungs 4G ability. said, Youngky Kim, Executive Vice President and Head of Telecommunication Systems Business at Samsung Electronics. Mobily is an innovative operator which is focused on creating long-term value for their customers and enhanced growth potential in the industry, both of which are achieved through Huaweis customized LTE products, services and solutions. We are committed to elevating our partnership with Mobily to the next level with this rollout of the regions first LTE network, commented Zheng Xiang, Vice President for Huawei Middle East. The contracts follow field testing conducted last year to identify the needs of constructing and rolling out an LTE network, as well maintenance and operation aspects to keep these kind of networks running optimally
9.4. ZAIN GROUP :

Zain Group is a mobile telecommunications company founded in 1983 in Kuwait as MTC or Mobile Telecommunications Company, and was later rebranded to Zain in 2007. Zain has commercial presence in 7 countries across Africa and the Middle East with about 37.2 million customers as of December 31, 2010. It employs 6000 people. Zain Saudi Arabia has reported revenues of SAR1.48 billion (USD395.6 million) for the three months ending 31 March 2011, representing an increase of 36% on the revenues generated during 1Q10. During the same period Zain reported that operational losses decreased by 46% to SAR233 million, compared to losses of SAR435million for the first quarter of 2010. His Royal Highness Prince Dr Hussam bin Saud bin Abdul Aziz, chairman of Zain Saudi Arabia, credited the
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improved first quarter results to a strong marketing campaign that has helped to reinforce customer confidence and retain brand loyalty. Dr Saad Al Barrak, managing director and CEO of Zain Saudi Arabia, added that the improved figures reflect the companys rapid growth both operationally and terms of its investment in the Kingdom. Further, Al Barrak pointed out that Zains successful expansion of its infrastructure boosted efficiency, indicating that its broadband and product packages contributed to the companys impressive momentum in the Saudi market. TeleGeography notes that Kuwait-based parent company the Zain Group has yet to release full 1Q11 financial results. Zain Saudi Arabias Q1 announcement follows last weeks news that the Zain Group signed a term sheet agreement with Saudi investment vehicle Kingdom Holding Company (KHC) and Bahrain Telecommunications Company (Batelco) to sell its 25% stake in Zain Saudi Arabia for between USD950 million and USD1.2 billion. In less than eight months, mobile telecommunications operator Zain has made its mark in Saudi Arabia by securing more than two million customers, or seven percent market share. The company has also reported a 27 percent increase in projected revenues for the same period not bad considering the operation was launched only months prior to the global markets meltdown. From August 26 to December 31 2008, the company generated $135m gross revenues with $608m net losses, after factoring in 18 months of start up and operating costs. Still, with a healthy customer base, it appears Zain will have few problems clawing back its outlays. When announcing the companys KSA results in February, Zain Group chief executive Dr Saad Al Barrak said he was confident the Saudi market was stronger than most to withstand the global downturn. With the robustness of the Saudi Arabian economy playing a decisive role, we are very confident that Zain Saudi Arabia will be a shining star among the Zain group of companies and we expect that the huge investments in the brand and network to date will see even better results for 2009 and beyond,
9.4.1. ZAIN SAUDI REPORTS 36% RISE IN Q1 REVENUES:

Zain Saudi Arabia has reported revenues of SAR1.48 billion (USD395.6 million) for the three months ending 31 March 2011, representing an increase of 36% on the revenues generated during 1Q10. During the same period Zain reported that operational losses decreased by 46% to SAR233 million, compared to losses of SAR435million for the first quarter of 2010. His Royal Highness Prince Dr Hussam
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bin Saud bin Abdul Aziz, chairman of Zain Saudi Arabia, credited the improved first quarter results to a strong marketing campaign that has helped to reinforce customer confidence and retain brand loyalty. Dr Saad Al Barrak, managing director and CEO of Zain Saudi Arabia, added that the improved figures reflect the companys rapid growth both operationally and terms of its investment in the Kingdom. Further, Al Barrak pointed out that Zains successful expansion of its infrastructure boosted efficiency, indicating that its broadband and product packages contributed to the companys impressive momentum in the Saudi market. TeleGeography notes that Kuwait-based parent company the Zain Group has yet to release full 1Q11 financial results. Zain Saudi Arabias Q1 announcement follows last weeks news that the Zain Group signed a term sheet agreement with Saudi investment vehicle Kingdom Holding Company (KHC) and Bahrain Telecommunications Company (Batelco) to sell its 25% stake in Zain Saudi Arabia for between USD950 million and USD1.2 billion.
9.4.2. GO TAPS ZTE FOR METRO FIBRE RING:

Saudi Arabian broadband operator Etihad Atheeb Telecom, which operates under the GO Telecom brand name, has confirmed that it has signed a Memorandum of Understanding (MoU) with Chinese equipment manufacturer ZTE Corporation to deploy a Metro Fibre Ring in capital city Riyadh. The second phase of the project will see the fibre-optic rollout extended to Jeddah and Dammam. The rollout will reportedly encompass both fibre-to-the-home (FTTH) and fibre-to-the-building (FTTB) access. GO has indicated that it hopes that the deal will help it to establish a long-term partnership with ZTE Corporation. According to TeleGeographys GlobalComms Database GOs existing broadband network is network is based on mobile WiMAX (802.16e) standards, and is designed to provide kingdom-wide high capacity coverage. Zaid Al Shabanat, CEO of GO Telecom, commented: We are pleased to sign this Memorandum of Understanding, which represents a new step towards building the most advanced telecommunications network in the kingdom. The new fibre-optic network integrates with our 4G wireless communications technology, WiMAX 802.16e, to provide GO Telecom with products and services that meet the needs of
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various government, business and home sectors, both for broadband internet and voice services, and opens up more opportunities to provide other value-added services.
9.4.3. ZAIN ACCEPTS JOINT BID FROM KHC AND BATELCO FOR SAUDI UNIT:
According to Saudi investment vehicle Kingdom Holding Company (KHC) Kuwait-based Zain Group has accepted a joint offer for its contentious 25% stake in Zain Saudi Arabia. The bid, in association with Bahrain Telecommunications Company (Batelco), is estimated to be worth between USD950 million and USD1.2 billion. A statement issued by KHC confirmed that the investment vehicle has received preliminary acceptance of the non-binding offer and a preliminary expression from the board of directors of Zain Kuwait. Prince Al-Waleed Bin Talal, the billionaire owner of KHC added: The consortiums offer is USD950 million in cash, and is subject to the findings of the due diligence, which could take at least six weeks. It is believed that the offer will also involve the new stakeholders assuming around USD3.8 billion worth of existing Zain Saudi Arabia debt. According to Reuters, who cited a source familiar with the matter, Zains board approved the joint bid with a five-to-two majority vote. Batelco CEO Peter Kaliaropoulos has described his companys role in the transaction as a technical partner toKHC. He commented: We value (KHCs) leadership and we look forward to supporting them through an effective technical and business partnership. As reported by CommsUpdate last month, Zain rejected three bids to sell its 25% stake in Zain Saudi Arabia. Two of the failed bids were lodged by KHC and Batelco respectively; the third unsuccessful bidder was Saudi consortium the Al-Riyadh Group. Batelco CEOKaliaropoulos maintains that a successful joint KHC/Batelco bid will create additional value for his companys shareholders. Of the 25% stake, it has been reported that Batelco will retain 15%, whereas KHC will assume the remaining 10%. The sale of the Saudi Arabian cellco has arisen following UAE-based Emirates Telecommunications Companys (Etisalats) non-binding offer worth around USD12 billion for a 46% stake in Zain Group. Etisalat already owns a controlling stake in Saudis second-placed mobile operator Mobily and its broadband unit Bayanat Al-Oula, so any transaction for Zains local assets would contravene local anti-monopoly regulations. Although the Etisalat deal ostensibly collapsed when due diligence was not
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achieved by the 28 February deadline, it is believed that the transaction now stands a strong chance of being resurrected.
9.4.4. ZAIN AWARDED RURAL EXPANSION CONTRACT BY CITC:

Saudi Arabias Communications and Information Technology Commission (CITC) has awarded Zain Saudi Arabia a contract worth SAR40 million (USD10.7 million) to provide mobile telephony and broadband services to more than 500 housing compounds in the Al Jouf, Jazan and Northern provinces of the country. Zain has confirmed that the deal forms part of the CITCs Universal Services Fund (USF) programme, which is aimed at connecting the whole of the Saudi Arabian populace to mobile and broadband services. Zain reportedly offered the lowest bid to roll out infrastructure in these areas, although it is unclear which other companies were interested in the tender. Ahmed Al-Faifi, chief operating officer (COO) of Zain Saudi Arabia, commented: Zain Saudi Arabia signed an agreement with the CITC last week, and will soon start working on the project. We will deliver services to people living in those areas by expanding the network and establishing new sites to ensure high quality in data and voice services. We believe that by undertaking the project we are contributing to the empowerment of citizens and residents. Villages mooted for connectivity include: Gurayat, Jandal, and Skaka (Al Jouf), El Daer, Al Dareb and Al Rith (Jazan) and Arar, Rafha, and Tareef (Northern Border Region). Some of the outlying villages are believed to house as few as five to ten residences. Since launching commercial services in Saudi Arabia in August 2008 Zain has amassed a subscriber base of 7.1 million customers, covering 83% of the population in the process. Al-Faifi has indicated that the companys progress is a key factor behind reducing the time period set for this enormous project. The Saudi Arabian telecoms market is perhaps the most interesting in the Middle East. It is more competitive than most others and all the big regional players have at least a toehold in the market. Saudi Arabian incumbent STC is the largest telecoms company in the Middle East when measured by either revenue or by market capitalisation. It has been joined in the Saudi Arabian mobile market by the second and third largest Middle Eastern regional players Etisalat of the UAE and Zain of Kuwait.
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Etisalat has considerably more than a toehold in the market. It won the second GSM/3G mobile licence and, operating as Mobily, now has over one-third of the GSM market and three-quarters of the 3G market. It has also bought Bayanat Al Oula, a major ISP/data comms licence holder, and has invested in considerable fibre and WiMAX infrastructure. Zain won the third GSM/3G licence in 2007 and launched operations in August 2008. It paid a huge US$6.1 billion fee, almost twice the price paid by Etisalat for the second mobile licence (US$3.45 billion) in 2004. At the time it was the worlds highest licence fee on a per capita basis, at US$226 per Saudi inhabitant. These three giants have been joined in the market by Batelco of Bahrain and Qtel of Qatar. Batelco is a major investor in a consortium, Etihad Atheeb, which has won a fixed-line licence. Finally, the remaining large regional player, Qtel, has a major share in the small iDEN mobile operator, PTC, through its Wataniya subsidiary. What makes Saudi Arabia so attractive to all these operators the combination of its population-size and wealth. While its total population is nowhere near as high as that of Turkey or Iran, its GDP per capita is much higher and while the smaller gulf countries are richer per capita, their populations are tiny. In addition, its market has been slower to develop than some others in the region such as the UAE or Qatar, leaving room for growth. Fixed-line penetration has remained steady for some years rather than falling as it has in some other countries in the region. Internet user penetration is nearly 40% but DSL broadband subscriber penetration is only around 5%. However, the number of DSL subscribers doubled in the two years to end-2009. STC also started work on a FttH network in early 2009. Mobily and Atheeb Telecom are planning to make extensive use of WiMAX. Mobily had coverage of 20 cities by early 2010. It launched a WiMAX service for residential subscribers branded broadband@home in September 2008 at speeds up to 2Mb/s.
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Mobile subscribers have grown rapidly in the competitive market and penetration rates have now reached 175%. Mobily is making an extensive push with mobile broadband. Mobily claimed to have over one million mobile broadband subscribers in early 2010. As competition becomes fierce in its home market, STC has used its considerable resources to expand abroad. It has direct interests in Malaysia, Kuwait and Bahrain and, through its purchase of a 35% share in Oger Telecom, also in Turkey and South Africa.
9.4.5. MARKET HIGHLIGHTS:

The global telecoms industry numbers have become impressive and there are now billions of mobile and fixed connections worldwide. In terms of sales, AT&T, Verizon and NTT have been the global top 3 publicly listed carriers since at least 2007. The resilient mobile industry is still growing despite the challenges and overall global mobile revenues are predicted to reach over $1 trillion around 2012. While 3G technology has made inroads; the 2G GSM technology retains the largest market share with well over 4 billion subscribers worldwide.
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9.4.6. FINANCIAL AND OPERETIONAL HIGHLIGHTS.
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9.4.7. REVENUES CNTRIBUTIONS:
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9.4.8. FINANCIAL RESULT:
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9.4.9. CUSTOMERS:
9.4.10. ZAIN GROUP CUSTOMERS:
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Zain is listed on the Kuwait Stock Exchange. There are no restrictions on Zain shares as the companys capital is 100% free float and publicly traded. The largest shareholder is the Kuwait Investment Authority (24.6%). On September 20, 2008, Zain Group announced the completion of its capital increase raising US$4.49 billion (KWD1.2 billion) with 29% of all shareholders subscribing. The number of subscribed shares exceeded 1.4 billion, bringing the total number of Zain shares to 4.28 billion with total shareholders equity reaching US$6.42 billion. 2010Zain's consolidated financial results for the twelve months ending 31 December 2010 showed an impressive growth in several key performance indicators, with a consolidated net profit of $3.675 billion.Zain
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Group recorded impressive consolidated revenues of KWD 1.35 billion (US$ 4.72 billion), an increase of 7% compared to the 12 months of 2009. The companys consolidated EBITDA increased by 6% for the same period to reach KWD 616 million (US$ 2.15 billion) reflecting an EBITDA margin of 46%, with EBIT rising 4% to reach KWD 449 million (US$1.57 billion).Consolidated Net Income reached KWD 1.063 billion (US$3.675 billion), an increase of 445%, that is inclusive of the capital gain of KWD 770.3 million (US$ 2.653 billion) from the sale of Zain Africa assets on June 8, 2010. If the capital gain from the Africa Assets sale is not taken in account, net income reached KWD 293 million (US$1.022 billion) for the year, representing a notable 50% increase on 2009 net income of KWD 195 million (US $675 million).
9.4.10.1. ONE NETWORK:

Zain's One Network is the worlds first, borderless mobile service offering over 64 million Zain customers in 21 countries favorable rates, free of high roaming charges for cross-border communications.[citation
needed]
Zain's One Network service replaced
roaming in the following countries: Jordan, Bahrain, Iraq, Sudan, Nigeria, Uganda, Burkina Faso, Republic of Congo, Democratic Republic of Congo, Gabon, Chad, Tanzania, Kenya, Malawi, Nigeria and Saudi Arabia. [9] Zain announced in May 2009, the launch of cross-border data services across the Middle East and Africa on the One Network platform.
9.4.10.2. ZAIN CREATE:

Zain Create, Zains entertainment portal, provides customers with access to entertainment they can preview and download onto mobile phones and laptops. Available in Bahrain, Iraq, Kuwait, Jordan, Lebanon, Saudi Arabia, and Sudan, Zain Create offers full-track audio and video downloads, pre-releases, video and audio streaming, in addition to java and online games. Music is selected from local, regional and international artists through exclusive partnerships with major international labels such as Rotana.
9.4.10.3. FINANCIAL HIGHLIGHTS:

Zain Group's consolidated financial results for the twelve months ending 31 December 2010 showed an impressive growth in several key performance indicators, with a consolidated net profit of $3.675 billion, the highest ever in Zain's history and a record in the private sector of Kuwait.
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9.4.10.4. KEY PERFORMANCE INDICATORS 2010:

Twelve Months 2010 Key Performance Indicators (Kuwaiti Dinars & USD) Total Managed Active 37.2 million (up 23% on Dec. 2009) Customers Consolidated KWD 1.35 billion (US$ 4.72 billion) Revenues EBITDA (Margin KWD 616 million (US$ 2.15 billion) 46%) EBIT KWD 449 million (US$ 1.57 billion) KWD 1.063 billion (US$ 3.675 billion) including capital gain Net Income KWD 293 million (US$ 1.022 billion) excluding capital gain Earnings Per Share Fils 275 (US$0.95)
For the 12 months of 2010, Zain Group recorded impressive consolidated revenues of KWD 1.35 billion (US$ 4.72 billion), an increase of 7% compared to the 12 months of 2009. The company's consolidated EBITDA increased by 6% for the same period to reach KWD 616 million (US$ 2.15 billion) reflecting an EBITDA margin of 46%, with EBIT rising 4% to reach KWD 449 million (US$ 1.57 billion). Consolidated Net Income reached KWD 1.063 billion (US$3.675 billion), an increase of 445%, that is inclusive of the capital gain of KWD 770.3 million (US$ 2.653 billion) from the sale of Zain Africa assets on June 8, 2010. If the capital gain from the Africa Assets sale is not taken in account, net income reached KWD 293 million (US$1.022 billion) for the year, representing a notable 50% increase on 2009 net income of KWD 195 million (US $675 million). The earnings per share for the 12 months of 2010, stood at KWD 0.275 (US$ 0.95), compared to KWD0.051 (US$0.18) in the previous year. Additionally, the period witnessed shareholder equity increase 11% to reach US$9.77 billion (KWD 2.75 billion). Year-on-year customer growth across all the Middle East countries in which Zain operates was 23%, whereby the company is serving 37.24 million managed active customers as of December 31, 2010.
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*** To view our annual and quarterly reports and statements, and for more details on our financial performance visit the Investor Relations section on our corporate site.
9.4.10.5. OUR PRESENCE

Zain currently has a commercial presence in 7 countries across the Middle East and North Africa with 6,000 employees, providing a comprehensive range of mobile voice and data services to over 37.2 million active individual and business customers as of December 31, 2010.Roll over on the map below to view more information about each operation.
Our Presence Commercial Presence Year of Launch Customers Jordan Capital Amman
7 countries 1983 37.2 million Mobile Penetration Market Share Market Positioning One Country Network Yes 106%** 40% 1
Year of Launch 2003 Ownership Population Customers 96.52% 6,521,000** 2,488,000
Website: www.jo.zain.com
**Sourced from CIA Factbook and WCIS Kingdom of Saudi Arabia

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Capital
Riyadh
Mobile Penetration Market Share Market Positioning One Country
171%** 16% 3 Yes
Year of Launch 2008* Ownership Population 25% 26,515,000**
Network
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10. ITC:
Integrated Telecom Company (ITC) is a leading Riyadh-based telecom provider established in 2005. Since then, we have grown into one of todays fastestgrowing telecom companies offering next-generation solutions for broadband, interconnection and satellite services for businesses, consumers and wholesale segments of the Saudi market. Committed to play a major role in helping the Kingdom meet its future data communications needs, ITC has invested in its own independent infrastructure to give our customers robust capacity and all the confidence to meet their growing and evolving needs, not only today but well into the future. Our independent infrastructure includes two international landing stations in Al Khobar and Jeddah connecting the Kingdom to the rest of the world
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SMU-RIYADH CENTRE through submarine cables. These gateways are in turn connected to all cities in the Kingdom through our 16,000-kilometer Saudi National Fiber Network. In addition, ITC owns 9 metro-Fiber rings spanning all major cities. These fiber optic rings are based on top-of-the-line SDH and DWDM technologies for extremely fast data transfers, delivering high-quality local and international telecom services and helping ensure robust connectivity Kingdom wide. ITC maintains strategic partnerships with market-leading technology partners including trusted names such as Cisco, Sun Microsystems, Oracle, HP, NEC, PCCW, Reliance, Red Line Communications, Etisalat, OSN, Level 3 Communications and others. ITC clients include some of todays largest and most successful companies and government ministries.
10.1. PART OF AL MAWARID GROUP

ITC is part of Al Mawarid Group of Companies, a diversified Saudi conglomerate with over 50 years of service in the Kingdom. The Group consists of 27 subsidiaries engaged in 4 major business areas including media and communications, investment services, projects and trading.
10.1.1. OUR VISION

To empower our
residential
and
business
communities
with
smart
communication and business solutions to help them realize their unlimited potential.
10.1.2. OUR MISSION
Create new value by adopting customer centricity in everything we do.
Integrate advanced and converged technologies in our solutions.
10.1.3. OUR VALUES

Integrity Proactiveness Creativity At ITC, quality is the foundation of our existence and the strategy for our growth. We are committed to continuously invest in developing our human capital, network capacity, internal systems and the capabilities of our processes to develop unique value propositions and deliver an unparalleled customer experience.
10.1.4. OUR QUALITY POLICY
10.1.5. OUR EXISTING INFRASTRUCTURE ITC INTERNATIONAL GATEWAYS

ITC owns and operates two landing stations in Jeddah and Al Khobar. These international gateways provide international connectivity to the rest of the world through a submarine cable managed by Reliance (Falcon) and connectivity to
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10.1.6. THE SAUDI NATIONAL FIBER NETWORK

ITCs two international gateways are connected to ITCs 16,000-kilometer Saudi National Fiber Network, an independent, state-of-the-art fiber optic network connecting all major cities in the Kingdom. This network offers massive bandwidth capacity, allowing ITC to meet all its current and future capacity and growth needs. This next-generation network supports massive capacities in multiples of 10 Gbps and is considered as the perfect choice for any new or virtual operator looking for a highly reliable, highly redundant and robust backbone for its services.
10.1.7. METRO FIBER RINGS

ITC also operates 9 metro-fiber rings within all major cities in Saudi Arabia. Using the latest SDH and DWDM
technologies. These next-generation fiber rings provide extremely fast connectivity for all cities in the Kingdom, culminating in a diversified range of last-mile access media.
10.1.8. DIVERSIFIED ACCESS MEDIA 10.1.9. FIBER ACCESS MEDIA

We provide high-speed fiber connectivity for commercial buildings, education and health facilities, banks, government departments and enterprise offices. These high-speed fiber optic rings deliver the lowest latency, providing broadband Internet access, on-demand video conferencing and other value-added services with the highest stability.
10.1.10. WIRELESS ACCESS MEDIA

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10.1.10.1. WIMAX
ITC is the first telecom provider in the Kingdom to offer WiMAX, a wide-area wireless broadband access technology offering wider access suitable for metropolitan area networks with a coverage radius of up to 2 kilometers.
10.1.10.2. MICROWAVE
ITC offers microwave point-to-point wireless technology for voice, video and data transfer.
10.1.10.3. VSAT
ITC provides VSAT connectivity over MPLS cloud, allowing clients to build and deploy proprietary networks and applications in remote areas for voice and telephony, LAN connection, ATM, video-conferencing, VoIP, VPN and many others.
10.1.11. THE LATEST SDH AND DWDM/MPLS TECHNOLOGY

ITC access media are based on top-of-the-line SDH and DWDM technologies for extremely fast data transfers, delivering high-quality local and international telecom services, including VoIP services, and helping ensure robust FTTx connectivity Kingdom wide.
10.1.12. OUR PRODUCTS AND SERVICES

From data connectivity to business-grade Internet services, wholesale services, international carrier services and fully customized enterprise solutions, we have become a reliable and trusted partner for modern companies competing in todays fast growing and evolving environment. We offer a whole spectrum of national and international telecom services and ISP and VSAT solutions. We are also the first telecom provider in the Kingdom to offer WiMAX broadband access services. Moreover, our networks run on top-of-the-line SDH and DWDM technologies for extremely fast, high-quality data transfers. To keep our clients ahead, we place great emphasis on the power of our relationships with our partners, suppliers and enterprises. These strong partnerships allow us to offer highly customized solutions for our clients to protect and transfer data in the most cost-effective manner, based on their specific business needs.
10.1.13. NETWORK, CONNECTIVITY AND BUSINESS SOLUTIONS 10.1.14. ITC BUSINESS PRODUCTS AND SERVICES
ITC offers true speed and stability for companies through the following services:
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10.1.15. CONNECTIVITY SOLUTIONS

Layer-3 Virtual Private Network (L3VPN) Layer-2 Virtual Private Network (L2VPN) Transmission Leased Line (TLL) VSAT MPLS Solutions
10.1.16. INTERNET SOLUTIONS

Business Dedicated Internet Access (BDI) Business Broadband Internet (BBI)
10.1.17. WHOLESALE AND INTERNATIONAL CARRIER SERVICES

International Private Lease Circuit (IPLC) Transmission Leased Line (TLL) Internet Bandwidth (IBW)
10.1.18. ITC L3 VPN

ITCs L3VPN offering can also be extended globally in cooperation with our International carrier partners to virtually anywhere in the world. ITCs Layer-3 Virtual Private Network (L3-VPN) allows you to build a network that acts like an extension of your private corporate network, but runs on ITCs shared network infrastructure. The result is a fast and efficient way of making scattered and farflung locations seem like local sites. Our MPLS-based IP-VPN service interconnects various sites to create a single, seamless company-wide communications network capable of carrying all your voice, data and multimedia applications.
10.1.19. BENEFITS
Ease of network scalability Secure inter-branch connectivity Consolidated data, voice and video services through a single connection Service Level Agreements (SLAs)
Cost efficiency
10.1.20. FEATURES
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Flexible topology support. No need to change the topology of your network.

We support different architectures that cater to your needs including MESH, Pointto-Multipoint (Hub and Spoke) and Point-to-Point.
Scalability. Easily upgrade your links and expand your network by simply adding
more branches.
Security. ITC's MPLS implementation provides a level of privacy equivalent to

that provided by todays Frame Relay and ATM services.
Reliability. Our carrier-class IP network has a redundant architecture backed by

SLAs for high service uptime to meet your business requirements. Last mile can be a number of media including Fiber, Microwave and WiMAX
10.1.21. ITC L2 VPN

ITCs Layer-2 Virtual Private Network (L2VPN) lets you manage point-to-point connectivity, giving you the ability to communicate and exchange information between two sites within Saudi Arabia such as your headquarters and branch. Our L2VPN offering can also be extended internationally in cooperation with our international carrier partners to virtually anywhere in the world..
10.1.21.1. BENEFITS
Dedicated bandwidth Unrivalled reliability .Secure connections Easy scalability for future growth.
10.1.21.2. FEATURES
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Ethernet-based services Access speeds up to 1 Gbps Last mile can be a through various media choices including fiber, o microwave and Wimax Resiliency through ITCs network design Available locally through any of ITCs POPs scattered across Saudi Arabia Available internationally through our carrier partners
10.1.22. ITC VSAT OVER MPLS

ITCs VSAT over MPLS service allows you to manage remote multisite extensions of your corporate network (whether branches or ATM machines)even in the most remote rural areasall on one MPLS network.
10.1.22.1. BENEFITS
Appropriate access in remote and rural locations Immediate deployment No dependency on geographical location Flexible service: A highly customized solution with built in allowance for future network growth and optimized configurations matching your applications
10.1.22.2. FEATURES
Dedicated service Extension of corporate networks over multiple sites Supports commercial video conferencing business Supports video streaming and video on-demand
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10.1.23. ITC BUSINESS DEDICATED INTERNET (BDI)

ITC gives your business a flexible and high-speed Internet presence through our Business Dedicated Internet (BDI) service.
10.1.23.1.BENEFITS
High-speed, high-quality, high-capacity Internet service Redundant IP architecture offering premium performance to support critical business communications End-to-end reliability on our privately owned and managed fiber infrastructure
10.1.23.2 FEATURES
IPv4 Internet connectivity through our Tier 1 upstream partners Access speeds of up to 1 Gbps Multiple last-mile connectivity technologies including fiber, microwave and WiMAX Resiliency through two distinct international gateways (one connected to the east through our Al Khobar gateway and another connected to the west through our Jeddah gateway) VLAN-based service
10.1.24. ITC BUSINESS BROADBAND INTERNET (BBI)

ITCs BBI service provides broadband Internet access for your business and lets you connect and exchange information with partners everywhere.
10.1.24.1. BENEFITS
High speed broadband Internet access Reliability and peace of mind Low contention ratio Greater value
10.1.24.2. FEATURES
IPv4 Internet connectivity Access speeds of up to 100 Mbps Last-mile connectivity via fiber, microwave and WiMAX
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10.1.25. WHOLESALE AND INTERNATIONAL CARRIER SERVICES

As the largest economy in the Middle East located right at the heart of the Arabian Peninsula, with borders touching all major economies in the region including the U.A.E, Bahrain, Kuwait, Qatar, Oman and Iraq as well as other Arab countries such as Yemen and Jordan, Saudi Arabia enjoys unique advantages and plays a central role in the region. ITC recognizes this role and has invested in its own 16,000-kilometer fiber optic network covering Saudi Arabia and extending across the borders of neighboring countries. Indeed, with our fully-owned international gateways, wide national coverage and comprehensive range of wholesale services (domestic transmission SDH or DWDM, IPLC, Internet, Global MPLS/Ethernet and other facility based services), ITC is a world class Saudi telecom provider with an infrastructure built to make us the ideal carrier for carriers in the region. Already, ITC is considered as the main provider for international and domestic transmission services by leading telecom operators in Saudi Arabia and other regional and international carriers in the Arabian Peninsula.
10.1.26. INTERNET BANDWIDTH

ITCs Internet Bandwidth service helps the largest content providers and ISPs meet their bandwidth needs, allowing them to provide their clients with the highest levels of performance, reliability and scalability.
10.1.26.1. BENEFITS
Direct connectivity to ITCs broadband subscriber networks. Direct connectivity to the global Internet through our Tier 1 upstream provider partners Cost-efficient, with minimal upfront capital cost Scalable, with dedicated connections to the global Internet Shortest Internet path in the region High-performance, fault-tolerant and resilient backbone with diverse east and west routing
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10.1.26.2. FEATURES
Dedicated speeds of up to 10 GigE ports IPv4 routing Full BGP support and robust community strings Dedicated 24x7x365 Network Operations Center (NOC) Extensive geographic coverage Comprehensive Service Level Agreement (SLA) options Restoration options available
10.1.27.INTERNATIONAL (IPLC)
PRIVATE
LEASE
CIRCUIT
International Private Leased Circuit (IPLC) is a reliable, point-to-point connectivity service for both service providers and business customers. The IPLC solution supports a wide range of bandwidth options and interfaces, from E-1 to STM-64. ITCs IPLC solutions provide high-quality, cost-effective and efficient communications. We offer both protected and unprotected service and diversity options provisioned over a facilities-based network with extensive reach.
10.1.27.1. BENEFITS
Extended reach and flexibility through seamless connectivity over international submarine and terrestrial fiber cable systems, letting you build your international connections and operate confidently with support from our technical teams Optional route diversity Short delivery time with a large range of capacities Cost-efficiency: relief from large capital outlays associated with laying submarine cables and subsequent operational costs.
10.1.27.2. FEATURES
Wide range of connectivity speeds Wide coverage in Saudi Arabia and internationally Short path connectivity through two distinct international gateways (one connected to the east through our Al Khobar gateway and another connected to the west through our Jeddah gateway)
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10.1.28. TRANSMISSION LEASED LINE (TLL)

ITC offers domestic bi-directional point-to-point transmission capacity for data, video and voice allowing national operators and service providers to extend their business offerings beyond the services they own and operate. The service also allows business customers to reliably interconnect their branch network. Each customer is allocated a link capacity on an individual basis depending on their specific needs, complete with self-healing rings that rapidly restore communications in the event of a node failure or fiber cut.
10.1.28.1. BENEFITS
Scalability. Ability to tailor the bandwidth to the need of every location and/or application and easy migration to higher bandwidth. Reliability and Support. Send transmissions with high accuracy and exceptional system availability and virtually eliminate downtime with ITCs redundant network architecture built in at every level. All these with dedicated support for your business. Cost efficiency. Consolidate data, video and voice into one high-capacity optical backbone. You can enjoy competitive prices to meet your business objectives.
10.1.28.2. FEATURES
Wide range of speeds from E1 to STM-64 covering most of Saudi Arabia Last mile can be a number of media including microwave and fiber Independent fiber network with high redundancy
10.1.28.3. MANAGED SERVICES

Co-location Business Continuity Managed Security
10.1.28.4. ART
STATE-OF-THE-
DATA CENTERS
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ITC Data Centers are equipped with advanced security, integrated management systems and other services. They offer highly reliable and available connections to ITCs core network with massive amounts of bandwidth capacity and high redundancy. Two of our Data Centers are co-located in our cable landing stations in Jeddah and Al Khobar. ITC Data Centers are designed to deliver an open-standards-based
infrastructure. This allows companies to use and share network resources better, improve business continuity and lower the cost of ownership for their network bandwidth.
10.1.29. ITC NETWORK OPERATIONS CENTER

In the fast-paced world of modern business, having a trusted and reliable partner ready by your side can make all the difference. The ITC Network Operations Center (NOC) is always at your service 24x7, staffed by some of the most highly qualified and best trained professionals in the business. It is the nerve center of our operations, tasked primarily with ensuring uninterrupted network performance, maintaining network security, spotting and correcting problems even before they happen, and providing a level of 24/7 support admired in the industry. We have developed and put in place a number of proven operational processes, management and support systems and physical facilities to provide you the superior service and round-the-clock support you need.
10.1.29.1. DIVISIONS IMRB has five specialist units to serve the diverse needs of their clients:
Probe Qualitative Research (PQR) Social and Rural Research Institute (SRI) Media & Panel Research Group Customer Satisfaction Management & Measurement (CSMM) Business & Industrial Research Division (BIRD)
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11.METHODOLOGY: 11 .1. MEANING OF RESEARCH: Definition of Marketing Research American Marketing Association officially defines marketing research as follows: Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyses, and communicates the findings and their implications. This definition highlights the role of marketing research as an id to decision making. An important feature is the inclusion of the specification ad interpretation of needed information. Too often, marketing research is considered narrowly as gathering and analyzing of data for someone to use. Firms can achieve and sustain a competitive advantage through the creative use of marketing information. Hence, marketing research is defined as information input to decisions, not simply the evaluation of decisions that have been made. Market research alone, however, does not guarantee success; the intelligent use of market research is likely for business achievement. A competitive edge is more the result of how information is used than of who does or does not nave the information.
11.2. THE FUNCTION OF MARKETING RESEARCH:

Marketing decisions involve issues that range from fundamental shifts in the positioning of a business or the decision to enter a new market to narrow tactical questions of how best to stock a grocery shelf. The context for these decisions is the market planning process, which proceeds sequentially through four stages: Situation analysis Strategy development Marketing program development Implementation This is a never-ending process, so the evaluation of past strategic decisions serves as an input to the situation assessment. Situation Analysis Effective marketing strategies are built on an in-depth understanding of the market environment of the business, and the specific
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characteristics of the market. The micro-environment includes political and regulatory trends, Strategy Development During the strategy development stage the management team of the business decides on answers to three critical questions. Marketing research provides significant help in finding the answers to these questions. What business should we be in? Specifically, what products or services should we offer? What technologies will we utilize? Which market segments should we emphasize? What channels should we use to reach the market? These questions are compelling in markets that are mature and saturated, including not only most packaged goods but also household appliances, automobiles, and services such as banking and air travel. Research supports this search for niches with large-scale quantitative communication media. Large samples are needed product. What will we to market delineate studies the that describe buying behaviors, consumer beliefs and attitudes, and exposure to segments, indicate their size, and determine what the people in each segment are seeking in a compete? The management team has to decide why the business is better than the competition in serving the needs of the target segment, and what has to be done to keep it in front. Competitive superiority is revealed in the market as either differentiation along attributes that are important to target customers, essential for of getting the or the lowest delivered cost position. Marketing research is
answers to three key questions about differentiation: what are the attributes
product or services that create value for the customer? Which attributes are most important? How do we compare to the competition? An understanding of competitive advantage also requires detailed knowledge of the capabilities, strategies, and intentions of here in two ways: present and prospective competitors. Marketing research contributes identifying the competitive set, and collecting detailed be quantified and monitored.
information about each competitor. What are the objectives for the business? An objective is a desired performance result that can There are usually objectives of revenue growth, market share, and profitability. Increasingly, firms are adopting objectives for service levels, and customer satisfaction. Marketing research is needed to establish both the market share and the level of customer satisfaction. 1.2.3 Marketing Program Development Programs embrace specific tasks, such as developing a new product or launching a new advertising campaign. An action program usually focuses on a single objective in support of one
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element of the overall business strategy. This is where the bulk of ongoing marketing research is directed. Developing the that draw on marketing research: i) Segmentation decisions which segment should be the target? What benefits are most important for each segment? When geographic area should be entered? ii) Product decisions what product features should be included? How should the price be positioned? What type of package is preferred by the customers? iii) Distribution decisions What type of retailer should be used? What should be the mark up policy? Should a few outlets be employed or many? iv) Advertising and promotion decisions What appeals should be used in the advertising? In which vehicles should the advertising be placed? What should the budget be? promotion should be used, and when should it be scheduled? What customer types have the most potential? How What sales marketing program representative decisions
v) Personal selling decisions
many sales people are needed? vi) Price decisions What price level should be changed? What sales should e offered during the year? What response should be made to a competitors price? be the name, symbol, logo and slogan that will increased? measured? vii) Branding decisions What should
be associated with the product? What is the position that the brand should adopt vis-vis the competition? How can brand loyalty be viii) Customer satisfaction decisions How should customer satisfaction be
How often should it be measured? How should customer complaints be handled? Implementation The beginning of the implementation phase is signalled by a decision to proceed with a new program or strategy and by the related commitments to and timetables. At this point, the focus of marketing research objectives, budgets,
shifts to such questions as: Types of Research, Areas of Research In practice, marketing research departments goal can be grouped into three major `categories: programmatic, selective or evaluative. Programmatic research is performed `to develop marketing options through market segmentation, market opportunity ànalysis, or consumer attitude and product usage studies. Selective research is done to `test different decision alternatives such as new product concept testing, advertising copy `testing, pre-test marketing, and test marketing. Evaluative research is carried out to èvaluate performance of programs, including tracking advertising recall, corporate and
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`brand image studies, and measuring customer satisfaction with the quality of the product ànd service. . Market research is often needed to ensure that we produce what customers really want and not what we think they want. Primary vs. secondary research methods. There are two main approaches to marketing. Secondary research involves using information that others have already put together. For example, if you are thinking about starting a business making people, you dont need to question people about how tall they are to people existthat information has already been published by need to find out whether consumers clothes for tall
find out how many tall
the U.S. Government. Primary research, in contrast, is research that you design and conduct yourself. For example, you may would prefer that your soft drinks be sweater or tarter. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has For example, Coca Cola did a great deal of research prior to releasing been complete.
the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke. Secondary Methods. For more information about secondary market research tools and issues, please see http://buad307.com/PDF/Secondary.pdf . Primary Methods. Several tools are available to the market researchere.g., mail questionnaires, phone surveys, observation, and focus groups. Please see http://buad307.com/PDF/ResearchMethods.pdf for advantages and disadvantages of each. Surveys are useful for getting a great deal of specific information. Surveys can contain open-ended questions (e.g., In which city and state were you born? ____________) or closed-ended, where the respondent is asked to select answers from a brief list (e.g., __Male ___ Female. Open ended questions have the advantage that the respondent is not limited to the options listed, and that the respondent is not being influenced by seeing a list of responses. However, open-ended questions are often
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skipped by respondents, and coding them can be quite a challenge. In general, for surveys to yield meaningful responses, sample sizes of over 100 are usually required twenty percent because precision is essential. For example, if a market share of 20-35% is too wide to be useful. Surveys come in several different forms. Mail surveys are relatively inexpensive, but response rates are typically quite lowtypically from 5-20%. Phone-surveys get somewhat higher response rates, but not many questions can be asked because many answer options have to be repeated and few people are willing to stay on the phone for more than five minutes. Mall intercepts are a convenient way to reach consumers, but respondents may be reluctant to discuss interviewer. Surveys, as any kind of research, are vulnerable to bias. The wording of a question can influence the outcome a great deal. For example, more people answered no to the question Should speeches against democracy be allowed? than answered yes to Should speeches against democracy be forbidden? For face-to-face interviews, interviewer bias is a danger,too. Interviewer bias occurs when the interviewer influences the way the respondent answers. For example, unconsciously an interviewer that works for the firm manufacturing the product in question may smile a little when something good is being said about the product and frown a little when something negative is being said. The respondent may catch on and say something more positive than his or her real opinion. Finally, a response bias may occurif only part of the sample responds to a population. survey, the respondents answers may not be representative of the anything sensitive face-to-face with an
would result in a loss while thirty percent would be profitable, a confidence interval of
Focus groups are useful when the marketer wants to launch a new product or modify an existing one. A focus group usually involves having some 8-12 people come together in a room to discuss their consumption preferences and experiences. The group is usually led by a moderator, who will start out talking broadly about topics related broadly to the product without mentioning the product itself. For example, a focus group aimed at sugar-free cookies healthfulness and a desire for wholesome foods. Probing on the meaning of wholesomeness, consumers might indicate a desire to avoid artificial ingredients. This would be an important concern in the marketing of sugar-free cookies, but might not have come up if consumers were asked to comment directly on
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the product where the use of artificial ingredients is, by virtue of the nature of the product, necessary. Focus groups are well suited for some purposes, but poorly suited for others. In general, focus groups are very good for getting breadthi.e., finding out what kinds for consumers in a given product category. Here, it is helpful of issues are important
that focus groups are completely open-ended: The consumer mentions his or her preferences and opinions, and the focus group moderator can ask the consumer to elaborate. In a questionnaire, if one did not think to ask about something, chances are that few consumers would take the time to write out an elaborate answer. Focus groups also have some drawbacks, for example: They represent small sample sizes. Because of the cost of running focus groups, only a few groups can be run. Suppose you run four focus groups with ten members each. This will result in an n of 4(10)=40, which is too small to generalize from. Therefore, focus groups cannot give us a good idea of:

What proportion of the population is likely to buy the product. What price consumers are willing to pay. The groups are inherently social. This means that: Consumers will often say things that may make them look good (i.e., they watch
public television rather than soap operas or cook fresh meals for their families daily) even if that is not true.
Consumers may be reluctant to speak about embarrassing issues (e.g., weight control,
birth control). Personal interviews involve in-depth questioning of an individual about his or her interest in or experiences with a product. The benefit here is that we can get really into depth (when the respondent says something interesting, we can ask him or her to elaborate), but this method of research is costly and can be extremely vulnerable to interviewer bias. To get a person to elaborate, it may help to try a common tool of psychologists and psychiatristssimply repeating what the person said. He or she will often become uncomfortable with the silence that follows and will then tend to elaborate. This
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approach has the benefit that it minimizes the interference with the respondents own ideas and thoughts. He or she is not influenced by a new question but will, instead, go more in depth on what he or she was saying. Personal interviews are highly susceptible to inadvertent signaling to the respondent. Although an interviewer is looking to get at the truth, he or she may have a significant interest in a positive consumer response. Unconsciously, then, he or little when something positive is said and frown a little Consciously, this will often not be noticeable, aware that he or she is being things, but at an likely to be respondent she may inadvertently smile a
when something negative is said.
and the respondent often will not consciously be
reinforced and punished for saying positive or negative
unconscious level, the cumulative effect of several facial expressions are felt. Although this type of conditioning will not get a completely negative
to say all positive things, it may swing the balance a bit so that respondents are more likely to say positive thoughts and withhold, or limit the duration of, negative thoughts. Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions, feelings, or preferences. For example, many older executives may not be comfortable admitting to being intimidated by computers. It has been found that in such cases, people will tend to respond more openly about someone else. Thus, we may ask them to explain reasons why a friend has not yet bought a computer, or to tell a story about a person in a picture who is or is not using a product. The main problem difficult to analyze responses. with this method is that it is
Projective techniques are inherently inefficient to use. The elaborate context that has to be put into place takes time and energy away from the main question. There may also be real differences between the respondent and the third party. Saying or thinking about something that hits too close to home may also influence the respondent, who may or may not be able to see through the ruse. Observation of consumers is often a powerful tool. Looking at how consumers select products may yield insights into how they make decisions and what they look for. For example, some American manufacturers were concerned about low sales of their Japanese consumers, it was found that many of these looking for a name the of a major (e.g., like
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products in Japan. Observing
Japanese consumers scrutinized packages
manufacturerthe product specific-brands that are common in
U.S.
Tide) were not impressive to the Japanese, who wanted a name of a major firm
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Mitsubishi or Proctor & Gamble. Observation may help us determine how much time consumers spend comparing prices, or whether nutritional labels are being consulted. A question arises as to whether this type of spying inappropriately invades the privacy of consumers. Although there may be cause for some concern in that the particular individuals have not consented to be part of this research, it should be noted that there is no particular interest in what the individual customer being watched does. The question is what consumerseither as an entire group or as segmentsdo. Consumers benefit, for example, from stores that are designed effectively to promote efficient shopping. If it is found that women are more uncomfortable than men about others standing too close, the areas of the store heavily trafficked by women can be designed accordingly. What is being reported here, then, are averages and tendencies in response. The intent is not to find juicy observations specific to one customer. The video clip with Paco Underhill that we saw in class demonstrated the application of observation research to the retail setting. By understanding the phenomena such as the tendency toward a right turn, the location of merchandise can be observed. It is also possible to identify problem areas where customers may be overly vulnerable to the but brush, or overly close encounter with others. This method can be used to identify problems that the customer experiences, such as difficulty finding a product, a mirror, a changing room, or a store employee for help. Online research methods. The Internet now reaches the great majority of
households in the U.S., and thus, online research provides new opportunity and has increased in use. One potential benefit of online surveys is the use of conditional branching. In conventional paper a shopped for a new car nd pencil surveys, one question might ask if the respondent has during the last eight months. If the respondent answers no, ahead several questionse.g., which, related going straight to
he or she will be asked to skip
question 17 instead of proceeding to number 9. If the respondent answered yes, he or she would be instructed to go to the next question several ones, would address issues along with the next to this shopping
experience. Conditionalbranching allows the computer to skip directly to the appropriate question. If a respondent is asked which brands he or she considered,
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it is also possible to customize brand comparison questions to those listed. Suppose, for example, that the respondent considered Ford, Toyota, and Hyundai, it would be possible to ask the subject questions about his or her view of the relative quality of each respective pairin this case, Hyundai. There are certain drawbacks to online surveys. Some consumers may be more comfortable with online activities than othersand not all households will have access. Today, however, this type of response bias is probably not significantly greater than that associated with other types of research methods. A more serious problem is that it has consistently been found in online research that it is very difficultif not impossibleto get respondents to carefully read instructions and other information onlinethere is a tendency to move quickly. This makes it difficult to perform research that depends on the respondents reading of a situation or product description. Online search data and page visit logs provides valuable ground for analysis. It is possible to see how frequently various terms are used by those who use a firms web site search feature or to see the route taken by most consumers to get to the page with the information they ultimately want. If consumers use a certain term frequently that is not used by the firm in its product descriptions, the need to include this term in online content can be seen in search logs. If consumers take a long, torturous route to information frequently accessed, it may be appropriate to redesign the menu structure and/or insert hyperlinks in intermediate pages that are found in many users routes. Ford vs. Toyota, Ford vs. Hyundai, and Toyota vs.
Scanner data. Many consumers are members of supermarket clubs. In for a card and presenting this when making purchases,
return for signing p
consumers are often eligible for considerable discounts on selected products. Researchers use a more elaborate version of this type of program in some communities. Here, a number of consumers receive small payments and/or other a research panel. They then receive a card that shopping. Nearly all retailers in the area the consumer bought in all stores incentives to sign up to be part of
they are asked to present any time they go and to have a historical record.
usually cooperate. It is now possible to track what
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The consumers shopping record is usually combined with demographic information (e.g., income, educational level of adults in the household, occupations of adults, ages of children, and whether the family owns and rents) and the familys television watching habits. (Electronic equipment run by firms such as A. C. Nielsen will actually recognize the face of each family member when he or she sits down to watch).
It is now possible to assess the relative impact of a number of factors on the consumers
choicee.g.,
What brand in a given product category was bought during the last, or a series of past, purchase occasions; Whether, and if so, how many times a consumer has seen an ad for the brand in question or a competing one; Whether the target brand (and/or a competing one) is on sale during the store visit; Whether any brand had preferential display space; The impact of income and/or family size on purchase patterns; and Whether a coupon was used for the purchase and, if so, its value. A split cable technology allows the researchers to randomly select half the panel
members in a given community to receive one advertising treatment and the other half another. The selection is truly random since each household, as opposed to
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neighborhood, is selected to get one treatment or the other. Thus, observed differences should, allowing for sampling error, the be result of advertising exposure since there are no other systematic differences between groups. Interestingly, it has been found that consumers tend to be more influenced by commercials that they zap through while channel surfing even if they only see part of the commercial. This most likely results from the reality that one must pay greater attention while channel surfing than when watching a commercial in order to determine which program is worth watching. Scanner data is, at the present time, only available for certain grocery
item product categoriese.g., food items, beverages, cleaning items, laundry detergent, paper towels, and toilet paper. It is not available for most non-grocery product items. Scanner data analysis is most useful for frequently purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of purchases in the same product category yield more information with greater precision than would a record of one purchase at one point in time. Even if scanner data were available for electronic products such as printers, computers, and MP3 players, for example, these would be purchased quite infrequently. A single purchase, then, would not be shelf products as
effective in effectively distinguishing the effects of different factorse.g., advertising, space, pricing of the product and competitors, and availability of a coupon would apply at the same time. In the case of items that are has the opportunity to buy a product, buy a on the status of the brand of the same time, and breakdown since we have at most one purchase instance during a long period of time during which several of these factors purchased frequently, the consumer
competing product, or buy nothing at all depending
interest and competing brands. In the case of the purchase of an MP3 player, in contrast, there may be promotions associated with several brands going on at each may advertise. It may also be that the purchase was motivated by the of an existing product or dissatisfaction or a desire to add more capabilities. Physiological measures are occasionally used to examine consumer response. For example, advertisers may want to measure a consumers level of arousal during various parts of an advertisement. This can be used to assess possible discomfort on the negative side and level of attention on the positive side.
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By attaching a tiny camera to plain eye glasses worn by the subject while watching an advertisement, it is possible to determine where on screen or other ad display the subject focuses at any one time. If the focus remains fixed throughout an ad sequence where the interesting and active part area changes, we can track whether the respondent is following the sequence intended. If he or she is not, he or she is likely either not to be paying as much attention as desired or to be confused by an overly complex sequence. In situations where the subjects eyes do move, we can assess whether this movement is going in the intended direction. Mind-reading would clearly not be ethical and is, at the present time, not possible in any event. However, it is possible to measure brain waves by attaching electrodes. These readings will not reveal what the subject actually thinks, but it is possible to distinguish between beta wavesindicating active thought and analysisand alpha waves, indicating lower levels of attention. An important feature of physiological measures is that we can often track performance over time. A subject may, for example, be demonstrating good characteristicssuch as appropriate level of arousal and eye movementduring some of the ad sequence and not during other parts. This, then, gives some guidance as to which parts of the ad are effective and which ones need to be reworked. In a variation of direct physiological measures, a subject may be asked, at various points during an advertisement, to indicate his or her level of interest, liking, comfort, and approval by moving a lever or some instrument (much like one would adjust the volume on a radio or MP3 player). Republican strategist used this technique during the impeachment and trial of Bill Clinton in the late 1990s. By watching approval during various phases of a speech by the former President, it was found that viewers tended to respond negatively when he referred to speaking truthfully but favorably when the President referred to the issues in controversy as part of his private life. The Republican researchers were able to separate average results from Democrats, Independents, and Republicans, effectively looking at different segments to make sure that differences between each did not cancel out effects of the different segments. (For example, if at one point Democrats reacted positively and Republicans responded negatively with the same intensity, the average result of apparent indifference would have been very misleading).
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11.3. RESEARCH SEQUENCE. In general, if more than one type of research is to be used, the more flexible and less precise methodsuch as focus groups and/or individual interviewsshould generally be used before the less flexible but more precise methods (e.g., surveys and scanner data) are used. Focus groups and interviews are flexible and allow the researcher to follow up on interesting issues raised by participants who can be probed. However, because the sample sizes are small and because participants in a focus group are influenced by each other, few data points are collected. If we run five focus groups with eight people each, for example, we would have a total of forty responses. Even if we assume that these are independent, a sample size of forty would give very imprecise results. We might conclude, for example, that somewhere between 5% and 40% of the target market would be interested in the product we have to offer. This is usually no more precise than what we already reasonably new. Questionnaires, in contrast, are highly inflexible. It is not possible to ask follow-up questions. Therefore, we can use our insights from focus groups and interviews to develop questionnaires that contain specific questions that can be asked to a larger number of people. There will still be some sampling error, but with a sample size of 1,000+ responses, we may be able to narrow the 95% confidence interval for the percentage of the target market that is seriously interested in our product to, say, 17-21%, a range that is much more meaningful. Cautions. Some cautions should be heeded in marketing research. First, in
general, research should only be commissioned when it is worth the cost. Thus, research should normally be useful in making specific decisions (what size should the product be? Should the product be launched? Should we charge $1.75 or $2.25?) Secondly, marketing research can be, and often is, abused. Managers frequently have their own agendas (e.g., they either would like a product to be launched or would prefer that it not be launched so that the firm will have more resources left over to tackle their favorite products). Often, a way to get your way is to demonstrate through objective research that your opinions make economic sense. One example of
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misleading research, which was reported nationwide in the media, involved the case of The Pentagon Declares War on Rush Limbaugh. The Pentagon, within a year of the election of Democrat Bill Clinton, reported that only 4.2% of soldiers listening to the Armed Forces Network wanted to hear Rush Limbaugh. However, although this finding was reported without question in the media, it was later found that the conclusion improve programming? was based on the question What single thing can we do to wanting to hear him.
If you did not write in something like Carry Rush Limbaugh, you were counted as not
11.4. SEGMENTATION, TARGETING, AND POSITIONING :

Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.
Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that You cant be all things to all people, and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.
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Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really cant offer much that another one cant. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelersusually business travelerspay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over. Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time. Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers. We might thus decide, for example, that the variables that are most relevant in separating different kinds of soft drink consumers are (1) preference for taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price sensitivitywillingness to pay for brand names; and (4) heavy vs. light consumers. We now put these variables together to arrive at various combinations. Several different kinds of variables can be used for segmentation.
Demographic variables essentially refer to personal statistics such as income, gender,
education, location (rural vs. urban, East vs. West), ethnicity, and family size. Campbells soup, for instance, has found that Western U.S. consumers on the average prefer spicier soupsthus, you get a different product in the same cans at the East and West coasts. Facing flat sales of guns in the traditional male dominated market, a manufacturer came out with the Lady Remmington, a more compact, handier gun more attractive to women. Taking this a step farther, it is also possible to segment on lifestyle and values.
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Some consumers want to be seen as similar to others, while a different segment wants Another basis for segmentation is behavior. Some consumers are brand loyali.e.,
to stand apart from the crowd.
they tend to stick with their preferred brands even when a competing one is on sale. Some consumers are heavy users while others are light users. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumerspresumably a rather intoxicated group.
One can also segment on benefits sought, essentially bypassing demographic
explanatory variables. Some consumers, for example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others prefer the clean feeling of unscented soap (the Ivory segment). Some consumers use toothpaste primarily to promote oral health, while another segment is more interested in breath freshening. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. While McDonalds has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonalds now offers gourmet food. Thus, McDs would probably be better off targeting families in search of consistent quality food in nice, clean restaurants. Positioning involves implementing our targeting. For example, Apple
Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for non-geeks. The Visual C software programming language, in contrast, is aimed a techies.
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Michael Treacy and Fred Wiersema suggested in their 1993 book The Discipline of Market Leaders that most successful firms fall into one of three categories:
Operationally excellent firms, which maintain a strong competitive advantage by
maintaining exceptional efficiency, thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer. Wal-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the lowest cost, with extensive systems predicting when specific quantities of supplies will be needed.
Customer intimate firms, which excel in serving the specific needs of the individual
customer well. There is less emphasis on efficiency, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed. Nordstroms and IBM are examples of this discipline.
Technologically excellent firms, which produce the most advanced products currently
available with the latest technology, constantly maintaining leadership in innovation. These firms, because they work with costly technology that need constant refinement, cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline.
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Treacy and Wiersema suggest that in addition to excelling on one of the three value dimensions, firms must meet acceptable levels on the other two. Wal-Mart, for example, does maintain some level of customer service. Nordstroms and Intel both must meet some standards of cost effectiveness. The emphasis, beyond meeting the minimum required level in the two other dimensions, is on the dimension of strength. Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered everyday low prices. Repositioning in practice is very difficult to accomplish. A great deal of money is often needed for advertising and other promotional efforts, and in many cases, the repositioning fails. To effectively attempt repositioning, it is important to understand how ones brand and those of competitors are perceived. One approach to identifying consumer product perceptions is multidimensional scaling. Here, we identify how products are perceived on two or more dimensions, allowing us to plot brands against each other. It may then be possible to attempt to move ones brand in a more desirable direction by selectively promoting certain points. There are two main approaches to multi-dimensional scaling. In the a priori approach, market researchers identify dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customers perception on each dimension is relatively clear (as opposed to being made up on the spot to be able to give the researcher a desired answer). In the similarity rating approach, respondents are not asked about their perceptions of brands on any specific dimensions. Instead, subjects are asked to rate the extent of similarity of different pairs of products (e.g., How similar, on a scale of 1-7, is Snickers to Kitkat, and how similar is Toblerone to Three Musketeers?) Using a computer algorithms, the computer then identifies positions of each brand on a map of a given number of dimensions. The computer does not reveal what each dimension meansthat must be left to human interpretation based on what the variations in each dimension appears to reveal. This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category.
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11.5. INFORMATION SEARCH AND DECISION MAKING Problem Recognition. One model of consumer decision making involves
several steps. The first one is problem recognitionyou realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information searchwhat are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on the type of
product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumers life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumers motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit. Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration,
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leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumers self-esteem. A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumers family, which achieves the desired end-state of security. In advertising, it is important to portray the desired end-states. Focusing on the large motor will do less good than portraying a successful person driving the car. 11.5. INFORMATION SEARCH AND DECISION MAKING. Consumers engage in both internal and external information search.
Internal search involves the consumer identifying alternatives from his or her memory. For certain low involvement products, it is very important that marketing programs achieve top of mind awareness. For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve ones restaurant from memory before it will be considered. For high involvement products, consumers are more likely to use an external search. Before buying a car, for example, the consumer may ask friends opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms that make products that are selected predominantly through external search must invest in having information available to the consumer in neede.g., through brochures, web sites, or news coverage. A compensatory decision involves the consumer trading off good and bad attributes of a product. For example, a car may have a low price and good gas mileage but slow
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acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may then select it over a car with better acceleration that costs more and uses more gas. Occasionally, a decision will involve a non-compensatory strategy. For example, a parent may reject all soft drinks that contain artificial sweeteners. Here, other good features such as taste and low calories cannot overcome this one non-negotiable attribute. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there, and how great are differences between brands expected to be?), product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?), consumer characteristics (how interested is a consumer, generally, in analyzing product characteristics and making the best possible deal?), and situational characteristics (as previously discussed). Two interesting issues in decisions are:
Variety seeking (where consumers seek to try new brands not because these brands
are expected to be better in any way, but rather because the consumer wants a change of pace, and
Impulse purchasesunplanned buys. This represents a somewhat fuzzy group.
For example, a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. Alternatively, a person may buy an item which is currently on sale, or one that he or she remembers that is needed only once inside the store. A number of factors involve consumer choices. In some cases, consumers will be more motivated. For example, one may be more careful choosing a gift for an in-law than when buying the same thing for one self. Some consumers are also more motivated to comparison shop for the best prices, while others are more convenience oriented. Personality impacts decisions. Some like variety more than others, and some are more receptive to stimulation and excitement in trying new stores. Perception influences decisions. Some people, for example, can taste the difference between generic and name brand foods while many cannot. Selective perception occurs when a person is paying attention only to information of interest. For example, when looking for a new car, the
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consumer may pay more attention to car ads than when this is not in the horizon. Some consumers are put off by perceived risk. Thus, many marketers offer a money back guarantee. Consumers will tend to change their behavior through learninge.g., they will avoid restaurants they have found to be crowded and will settle on brands that best meet their tastes. Consumers differ in the values they hold (e.g., some people are more committed to recycling than others who will not want to go through the hassle). We will consider the issue of lifestyle under segmentation.
11.6. FAMILIES AND FAMILY DECISION MAKING

The Family Life Cycle. Individuals and families tend to go through a "life cycle:" The simple life cycle goes from
For purposes of this discussion, a "couple" may either be married or merely involve living together. The breakup of a non-marital relationship involving cohabitation is similarly considered equivalent to a divorce. In real life, this situation is, of course, a bit more complicated. For example, many couples undergo divorce. Then we have one of the scenarios:
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Single parenthood can result either from divorce or from the death of one parent. Divorce usually entails a significant change in the relative wealth of spouses. In some cases, the non-custodial parent (usually the father) will not pay the required child support, and even if he or she does, that still may not leave the custodial parent and children as well off as they were during the marriage. On the other hand, in some cases, some non-custodial parents will be called on to pay a large part of their income in child support. This is particularly a problem when the non-custodial parent remarries and has additional children in the second (or subsequent marriages). In any event, divorce often results in a large demand for:

Low cost furniture and household items Time-saving goods and services
Divorced parents frequently remarry, or become involved in other non-marital relationships; thus, we may see
Another variation involves
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Here, the single parent who assumes responsibility for one or more children may not form a relationship with the other parent of the child. Integrating all the possibilities discussed, we get the following depiction of the Family Life Cycle:
Generally, there are two main themes in the Family Life Cycle, subject to significant exceptions:
As a person gets older, he or she tends to advance in his or her career and tends to get Unfortunately, obligations also tend to increase with time (at least until ones
greater income (exceptions: maternity leave, divorce, retirement).
mortgage has been paid off). Children and paying for ones house are two of the greatest expenses. Note that although a single person may have a lower income than a married couple, the single may be able to buy more discretionary items. Family Decision Making. Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. Some individuals are information gatherers/holders, who seek out information about products of relevance. These individuals often have a great deal of power because they may selectively pass on information that favors their chosen alternatives. Influencers do not ultimately have the power decide between alternatives, but they may make their wishes known by asking for specific products or causing embarrassing situations if their demands are not met. The decision maker(s) have the power to determine issues such as:
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Whether to buy; Which product to buy (pick-up or passenger car?); Which brand to buy; Where to buy it; and When to buy.
Note, however, that the role of the decision maker is separate from that of the purchaser. From the point of view of the marketer, this introduces some problems since the purchaser can be targeted by point-of-purchase (POP) marketing efforts that cannot be aimed at the decision maker. Also note that the distinction between the purchaser and decision maker may be somewhat blurred:

The decision maker may specify what kind of product to buy, but not which brand; The purchaser may have to make a substitution if the desired brand is not in stock; The purchaser may disregard instructions (by error or deliberately).
It should be noted that family decisions are often subject to a great deal of conflict. The reality is that few families are wealthy enough to avoid a strong tension between demands on the familys resources. Conflicting pressures are especially likely in families with children and/or when only one spouse works outside the home. Note that many decisions inherently come down to values, and that there is frequently no "objective" way to arbitrate differences. One spouse may believe that it is important to save for the childrens future; the other may value spending now (on private schools and computer equipment) to help prepare the children for the future. Who is right? There is no clear answer here. The situation becomes even more complex when more partiessuch as children or other relativesare involved. Some family members may resort to various strategies to get their way. One is bargainingone member will give up something in return for someone else. For example, the wife says that her husband can take an expensive course in gourmet cooking if she can buy a new pickup truck. Alternatively, a child may promise to walk it every day if he or she can have a hippopotamus. Another strategy is reasoningtrying to get the other person(s) to accept ones view through logical argumentation. Note that even when this is done with a sincere intent, its potential is limited by legitimate differences in values illustrated above. Also note that individuals may simply try to
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"wear down" the other party by endless talking in the guise of reasoning (this is a case of negative reinforcement as we will see subsequently). Various manipulative strategies may also be used. One is impression management, where one tries to make ones side look good (e.g., argue that a new TV will help the children see educational TV when it is really mostly wanted to see sports programming, or argue that all "decent families make a contribution to the church"). Authority involves asserting ones "right" to make a decision (as the "man of the house," the mother of the children, or the one who makes the most money). Emotion involves making an emotional display to get ones way (e.g., a man cries if his wife will not let him buy a new rap album).
11.7. GROUP INFLUENCES

Humans are inherently social animals, and individuals greatly influence each other. A useful framework of analysis of group influence on the individual is the so called reference groupthe term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Reference groups come in several different forms.
The aspirational reference group refers to those others against whom one would like
to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be.
Associative reference groups include people who more realistically represent the
individuals current equals or near-equalse.g., coworkers, neighbors, or members of churches, clubs, and organizations. Paco Underhill, a former anthropologist turned retail consultant and author of the book Why We Buy has performed research suggesting that among many teenagers, the process of clothes buying is a two stage process. In the first stage, the teenagers go on a "reconnaissance" mission with their friends to find out what is available and what is "cool." This is often a lengthy process. In the later phase, parents who will need to pay for the purchasesare brought. This stage is typically much briefer.
Finally, the dissociative reference group includes people that the individual would not
like to be like. For example, the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool"
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people. The Quality Paperback Book Club specifically suggests in its advertising that its members are "a breed apart" from conventional readers of popular books. Reference groups come with various degrees of influence. Primary reference groups come with a great deal of influencee.g., members of a fraternity/sorority. Secondary reference groups tend to have somewhat less influencee.g., members of a boating club that one encounters only during week-ends are likely to have their influence limited to consumption during that time period. Another typology divides reference groups into the informational kind (influence is based almost entirely on members knowledge), normative (members influence what is perceived to be "right," "proper," "responsible," or "cool"), or identification. The difference between the latter two categories involves the individuals motivation for compliance. In case of the normative reference group, the individual tends to comply largely for utilitarian reasonsdressing according to company standards is likely to help your career, but there is no real motivation to dress that way outside the job. In contrast, people comply with identification groups standards for the sake of belongingfor example, a member of a religious group may wear a symbol even outside the house of worship because the religion is a part of the persons identity.
11.8. PERCEPTION
Background. Our perception is an approximation of reality. Our brain
attempts to make sense out of the stimuli to which we are exposed. This works well, for example, when we see a friend three hundred feet away at his or her correct height; however, our perception is sometimes offfor example, certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume. Factors in percpetion. Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. For example, we are exposed to numerous commercial messages while driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls that we pass. Most of this exposure is randomwe dont plan to seek it out. However, if we are shopping for a car, we may deliberately seek out advertisements and tune in when dealer advertisements come on the radio.
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Exposure is not enough to significantly impact the individualat least not based on a single trial (certain advertisements, or commercial exposures such as the Swoosh logo, are based on extensive repetition rather than much conscious attention). In order for stimuli to be consciously processed, attention is needed. Attention is actually a matter of degreeour attention may be quite high when we read directions for getting an income tax refund, but low when commercials come on during a television program. Note, however, that even when attention is low, it may be instantly escalatedfor example, if an advertisement for a product in which we are interested comes on. Interpretation involves making sense out of the stimulus. For example, when we see a red can, we may categorize it as a Coke. Webers Law suggests that consumers ability to detect changes in stimulus intensity appear to be strongly related to the intensity of that stimulus to begin with. That is, if you hold an object weighing one pound in your hand, you are likely to notice it when that weight is doubled to two pounds. However, if you are holding twenty pounds, you are unlikely to detect the addition of one pounda change that you easily detected when the initial weight was one pound. You may be able to eliminate one ounce from a ten ounce container, but you cannot as easily get away with reducing a three ounce container to two (instead, you must accomplish that graduallye.g., 3.0 --> 2.7 --> 2.5 --> 2.3 --> 2.15 > 2.00). Several factors influence the extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when they have a choice, are also more likely to attend to pleasant stimuli (but when the consumer cant escape, very unpleasant stimuli are also likely to get attentionthus, many very irritating advertisements are remarkably effective). One of the most important factors, however, is repetition. Consumers often do not give much attention to a stimuliparticularly a low priority one such as an advertisementat any one time, but if it is seen over and over again, the cumulative impact will be greater. Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more attention to something unknown that may require action. A greater contrast (difference between the stimulus and its surroundings) as well as greater prominence (e.g., greater size, center placement) also tend to increase likelihood of processing.
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Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers in a theater had been exposed to isolated frames with the words Drink Coca Cola and Eat Popcorn imbedded into the movie. These frames went by so fast that people did not consciously notice them, but it was reported that on nights with frames present, Coke and popcorn sales were significantly higher than on days they were left off. This led Congress to ban the use of subliminal advertising. First of all, there is a question as to whether this experiment ever took place or whether this information was simply made up. Secondly, no one has been able to replicate these findings. There is research to show that people will start to giggle with embarrassment when they are briefly exposed to dirty words in an experimental machine. Here, again, the exposure is so brief that the subjects are not aware of the actual words they saw, but it is evident that something has been recognized by the embarrassment displayed.
11.9. LEARNING AND MEMORY

Background. Learning involves "a change in the content or organization of long term memory and/or behavior." The first part of the definition focuses on what we know (and can thus put to use) while the second focuses on concrete behavior. For example, many people will avoid foods that they consumed shortly before becoming ill. Learning is not all knowledge based. For example, we may experience the sales people in one store being nicer to us than those in the other. We thus may develop a preference for the one store over the other; however, if pressed, we may not be able to give a conscious explanation as to the reason for our preference. Much early work on learning was actually done on rats and other animals (and much of this research was unjustifiably cruel, but that is another matter). Classical conditioning. Pavlovs early work on dogs was known as classical
conditioning. Pavlov discovered that when dogs were fed meat powder they salivated. Pavlov then discovered that if a bell were rung before the dogs were fed, the dogs would begin salivating in anticipation of being fed (this was efficient, since they could then begin digesting the meat powder immediately). Pavlov then found that after the meat had
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been "paired" with the meat powder enough times, Pavlov could ring the bell without feeding the dogs and they would still salivate. In the jargon of classical conditioning, the meat powder was an unconditioned stimulus (US) and the salivation was, when preceded by the meat powder, an unconditioned response (UR). That is, it is a biologically "hard-wired" response to salivate when you are fed. By pairing the bell with the unconditioned stimulus, the bell became a conditioned stimulus (CS) and salivation in response to the bell (with no meat powder) became a conditioned response (CR). Many modern day advertisers use classical conditioning in some way. Consider this sequence:
Operant conditioning. Instrumental, or operant, conditioning, involves a
different series of events, and this what we usually think of as learning. The general pattern is:
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There are three major forms of operant learning. In positive reinforcement, an individual does something and is rewarded. He or she is then more likely to repeat the behavior. For example, you eat a candy bar (behavior), it tastes good (consequence), and you are thus more likely to eat a similar candy bar in the future (behavioral change).
Punishment is the opposite. You eat what looks like a piece of candy (behavior), only to discover that it is a piece of soap with a foul taste (consequences), and subsequently you are less likely to eat anything that looks remotely like that thing ever again (changed behavior). It should be noted that negative reinforcement is very different from punishment. An example of negative reinforcement is an obnoxious sales person who calls you up on the phone, pressuring you into buying something you dont want to do (aversive stimulus). You eventually agree to buy it (changed behavior), and the sales person leaves you alone (the aversive stimulus is terminated as a result of consequences of your behavior). In general, marketers usually have relatively little power to use punishment or negative reinforcement. However, parking meters are often used to discourage consumers from taking up valuable parking space, and manufacturers may void warranties if the consumers take their product to non-authorized repair facilities. Several factors influence the effectiveness of operant learning. In general, the closer in time the consequences are to the behavior, the more effective the learning. That is, electric utilities would be more likely to influence consumers to use less electricity at peak hours if the consumers actually had to pay when they used electricity (e.g., through a coin-slot) rather than at the end of the month. Learning is also more likely to occur
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when the individual can understand a relationship between behavior and consequences (but learning may occur even if this relationship is not understood consciously). Another issue is schedules of reinforcement and extinction. Extinction occurs when behavior stops having consequences and the behavior then eventually stops occurring. For example, if a passenger learns that yelling at check-in personnel no longer gets her upgraded to first class, she will probably stop that behavior. Sometimes, an individual is rewarded every time a behavior is performed (e.g., a consumer gets a soft drink every time coins are put into a vending machine). However, it is not necessary to reward a behavior every time for learning to occur. Even if a behavior is only rewarded some of the time, the behavior may be learned. Several different schedules of reinforcement are possible:
Fixed interval: The consumer is given a free dessert on every Tuesday when he or she Fixed ratio: Behavior is rewarded (or punished) on every nth occasion that it is
eats in a particular restaurant.
performed. (E.g., every tenth time a frequent shopper card is presented, a free product is provided).
Variable ratio: Every time an action is performed, there is a certain percentage chance
that a reward will be given. For example, every time the consumer enters the store, he or she is given a lottery ticket. With each ticket, there is a 20% chance of getting a free hamburger. The consumer may get a free hamburger twice in a row, or he or she may go ten times without getting a hamburger even once. Variable ratio reinforcement is least vulnerable to extinction. Sometimes, shaping may be necessary to teach the consumer the desired behavior. That is, it may be impossible to teach the consumer to directly perform the desired behavior. For example, a consumer may first get a good product for free (the product itself, if good, is a reward), then buy it with a large cents off coupon, and finally buy it at full price. Thus, we reinforce approximations of the desired behavior. Rather than introducing Coca Cola directly in Indonesia, fruit flavored soft drinks were first introduced, since these were more similar to beverages already consumed.
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Vicarious learning. The consumer does not always need to go through the
learning process himself or herselfsometimes it is possible to learn from observing the consequences of others. For example, stores may make a big deal out of prosecuting shop lifters not so much because they want to stop that behavior in the those caught, but rather to deter the behavior in others. Similarly, viewers may empathize with characters in advertisements who experience (usually positive) results from using a product. The Head n Shoulders advertisement, where a poor man is rejected by women until he treats his dandruff with an effective cure, is a good example of vicarious learning. Memory ranges in duration on a continuum from extremely short to very long term. Sensory memory includes storage of stimuli that one might not actually notice (e.g., the color of an advertisement some distance away). For slightly longer duration, when you see an ad on TV for a mail order product you might like to buy, you only keep the phone number in memory until you have dialed it. This is known as short term memory. In order for something to enter into long term memory, which is more permanent, you must usually rehearse it several times. For example, when you move and get a new phone number, you will probably repeat it to yourself many times. Alternatively, you get to learn your drivers license or social security numbers with time, not because you deliberately memorize them, but instead because you encounter them numerous times as you look them up. Several techniques can be used to enhance the memorability of information. Chunking involves rearranging information so that fewer parts need to be remembered. For example, consider the phone number (800) 444-1000. The eight digits can be more economically remembered as an 800 number (1 piece), four repeated 3 times (2 pieces), and 1000 (1-2 pieces). Rehearsal involves the consumer repeating the information over and over so that it can be remembered; this is often done so that a phone number can be remembered while the memoree moves to the phone to dial it. Recirculation involves repeated exposure to the same information; the information is not learned deliberately, but is gradually absorbed through repetition. Thus, it is to the advantage to a marketer to have an advertisement repeated extensivelyespecially the brand name. Elaboration involves the consumer thinking about the objecte.g., the product in an advertisementand thinking about as many related issues as possible. For example, when seeing an ad for Dole bananas, the person may think of the color yellow, going to
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the zoo seeing a monkey eating a banana, and her grandmothers banana-but bread. The Dole brand name may then be activated when any of those stimuli are encountered. Memories are not always easily retrievable. This could be because the information was given lower priority than something elsee.g., we have done a lot of things since last buying a replacement furnace filter and cannot remember where this was bought last. Other times, the information can be retrieved but is not readily availablee.g., we will be able to remember the location of a restaurant we tried last time we were in Paris, but it may take some thinking before the information emerges. Spreading activation involves the idea of one memory triggering another one. For example, one might think of Coke every time one remembers a favorite (and very wise) professor who frequently brought one to class. Coke might also be tied a particular supermarket that always stacked a lot of these beverages by the entrance, and to baseball where this beverage was consumed after the game. It is useful for firms to have their product be activated by as many other stimuli as possible. There are numerous reasons why retrieval can fail or, in less fancy terms, how we come to forget. One is decay. Here, information that is not accessed frequently essentially rusts away. For example, we may not remember the phone number of a friend to whom we have not spoken for several months and may forget what brand of bullets an aunt prefers if we have not gone ammunition shopping with her lately. Other times, the problem may rest in interference. Proactive interference involves something we have learned interfering with what we will late later. Thus, if we remember that everyone in our family always used Tide, we may have more difficulty later remembering what other brands are available. You may be unable to remember what a new, and less important, friends last name is if that person shares a first name with an old friend. For example, if your best friend for many years has been Jennifer Smith, you may have difficulty remembering that your new friend Jennifers last name is Silverman. In retroactive interference, the problem is the reverselearning something new blocks out something old. For example, if you once used WordPerfect than then switched to Microsoft Word, you may have trouble remembering how to use WordPerfect at a friends housemore so than if you had merely not used any word processing program for some time.
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Memorability can be enhanced under certain conditions. One is more likely to remember favorableor likable stimuli (all other things being equal). Salienceor the extent to which something is highly emphasized or very clearly evidentfacilitates memory. Thus, a product which is very visible in an ad, and handled and given attention by the actors, will more likely be remembered. Prototypicality involves the extent to which a stimulus is a perfect example of a category. Therefore, people will more likely remember Coke or Kleenex than competing brands. Congruence involves the fit with a situation. Since memory is often reconstructed based on what seems plausible, something featured in an appropriate settinge.g., charcoal on a porch next to a grill rather than in a garage or kitchenis more likely to be remembered (unless the incongruence triggers an elaborationlife is complicated!) Redundancies involve showing the stimulus several times. Thus, if a given product is shown several places in a houseand if the brand name is repeatedit is more likely to be remembered. Priming involves tying a stimulus with something so that if that something is encountered, the stimulus is more likely to be retrieved. Thus, for example, when one thinks of anniversaries, the Hallmark brand name is more likely to be activated. (This is a special case of spreading activation discussed earlier). A special issue in memory are so called scripts, or procedures we remember for doing things. Scripts involve a series of steps for doing various things (e.g., how to send a package). In general, it is useful for firms to have their brand names incorporated into scripts (e.g., to have the consumer reflexively ask the pharmacist for Bayer rather than an unspecified brand of aspirin). Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for non-geeks. The Visual C software programming language, in contrast, is aimed a techies. Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered everyday low
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prices. Repositioning in practice is very difficult to accomplish. A great deal of money is often needed for advertising and other promotional efforts, and in many cases, the repositioning fails.
11.10. DIFFUSION OF INNOVATION

Products tend to go through a life cycle. Initially, a product is introduced. Since the product is not well known and is usually expensive (e.g., as microwave ovens were in the late 1970s), sales are usually limited. Eventually, however, many products reach a growth phasesales increase dramatically. More firms enter with their models of the product. Frequently, unfortunately, the product will reach a maturity stage where little growth will be seen. For example, in the United States, almost every household has at least one color TV set. Some products may also reach a decline stage, usually because the product category is being replaced by something better. For example, typewriters experienced declining sales as more consumers switched to computers or other word processing equipment. The product life cycle is tied to the phenomenon of diffusion of innovation. When a new product comes out, it is likely to first be adopted by consumers who are more innovative than othersthey are willing to pay a premium price for the new product and take a risk on unproven technology. It is important to be on the good side of innovators since many other later adopters will tend to rely for advice on the innovators who are thought to be more knowledgeable about new products for advice.
At later phases of the PLC, the firm may need to modify its market strategy. For example, facing a saturated market for baking soda in its traditional use, Arm Hammer
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launched a major campaign to get consumers to use the product to deodorize refrigerators. Deodorizing powders to be used before vacuuming were also created. It is sometimes useful to think of products as being either new or existing. Many firms today rely increasingly on new products for a large part of their sales. New products can be new in several ways. They can be new to the marketnoone else ever made a product like this before. For example, Chrysler invented the minivan. Products can also be new to the firmanother firm invented the product, but the firm is now making its own version. For example, IBM did not invent the personal computer, but entered after other firms showed the market to have a high potential. Products can be new to the segmente.g., cellular phones and pagers were first aimed at physicians and other price-insensitive segments. Later, firms decided to target the more price-sensitive mass market. A product can be new for legal purposes. Because consumers tend to be attracted to new and improved products, the Federal Trade Commission (FTC) only allows firms to put that label on reformulated products for six months after a significant change has been made. The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people. Usually, when new products or ideas come about, they are only adopted by a small group of people initially; later, many innovations spread to other people.
The bell shaped curve frequently illustrates the rate of adoption of a new product. Cumulative adoptions are reflected by the S-shaped curve. The saturation point is the maximum proportion of consumers likely to adopt a product.
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In the case of refrigerators in the U.S., the saturation level is nearly one hundred percent of households; it well below that for video games that, even when spread out to a large part of the population, will be of interest to far from everyone. Several specific product categories have case histories that illustrate important issues in adoption. Until some time in the 1800s, few physicians bothered to scrub prior to surgery, even though new scientific theories predicted that small microbes not visible to the naked eye could cause infection. Younger and more progressive physicians began scrubbing early on, but they lacked the stature to make their older colleagues follow. ATM cards spread relatively quickly. Since the cards were used in public, others who did not yet hold the cards could see how convenient they were. Although some people were concerned about security, the convenience factors seemed to be a decisive factor in the tug-of-war for and against adoption. The case of credit cards was a bit more complicated and involved a chicken-and-egg paradox. Accepting credit cards was not a particularly attractive option for retailers until they were carried by a large enough number of consumers. Consumers, in contrast, were not particularly interested in cards that were not accepted by a large number of retailers. Thus, it was necessary to jump start the process, signing up large corporate accounts, under favorable terms, early in the cycle, after which the cards became worthwhile for retailers to accept. Rap music initially spread quickly among urban youths in large part because of the low costs of recording. Later, rap music became popular among a very different segment, suburban youths, because of its apparently authentic depiction of an exotic urban lifestyle.
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Hybrid corn was adopted only slowly among many farmers. Although hybrid corn provided yields of about 20% more than traditional corn, many farmers had difficulty believing that this smaller seed could provide a superior harvest. They were usually reluctant to try it because a failed harvest could have serious economic consequences, including a possible loss of the farm. Agricultural extension agents then sought out the most progressive farmers to try hybrid corn, also aiming for farmers who were most respected and most likely to be imitated by others. Few farmers switched to hybrid corn outright from year to year. Instead, many started out with a fraction of their land, and gradually switched to 100% hybrid corn when this innovation had proven itself useful. Several forces often work against innovation. One is risk, which can be either social or financial. For example, early buyers of the CD player risked that few CDs would be recorded before the CD player went the way of the 8 track player. Another risk is being perceived by others as being weird for trying a fringe product or idea. For example, Barbara Mandrell sings the song I Was Country When Country Wasnt Cool. Other sources of resistance include the initial effort needed to learn to use new products (e.g., it takes time to learn to meditate or to learn how to use a computer) and concerns about compatibility with the existing culture or technology. For example, birth control is incompatible with strong religious influences in countries heavily influenced by Islam or Catholicism, and a computer database is incompatible with a large, established card file. Innovations come in different degrees. A continuous innovation includes slight improvements over time. Very little usually changes from year to year in automobiles, and even automobiles of the 1990s are driven much the same way that automobiles of the 1950 were driven. A dynamically continuous innovation involves some change in technology, although the product is used much the same way that its predecessors were usede.g., jet vs. propeller aircraft. A discontinous innovation involves a product that fundamentally changes the way that things are donee.g., the fax and photocopiers. In general, discontinuous innovations are more difficult to market since greater changes are required in the way things are done, but the rewards are also often significant. Several factors influence the speed with which an innovation spreads. One issue is relative advantage (i.e., the ratio of risk or cost to benefits). Some products, such as cellular phones, fax machines, and ATM cards, have a strong relative advantage. Other products, such as automobile satellite navigation systems, entail some advantages, but
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the cost ratio is high. Lower priced products often spread more quickly, and the extent to which the product is trialable (farmers did not have to plant all their land with hybrid corn at once, while one usually has to buy a cellular phone to try it out) influence the speed of diffusion. Finally, the extent of switching difficulties influences speedmany offices were slow to adopt computers because users had to learn how to use them. Some cultures tend to adopt new products more quickly than others, based on several factors:
Modernity: The extent to which the culture is receptive to new things. In some
countries, such as Britain and Saudi Arabia, tradition is greatly valuedthus, new products often dont fare too well. The United States, in contrast, tends to value progress.
Homophily: The more similar to each other that members of a culture are, the more
likely an innovation is to spreadpeople are more likely to imitate similar than different models. The two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S. interestingly scores very low, Japan scores high.
Physical distance: The greater the distance between people, the less likely innovation Opinion leadership: The more opinion leaders are valued and respected, the more
is to spread.
likely an innovation is to spread. The style of opinion leaders moderates this influence, however. In less innovative countries, opinion leaders tend to be more conservative, i.e., to reflect the local norms of resistance. It should be noted that innovation is not always an unqualifiedly good thing. Some innovations, such as infant formula adopted in developing countries, may do more harm than good. Individuals may also become dependent on the innovations. For example, travel agents who get used to booking online may be unable to process manual reservations. Sometimes innovations are disadopted. For example, many individuals disadopt cellular phones if they find out that they dont end up using them much.
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Attitudes Introduction. Consumer attitudes are a composite of a consumers (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object--within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object.
Beliefs. The first component is beliefs. A consumer may hold both positive
beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral (coffee is black), and some may be differ in valance depending on the person or the situation (e.g., coffee is hot and stimulates--good on a cold morning, but not good on a hot summer evening when one wants to sleep). Note also that the beliefs that consumers hold need not be accurate (e.g., that pork contains little fat), and some beliefs may, upon closer examination, be contradictory (e.g., that a historical figure was a good person but also owned slaves). Since a consumer holds many beliefs, it may often be difficult to get down to a bottom line overall belief about whether an object such as McDonalds is overall good or bad. The Multiattribute (also sometimes known as the Fishbein) Model attempts to summarize overall attitudes into one score using the equation:
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That is, for each belief, we take the weight or importance (Wi) of that belief and multiply it with its evaluation (Xib). For example, a consumer believes that the taste of a beverage is moderately important, or a 4 on a scale from 1 to 7. He or she believes that coffee tastes very good, or a 6 on a scale from 1 to 7. Thus, the product here is 4(6)=24. On the other hand, he or she believes that the potential of a drink to stain is extremely important (7), and coffee fares moderately badly, at a score -4, on this attribute (since this is a negative belief, we now take negative numbers from -1 to -7, with -7 being worst). Thus, we now have 7(-4)=-28. Had these two beliefs been the only beliefs the consumer held, his or her total, or aggregated, attitude would have been 24+(-28)=-4. In practice, of course, consumers tend to have many more beliefs that must each be added to obtain an accurate measurement. Affect. Consumers also hold certain feelings toward brands or other objects. Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it contains), but there may also be feelings which are relatively independent of beliefs. For example, an extreme environmentalist may believe that cutting down trees is morally wrong, but may have positive affect toward Christmas trees because he or she unconsciously associates these trees with the experience that he or she had at Christmas as a child. Behavioral Intention. The behavioral intention is what the consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g., although a consumer does not really like a restaurant, he or she will go there because it is a hangout for his or her friends. Attitude-Behavior Consistency. Consumers often do not behave consistently with their attitudes for several reasons:
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Ability. He or she may be unable to do so. Although junior high school student likes Competing demands for resources. Although the above student would like to buy a
pick-up trucks and would like to buy one, she may lack a drivers license.
pickup truck on her sixteenth birthday, she would rather have a computer, and has money for only one of the two.
Social influence. A student thinks that smoking is really cool, but since his friends Measurement problems. Measuring attitudes is difficult. In many situations,
think its disgusting, he does not smoke.
consumers do not consciously set out to enumerate how positively or negatively they feel about mopeds, and when a market researcher asks them about their beliefs about mopeds, how important these beliefs are, and their evaluation of the performance of mopeds with respect to these beliefs, consumers often do not give very reliable answers. Thus, the consumers may act consistently with their true attitudes, which were never uncovered because an erroneous measurement was made. Attitude Change Strategies. Changing attitudes is generally very difficult, particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e.g., to get the consumer to buy more or to switch brands). Changing affect. One approach is to try to change affect, which may or may not involve getting consumers to change their beliefs. One strategy uses the approach of classical conditioning try to pair the product with a liked stimulus. For example, we pair a car with a beautiful woman. Alternatively, we can try to get people to like the advertisement and hope that this liking will spill over into the purchase of a product. For example, the Pillsbury Doughboy does not really emphasize the conveyance of much information to the consumer; instead, it attempts to create a warm, fuzzy image. Although Energizer Bunny ads try to get people to believe that their batteries last longer, the main emphasis is on the likeable bunny. Finally, products which are better known, through the mere exposure effect, tend to be better liked--that is, the more a product is advertised and seen in stores, the more it will generally be liked, even if consumers to do not develop any specific beliefs about the product. Changing behavior. People like to believe that their behavior is rational; thus, once they use our products, chances are that they will continue unless someone is able to get them to switch. One way to get people to switch to our brand is to use temporary price
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discounts and coupons; however, when consumers buy a product on deal, they may justify the purchase based on that deal (i.e., the low price) and may then switch to other brands on deal later. A better way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. (Notice, by the way, that this represents a case of shaping). Changing beliefs. Although attempting to change beliefs is the obvious way to attempt attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because consumers tend to resist. Several approaches to belief change exist: 1. Change currently held beliefs. It is generally very difficult to attempt to change beliefs that people hold, particularly those that are strongly held, even if they are inaccurate. For example, the petroleum industry advertised for a long time that its profits were lower than were commonly believed, and provided extensive factual evidence in its advertising to support this reality. Consumers were suspicious and rejected this information, however. 2. Change the importance of beliefs. Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth, it is usually not feasible to make beliefs less important--consumers are likely to reason, why, then, would you bother bringing them up in the first place? However, it may be possible to strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. Most consumers already agree with this, but the belief can be made stronger. 3. Add beliefs. Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. Thus, the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which sounds quite plausible to most people. 4. Change ideal. It usually difficult, and very risky, to attempt to change ideals, and only few firms succeed. For example, Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression.
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One-sided vs. two-sided appeals. Attitude research has shown that consumers often tend to react more favorably to advertisements which either (1) admit something negative about the sponsoring brand (e.g., the Volvo is a clumsy car, but very safe) or (2) admits something positive about a competing brand (e.g., a competing supermarket has slightly lower prices, but offers less service and selection). Two-sided appeals must, contain overriding arguments why the sponsoring brand is ultimately superior--that is, in the above examples, the but part must be emphasized. 11.11. THE ELABORATION LIKELIHOOD MODEL (ELM) AND CELEBRITY ENDORSEMENTS. The ELM suggests that consumers will scrutinize claims more in important situations than in unimportant ones. For example, we found that in the study of people trying to get ahead of others in a line to use photo copiers, the compliance rate was about fifty percent when people just asked to get ahead. However, when the justification ... because I have to make copies was added, compliance increased to 80%. Since the reason offered really did not add substantive information, we conclude that it was not extensively analyzed--in the jargon of the theory, elaboration was low.
The ELM suggests that for unimportant products, elaboration will be low, and thus Bill Cosby is able to endorse Coke and Jell-O without having any special credentials to do so. However, for products which are either expensive or important for some other reason (e.g., a pain reliever given to a child that could be harmed by using dangerous substances), elaboration is likely to be more extensive, and the endorser is expected to be congruent, or compatible, with the product. For example, a basket ball player is likely
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to be effective in endorsing athletic shoes, but not in endorsing automobiles. On the other hand, a nationally syndicated auto columnist would be successful in endorsing cars, but not athletic shoes. All of them, however, could endorse fast food restaurants effectively. Appeal Approaches. Several approaches to appeal may be used. The use of affect to induce empathy with advertising characters may increase attraction to a product, but may backfire if consumers believe that peoples feelings are being exploited. Fear appeals appear to work only if (1) an optimal level of fear is evoked--not so much that people tune it out, but enough to scare people into action and (2) a way to avoid the feared stimulus is explicitly indicated--e.g., gingivitis and tooth loss can be avoided by using this mouth wash. Humor appears to be effective in gaining attention, but does not appear to increase persuasion in practice. In addition, a more favorable attitude toward the advertisement may be created by humorous advertising, which may in turn result in increased sales. Comparative advertising, which is illegal in many countries, often increases sales for the sponsoring brand, but may backfire in certain cultures. Electronic Commerce Online marketing can serve several purposes:

Actual sales of productse.g., Amazon.com. Promotion/advertising: Customers can be quite effectively targeted in many
situations because of the context that they, themselves, have sought out. For example, when a consumer searches for a specific term in a search engine, a banner or link to a firm selling products in that area can be displayed. Print and television advertisements can also feature the firms web address, thus inexpensively drawing in those who would like additional information.
Customer service: The site may contain information for those who no longer have
their manuals handy and, for electronic products, provide updated drivers and software patches.
Market research: Data can be collected relatively inexpensively on the Net.
However, the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions. This is one of the reasons why the quality of data collected online is often suspect.
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12. ECONOMICS OF ELECTRONIC COMMERCE:
Some people have suggested that the Internet may be a less expensive way to distribute products than traditional brick-and-mortar stores. However, in most cases, selling online will probably be more costly than selling in traditional stores due to the high costs of processing orders and direct shipping to the customer. Some products may, however, be economically marketed online. Some factors that are relevant in assessing the potential for e-commerce to be an effective way to sell a specific products are:
Value-to-bulk ratio. Products that have a lot of value squeezed into a small volume
(e.g., high end jewelry and certain electronic products) are often more cost-effective to ship to end-customers than are bulkier products with less value (e.g., low end furniture).
Absolute margins. Some products may have a rather high percentage margine.g., a
scarf bought at wholesale at $10 and marked up 100% to be sold at $20. However, the absolute margin is only $20-$10=$10. In contrast, a laptop computer may be bought at $1,000 and be marked up by only 15%, or $150, for a total price of $1,150. Here, however, the absolute margin will be larger--$150. This allows the merchant to spend money on processing, packaging, and shipping the order. Ten dollars, in contrast, can only cover a small amount of employee time and very limited packaging and shipping. Some online merchants do charge for shipping, but doing so will ultimately make the online merchant less competitive.
Extent of customization needed. Some products need to be customizede.g., checks
have to be personalized and airline tickets have to be issued for a specific departure site, destination time, and travel time. Here, online processing may be useful because the customer can do much of the work.
Willingness of customers to pay for convenience. Some consumers may be willing to
pay for the convenience of having products delivered to their door. For example, delivering high bulk, generally low value groceries is generally not efficient. However, for some customers, it may be worthwhile to pay to avoid an inconvenient trip to the grocery store.
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Geographic dispersal of customers. Electronic commerce, when value-to-bulk ratios
and absolute margins are not favorable, is often not viable when customers are located conveniently close to a retail outlet. However, for some productse.g., bee keeping equipmentcustomers are widely geographically dispersed and thus, a centralized distribution center may be more economically viable. Specialty bookse.g., for collectors of vintage automobilesmay not be worthwhile for bookstores to stock, and these may thus be economically sold online.
Vulnerability of inventory to loss of value. Some productsespecially high tech
productshave a very high effective carrying costs. It has been estimated that because of the rapid technological progress made in the computer field, computer parts may lose as much as 1.5% of their value per week. If shipping directly to the customer can reduce the channel time by five weeks, this potentially rescues as much as 7.5% of the product value. In such a situation, then, trying to reach the customer directly may make sense, even if the direct costs of distribution are higher, because of the inventory value issue. There are a number of economic realities of online competition:
As discussed, costs of handling online orders is often higher than that of distributing Even if online selling is more cost effective in some situations, a firm selling online
through traditional stores.
will, in the long run, be competing with other online merchantsnot just against traditional brick-and-mortar stores. By the forces of supply and demand, online prices will then be driven down so that the profit from selling online will be no greater than that from traditional retailing. Any reduced costs would then be expected to go to customers.
Competition will be greater for products that have large markets than for those where
markets are smaller and more specialized. Amazon.com, for example, has found it necessary to discount best selling books deeply. Higher pricescloser to the list price can be charged for specialty books, but for a large part of the market, competition will be intense.
A new online merchant will face competition from established traditional merchants.
These will often have the cash reserves to stay in business for a long time even with temporary competition. The online merchant, if it has no cash reserves other than stockholders investment, may run out of cash before it can become profitable. 12.1. ISSUES IN WEB SITE DESIGN
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Web site design: The web designer must make various issues into consideration:
Speed vs. aesthetics: As we saw, some of the fancier sites have serious problems
functioning practically. Consumers may be impressed by a fancy site, or may lack confidence in a firm that offers a simple one. Yet, fancier sites with extensive graphics take time to downloadparticularly for users dialing in with a modem as opposed to being hard wiredand may result in site crashes.
Keeping users on the site: A large number of baskets are abandoned online as
consumers fail to complete the check-out process for the products they have selected. One problem here is that many consumers are drawn away from a site and then are unlikely to come back. A large number of links may be desirable to consumers, but they tend to draw people away. Taking banner advertisers on your site from other sites may be profitable, but it may result in customers lost.
Information collection: An increasing number of consumers resist collection of
information about them, and a number of consumers have set up their browsers to disallow cookies, files that contain information about their computers and shopping habits. Cyber-consumer behavior: In principle, it is fairly easy to search and compare online, and it was feared that this might wipe out all margins online. More recent research suggests that consumers in fact do not tend to search very intently and that large price differences between sites persist. We saw above the problem of keeping consumers from prematurely departing from ones site. Site content. The content of a site should generally be based on the purposes of operating a site. For most sites, however, having a clear purpose be evident is essential. The site should generally provide some evidence for this position. For example, if the site claims a large selection, the vast choices offered should be evident. Sites that claim convenience should make this evident. A main purpose of the Internet is to make information readily available, and the site should be designed so that finding the needed information among all the content of the site is as easy as possible. Since it is easy for consumers to move to other sites, the site should be made interesting. To provide the information and options desired by customers, two-way interaction capabilities are essential.
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12.2. WEB SITE TRAFFIC GENERATION The web is now so large that getting traffic to any one site can be difficult. One method is search engine optimization, a topic that will be covered below. Other methods include viral campaigns wherein current users are used to spread the word about a site, firm, or service. For example, Hotmail attaches a message to every e-mail sent from its service alerting the recipient that a free e-mail account can be had there. Google offers a free e-mail account with a full gigabyte of storage. This is available only by invitation from others who have such e-mail accounts. Amazon.com at one point invited people, when they had completed a purchase, to automatically e-mail friends whose e-mail addresses they provided with a message about what they had just bought. If the friend bought any of the same items, both the original customer and the friend would get a discount. Another method of gaining traffic is through online advertising. Sites like Yahoo! are mainly sponsored by advertisers, as are many sites for newspapers and magazines. Individuals who see an ad on these sites can usually click to go to the sponsors web site. Occasionally, a firm may advertise their sites in traditional media. Geico, Dell Computer, and Progressive Insurance do this. Overstock.com has also advertised a lot on traditional TV programs. Conventional advertising may also contain a web site address as part of a larger advertising message. Viral marketing is more suitable for some products than for others. To get others involved in spreading the word, the product usually must be interesting and unique. It must also be simple enough so that it can be explained briefly. It is most useful when switching or trial costs are low. It is more difficult, for example, getting people to sign up for a satellite system or cellular phone service where equipment has to be bought up front and/or a long term contract is required makes viral marketing more difficult. Viral marketing does raise some problems about control of the campaign. For example, if a service is aimed at higher income countries and residents there spread the word to consumers in lower income countries, people attracted may be unprofitable. For Googles one gigabyte e-mail account, for example, there are large costs that may be covered by advertising revenues from ads aimed at people who can afford to buy
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products and services. Advertisers, however, may not be willing to pay for targets who cannot afford their products. It is also difficult to control word of mouth (or word of keyboard). Measuring the effectiveness of a campaign may be difficult. When a viral campaign relies on e-mail, messages received may be considered spam by some recipients, leading to potential brand damage and loss of goodwill. Online promotions. One way to generate traffic is promotions. Many sites often offer new customers discounts or free gifts. This can be expensive, but sometimes, the gifts can be ones that have a low marginal cost. For example, once the firms pays for the development of a game, the cost of letting new users download it is modest. The U.S. army uses this approach in making a game available. To be allowed to use some of the cooler features, the user has to go through various stages of basic training.
12.3. COUNTRY ENTRY: DECISIONS AND STRATEGIES:

Segmentation, Targeting, and Positioning. Segmentation, in marketing, is usually done at the customer level. However, in international marketing, it may sometimes be useful to see countries as segments. This allows the decision maker to focus on common aspects of countries and avoid information overload. It should be noted that variations within some countries (e.g., Brazil) are very large and therefore, averages may not be meaningful. Country level segmentation may be done on levels such as geographybased on the belief that neighboring countries and countries with a particular type of climate or terrain tend to share similarities, demographics (e.g., population growth, educational attainment, population age distribution), or income. Segmenting on income is tricky since the relative prices between countries may differ significantly (based, in part, on purchasing power parity measures that greatly affect the relative cost of imported and domestically produced products). The importance of STP. Segmentation is the cornerstone of marketingalmost all marketing efforts in some way relate to decisions on who to serve or how to implement positioning through the different parts of the marketing mix. For example, ones distribution strategy should consider where ones target market is most likely to buy the product, and a promotional strategy should consider the targets media habits and which
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kinds of messages will be most persuasive. Although it is often tempting, when observing large markets, to try to be "all things to all people," this is a dangerous strategy because the firm may lose its distinctive appeal to its chosen segments. In terms of the "big picture," members of a segment should generally be as similar as possible to each other on a relevant dimension (e.g., preference for quality vs. low price) and as different as possible from members of other segments. That is, members should respond in similar ways to various treatments (such as discounts or high service) so that common campaigns can be aimed at segment members, but in order to justify a different treatment of other segments, their members should have their own unique response behavior. Approaches to global segmentation. There are two main approaches to global segmentation. At the macro level, countries are seen as segments, given that country aggregate characteristics and statistics tend to differ significantly. For example, there will only be a large market for expensive pharmaceuticals in countries with certain income levels, and entry opportunities into infant clothing will be significantly greater in countries with large and growing birthrates (in countries with smaller birthrates or stable to declining birthrates, entrenched competitors will fight hard to keep the market share). There are, however, significant differences within countries. For example, although it was thought that the Italian market would demand "no frills" inexpensive washing machines while German consumers would insist on high quality, very reliable ones, it was found that more units of the inexpensive kind were sold in Germany than in Italy although many German consumers fit the predicted profile, there were large segment differences within that country. At the micro level, where one looks at segments within countries. Two approaches exist, and their use often parallels the firms stage of international involvement. Intramarket segmentation involves segmenting each countrys markets from scratchi.e., an American firm going into the Brazilian market would do research to segment Brazilian consumers without incorporating knowledge of U.S. buyers. In contrast, intermarket segmentation involves the detection of segments that exist across borders. Note that not all segments that exist in one country will exist in another and that the sizes of the segments may differ significantly. For example, there is a huge small car segment in Europe, while it is considerably smaller in the U.S.
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Intermarket segmentation entails several benefits. The fact that products and promotional campaigns may be used across markets introduces economies of scale, and learning that has been acquired in one market may be used in anothere.g., a firm that has been serving a segment of premium quality cellular phone buyers in one country can put its experience to use in another country that features that same segment. (Even though segments may be similar across the cultures, it should be noted that it is still necessary to learn about the local market. For example, although a segment common across two countries may seek the same benefits, the cultures of each country may cause people to respond differently to the "hard sell" advertising that has been successful in one). The international product life cycle suggests that product adoption and spread in some markets may lag significantly behind those of others. Often, then, a segment that has existed for some time in an "early adopter" country such as the U.S. or Japan will emerge after several years (or even decades) in a "late adopter" country such as Britain or most developing countries. (We will discuss this issue in more detail when we cover the product mix in the second half of the term). Positioning across markets. Firms often have to make a tradeoff between adapting their products to the unique demands of a country market or gaining benefits of standardization such as cost savings and the maintenance of a consistent global brand image. There are no easy answers here. On the one hand, McDonalds has spent a great deal of resources to promote its global image; on the other hand, significant accommodations are made to local tastes and preferencesfor example, while serving alcohol in U.S. restaurants would go against the family image of the restaurant carefully nurtured over several decades, McDonalds has accommodated this demand of European patrons.
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The Japanese Keiretsu Structure. In Japan, many firms are part of a keiretsu, or a conglomerate that ties together businesses that can aid each other. For example, a keiretsu might contain an auto division that buys from a steel division. Both of these might then buy from a iron mining division, which in turns buys from a chemical division that also sells to an agricultural division. The agricultural division then sells to the restaurant division, and an electronics division sells to all others, including the auto division. Since the steel division may not have opportunities for reinvestment, it puts its profits in a bank in the center, which in turns lends it out to the electronics division that is experiencing rapid growth.
This practice insulates the businesses to some extent against the business cycle, guaranteeing an outlet for at least some product in bad times, but this structure has caused problems in Japan as it has failed to "root out" inefficient keiretsu members which have not had to "shape up" to the rigors of the market. Methods of entry. With rare exceptions, products just dont emerge in foreign markets overnighta firm has to build up a market over time. Several strategies, which differ in aggressiveness, risk, and the amount of control that the firm is able to maintain, are available:
Exporting is a relatively low risk strategy in which few investments are made in the
new country. A drawback is that, because the firm makes few if any marketing
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investments in the new country, market share may be below potential. Further, the firm, by not operating in the country, learns less about the market (What do consumers really want? Which kinds of advertising campaigns are most successful? What are the most effective methods of distribution?) If an importer is willing to do a good job of marketing, this arrangement may represent a "win-win" situation, but it may be more difficult for the firm to enter on its own later if it decides that larger profits can be made within the country.
Licensing and franchising are also low exposure methods of entryyou allow
someone else to use your trademarks and accumulated expertise. Your partner puts up the money and assumes the risk. Problems here involve the fact that you are training a potential competitor and that you have little control over how the business is operated. For example, American fast food restaurants have found that foreign franchisers often fail to maintain American standards of cleanliness. Similarly, a foreign manufacturer may use lower quality ingredients in manufacturing a brand based on premium contents in the home country.
Contract manufacturing involves having someone else manufacture products while
you take on some of the marketing efforts yourself. This saves investment, but again you may be training a competitor.
Direct entry strategies, where the firm either acquires a firm or builds operations
"from scratch" involve the highest exposure, but also the greatest opportunities for profits. The firm gains more knowledge about the local market and maintains greater control, but now has a huge investment. In some countries, the government may expropriate assets without compensation, so direct investment entails an additional risk. A variation involves a joint venture, where a local firm puts up some of the money and knowledge about the local market. Entry Strategies Methods of entry. With rare exceptions, products just dont emerge in foreign markets overnighta firm has to build up a market over time. Several strategies, which differ in aggressiveness, risk, and the amount of control that the firm is able to maintain, are available:
Exporting is a relatively low risk strategy in which few investments are made in the
new country. A drawback is that, because the firm makes few if any marketing
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investments in the new country, market share may be below potential. Further, the firm, by not operating in the country, learns less about the market (What do consumers really want? Which kinds of advertising campaigns are most successful? What are the most effective methods of distribution?) If an importer is willing to do a good job of marketing, this arrangement may represent a "win-win" situation, but it may be more difficult for the firm to enter on its own later if it decides that larger profits can be made within the country.
Licensing and franchising are also low exposure methods of entryyou allow
someone else to use your trademarks and accumulated expertise. Your partner puts up the money and assumes the risk. Problems here involve the fact that you are training a potential competitor and that you have little control over how the business is operated. For example, American fast food restaurants have found that foreign franchisers often fail to maintain American standards of cleanliness. Similarly, a foreign manufacturer may use lower quality ingredients in manufacturing a brand based on premium contents in the home country.
Turnkey Projects. A firm uses knowledge and expertise it has gained in one or more
markets to provide a working projecte.g., a factory, building, bridge, or other structure to a buyer in a new country. The firm can take advantage of investments already made in technology and/or development and may be able to receive greater profits since these investments do not have to be started from scratch again. However, getting the technology to work in a new country may be challenging for a firm that does not have experience with the infrastructure, culture, and legal environment.
Management Contracts. A firm agrees to manage a facilitye.g., a factory, port, or
airportin a foreign country, using knowledge gained in other markets. Again, one thing is to be able to transfer technologyanother is to be able to work in a new country with a different infrastructure, culture, and political/legal environment.
Contract manufacturing involves having someone else manufacture products while
you take on some of the marketing efforts yourself. This saves investment, but again you may be training a competitor.
Direct entry strategies, where the firm either acquires a firm or builds operations
"from scratch" involve the highest exposure, but also the greatest opportunities for profits. The firm gains more knowledge about the local market and maintains greater control, but now has a huge investment. In some countries, the government may expropriate assets without compensation, so direct investment entails an additional risk.
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A variation involves a joint venture, where a local firm puts up some of the money and knowledge about the local market.
12.4. PRODUCT ISSUES IN INTERNATIONAL MARKETING Products and Services. Some marketing scholars and professionals tend to draw a strong distinction between conventional products and services, emphasizing service characteristics such as heterogeneity (variation in standards among providers, frequently even among different locations of the same firm), inseperability from consumption, intangibility, and, in some cases, perishabilitythe idea that a service cannot generally be created during times of slack and be stored for use later. However, almost all products have at least some service componente.g., a warranty, documentation, and distributionand this service component is an integral part of the product and its positioning. Thus, it may be more useful to look at the product-service continuum as one between very low and very high levels of tangibility of the service. Income tax preparation, for example, is almost entirely intangiblethe client may receive a few printouts, but most of the value is in the service. On the other hand, a customer who picks up rocks for construction from a landowner gets a tangible product with very little value added for service. Firms that offer highly tangible products often seek to add an intangible component to improve perception. Conversely, adding a tangible element to a servicee.g., a binder with informationmay address many consumers psychological need to get something to show for their money.On the topic of services, cultural issues may be even more prominent than they are for tangible goods. There are large variations in willingness to pay for quality, and often very large differences in expectations. In some countries, it may be more difficult to entice employees to embrace a firms customer service philosophy. Labor regulations in some countries make it difficult to terminate employees whose treatment of customers is substandard. Speed of service is typically important in the U.S. and western countries but personal interaction may seem more important in other countries. Product Need Satisfaction. We often take for granted the obvious need that products seem to fill in our own culture; however, functions served may be very different in othersfor example, while cars have a large transportation role in the U.S., they are impractical to drive in Japan, and thus cars there serve more of a role of being a status
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symbol or providing for individual indulgence. In the U.S., fast food and instant drinks such as Tang are intended for convenience; elsewhere, they may represent more of a treat. Thus, it is important to examine through marketing research consumers true motives, desires, and expectations in buying a product. Approaches to Product Introduction. Firms face a choice of alternatives in marketing their products across markets. An extreme strategy involves customization, whereby the firm introduces a unique product in each country, usually with the belief tastes differ so much between countries that it is necessary more or less to start from scratch in creating a product for each market. On the other extreme, standardization involves making one global product in the belief the same product can be sold across markets without significant modificatione.g., Intel microprocessors are the same regardless of the country in which they are sold. Finally, in most cases firms will resort to some kind of adaptation, whereby a common product is modified to some extent when moved between some marketse.g., in the United States, where fuel is relatively less expensive, many cars have larger engines than their comparable models in Europe and Asia; however, much of the design is similar or identical, so some economies are achieved. Similarly, while Kentucky Fried Chicken serves much the same chicken with the eleven herbs and spices in Japan, a lesser amount of sugar is used in the potato salad, and fries are substituted for mashed potatoes.There are certain benefits to standardization. Firms that produce a global product can obtain economies of scale in manufacturing, and higher quantities produced also lead to a faster advancement along the experience curve. Further, it is more feasible to establish a global brand as less confusion will occur when consumers travel across countries and see the same product. On the down side, there may be significant differences in desires between cultures and physical environmentse.g., software sold in the U.S. and Europe will often utter a beep to alert the user when a mistake has been made; however, in Asia, where office workers are often seated closely together, this could cause embarrassment.Adaptations come in several forms. Mandatory adaptations involve changes that have to be made before the product can be usede.g., appliances made for the U.S. and Europe must run on different voltages, and a major problem was experienced in the European Union when hoses for restaurant frying machines could not simultaneously meet the legal requirements of different countries. Discretionary changes are changes that do not have to be made before a product can be introduced (e.g., there is nothing to prevent an
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American firm from introducing an overly sweet soft drink into the Japanese market), although products may face poor sales if such changes are not made. Discretionary changes may also involve cultural adaptationse.g., in Sesame Street, the Big Bird became the Big Camel in Saudi Arabia.
Another distinction involves physical product vs. communication adaptations. In order for gasoline to be effective in high altitude regions, its octane must be higher, but it can be promoted much the same way. On the other hand, while the same bicycle might be sold in China and the U.S., it might be positioned as a serious means of transportation in the former and as a recreational tool in the latter. In some cases, products may not need to be adapted in either way (e.g., industrial equipment), while in other cases, it might have to be adapted in both (e.g., greeting cards, where the both occasions, language, and motivations for sending differ). washing machines. Branding. While Americans seem to be comfortable with category specific brands, this is not the case for Asian consumers. American firms observed that their products would be closely examined by Japanese consumers who could not find a major brand name on the packages, which was required as a sign of quality. Note that Japanese keiretsus span and use their brand name across multiple industriese.g., Mitsubishi, among other things, sells food, automobiles, electronics, and heavy construction equipment. Finally, a market may powered exist abroad for a product which has no analogue at homee.g., hand-
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The international product life cycle (plc). Consumers in different countries differ in the speed with which they adopt new products, in part for economic reasons (fewer Malaysian than American consumers can afford to buy VCRs) and in part because of attitudes toward new products (pharmaceuticals upset the power afforded to traditional faith healers, for example). Thus, it may be possible, when one market has been saturated, to continue growth in another markete.g., while somewhere between one third and one half of American homes now contain a computer, the corresponding figures for even Europe and Japan are much lower and thus, many computer manufacturers see greater growth potential there. Note that expensive capital equipment may also cycle between countriese.g., airlines in economically developed countries will often buy the newest and most desired aircraft and sell off older ones to their counterparts in developing countries. While in developed countries, three part canning machines that solder on the bottom with lead are unacceptable for health reasons, they have found a market in developing countries. Diffusion of innovation. Good new innovations often do not spread as quickly as one might expecte.g., although the technology for microwave ovens has existed since the 1950s, they really did not take off in the United States until the late seventies or early eighties, and their penetration is much lower in most other countries. The typewriter, telephone answering machines, and cellular phones also existed for a long time before they were widely adopted.Certain characteristics of products make them more or less likely to spread. One factor is relative advantage. While a computer offers a huge advantage over a typewriter, for example, the added gain from having an electric typewriter over a manual one was much smaller. Another issue is compatibility, both in the social and physical sense. A major problem with the personal computer was that it
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could not read the manual files that firms had maintained, and birth control programs are resisted in many countries due to conflicts with religious values. Complexity refers to how difficult a new product is to usee.g., some people have resisted getting computers because learning to use them takes time. Trialability refers to the extent to which one can examine the merits of a new product without having to commit a huge financial or personal investmente.g., it is relatively easy to try a restaurant with a new ethnic cuisine, but investing in a global positioning navigation system is riskier since this has to be bought and installed in ones car before the consumer can determine whether it is worthwhile in practice. Finally, observability refers to the extent to which consumers can readily see others using the producte.g., people who do not have ATM cards or cellular phones can easily see the convenience that other people experience using them; on the other hand, VCRs are mostly used in peoples homes, and thus only an owners close friends would be likely to see it.At the societal level, several factors influence the spread of an innovation. Not surprisingly, cosmopolitanism, the extent to which a country is connected to other cultures, is useful. Innovations are more likely to spread where there is a higher percentage of women in the work force; these women both have more economic power and are able to see other people use the products and/or discuss them. Modernity refers to the extent to which a culture values progress. In the U.S., new and improved is considered highly attractive; in more traditional countries, their potential for disruption cause new products to be seen with more skepticism. Although U.S. consumers appear to adopt new products more quickly than those of other countries, we actually score lower on homiphily, the extent to which consumers are relatively similar to each other, and physical distance, where consumers who are more spread out are less likely to interact with other users of the product. Japan, which ranks second only to the U.S., on the other hand, scores very well on these latter two factors.
12.5. INTERNATIONAL PROMOTION Promotional tools. Numerous tools can be used to influence consumer purchases:
Advertisingin or on newspapers, radio, television, billboards, busses, taxis, or the
Internet.
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Price promotionsproducts are being made available temporarily as at a lower price,
or some premium (e.g., toothbrush with a package of toothpaste) is being offered for free.

Sponsorships Point-of-purchasethe manufacturer pays for extra display space in the store or puts Other method of getting the consumers attentionall the Gap stores in France may
a coupon right by the product
benefit from the prominence of the new store located on the Champs-Elysees
Promotional objectives. Promotional objectives involve the question of what the firm hopes to achieve with a campaignincreasing profits is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more). Some common objectives that firms may hold:
Awareness. Many French consumers do not know that the Gap even exists, so they
cannot decide to go shopping there. This objective is often achieved through advertising, but could also be achieved through favorable point-of-purchase displays. Note that since advertising and promotional stimuli are often afforded very little attention by consumers, potential buyers may have to be exposed to the promotional stimulus numerous times before it registers.
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Trial. Even when consumers know that a product exists and could possibly satisfy
some of their desires, it may take a while before they get around to trying the product especially when there are so many other products that compete for their attention and wallets. Thus, the next step is often to try get consumer to try the product at least once, with the hope that they will make repeat purchases. Coupons are often an effective way of achieving trial, but these are illegal in some countries and in some others, the infrastructure to readily accept coupons (e.g., clearing houses) does not exist. Continued advertising and point-of-purchase displays may be effective. Although Coca Cola is widely known in China, a large part of the population has not yet tried the product.
Attitude toward the product. A high percentage of people in the U.S. and Europe has
tried Coca Cola, so a more reasonable objective is to get people to believe positive things about the producte.g., that it has a superior taste and is better than generics or store brands. This is often achieved through advertising.
Temporary sales increases. For mature products and categories, attitudes may be
fairly well established and not subject to cost-effective change. Thus, it may be more useful to work on getting temporary increases in sales (which are likely to go away the incentives are removed). In the U.S. and Japan, for example, fast food restaurants may run temporary price promotions to get people to eat out more or switch from competitors, but when these promotions end, sales are likely to move back down again (in developing countries, in contrast, trial may be a more appropriate objective in this category). Note that in new or emerging markets, the first objectives are more likely to be useful while, for established products, the latter objectives may be more useful in mature markets such as Japan, the U.S., and Western Europe.
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Constraints on Global Communications Strategies. Although firms that seek standardized constraints:
positions may seek globally unified campaigns, there are several
Language barriers: The advertising will have to be translated, not just into the
generic language category (e.g., Portuguese) but also into the specific version spoken in the region (e.g., Brazilian Portuguese). (Occasionally, foreign language ads are deliberately run to add mystique to a product, but this is the exception rather than the rule).
Cultural barriers. Subtle cultural differences may make an ad that tested well in one
country unsuitable in anothere.g., an ad that featured a man walking in to join his wife in the bathroom was considered an inappropriate invasion in Japan. Symbolism often differs between cultures, and humor, which is based on the contrast to peoples experiences, tends not to travel well. Values also tend to differ between culturesin the U.S. and Australia, excelling above the group is often desirable, while in Japan, The nail that sticks out gets hammered down. In the U.S., The early bird gets the worm while in China The first bird in the flock gets shot down.
Local attitudes toward advertising. People in some countries are more receptive to
advertising than others. While advertising is accepted as a fact of life in the U.S., some Europeans find it too crass and commercial.
Media infrastructure. Cable TV is not well developed in some countries and regions,
and not all media in all countries accept advertising. Consumer media habits also differ dramatically; newspapers appear to have a higher reach than television and radio in parts of Latin America.
Advertising regulations. Countries often have arbitrary rules on what can be
advertised and what can be claimed. Comparative advertising is banned almost everywhere outside the U.S. Holland requires that a toothbrush be displayed in advertisements for sweets, and some countries require that advertising to be shown there be produced in the country.
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Some cultural dimensions:
Directness vs. indirectness: U.S. advertising tends to emphasize directly why
someone would benefit from buying the product. This, however, is considered too pushy for Japanese consumers, where it is felt to be arrogant of the seller to presume to know what the consumer would like.
Comparison: Comparative advertising is banned in most countries and would
probably be very counterproductive, as an insulting instance of confrontation and bragging, in Asia even if it were allowed. In the U.S., comparison advertising has proven somewhat effective (although its implementation is tricky) as a way to persuade consumers what to buy.
Humor. Although humor is a relatively universal phenomenon, what is considered Gender roles. A study found that women in U.S. advertising tended to be shown in
funny between countries differs greatly, so pre-testing is essential.
more traditional roles in the U.S. than in Europe or Australia. On the other hand, some countries are even more traditionale.g., a Japanese ad that claimed a camera to be so simple that even a woman can use it was not found to be unusually insulting.
Explicitness. Europeans tend to allow for considerably more explicit advertisements, Sophistication. Europeans, particularly the French, demand considerably more
often with sexual overtones, than Americans.
sophistication than Americans who may react more favorably to emotional appeals e.g., an ad showing a mentally retarded young man succeeding in a job at McDonalds was very favorably received in the U.S. but was booed at the Cannes film festival in France.
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Popular vs. traditional culture. U.S. ads tend to employ contemporary, popular
culture, often including current music while those in more traditional cultures tend to refer more to classical culture.
Information content vs. fluff. American ads contain a great deal of puffery, which
was found to be very ineffective in Eastern European countries because it resembled communist propaganda too much. The Eastern European consumers instead wanted hard, cold facts. Advertising standardization. Issues surrounding advertising standardization tend to parallel issues surrounding product and positioning standardization. On the plus side, scale are achieved, a consistent image can be established across utilized across markets, and good ideas can be down side, cultural differences, cycle stages make this campaigns economies of
markets, creative talent can be
transplanted from one market to others. On the
peculiar country regulations, and differences in product life
approach difficult. Further, local advertising professionals may resist preserve their own creative autonomy.
imposed from the outsidesometimes with good reasons and sometimes merely to
Legal issues. Countries differ in their regulations of advertising, and some products are banned from advertising on certain media (large supermarket chains are not allowed to advertise on TV in France, for example). Other forms of promotion may also be banned or regulated. In some European countries, for example, it is illegal to price discriminate between consumers, and thus coupons are banned and in some, it is illegal to offer products on sale outside a very narrow seasonal and percentage range.
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12.6. PRICING ISSUES IN INTERNATIONAL MARKETING

Price can best be defined in ratio terms, giving the equation
resources given up price = goods received This implies that there are several ways that the price can be changed:
"Sticker" price changesthe most obvious way to change the price is the price tag Change quantity. Often, consumers respond unfavorably to an increased sticker price,
you get the same thing, but for a different (usually larger) amount of money.
and changes in quantity are sometimes noticed lesse.g., in the 1970s, the wholesale cost of chocolate increased dramatically, and candy manufacturers responded by making smaller candy bars. Note that, for cash flow reasons, consumers in less affluent countries may need to buy smaller packages at any one time (e.g., forking out the money for a large tube of toothpaste is no big deal for most American families, but it introduces a greater strain on the budget of a family closer to the subsistence level).
Change quality. Another way candy manufacturers have effectively increased prices
is through a reduction in quality. In a candy bar, the "gooey" stuff is much cheaper than chocolate. It is frequently tempting for foreign licensees of a major brand name to use inferior ingredients.
Change terms. In the old days, most software manufacturers provided free support for
their programsit used to be possible to call the WordPerfect Corporation on an 800 number to get free help. Nowadays, you either have to call a 900 number or have a credit card handy to get help from many software makers. Another way to change terms is to do away with favorable financing terms. Reference Prices. Consumers often develop internal reference prices, or expectations about what something should cost, based mostly on their experience. Most drivers with long commutes develop a good feeling of what gasoline should cost, and can tell a bargain or a ripoff.
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Reference prices are more likely to be more precise for frequently purchased and highly visible products. Therefore, retailers very often promote soft drinks, since consumers tend to have a good idea of prices and these products are quite visible. The trick, then, is to be more expensive on products where price expectations are muddier. Marketers often try to influence people's price perceptions through the use of external reference pricesindicators given to the consumer as to how much something should cost. Examples include:
Manufacturer's Suggested Retail Price (MSRP). This is often pure fiction. The
suggested retail prices in certain categories are deliberately set so high that even full service retailers can sell at a "discount." Thus, although the consumer may contrast the offering price against the MSRP, this latter figure is quite misleading.
"SALE! Now $2.99; Regular Price $5.00." For this strategy to be used legally in most
countries, the claim must be true (consistency of enforcement in some countries is, of course, another matter). However, certain products are put on sale so frequently that the "regular" price is meaningless. In the early 1990s, Sears was reported to sell some 55% of its merchandise on sale.

"WAS $10.00, now $6.99." "Sold elsewhere for $150.00; our price: $99.99."
Reference prices have significant international implications. While marketers may choose to introduce a product at a low price in order to induce trial, which is useful in a new market where the penetration of a product is low, this may have serious repercussions as consumers may develop a low reference price and may thus resist paying higher prices in the future. Selected International Pricing Issues. In some cultures, particularly where retail stores are smaller and the buyer has the opportunity to interact with the owner, bargaining may be more common, and it may thus be more difficult for the manufacturer to influence retail level pricing. Two phenomena may occur when products are sold in disparate markets. When a product is exported, price escalation, whereby the product dramatically increases in price in the export market, is likely to take place. This usually occurs because a longer distribution chain is necessary and because smaller quantities sold through this route will
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usually not allow for economies of scale. "Gray" markets occur when products are diverted from one market in which they are cheaper to another one where prices are highere.g., Luis Vuitton bags were significantly more expensive in Japan than in France, since the profit maximizing price in Japan was higher and thus bags would be bought in France and shipped to Japan for resale. The manufacturer therefore imposed quantity limits on buyers. Since these quantity limits were circumvented by enterprising exchange students who were recruited to buy their quota on a daily basis, prices eventually had to be lowered in Japan to make the practice of diversion unattractive. Where the local government imposes price controls, a firm may find the market profitable to enter nevertheless since revenues from the new market only have to cover marginal costs. However, products may then be attractive to divert to countries without such controls. Transfer pricing involves what one subsidiary will charge another for products or components supplied for use in another country. Firms will often try to charge high prices to subsidiaries in countries with high taxes so that the income earned there will be minimized.
Antitrust laws are relevant in pricing decisions, and anti-dumping regulations are especially noteworthy. In general, it is illegal to sell a product below your cost of production, which may make a penetration pricing entry strategy infeasible. Japan has actively lobbied the World Trade Organization (WTO) to relax its regulations, which generally require firms to price no lower than their average fully absorbed cost (which incorporates both variable and fixed costs).
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Alternatives to "hard" currency deals. Buyers in some countries do not have ready access to convertible currency, and governments will often try limit firms ability to spend money abroad. Thus, some firms have been forced into non-cash deals. In barter, the seller takes payment in some product produced in the buying countrye.g., Lockheed (back when it was an independent firm) took Spanish wine in return for aircraft, and sellers to Eastern Europe have taken their payment in ham. An offset contract is somewhat more flexible in that the buyer can get paid but instead has to buy, or cause others to buy, products for a certain value within a specified period of time.
Psychological issues: Most pricing research has been done on North Americans, and this raises serious problems of generalizability. Americans are used to sales, for example, while consumers in countries where goods are more scarce may attribute a sale to low quality rather than a desire to gain market share. There is some evidence that perceived price quality relationships are quite high in Britain and Japan (thus, discount stores have had difficulty there), while in developing countries, there is less trust in the market. Cultural differences may influence the extent of effort put into evaluating deals (potentially impacting the effectiveness of odd-even pricing and promotion signaling). The fact that consumers in some economies are usually paid weekly, as opposed to biweekly or monthly, may influence the effectiveness of framing attempts"a dollar a day" is a much bigger chunk from a weekly than a monthly paycheck.
12.7. INTERNATIONAL DISTRIBUTION

Promotional tools. Numerous tools can be used to influence consumer purchases:
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Advertisingin or on newspapers, radio, television, billboards, busses, taxis, or the Price promotionsproducts are being made available temporarily as at a lower price,
Internet.
or some premium (e.g., toothbrush with a package of toothpaste) is being offered for free.

Sponsorships Point-of-purchasethe manufacturer pays for extra display space in the store or puts Other method of getting the consumers attentionall the Gap stores in France may
a coupon right by the product
benefit from the prominence of the new store located on the Champs-Elysees. Promotional objectives. Promotional objectives involve the question of what the firm hopes to achieve with a campaignincreasing profits is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more). Some common objectives that firms may hold:
Awareness. Many French consumers do not know that the Gap even exists, so they
cannot decide to go shopping there. This objective is often achieved through advertising, but could also be achieved through favorable point-of-purchase displays. Note that since advertising and promotional stimuli are often afforded very little attention by consumers, potential buyers may have to be exposed to the promotional stimulus numerous times before it registers.
Trial. Even when consumers know that a product exists and could possibly satisfy
some of their desires, it may take a while before they get around to trying the product especially when there are so many other products that compete for their attention and wallets. Thus, the next step is often to try get consumer to try the product at least once, with the hope that they will make repeat purchases. Coupons are often an effective way of achieving trial, but these are illegal in some countries and in some others, the infrastructure to readily accept coupons (e.g., clearing houses) does not exist. Continued advertising and point-of-purchase displays may be effective. Although Coca Cola is widely known in China, a large part of the population has not yet tried the product.
Attitude toward the product. A high percentage of people in the U.S. and Europe has
tried Coca Cola, so a more reasonable objective is to get people to believe positive things
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about the producte.g., that it has a superior taste and is better than generics or store brands. This is often achieved through advertising.
Temporary sales increases. For mature products and categories, attitudes may be
fairly well established and not subject to cost-effective change. Thus, it may be more useful to work on getting temporary increases in sales (which are likely to go away the incentives are removed). In the U.S. and Japan, for example, fast food restaurants may run temporary price promotions to get people to eat out more or switch from competitors, but when these promotions end, sales are likely to move back down again (in developing countries, in contrast, trial may be a more appropriate objective in this category). Note that in new or emerging markets, the first objectives are more likely to be useful while, for established products, the latter objectives may be more useful in mature markets such as Japan, the U.S., and Western Europe. Constraints on Global Communications Strategies. Although firms that seek standardized positions may seek globally unified campaigns, there are several constraints:
Language barriers: The advertising will have to be translated, not just into the
generic language category (e.g., Portuguese) but also into the specific version spoken in the region (e.g., Brazilian Portuguese). (Occasionally, foreign language ads are deliberately run to add mystique to a product, but this is the exception rather than the rule).
Cultural barriers. Subtle cultural differences may make an ad that tested well in one
country unsuitable in anothere.g., an ad that featured a man walking in to join his wife in the bathroom was considered an inappropriate invasion in Japan. Symbolism often differs between cultures, and humor, which is based on the contrast to peoples experiences, tends not to travel well. Values also tend to differ between culturesin the U.S. and Australia, excelling above the group is often desirable, while in Japan, The nail that sticks out gets hammered down. In the U.S., The early bird gets the worm while in China The first bird in the flock gets shot down.
Local attitudes toward advertising. People in some countries are more receptive to
advertising than others. While advertising is accepted as a fact of life in the U.S., some Europeans find it too crass and commercial.
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Media infrastructure. Cable TV is not well developed in some countries and regions,
and not all media in all countries accept advertising. Consumer media habits also differ dramatically; newspapers appear to have a higher reach than television and radio in parts of Latin America.
Advertising regulations. Countries often have arbitrary rules on what can be
advertised and what can be claimed. Comparative advertising is banned almost everywhere outside the U.S. Holland requires that a toothbrush be displayed in advertisements for sweets, and some countries require that advertising to be shown there be produced in the country. Some cultural dimensions:
Directness vs. indirectness: U.S. advertising tends to emphasize directly why
someone would benefit from buying the product. This, however, is considered too pushy for Japanese consumers, where it is felt to be arrogant of the seller to presume to know what the consumer would like.
Comparison: Comparative advertising is banned in most countries and would
probably be very counterproductive, as an insulting instance of confrontation and bragging, in Asia even if it were allowed. In the U.S., comparison advertising has proven somewhat effective (although its implementation is tricky) as a way to persuade consumers what to buy.
Humor. Although humor is a relatively universal phenomenon, what is considered Gender roles. A study found that women in U.S. advertising tended to be shown in
funny between countries differs greatly, so pre-testing is essential.
more traditional roles in the U.S. than in Europe or Australia. On the other hand, some countries are even more traditionale.g., a Japanese ad that claimed a camera to be so simple that even a woman can use it was not found to be unusually insulting.
Explicitness. Europeans tend to allow for considerably more explicit advertisements, Sophistication. Europeans, particularly the French, demand considerably more
often with sexual overtones, than Americans.
sophistication than Americans who may react more favorably to emotional appeals e.g., an ad showing a mentally retarded young man succeeding in a job at McDonalds was very favorably received in the U.S. but was booed at the Cannes film festival in France.
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Popular vs. traditional culture. U.S. ads tend to employ contemporary, popular
culture, often including current music while those in more traditional cultures tend to refer more to classical culture.
Information content vs. fluff. American ads contain a great deal of puffery, which
was found to be very ineffective in Eastern European countries because it resembled communist propaganda too much. The Eastern European consumers instead wanted hard, cold facts. Advertising standardization. Issues surrounding advertising standardization tend to parallel issues surrounding product and positioning standardization. On the plus side, economies of scale are achieved, a consistent image can be established across markets, creative talent can be utilized across markets, and good ideas can be transplanted from one market to others. On the down side, cultural differences, peculiar country regulations, and differences in product life cycle stages make this approach difficult. Further, local advertising professionals may resist campaigns imposed from the outside sometimes with good reasons and sometimes merely to preserve their own creative autonomy. Legal issues. Countries differ in their regulations of advertising, and some products are banned from advertising on certain media (large supermarket chains are not allowed to advertise on TV in France, for example). Other forms of promotion may also be banned or regulated. In some European countries, for example, it is illegal to price discriminate between consumers, and thus coupons are banned and in some, it is illegal to offer products on sale outside a very narrow seasonal and percentage range. CHANNELS OF DISTRIBUTION
12.8. FIRM, BRAND, AND PRODUCT LINE OBJECTIVES

Firm level objectives: It is not enough to simply state a firms goal as maximizing the present value of total profit since this does not differentiate it from other firms and says nothing about how this objective is to be achieved. Instead, a business and marketing plan should suggest how the firm can best put its unique resources to use to maximize stockholder value. A number of resources come into playe.g.,
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Distinctive competenciesknowledge of how to manufacture, design, or market Financialpossession of cash or the ability to raise it; Ability and willingness to take risk; The image of the firms brand; People who can develop new products, services, or other offerings and run the needed Running facilities (no amount of money is going to get a new microchip Contacts with suppliers and distributors and others who influence the success of the
certain products or services effectively;

supports;
manufacturing plant started tomorrow); and
firm. Market balance: It is essential that different firms in the same business not attempt to compete on exactly the same variables. If they do, competition will invariably degenerate into pricethere is nothing else that would differentiate the firms. Thus, for example, in the retail food market, there are low price supermarkets such as Food 4 Less that provide few if any services, intermediate level markets like Ralphs, and high-end markets such as Vons Pavillion that charge high prices and claim to carry superior merchandise and offer exceptional service Risk: In general, firms that attempt riskier venturesand their stockholdersexpect a higher rate of return. Risks can come in many forms, including immediate loss of profit due to lower sales and long term damage to the brand because of a poor product being released or because of distribution through a channel perceived to carry low quality merchandise. Brand level objectives: Ultimately, brand level profit centers are expected to contribute to the overall maximization of the firms profits. However, when a firm holds several different brands, different marketing and distribution plans may be required for each. Several variables come into play in maximizing value. Profits can be maximized in the short run, or an investment can be made into future earnings. Product profit can be measured in several ways. If you sell a computer that cost $950 to make for $1,000, you are making only a 5% gross profit. However, selling a product that cost $5 to make for $10 will result in a much higher percentage profit, but a much lower absolute margin. A decision that is essential at the brand level is positioning. Options here may range from a
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high quality, premium product to a lower priced value product. Note here that the same answer will not be appropriate for all firms in the same market since this will result in market imbalancethere should be some firms perceiving each strategy, with others being intermediate. Distribution issues come into play heavily in deciding brand level strategy. In order to secure a more exclusive brand label, for example, it is usually necessary to sacrifice volumeit would do no good, for Mercedes-Benz to create a large number of low priced automobiles. Some firms can be very profitable going for quantity where economies of scale come into play and smaller margins on a large number of units add upe.g., McDonalds survives on much smaller margins than upscale restaurants, but may make larger profits because of volume. Some firms choose to engage in a niching strategy where they forsake most customers to focus on a small segment where less competition exists (e.g., clothing for very tall people). In order to maintain ones brand image, it may be essential that retailers and other channel members provide certain services, such as warranty repairs, providing information to customers, and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product. Product line objectives: Firms make money on the totality of products and services that they sell, and sometimes, profit can be maximized by settling for small margins on some, making up on others. For example, both manufacturers and retailers currently tend to sell inkjet printers at low prices, hoping to make up by selling high margin replacement cartridges. Here again, it may be important for the manufacturer that the retailer carry as much of the product line as possible.
12.9. SOME OTHER TYPES OF RESEARCH:

All other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the environment in which research is done, or on the basis of some other similar factor. Form the point of view of time, we can think of research either as one-time research or longitudinal research. In the former case the research is confined to a single time-period, whereas in the latter case the research is carried on over several time-periods. Research can be field-setting
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research or laboratory research or simulation research, depending upon the environment in which it is to be carried out. Research can as well be understood as clinical or diagnostic research. Such research follow case-study methods or indepth approaches to reach the basic causal relations. Such studies usually go deep into the causes of things or events that interest us, using very small samples and very deep probing data gathering devices. The research may be exploratory or it may be formalized. The objective of exploratory research is the development of hypotheses rather than their testing, whereas formalized research studies are those with substantial structure and with specific hypotheses to be tested. Historical research is that which utilizes historical sources like documents, remains, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time. Research can also be classified as conclusion-oriented and decision-oriented. While doing conclusionoriented research, a researcher is free to pick up a problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes. Decision-oriented research is always for the need of a decision maker and the researcher in this case is not free to embark upon research according to his own inclination. Operations research is an example of decision oriented research since it is a scientific method of providing executive departments with a quantitative basis for decisions regarding operations under their control.
12.10. RESEARCH PURPOSE:

The purpose of this essay is to illuminate strategies companies can use to promote their target group using word of mouth on non-sponsored internet forums. Based on the choice of these strategies we want to be able to see what opportunities and threats the forum environment provides as a promotion tool for the firm using forums as a channel. We have previously learned that there are many forums out there and we want to know how marketers select and implemented a forum suitable for promotion activities. Our study is designed to be exploratory due to the fact that we are trying to identify and define complications and possibilities within chosen problem area. This way of promoting products is quite new and shows unique features in a field that is relatively new as subject of study. The vision of this essay is to find something to contribute in this field of word of mouth marketing in an online forum environment. The empirical part of this essay will be imitating factor when giving the contribution within this problem area.
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12.11. LITERATURE:
The availability of scientific studies made specifically on internet forum marketing was very limited on the other hand we found a lot of studies on strategic approaches for word of mouth marketing and the use of internet as a tool for promotion. Because we could not find any case study conducted within our problem area we chose to explain this phenomenon in a descriptive manner. We started gathering literature by searching Emerland and Ebsco for previous work within the subject. This gave the study a deductive approach to this area of research. We choose to keep the amount of information from printed books regarding forums and internet to a minimum since the development of internet is taking place so rapid that once printed, books will be too old.
12.12. RESEARCH APPROACHES:

The above description of the types of research brings to light the fact that there are two basic approaches to research, viz., quantitative approach and the qualitative approach. The former involves the generation of data in quantitative form which can be subjected to rigorous quantitative analysis in a formal and rigid fashion. This approach can be further subclassified into inferential,experimental and simulation approaches to research. The purpose of inferential approach toresearch is to form a data base from which to infer characteristics or relationships of population. This usually means survey research where a sample of population is studied (questioned or observed) to determine its characteristics, and it is then inferred that the population has the same characteristics. Experimental approach is characterised by much greater control over the research environment and in this case some variables are manipulated to observe their effect on other variables. Simulationapproach involves the construction of an artificial environment within which relevant information and data can be generated. This permits an observation of the dynamic behaviour of a system (or its sub-system) under controlled conditions. The term simulation in the context of business and social sciences applications refers to the operation of a numerical model that represents the structure of a dynamic process. Given the values of initial conditions, parameters and exogenous variables, a simulation is run to represent the behaviour of the process over time.5 Simulation approach can also be useful in building models for understanding future conditions. Qualitative approach to research is concerned with subjective assessment of attitudes, opinions and behaviour. Research in such a situation is a function of researchers
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insights and impressions. Such an approach to research generates results either in nonquantitative form or in the form which are not subjected to rigorous quantitative analysis. Generally, the techniques of focus group interviews, projective techniques and depth interviews are used. All these are explained at length in chapters that follow.
12.13. RESEARCH STEATEGY:

According to Denscome (1998) case studies focus on research units in order to give depth to experiences, relationships and processes that occur in this specific research unit. We like to obtain depth rather than scope in our study and therefore we prefer the case study as research strategy. This study is also focusing on a single unit and has no valid chance of making a generalization for companies or organizations in general using word of mouth marketing on forums. This is why the single case study suits our purpose and research problem in a manner that enables us to ask how and why in the questions stated as guidelines for our research and the company chosen for this research. Another valuable asset of the case study is that it does not require control over the environment targeted for research. Denscome (1998) writes that the case studies usually already exists and is not a situation externally affected by a researcher. Researchers conducting experiments do this in order to isolate certain variables that enable them to measure certain data. We want to reflect reality rather than isolated events occurring under manipulated circumstances. What we will find might be contemporary events as well, occurring under special circumstances. Still the issue of becoming a victim of circumstances is from our perspective a risk worth taking in order to conduct this case study. This discussion leads us to the issue of choosing the case we want to analyze in this study. Denscome (1998) states that disregarding the subject, a case chosen for study needs to be deliberately chosen from a large group of potential cases. A well performed case study requires a critical discussion based upon this issues regarding case selection. The criteria of selection must also be tied back to the purpose stated for the research. Four basic motivations for choosing a case can be identified. Depending on purpose a researcher can chose. The typical research unit, because it is similar to other units which might allow generalization. The deviant unit, to identify the factors making it special in terms of difference to other units. The theory testing unit, to test or build theories based on previous research.
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The least portable unit, in order to test the validity of theory where it is perceived to be least likely to work.
12.14. SIGNIFICANCE OF RESEARCH:

All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry, and inquiry leads to invention is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organisation. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasingly complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business. Research provides the basis for nearly all government policies in our economic system. For instance, governments budgets rest in part on an analysis of the needs and desires of the people and on the availability of revenues to meet these needs. The cost of needs has to be equated to probable revenues and this is a field where research is most needed. Through research we can devise alternative policies and can as well examine the consequences of each of these alternatives. Decision-making may not be a part of research, but research certainly facilitates the decisions of the policy maker. Government has also to chalk out programmes for dealing with all facets of the countrys existence and most of these will be related directly or indirectly to economic conditions. The plight of cultivators, the problems of big and small business and industry, working conditions, trade union activities, the problems of distribution, even the size and nature of defence services are matters requiring research. Thus, research is considered necessary with regard to the allocation of nations resources. Another area in government, where research is necessary, is collecting information on the economic and social structure of the nation. Such information indicates what is happening in the economy and what changes are taking place. Collecting such statistical information is by no means a routine task, but it involves a variety of research problems. These day nearly all governments maintain large staff of research technicians or experts to carry on this work. Thus, in the context of government, research as a tool to economic policy has three distinct phases of operation, viz., Investigation of economic structure through continual compilation of facts;
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Diagnosis of events that are taking place and the analysis of the forces underlying them; and The prognosis, i.e., the prediction of future developments.
Research has its special significance in solving various operational and planning problems of business and industry. Operations research and market research, along with motivational research, are considered crucial and their results assist, in more than one way, in taking business decisions. Market research is the investigation of the structure and development of a market for the purpose of formulating efficient policies for purchasing, production and sales. Operations research refers to the application of mathematical, logical and analytical techniques to the solution of business problems of cost minimisation or of profit maximisation or what can be termed as optimisation problems. Motivational research of determining why people behave as they do is mainly concerned with market characteristics. In other words, it is concerned with the determination of motivations underlying the consumer (market) behaviour. All these are of great help to people in business and industry who are responsible for taking business decisions. Research with regard to demand and market factors has great utility in business. Given knowledge of future demand, it is generally not difficult for a firm, or for an industry to adjust its supply schedule within the limits of its projected capacity. Market analysis has become an integral tool of business policy these days. Business budgeting, which ultimately results in a projected profit and loss account, is based mainly on sales estimates which in turn depends on business research. Once sales forecasting is done, efficient production and investment programmes can be set up around which are grouped the purchasing and financing plans. Research, thus, replaces intuitive business decisions by more logical and scientific decisions. Research is equally important for social scientists in studying social relationships and in seeking answers to various social problems. It provides the intellectual satisfaction of knowing a few things just for the sake of knowledge and also has practical utility for the social scientist to know for the sake of being able to do something better or in a more efficient manner. Research in social sciences is concerned both with knowledge for its own sake and with knowledge for what it can contribute to practical concerns. This double emphasis is perhaps especially appropriate in the case of social science. On the one hand, its responsibility as a science is to develop a body of principles that make possible the
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understanding and prediction of the whole range of human interactions. On the other hand, because of its social orientation, it is increasingly being looked to for practical guidance in solving immediate problems of human relations.6
12.15. RESEARCH AND SCIENTIFIC METHOD:

For a clear perception of the term research, one should know the meaning of scientific method. The two terms, research and scientific method, are closely related. Research, as we have already stated, can be termed as an inquiry into the nature of, the reasons for, and the consequences of any particular set of circumstances, whether these circumstances are experimentally controlled or recorded just as they occur. Further, research implies the researcher is interested in more than particular results; he is interested in the repeatability of the results and in their extension to more complicatedand general situations.7 On the other hand, the philosophy common to all research methods and techniques, although they may vary considerably from one science to another, is usually given the name of scientific method. In this context, Karl Pearson writes, The scientific method is one and same in the branches (of science) and that method is the method of all logically trained minds the unity of all sciences consists alone in its methods, not its material; the man who classifies facts of any kind whatever, who sees their mutual relation and describes their sequences, is applying the Scientific Method and is a man of science.8 Scientific method is the pursuit of truth as determined by logical considerations. The ideal of science is to achieve a systematic interrelation of facts. Scientific method attempts to achieve this ideal by experimentation, observation, logical arguments from accepted postulates and a combination of these three in varying proportions.9 In scientific method, logic aids in formulating propositions explicitly and accurately so that their possible alternatives become clear. Further, logic develops the consequences of such alternatives, and when these are compared with observable phenomena, it becomes possible for the researcher or the scientist to state which alternative is most in harmony with the observed facts. All this is done through experimentation and survey investigations which constitute the integral parts of scientific method. Experimentation is done to test hypotheses and to discover new relationships. If any, among variables. But the conclusions drawn on the basis of experimental data are generally criticized for either faulty assumptions, poorly designed experiments, badly executed experiments or faulty interpretations. As such the researcher must pay all possible attention while developing the experimental design and must state only probable inferences. The purpose of survey
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investigations may also be to provide scientifically gathered information to work as a basis for the researchers for their conclusions. The scientific method is, thus, based on certain basic postulates which can be stated as under:
12.16. SAMPLE SELECTION:

The company selected for interviews is a small company located in Sweden. Name and branch of the company will remain anonymous to respect the sensitivity nature of marketing information needed for this study. Our choice of case and problem area started as a sequential discovery of a company with truly unique features in a field of business characterized by focus differentiated products designated to fit a very small number of customers. Theory has given us valuable clues about the impact that differentiation might have on internet forum-promotion based on previous studies. In this sense we see the argumentation of case as a matter of perspective and interpretation of previous knowledge. The case we have chosen s deviant in terms of product since there are very few companies doing the same thing on a global scale but typical in the scope of comparing it with other companies selling highly differentiated products. This industry can be seen as similar to the aftermarket automotive components designed to fit only one specific car model. Considering these facts we see our research unit chosen for this case study as deviant in the scope of product and being one of a hand full in the world within this business. The approach of identifying this as a typical research unit characterized by the feature of providing a focused product is not something attainable in a single case study. This issue requires multiple case studies but we characterize our case as a deviant unit also in regards of company size field of business and promotion portfolio.
12.17. DATA COLLECTION:

In regards of the research approach and the information needed for this essay we consider face to face interviews as the only option for sufficient data collection to meet our requirements. We will conduct an interview with the executive manager and owner of the company selected and construct an interview dealing with how the company is implementing the forums as a promotion tool. The interview will focus on how the manager has
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implemented the forums as a part of the companys promotion strategy and some aspects around the forum capturing the essence of our research questions. We have created an interview guide based on issues presented in previous studies containing topics that need to be discussed in order to provide answers to our research questions. The interview will be carried out as a semi structured interview recorded on tape. The semi structured interview is the method we consider as one of the most suitable ways of gathering the information for this study since the subject requires some extent of flexibility in order for it to be more dynamic. Some degree of control is still required to keep the interview on track. Denscome (1998) writes that the importance of the semi structured interview is the response person developing his thoughts and opinions regarding the subject. The response persons will have the questions two days before the interview in order to prepare his answers and if needed refresh his memory regarding the questions we want to ask. The empirical data collected from the interview will be assessed in relevance to the research questions stated and encrypted in the interview. If empirical response is inadequate to be compared to theoretical framework for this study a second interview will be carried out face to face or over telephone depending on the availability of the manager. However this proved to be unnecessary after data collection. Data collected and compared with theory will be analyzed within the conceptual framework of the literature review for this case. The tape recorder will be vital for us when returning to actual formulating of answers that can be a matter of interpretation. Notes will also be part of processing the empirical findings into written empirical data.
12.18. VALIDITY & RELIABILITY:

Objectivity is a major issue for us regarding this study since both of us has a good relation and positive opinions towards this company as both of us consider his business interesting. A good relation jeopardizes objectivity towards a response person and the reliability aspect of our research. Denscome (1998) states that when interpreting qualitative data the identity, value and attitudes of the researcher cannot be foreseen from the analytical process. In the field of qualitative research it is commonly known that the identity of the researcher has an important part to play in the analytical processing of data. The researcher could have a critical distance to his normal everyday values and attitudes and not take an active part as long as he has the role of a researcher. The risk of glorifying is eminent but will be taken into account while performing this study. The conceptual framework designed for
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this study has been extensively built on arguments made by Dennis Pitta and Danielle Fowler making this study relies heavily on their previous work within this field. We see this as a way of giving depth to our essay since this is the only reliable theory explicitly implemented on internet forums. Without their work the forum aspect of word of mouth implementation would be lost taking the edge off this research and making it more general. Problem arising from that Dilemma would have been serious enough to consider another subject or approach. Other contribution to this study is previous studies about word of mouth marketing. In the literature review we can see that the word of mouth phenomenon shows great similarities between online and face to face communication but we needed the previous studies of Pitta & Fowler to defend and define circumstances that makes the internet forum environment truly unique. Another precaution to defend the reliability of this essay is keeping the response company anonymous. The possibility to get reliable empirical data from the response person increases if we are able to eliminate the risk of sensitive company information leaking to the public. Another aspect is that these promotion activities can be seen as controversial to some and needs to be treated with care. The validity precautions made in this study are supposed to reflect the purpose of this essay stated as a company not companies in general. This is why this study needs further evolvement to support generalization for a group of companies. Limitations have been determined previously in this chapter and must work as a guide for us when drawing our conclusions so that the validity aspect of this essay will not be foreseen. The extent of conclusions must reflect the study based on a single case and not as a group since little is known about the promotion activities of similar companies in similar areas.
12.19.RESEARCH LIMITATION
Limitations of the Study Carrying the survey was a general learning experience for us but we also faced some problems, which are listed here: The market of Telecommunication is too vast and it is not possible to cover each and
every dealer, manufacturer and seller in the available short span of time. Generally the respondents were busy in their work and were not interested in
responding rightly. Respondents were reluctant to discover complete and correct information about
themselves and their organization.

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Most respondents were not maintaining proper knowledge of various services
provided by their company, so they were unable to provide exact information. Most of the respondents dont want to disclose the information about the various other
companies which they have experienced before. Some of the respondents were using the service first time of their company and they
were not able to properly differentiate among their product. Due to human behavior information may be biased. Mainly in STC.case.
13.Main Text Literature Review

Review of Literature
13.1. ROBINS (2008)

Robins (2008) This paper is about marketing the next generation of mobile telephones. The study is about third generation of cell phone technology, what is usually known as 3G for short. There are various issues about that new innovative. One is how to price 3G handsets and services at a level which will enable telephone operating companies to recoup the high prices they have already paid to governments for operating licenses. Second the technology is not yet complete, there are no agreed international standards and companies do not yet know what new services the technology will prove capable of delivering effectively. All variants of 3G remain dependent on largely unproven technology. Marketing 3G is going to be about services which are new and in many cases, yet to be designed. At the same time, it will involve services which can also be obtained by computer and other means. It follows that the marketing task will be high risk. First, 3G has no obviously unique selling proposition to build on except, perhaps, the combination of live video and easy portability. Second, the potential customers have not yet had adequate opportunity to signal their service likes and dislikes. Third, the cost and complexity of service provision leave doubt about the markets reaction to price.
13.2. DEBNATH ( 2008 )

Debnath (2008) This study explain that the prime focus of the service providers is to create a loyal customer base by benchmarking their performances and retaining existing customers in order to benefit from their loyalty. With the commencement of the economic
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liberalization in 1991, and with a view to expand and improve telecom infrastructure through the participation of the private sector, the Government of India permitted foreign companies holding 51 percent equity stake in joint ventures to manufacture telecom equipment in India. The Indian Government has announced a new policy, which allows private firms to provide basic telephone services. There had been a monopoly of the state-owned department of telecommunications. However, several companies are expected to benefit from the policy change.
13.3. BHATT (2008),

Bhatt (2008), in his study titled A Study of Mobile Phone Usage Among the Post Graduate Students analyzed that it is important for mobile carriers, service providers, content developers, equipment manufacturers, as well as for parents and young people alike that the key characteristics of mobile technology is well understood so that the risks associated with its potentially damaging or disruptive aspects can be mitigated. This paper has tried to compare the usage difference by gender with respect to the difference manufacturing and service provider companies.
13.4. JHA ( 2008 )

Jha (2008), in his study analyzed that it is the youth which is the real growth driver of the telecom industry in India. Considering this fact, the paper is an attempt to give a snapshot of how frequently young people use their mobile phones for several embodied functions of the cell phones. Data was collected from a sample of 208 mobile phone owners, aged between 20 and 29. The study sheds light on how gender, monthly voucher amount and years of owning mobile phones influence the usage pattern of this device. Findings of the study would be helpful for the telecom service providers and handset manufacturers to formulate a marketing strategy for different market segments.
13.5. KALAVANI (2006)

Kalavani (2006) in their study analyzed that majority of the respondents have given favourable opinion towards the services but some problems exist that deserve the attention of the service providers. They need to bridge the gap between the services promised and services offered. The overall customers attitude towards cell phone services is that they are satisfied with the existing services but still they want more services to be provided.
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13.6. KUMAR (2008),

Kumar (2008), in their study titled Customer Satisfaction and Discontentment vis-avis BSNL Landline Service: A Study analyzed that at present, services marketing plays a major role in the national economy. In the service sector, telecom industry is the most active and attractive. Though the telecom industry is growing rapidly, India's telecom density is less than the world's average telecom density as most of India's market is yet to be covered. This attracts private operators to enter into the Indian telecom industry, which makes the Bharat Sanchar Nigam Limited (BSNL) more alert to run its business and survive in the market.
13.7. SETH ET AL (2008),

Seth et al (2008), in their study titled Managing the Customer Perceived Service Quality for Cellular Mobile Telephone: an Empirical Investigation analyzed that there is relative importance of service quality attributes and showed that responsiveness is the most importance dimension followed by reliability, customer perceived network quality, assurance, convenience, empathy and tangibles. This would enable the service providers to focus their resources in the areas of importance. The research resulted in the development of a reliable and valid instrument for assessing customer perceived service quality for cellular mobile services.
13.8. FERNANDEZ (2007)

Fernandez (2007) in their study titled Understanding Dynamics in an Evolving Industry: Case of Mobile VAS in India analyzed that Mobile Value Added Services (VAS) is a rising star in the fast growing wireless business. In the paper, attempt is made at understanding the strategic dynamics of the evolving environment within which the Indian players are operating, the challenges and structure of the same. Our literature and industry review indicates that - while the value chain of industry is complicated yet one can observe the bipolar nature of bargaining powers between mobile network operators and content aggregators.
13.9. BISMUT (2006)

Bismut (2006) in his study titled Competition in European Telecom Markets analyzed that in recent years the European telecommunications market has witnessed major developments, with rapid expansion in access to telecommunications networks and a surge in the number of available services and applications. While many factors have contributed to the
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transformation of the telecommunications industry, competition has played a key role in driving telecom players to invest in new technologies, to innovate and to offer new services.
13.10. KALPANA AND CHINNADURAI (2006)

Kalpana and Chinnadurai (2006) in their study titled Promotional Strategies of Cellular Services: A Customer Perspective analyzed that the increasing competition and changing taste and preferences of the customers all over the world are forcing companies to change their targeting strategies. The study revealed the customer attitude and their satisfaction towards the cellular services in Coimbatore city. It was found that advertisement play a dominant role in influencing the customers but most of the customers are of opinion that promotional strategies of cellular companies are more sale oriented rather than customer oriented.
13.11. FREDRIC (2008)

Fredric (2008) analyzed the importance of yield management and discrimination pricing in telecommunication sector. Yield management is the process of allocating the right type of capacity or inventory unit to the right kind of customer at the right price so as to maximize revenue or yield. Yield management and dynamic pricing strategies could be usefully applied to preserve and increase profitability. Yield management techniques can help telecom operators and similar companies to optimize the benefits they can derive from a subtle management of information networks and partnerships. However, such an approach is more difficult to implement in the telecommunications industry than in the airlines sector because of the difficulty to control (and sometimes to refuse) network access to customers
Chris (2003) has analyzed Telecom advertising in print media. This research attempted to investigate why Telecom theme are used in advertisement, and the motives that lead companies and advertisers to use sport celebrities and sport concept in advertisements. From study it has been revealed that the appearance of sport celebrities in advertising endorsement occurred more often in Telecom magazines than in other magazines, because their target group is more acquainted with athletes. The sport celebrities that dominated each printed media are related with their target group characteristics
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14. RESEARCH METHODOLOGY: 14.1. RESEARCH DESIGN:

This is a descriptive research as it will clarify the doubts about online advertising. It would give us a clear picture on the effectiveness and reliability of online advertising compared to the traditional form of advertising.
14.2. DATA COLLECTION:

Secondary data: Online reports related to advertising Primary data: Questionnaire, Personal Interview, Interview with Marketing Professional
14.3. SAMPLE UNIVERSE:

Basis of Sampling: Sample should be a user of internet or should have knowledge about internet 50 numbers in all
14.4. SAMPLING TECHNIQUE:

Judgmental Non Probability sampling can be used to select the individual units for better productivity of the questionnaire. A well educated person may be able to reason out the questions in the better way.
15. FINDINGS AND ANALYSIS: 15.1. PART A ATTITUDE TOWARDS ADVERTISEMENTS

One can clearly make out that consumers perceive advertisements as a source of information and awareness, be it general or towards TV commercials.
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Not many people find advertisements to be irritating, annoying or waste of time. This for marketers. clearly shows a positive attitude toward them and hence is a good indication
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For television commercials, around 70% of consumers had a positive perception towards advertising on TV.
15.2. INFLUENCER BEHIND DECISION MAKING

Influencers influence the decision making process of a potential consumer. Influencers can be advertisements, friends, relatives, third party or it can be self motivated also. In Mumbai (as the target market is Mumbai) we can infer that friends and relatives are the major influencers behind decision making.
One can infer from the Geert Hofsted Cultural Dimensions a possible reason for friends and relatives to be a major influencer.
15.3. GEERT HOFSTED CULTURAL DIMENSIONS

Indian culture is collectivistic. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended
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families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning ideas and loyalty. India is low on Uncertainty Avoidance, i.e. the culture is more open to unstructured situations. The population may have fewer rules and regulations with which to of every unknown and unexpected event or situation. attempt control
The recommendation of someone else remains the most trusted sources of information when consumers decide which products and services to buy. And even though new media technologies are playing a role in globalizing society, many purchasing decisions are still based on firmly held national and cultural attitudes. Being collectivistic, Indian consumers tend to trust the immediate group of people in the decision making process. They are open to new things, but advise, suggestions and comments of friends and relatives hold more value. If not friends and relatives, Traditional mode of advertising i.e. ATL would influence them. Its obvious as it the oldest form promotion and it goes by the saying Old is Gold. There is also a hand in the awareness part of which is discussed later on in the analysis. Internet marketing has a long way to go before it starts influencing the decision making process.
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15.4. CONSUMER PREFERENCE OF ADVERTISING

Again, one can easily make out that traditional form of advertising has an edge over internet advertising in terms of consumer preference mode of advertising. Traditional mode got over 82% preferences than that of internet advertising which is a huge margin. The reason for this is same as that of influencer, i.e. cultural attitude of consumers towards advertising.Consumers would prefer to check out ATL elements in case there is a need i.e. information search and take their decision in terms of purchasing.
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15.5. CONSUMERS TRUST ON ADVERTISING Trust In Ad Medium
The above is the chart for trust level of advertisement medium from consumers point of view. Again recommendation and traditional advertisement are a leap ahead of online mobile and BTL form of advertising. One can say that Indian mentality towards online form of advertising is still at the baseline and that of mobile is even worse. Initial Conclusion I One can confidently conclude that consumers still trust and prefer the traditional form of advertising than that of online.
15.6. PART II: TIME SPENT.

On an average, a person spends more than 4 hours on the internet during his free time which is 70% more than that of TV and movies and around 300% more than that of radio and print medium. Hence, on an average the exposure of internet to an individual is around 150% more than that of other mediums i.e. the reach of medium internet is much better than that of others.
Time Spent
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But one cannot infer anything about the effectiveness of the medium through exposure (reach) REACH Reach refers to the total number of different people or households exposed, at least once, to a medium during a given period of time. IMPRESSIONS This is a term used by media to describe and quantify the number of individuals who have an "opportunity" to see an AD in a given amount of time. IMPRESSION OF TV ADS (AD AVOIDANCE) When there were only 2 channels which were Doordarshan, consumers didnt have any choice but the see the commercial ads in between the programs. That time the very high and hence was a very effective and efficient medium of impression was promotion. Now, with more than 250 TV channels, 20 Radio channels, the consumer has lot of options, he may change the channel, or may ignore it completely. According to the survey, around 64% of consumers see the ad if they find it to be entertaining, creative, humorous or in some way attractive and appealing. Of course there
alone. One needs to calculate the impressions (actual number of times
an individual sees the ad) of the medium also.
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are people (26%)
who change channels during breaks but not always. In fact, according no one who change the channel each and every time.
to the survey there was
Effectively, 75% of viewers will see the advertisement if the ad is attractive and appealing. Hence there is a probability of .75 of a consumer viewing the particular creating awareness and information) on television making it an communication. As it is, it is the second most trusted mode of people.
advertisement (for effective mode of
communication in the minds of
15.7. REMEMBRANCE & RECALL:
One can easily make out the reliability of online and TV ads through the remembrance and their counterparts. recall values. Its pretty clear that TV ads are much reliable than that of
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15.8. THE SOCIAL WEBS NEW COMMUNICATION FORMS DRAW

MORE USERS
Communications has always been the fundamental value of the internet to consumers. Back in the nets early days, email was the killer app that made the Web a mustconsumers online time with content, and far outstrip have and continues to be a mainstay of the online experience. Communication activities split the lions share of commerce and entertainment.
12.9. TECHNOLOGY-POWERED COMMUNICATIONS ACCELERATE WORD OF MOUTH:

From the earliest UseNet groups to todays hot video sharing and social network sites, each new innovation has increased consumers reach and influence. Email was first practical application of the Internet for most people and it was the first word of mouth accelerator as it enabled people to connect with family and friends instantly, frequently and at little cost.
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Usenet groups and discussion boards made it easy for people to find others with similar interests and consumers learned that the Internet freed them from the limit of geography and personal connections. The influence of word of mouth expanded rapidly within these vertical niches.
Consumer review sites used the discussion board format, but focused discussions around specific products, such as books at Amazon.com. Consumers embraced the idea of reading book reviews written by other readers and not relying on professional reviewers opinions to decide whether to pick up the latest bestseller.
Blogs freed consumers from the limited membership of discussion boards. Blog sites like Blogger made it simple for an average Web user to post his or her opinions to the world. Armed with a browser, basic typing skills, and a few straightforward Web commands, anyone can publish their thoughts, rants, or daily journal in a few minutes a day.
Consumers soon learned their conversations arent limited to words. Digital photographys boom introduced people to sharing their creations, first via email then via first-generation photo-sharing sites like photobucket.com.
Digital camcorders and audio/video editing programs like Apples I movie became affordable and user-friendly versions for home users. People were no longer limited to text or still photos, and consumer-created video site YouTube quickly bloomed to six million users watching 40 million videos per month.
Social networks like MySpace skew more toward the social end of the socialto-content continuum. They combine a selection of social media tools like blogs, photo sharing, etc. to give the author a platform for expressing their passions and preferences, while at the same time serving as a central communication hub for a group of friends. Early on, bands would build online fan communities to promote their music; now brands like Burger King, Toyota, Adidas, and Cingular create circles of friends that become brand building hubs.
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16. GROWTH OF INTERNET USAGE AND E-COMMERCE:

Number of Internet users in Asia is 5, 29,701,704. Though Asia has only 16% of populations of the world, 37.6% of total internet users are Asian which is great. Of them around 60 million are from India. India is 3rd in Asia (1st is China (220 million) and 2nd is Japan (87.5 million)) and 4th in world ((1st is China (220 million), 2nd is USA (216 million) and 3rd is Japan (87.5 million)) as per as internet users are concerned. India has 13% of internet users in Asia and 7.36% that of the world. But the sorrowful fact is only 5.3% of people in India use internet. The reason of this is most of the people in India dont know computer. 70% of people who know computer have used internet which is a healthy sign. Now, we will see mainly which age group and which type people use internet in India. 19-40 years age group is major section (85%) using internet in India. 85% of internet users in India are male which not a very good sign is. Among working women, only 11% use internet. The ratio is almost half (6%) in case of non-working women and even worst in case of house-wives (2%). The scenario is much better in case of young men (33%). Also 15% older men, 14% school going kids and 21% college students use internet in India. 46% of net users are graduate, 26% are post-graduate. Among these, 2/3 rd of user use internet 2-3 times a week. 62% uses internet from office as in most of the offices, its free. Next, let us see from which cities most users come. Mumbai has the maximum number of internet users (3.24 million) in India followed by Delhi (2.66 million). The top ten cities where people use internets are Mumbai, Delhi, Bangalore, Kolkata, Chennai, Pune, Hydrabad, Ahmedabad, Surat and Nagpur. The total numbers of internet users of those 10 cities are 37% of the total numbers of internet users in India. Now take a look which types of sites majority of users browse. Most of the users use net for emailing (95%) which is obvious. Next is job searching (73%) showing crisis of getting job in India followed by chatting sites (62%), social networking sites (51%) and quite interestingly mathematical sites (48%).The top ten sites internet users browse in India are the following: Yahoo Google Rediff Blogger.com Google Orkut Youtube Windows Live
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Rapid Share
Wikipedia
so, briefly this is the situation of internet users in india. Though internet ownership has seen growth of 32% compare to last year which is a delighting fact, there are some concerning factors too? Those are only 5.3% people use internet in india which is very low. Most of the users are male (85%). The female percentage should increase. Maximum number of users is from top 10 cities (37%). So, the internet usage in urban areas is very less. Most of the users are male (85%) the figure below gives us a fairer idea of the current world internet usage.
16.1. INTERNET USAGE STATISTICS: INTERNET USAGE STATISTICS
World Internet Users and Population Status

WORLD INTERNET USAGE AND POPULATION STATISTICS
World Regions Africa Asia Europe Middle East North America Oceania / Australia WORLD TOTAL Population ( 2010 Est.) 1,013,779,050 3,834,792,852 813,319,511 212,336,924 344,124,450 34,700,201 6,845,609,960 Internet Users Internet Users Penetration Growth Users % Dec. 31, 2000 Latest Data (% Population) 2000-2010 of Table 4,514,400 114,304,000 105,096,093 3,284,800 108,096,800 18,068,919 7,620,480 360,985,492 110,931,700 825,094,396 475,069,448 63,240,946 266,224,500 204,689,836 21,263,990 1,966,514,816 10.9 % 21.5 % 58.4 % 29.8 % 77.4 % 34.5 % 61.3 % 28.7 % 2,357.3 % 621.8 % 352.0 % 1,825.3 % 146.3 % 1,032.8 % 179.0 % 444.8 % 5.6 % 42.0 % 24.2 % 3.2 % 13.5 % 10.4 % 1.1 % 100.0 %
Latin America/Caribbean 592,556,972
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17. DATA ANALYSIS

17.1. DATA ANALYSIS AND INTERPRETATION Customer satisfaction: Gap b/w Consumer Expectations and Companies Performance of Telecommunication
17. ICT indicators in K.S.A (1st Half- 2010) :

17.2. MOBILE TELECOMMUNICATIONS MARKET Competition in the mobile telecommunications market, which started in 2005, has resulted in major developments in terms of service offerings, quality of service, customer care, reduced prices, and subscriber growth. The total number of mobile subscriptions grew to around 47 million by 1st half (H1) 2010. The compound annual growth rate (CAGR) for the last eight years is around 43%. By H1 2010, mobile penetration in Saudi Arabia stood at 172% which is higher than the world average of 67%, the developing countries average of 57% and the developed countries average of 114%.
Figure 1
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Prepaid subscriptions constitute the majority (85%) of all mobile subscriptions, in line with the trend in other similar markets around the world
17.3. FIXED TELEPHONY MARKET :

Figure (2) below shows the evolution of fixed telephone service in Saudi Arabia from 2001 to H1 2010. Fixed telephone lines stood at 4.3 million by H1 2010, of which around 3.2 million or 74% were residential lines. This represents a household teledensity of around 68%, The population teledensity is around 15.7% or 158 telephone lines for every 1000 inhabitants. This is slightly lower than the world average of 17.8%, but is higher than the Arab World average of 10.5% and the developing countries average of 13.5% Figure ii
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Note: Population teledensity is calculated by dividing total fixed telephone lines by the population, while household teledensity is calculated by dividing only residential lines by the number of households
17.4. BROADBAND SERVICES MARKET:

Broadband subscriptions have grown from 64,000 in 2005 to over 3.20 million at the end of H1 2010, as depicted in Figure (3). The broadband penetration rate stood at around 11.9% of population at the end of H1 2010, or 119 broadband connections for every 1000 inhabitants. Broadband household penetration is a more relevant indicator as a single broadband connection in a house can provide high speed data access to all members of a household. At the end of H1 2010, household broadband penetration stood at around 34%, assuming that 80% of wireline broadband connections and 25% of wireless broadband subscriptions are for residential use, with the rest being either for business or individual use
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only. This means that around a third of all households in Saudi Arabia have a broadband connection.
Figure iii As evident from Figure (3), most broadband growth in was due to a phenomenal increase in wireless broadband connections, which reached 1.85 million wireless broadband subscriptions, which translates to over 56% of all broadband connections, while digital subscriber lines (DSL) reached 1.35 million lines in H1 2010. Despite the high growth rates over the last few years, there is high potential for more growth in broadband services. The broadband market is significantly underserved in many suburban and rural areas. With the
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opening of the fixed telecommunications market to competition, the intense competition in mobile broadband offerings, and the increased consumer demand for fast Internet connections, the broadband market is expected to continue to grow at a fast pace, as the mobile and fixed service providers continue to roll out their broadband networks with competitors fulfilling the growing demand.
17.5. INTERNET SERVICES MARKET:

The number of Internet users grew from around 1 million in 2001 to an estimated 11 million at the end of H1 2010, a ten-fold increase in 8 years, as shown in Figure (4). This corresponds to a CAGR of around 33% over the eight years period (2001- 2009). Internet penetration increased to 40% of the population by the end of H1 2010. %). This rapid growth of Internet users in Saudi Arabia is attributable to increased public awareness, growth in broadband availability, decreasing costs of personal computers and Internet access, and
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enhanced usefulness of the Internet brought about by increased availability of local content, of Arabic language sites, and of e-services such as online banking, e-commerce, and egovernment applications
Notes: For years 2001-2006: CITC estimates based on reported Internet connections (dial-up and broadband). 2007 ,2008 and 2009: Based on the results of two major field surveys of the Internet market commissioned by CITC. H1 2010: CITC estimate (projection) based on the results of the two field surveys of 2007 and 2008.
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17.6. TELECOM SERVICES SECTOR REVENUES:

Telecom services revenues in Saudi Arabia have been steadily growing at a CAGR of around 13%, increasing from about SR 20 billion (US $5.3 billion) in 2001 to SR 52.5 billion (US $14 billion) in 2009. Figure (5) tracks the overall revenue growth, including both fixed and mobile services revenues, over the nine years (2001-2009). Mobile services revenues represent around 77% of all telecom sector revenues in the Saudi market, which is in line with trends in other countries. In addition to revenue from the domestic market, investment by Saudi licensed telecom companies in foreign telecom markets including Kuwait, Malaysia, Indonesia, India, Turkey, and South Africa, have led to a rapid growth of revenue for the sector from foreign operations, from SR 455 million in 2007, to SR 9.5 billion in 2008, and to around SR 14.5 billion (US $3.9 billion) in 2009. Domestic revenues, however, still represent over 78% of the total telecom sector revenues of SR 67 billion (US $17.9 billion) in 2009.
17.7. FORECASTING 37 MILLION SUBCRIPTION.

BY THE END 2010: Amidst intense competition, operators keen to increasing their efforts to establish new revenue streams from data and value-added services.Saudi Arabias mobile market continues to be the second-largest in the Middle East, after Iran, with a forecast subscription-count of 37 million at end-2010, representing an increase of 11.81% year-on-year.The number of mobile subscriptions in Saudi Arabia is forecast to cross the 40-million mark during 2012 and to reach 45.05 million at end-2014, according to Informa Telecoms & Media.However the rate of growth in Saudi Arabias mobile-subscriptions count will slow as the market matures, with the year-on-year rate of growth falling to 3.03% in 2014.The rate of mobile penetration in Saudi Arabia is forecast to be 125.55% at end-2010, rising to 143.74% at end-2014.Mobile market-leader STC will see some erosion of its market-share over the coming few years, but this will be relatively slow. At end-2010, STC is forecast to have 18.07 million mobile subscriptions and a market-share of 48.83%, down from 51.37% at end-2009 (see fig. 1).
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17.8. FIG.SAUDI ARABIA, ACTIVE MOBILE SUBSCRIPTIONS

FORECASTS 2009-2014 STCs mobile-subscription count is forecast to grow to 20.8 million at end-2014 but its share of the countrys mobile market will fall to 46.17%.Zain Saudi Arabia, which made its debut in August 2008 as the countrys third mobile operator, is forecast to expand its market-share at the expense of both STC and No. 2 operator Mobily. Zain has introduced innovative pricing plans and promotions as well as its One Network roaming scheme.Zain is forecast to have 5.76 million mobile subscriptions and a marketshare of 15.56% at end-2010, rising to 9.34 million subscriptions and a market-share of 20.74% at end-2014.Mobily is forecast to have 12.92 million mobile subscriptions and a market-share of 34.92% at end2010 but while its subscription count will rise to 14.47 million at end-2014, its market-share will decline to 32.13%.As the growth in mobile subscriptions slows and revenues from voice calls remain static, or even decline, Saudi operators are increasing their efforts to establish new revenue streams from data and valueadded services.Saudi Arabias relatively low fixedbroadband penetration, combined with a youthful population with an interest in new technology, has allowed operators to enjoy some success with mobile broadband services.Mobily, which is said to have the busiest mobile broadband network in the world, is forecast to have 4.63 million HSPA subscriptions by end-2010, rising to 13.14 million at end2014. STC will have 12.29 million HSPA subscriptions at end-2014 and Zain will have 2.55 million. That will give Saudi Arabia a total of 27.97 million HSPA subscriptions at end2014.Revenues from data services in Saudi Arabia are forecast to rise from US$1.58 billion in 2010 to US$3.28 billion in 2014, while voice-service revenues will fall slightly from US$11.51 billion in 2010 to US$11.35 billion in 2014.
18. ICT INFRASTRUCTURE

A certain level of competition has already been introduced in the fixed, mobile and data communications markets in Saudi Arabia. Fixed services are currently offered by the incumbent operator, with three additional licensees expected to rollout their services in 2008. In the mobile market, there are two Mobile Service Providers currently providing services and a third operator is expected to rollout its services by early 2008. A number of Internet Service Providers (ISP) is offering dial-up and broadband Internet services in 4 Saudi Arabia.
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Seven VSAT Services Providers have been licensed to provide services, which makes ICT services available even in remote areas. Fixed telephone lines approached 4 Million at the end of 2006, 75% of which were residential lines (3 Million). This represents a penetration rate of 16.5% and a household penetration (percentage of households with a telephone) of around 70%, or 70 residential phones for every 100 households. Table 1 below shows the evolution of fixed telephone service since 2001.
18.1. TABLE 1. NUMBER OF FIXED TELEPHONE LINES

Year Number (million) Years 2001 2002 2003 2004 2005 2006 No.Millions 3.2 3.3 3.5 3.7 3.8 4
In the Mobile market, the number of subscribers has more than doubled in just two years from 9.2 Million in 2004 (40% penetration) to around 19.6 Million (over 81% penetration) in 2006, and also as compared to only 2.5 Million subscribers (12% penetration) in 2001. Table 2 depicts the mobile subscriber evolution.
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18.2. TABLE 2. NUMBER OF MOBILE SUBSCRIBERS

Year Number (million) Years No.of Mobile Subcribers 2001 2002 2003 2004 2005 2006 In Millions 2.5 5 7.2 9.2 14.2 19.2
No. of Mobile Subcribers 20 18 16 14 12 10 8 6 4 2 0
Years
Internet users grew from around 1 Million in 2001 to an estimated 4.7 Million by the end of 2006 (apenetration rate of around 19.6%). On the other hand Broadband subscribers have grown from 14 thousand in 2001, to around 220 thousand at the end of 2006. Table 3 shows the growth in internet and broadband subscribers for the period 2001-2006.
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18.3. TABLE 3. NUMBER OF INTERNET AND BROADBAND

SUBSCRIBERS Year Internet Subscribers (million) Broadband Subscribers (million) Years 2001 2002 2003 2004 2005 2006 INTERNET SUBCRIBERS 1.0 1.4 1.8 2.4 3.0 4.7
18.4. NO.OF BROADBAND SUBCRIBERS

Years NO.OF BROADBAND SUBCRIBERS 2001 2002 2003 2004 2005 2006 14.0 22.0 26.0 40.0 64.0 218.0
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18.5. FORECAST WORLDWIDE TELECOM STATISTICS AT A GLANCE 2010

telecom statistic forecasts Population Fixed lines Mobile subscribers Mobile text messages sent 6.9 billion 1.4 billion 5.1 billion 4.2 trillion
Internet users
1.6 billion
Fixed broadband subscribers 580 million
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Handset sales in Q1 2010 were higher than expected, due to a strong growth in global smart phone sales and also the continuing uptake of unbranded low cost mobile devices in emerging markets.
China is the worlds largest mobile communications market. The number of mobile subscribers in China surpassed the number of fixed-line subscribers in 2003.
The high costs of data services, inadequate network speeds and inferior mobile interfaces initially held the mobile broadband/data market back. But as some of these issues are slowly resolved; the mobile broadband market is finally gaining momentum.
By the end of 2010 there will be well over 500 million broadband subscribers worldwide (including all fixed access technologies). While Japan continues to lead the world in terms of the number of FTTx subscribers; South Korea has the highest penetration in the world and is the first country in the world to reach over 50% penetration of households using FTTx.
OVERVIEW
The Saudi telecommunications market is the largest in the GCC. Since 1998, STC have been the sole provider ( owned by government) KSA is characterized by two fixed lines, and 3 cellular service providers. Telecom is one of the Fastest growing sector in KSA. Thriving Competition in the market. Valuable Demand.
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DEMAND IN THE KSA TELECOM MARKET The number of mobile users is set to shoot up to 22 million by 2009-10. Wide range of jobs opportunities. Thriving competition in the Telecom market. Value added services and packages. Targeting the youth Market
18.6. MARKET SHARE 2008 -2009
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MAR ETS AR 2008-09 K H E

6% 38%
STC MOBIL Y Z KSA AIN
56%
Figure 1
18.7. MARKET SEGMENTATION OF TELECOM INDUSTRY

STC monopoly was broken in 2005-06 by MOBILY (ETISALATE). The number of subscribers has more then double in just two years New revolution in the telecom industry In 2nd Half of 2008 ZAIN the third Mobile rival enter the local market Competitive promotions launched by all three competitors. Targeting the Saudis and Non-Saudis.
CONCLUSION
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The Telecom industry is still in the phase of expansion New players (ZAIN) yet have to capture some market in the Region. Saudi Telecom still having biggest mobile market share in the MENA. Technologically sound Mobile market.
19. STC, MOBILY AND ZAIN ARE NOW OFFERING 4 HALALAS PER MB It has been started by Zain first of all. Zain has introduced a new data sim last week with free 300 MB internet. The price for this data sim was 30 SR. After utilizing your free data bundle of 300 megabyte every additional MB of internet will cost you 6 halala i.e 0.06 SR. Next to that Mobily has introduced even a better package. That was 300 MB in 30 SR sim and every additional MB costs 5 halala. Next to that, Zain decreased the cost of 1 MB to just 4 halala and they decreased the price of Sim card to 20 SR. Again mobily tried to dominate this offer and they offered 500 MB of internet in Just 30 SR plus additional MB costs same 4 halala. STC stayed away from this fight and they didn't offer anything. When 1 week passed and both mobily and Zain kept quite on more offers, STC has introduced a little different package. They offered 400 MB of internet data in just 25 SR plus additional MB costs same 4 halala like mobily and Zain. Now all three of mobile operators in Saudi Arabia are providing the cheapest ever MB in Saudi Arabia. Once you buy the sim card in 20, 25 or 30 SR you could have internet at 4 halala per MB cost. I draw a comparison of intial free MBs and I found mobily is the cheapest among all three. As per my experience mobily's internet services are a lot better than all others.
Provider Package Name
Initial Balance
Price
MB per 1SR
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STC mobily Zain
QUICKnet Light Connect 500 Delight
400 MB 500 MB 300 MB
25 SR 30 SR 20 SR
16 16.67 15
19.1. COMPARISION SHEET STC, MOBILY & ZAIN MB PER 1 SR.
19.2. COMPARISION SHEET STC, MOBILY & ZAIN PRICE WISE
Most probably these packages are only available for USB Modem, You cannot use these sim cards in your mobile. Moreover these sim card cannot
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be
used
in
your
mobile
for
making
or receiving calls.
Customers will receive the SIM card for FREE with the purchase of data package.Visit your nearest Zain Shop or Dealer to buy one! For further inquires please visit your nearest Zain shop or call customer service on 0590000959 or 959 from your Zain line. Customers can check the data balance by simply sending an SMS command BC to 700212 from their handset or USB Modem dashboard.
20. MOBILE CONNECTION RESPONSE

Q1: - Which mobile connection do you have?
Particular
No. of respondents
SAUDI TELECOM 40 COMPANY MOBILY 32 ZAIN OTHERS 16 12
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INTERPRETATION :As the area of the study is in WHOLE Saudi Arabia where the market leader is Saudi Telecom Company . Thats why majority of the questionnaire I got filled by Saudi Telecom Company. Above data analysis shows that majority of the market that is approximately 50% is covered by two market leaders STC and Moily Minor is Zain Saudia Q2:- What kind of service you have? Particular Pre-Paid Post-Paid No. of respondents 84 16
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Interpretation: - Above data shows that most of the respondents in the area have prepaid connections. And I got only 16% questionnaire filled by post-paid users. Q3:- Overall, how would you rate your service provider? Brands Excellent Good Av Poor Terrible g STC 7 18 10 0 Mobily 5 15 20 0 Zain 1 OTHERS 0 06 10 04 03 05 08 Not Sure
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Interpretation:- From the graphic it depict that Saudi Telecom Company is the most excellent and good service provider as 19 out 20 responded believes that the service of the company is excellent. Then Mobily has also good rate of excellence as 16 out of 18 respondents rated Mobily as a good service provider. But the Zain and ITC are not under good ratings. 8 respondents of ZAIN and 5 of ITC have rated their service provider as Poor. ZAIN is found to be worst service provider from all above as 12 respondents rate it as a average service provider and 8 as a poor service provider.
Q4:- Rank the following factors which influenced you the most to buy the service of your choice? H1: -Price factor is not the most influencing factor for the purchase of Telecom service. H0: - Price factor is the most influencing factor for the purchase of Telecom service. Brands STC Mobily Zain ITC 7 6 22 Price Network Service 16 4 7 Brand Image 4 3 3 VAS Expected values 25 25 25 25
6 10 10
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Chi square value:
6.035
Table value: 5.991
Interpretation of Chi: - As the 95% level of confidence Chi square value 6.035 is more than the table value 5.991, so the null hypothesis is rejected, it means Price factor is the most influencing factor for the purchase of Telecom service. Interpretation:- Above data analysis shows that STC is being preferred because of its best network service and Brand image as well. Where mobily is preferred because of its good pricing strategy, network service, brand image and the most Value Added Services of the company. And Zain Saudia is preferred because of all above factors. Where ITC is preferred the most because of its low price as compare to its competitors and because of its value added services as well.
Q5- Rank the following VAS which attracted you the most to buy or retain the mobile service: Particular STC Mobily Zain Other ITC SMS Pack 0 9 15 4 6 16 11
Concession 3 Call Rates Internet Service 6
1 7
6 4
0 7
Full Talk 5 Time
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Interpretation: - Above data analysis shows that STC is being preferred because of its internet service. And Zain Saudia because of its Concession calls rates and full talk time VAS. Where Zain the most because of its Concession Call Rates and SMS pack. But Other (ITC) because of its SMS pack mainly and then concession rates also.
Q6:- How long have you used the service of that company? Brands STC Mobily Zain Other 1 2 2 >1 Month 1-6 Month 2 3 3 5 6 M 1 Year < 1 < 3 Year Year 7 13 6 11 7 3 13 3 9 3 2
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Interpretation:- Above table analysis depicts that most of the users are using their telecom service from last one year. Some of the users are also using it from last 3 year, where majority of the users are STC connection holders. Most of the users of the mobily are using it from last 6 months. Very few respondents are new users of their services that let our study not vague. Q7:- Overall, how satisfied are you, with network service of your company? Brands STC Mobily Zain Saudia Other Very Satisfied 7 3 2 2 Satisfied 23 18 13 14 Neutral 0 1 2 8 Dissa tisfy 0 0 0 6 Very Dissatisfy 0 0 0 0
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Interpretation: - Above table data analysis shows that the satisfaction rate of network service is leaded by STC as not a single user of service is neutral or dissatisfy. And Mobily network service satisfaction rate is also good. And it can be also found that Zain network service is not good as compare to others competitors as 14 respondents are found to be not satisfied with the company network service.
Q8:- How would you rate the service's value for money? Brands STC Mobily Zain Other Excellent 9 6 2 3 Good 24 20 10 14 1 Fair 6 5 Poor Not Sure
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Interpretation: - Above data and chart analysis depicts that STC has the highest rating of Value for /money as 33 persons out 34 has rated it as a excellent and good service provider. Then Zain Company is following other as a best service provider for value for money. Other two players STC and mobily has similar performance approximately. Both has been rated good and excellent, where good has been rated more as compare to other options.
Q9:- What kind of problems occurs the most for which you need to contact customer care/service department of your service provider? H0: - People do not contact customer care mostly for activation and deactivation of the service H1: - People contact customer care mostly for activation and deactivation of the service Brands STC Mobily Zain Other 6 Billing Related 1 Activation/ Deactivation 8 18 12 6 Informatio n of VASs 10 7 5 11 3 13 Network Problem Expected values 25 25 25 25
Chi square value:
9.351
Table value: 7.815
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Interpretation of Chi:- As the 95% level of confidence Chi square value 9.351 is more than the table value 7.815, so the null hypothesis is rejected, it means People contact customer care mostly for activation and deactivation of the service. Interpretation: - From the above data analysis it has been found that most of the users of telecommunication contact to their customers care for activation and deactivation of various services. Then they also contact for information about various value added services provider by companies like validity, call rates, sms pack, caller tones etc. Network service has been found a problem of mainly Othe users and to some extent of Zain Saudia users as well.
Q10:- In thinking about your most recent experience with that company, how much satisfied are you with the customer care service? H0: - STC is not the best service provider of customer care service. H1: - STC is the best service provider of customer care service. Brands STC Mobily Zain Other Chi square value: Very Satisfied 14 3 1 Satisfied 6 12 11 2 11.143 3 6 3 3 7 7 22 Table value: 9.488 Neutral Dissatisfy Very Dissatisfy
Interpretation of Chi:- As the 95% level of confidence Chi square value 11.143 is more than the table value 9.488, so the null hypothesis is rejected, it means STC is the best service provider of customer care service in the industry.. Interpretation:- From the above data interpretation we can conclude that STC is the best service provider of customer care service. As it has been also found in some of the article that STC is expending more on its customer care service as compare to other competitors in the market. The mobily service is also satisfactory as most of the users have rated it as satisfied service provider. But other is to be found as a not satisfactory service provider. Most
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of the users said that they have not talk to their customer care service provider even for a single time. Q11:- How satisfied are you with the process of getting your queries resolved? Brands STC Mobily Zain Other Very Satisfied 12 2 1 Satisfied 17 12 1 3 3 8 3 6 9 2 19 Neutral Dissatisfy Very Dissatisfy
Interpretation: - From above data analysis we can say that most of the users, who are satisfied with their customer care service, are also satisfied with the process of getting their queries resolved. STC again has been rated as the best service provider for getting queries resolved. Results are similar approximately with the 10-question analysis.
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Q12:- The customer service representative was very courteous. Brands STC Mobily Zain Others 20 2 12 Strongly Disagree Somewhat Disagree Neutral Somewhat Agree 7 8 12 2 Strongly Agree 13 14 10
Interpretation: - Above data analysis shows that most of the users of all companies found their customer service provider courteous. But the result of Others is not good as the users say that they have not talk to their customer care service provider even for a single time. Some of them have talk but after a lot of waiting time. So they are found not satisfied and rated this question also as dissatisfied. So after studying their views with a personal discussion we can not say that the customer care representatives of others are not courteous.
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Q13:- The customer service representative was very knowledgeable. Brands Strongly Disagree STC Mobil y Zain Others 20 Somewha Neutral t Disagree Somewhat Agree 3 1 8 12 5 2 Strongly Agree 22 17 10
Interpretation: - Above data analysis shows that most of the users of all companies found their customer service provider knowledgeable. But the result of others is again not good as the users say that they have not talk to their customer care service provider even for a single time. Some of them have talk but after a lot of waiting time. So they are found not satisfied and rated this question also as dissatisfied. So after studying their views with a personal discussion we can not say that the customer care representatives of Other (ITC ) are not knowledgeable. But one more finding is there in that question that Idea is not perfect in hiring best personnel for customer care representatives as 8 users are neutral for this question reply.
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Q14:- The waiting time for having my questions addressed was satisfactory. Brands STC Mobily Zain Others(ITC 20 ) 8 12 Strongly Disagree Somewhat Disagree Neutral Somewhat Agree 2 3 5 2 Strongly Agree 23 15 10
Interpretation: - Above data analysis shows that most of the users of all companies are found satisfactory with the waiting time their queries resolved. But the result of Others (Zain ) is again not good as the users say that they have not talk to their customer care service provider even for a single time. Some of them have talk but after a lot of waiting time. So they are found not satisfied and rated this question also as dissatisfied and neutral. So after studying their views with a personal discussion we can not say that the customer care representatives of Others(Zain) are not able to solve their customer queries in a satisfactory time.
21. CONCLUSION
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As per my belief we have seen that the choice of mobile handset and services can not be separated came out true because when we tried to find out the customer decision .we successfully classified customers in to eight group each with some special requirement service wise and handsets attribute wise. Competition in telecom industry is heating up its time for Indian telecom players also to align up in the new dynamic business environment.
Telcom majors should think to launch the product according to the needs of customers to satisfy them and make them brand loyal as very soon this blue ocean of Saudi telecom scenario will convert into red ocean where the loss of is the gain of other .They should also think for searching new space or we can say either creating a new blue space to sustain their growth in long run.
There is more room for data analysis but the rest of the part is beyond the scope of this project report According to the results, the most important determinant for consumers are price and sacrifice perception (monetary and non-monetary sacrifice), which in perception. These are periodical fixed cost, minute or traffic charge and opening cost when purchasing mobile phone. The results indicate that the minute charge is the most influential factor when a customer assesses to purchase. The second most important factor is the periodical fixed cost and another factor is the opening cost. These indicate, not surprisingly, that communication firms need to deeply consider. Also, this indicates that a lot of effort must be put in the pricing strategy.
Quality of service and the ability to attract and retain customers dictate the success or failure of next-generation communications service providers. In todays competitive environment, customers are quick to abandon services that do not meet expectations. The ease with which customers can switch from their current service to another, demands that providers deliver the highest possible levels of service quality and performance. To be successful, communications service providers must deliver positive customer experiences with rich, value-added services supported by comprehensive service quality management. To this effect-Mobile services has experienced the negative attributes of not being customer focused and realizes that quality is an attribute that creates customer satisfaction profitably. Therefore quality must be fused with all resources channeled towards their customers
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22. GLOSSORY :
A & B Bit
A & B Bit is used in digital environments to convey signaling information. A bit equal to one generally corresponds to loop current flowing in an analog environment; A bit value of zero corresponds to no loop Current, i.e. to no connection. Other signals are made by changing bit values: for example, a flash-hook is sent by briefly setting the A bit to zero. A Links
A Links, also known as SS7 access links, connect an end office or signal point to a mated pair of signal transfer points. They may also connect signal transfer points and signal control points at the regional level with the A-links assigned in a quad arrangement. A&B Bit Signaling
A&B Bit Signaling, also called 24th channel signaling, is a procedure used in T1 transmission facilities in which each of the 24 T1 subchannels devotes 1 bit of every sixth frame to the carrying of supervisory signaling information. On T1 lines that use Extended SuperFrame(ESF) framing, the signaling bits are robbed from the 6th, 12th, 18th, and 24th frame, resulting in "ABCD" signaling bits. ABAM cable
ABAM cable refers to a type of T1 cable. This cable was a 22 gauge, 100 ohm insulated,
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twisted pair. ABAM cable is no longer available, but you can easily find cable that meets the technical requirements. Abandoned Call
Abandoned Call is a call in which the call originator disconnects or cancels the call after a connection has been made, but before the call is established. Abandonment Abandonment refers to the network replacement of a connect signal with an on-hook signal (network) prior to receiving a CI (customer installation) answer signal. Abandonment is the only way to end an unanswered call attempt. Abbreviated Address
Abbreviated Address is an address that has fewer characters than the full address, usually for special communications and other services or for certain users. Examples of abbreviated addresses are (A) a four-digit telephone number for a user calling another user connected to the same switching exchange, and (B) message addresses that have only the addressee name and station code or number. Abbreviated Address Calling
Abbreviated Address Calling is a calling that enables a user to employ an address having fewer characters than the full address when initiating a call. Communications network users may be allowed to designate a given number of abbreviated address codes. The allocation of the abbreviated address codes to a destination or group of destinations may be changed as required, by means of a suitable procedure. Abbreviated Dialing Abbreviated Dialing is a telephone feature (synonym speed dialing ) that (A) permits the user to dial fewer digits to access a network than are required under the nominal numbering plan, and (B) is limited to a subscriber-selected set of frequently dialed numbers.
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ABCD Signaling
ABCD signaling is a 4-bit telephony line signaling coding in which each letter represents 1 of the 4 bits. This often is associated with CAS or robbed-bit signaling on a T1 or E1 telephony trunk. ABCD Signaling Bits
ABCD Signaling Bits, also refered as ABCD Bits, are 4-bits telephony line signaling coding in which each letter represents 1 of the 4 bits. The implementations of ABCD signaling are different in E1 and T1 digital trunks. On E1, ABCD bit values may be used to signal an incoming call, disconnect, seize and so on, They are closely analogous to the A and Bits commonly used on T-1 digital trunks. On E1, there are 32 channels (time-slots) in contrast to 24 channels on T-1, hence the faster bit rate of 2.048 MHz versus 1.544 MHz for T-1. On E1, channels 0 and 16 are used to carry the ABCD bits and synchronization (framing) bits; hence only 30 channels are available for audio conversations. On T-1 digital trunks, the ABCD Signaling Bits implements the robbed bit signaling. ABCD Tones
ABCD Tones are simply additional DTMF tones that may be used in any way the standard (0-9) tones are used. The ABCD Tones are used in the U.S. Military telephone network (Aoto Von), in some Automatic Call Distributor (ACD) systems, for control messages in some PBX systems, and in some amateur radio auto-patches. ABDN: Attendant Blocking of Directory Number
Attendant Blocking of Directory Number (ABDN) is a feature of telephone service enables the attendant to block a DN (Directory Number) for a telephone from receiving to making calls. This is particularly useful when a caller dials the attendant DN and requests an external (long distance) call. If the caller chooses to disconnect until the attendant successfully places
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the call, the requesting DN becomes idle and can receive or make calls. Therefore, the requesting DN could be busy when the attendant establishes the requested call. Absent Subscriber Service
Absent Subscriber Service is a telephone service provided by local telephone carriers to customers who will be away for a period of time and want to stop the service without losing their telephone number . The calls to the subscriber will be intercepted by a live operator or a machine and a message will be delivered. When the customers come back, they will get their old number. But in the meantime, while they are away, they pay less money per month than they would for normal phone service. B3ZS: Bipolar 3 Zero Substitution
Bipolar 3 Zero Substitution (B3ZS) is a T-carrier line code in which bipolar violations are deliberately inserted if the stream of user data contains a string of 3 or more consecutive zeros.B3ZS is used to ensure a sufficient number of transitions to maintain system synchronization when the user data stream contains an insufficient number of "ones" to do so. B6ZS: Bipolar 6 Zero Substitution
Bipolar 6 Zero Substitution (B6ZS) refers to a T-carrier Line Code in which bipolar violations are deliberately inserted if user data contains a string of 6 or more consecutive zeros. B6ZS is used to ensure a sufficient number of transitions to maintain system synchronization when the user data stream contains an insufficient number of "1s" to do so. B8ZS: Bipolar 8 Zero Substitution
Bipolar 8 Zero Substitution (B8ZS) is a method of line coding used in the T-carrier system which allows full 64 Kbit/s per second per channel. On a T1, ones are sent by applying voltage to the wire, where a zero is sent by having no voltage on the wire. Sending eight zeros in a row could cause T1 equipment to lose synchronization with the sending equipment, it is important that that pattern is not sent.
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Babble Babble refers to noise or confusion, which is the aggregate crosstalk from interfering channels. Backbone Cabling
Backbone Cabling refers to a portion of premises telecommunications cabling that provides connections between telecommunications closets, equipment rooms and entrance facilities. It consists of the transmission media (optical fiber cable), main and intermediate crossconnects, and terminations for the horizontal cross-connect, equipment rooms, and entrance facilities. Backbone cabling, sometimes called backbone wiring, can further be classified as inter-building backbone (cabling between buildings), or intrabuilding backbone (cabling within a building). Back-Channel Back-channel is, in an asymmetric telecommunications system, typically a low-speed or lessthan-optimal transmission channel opposite to the main channel's direction. An example of this is in ADSL where "A" stands for "asymmetric", and the channel from the subscriber to the supplier is slower and may be of less capacity than the channel from the supplier to the subscriber. Background Noise
Background Noise is the random signals that can be attributed to the unpredictable movement of free elections in a communication channel. Back-Haul Back-Haul is a communications path which takes traffic farther than the ultimate destination, then routes it back. This is done because the cost of transmission to the more remote location is much lower than a more direct route. Back-to-Back Connection
Back-to-back connection is: 1. A direct connection between the output of a transmitting

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device and the input of an associated receiving device. When used for equipment measurements or testing purposes, such a back-to-back connection eliminates the effects of the transmission channel or medium. 2 . A direct connection between the output of a receiving device and the input to a transmitting device. The term "direct," as used in both definitions, may be construed as permitting a passive device such as a pad (attenuator) to accommodate power level constraints. Backward Channel
Backward Channel is the channel in a data circuit that passes data in a direction opposite to that of its associated forward channel. The backward channel is usually used for transmission of request, supervisory, acknowledgement, or error-control signals. The direction of flow of these signals is opposite to that in which user information is being transferred. The backwardchannel bandwidth is usually less than that of the primary channel, that is, the forward (user information) channel. For example, ADSL's upstream channel, considered a backward channel for some types of analysis, typically has a bandwidth less than one-fourth of the downstream channel. In data transmission, it is a secondary channel in which the direction of transmission is constrained to be opposite to that of the primary, i.e., the forward (user-information) channel. The direction of transmission in the backward channel is restricted by the control interchange circuit that controls the direction of transmission in the primary channel. Cabling Administration
Cabling Administration is a process in telecommunication system engineering for premise wiring that includes all aspects of premise wiring related to documenting and managing, testing the system as well as the architectural plans for the system. CAC: Connection (or Call) Admission Control
Connection Admission Control (CAC), also known as Call Admission Control, refers to the set of actions taken by the network during the call set-up phase (or during call re-negotiation phase) in order to determine whether a connection request can be accepted or should be
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rejected. In the voice over IP communications, the CACs prevent an IP network from becoming clogged with traffic to the point of being unusable. When a network's capacity is consumed, admissions control mechanisms prevent new traffic from being added to the network. When calls traverse the WAN, admissions control assumes paramount importance. Within the LAN in which bandwidth is not a problem, CAC is less critical. CAC could also be a set of actions taken by each ATM switch during connection setup to determine whether a connection's requested QoS will violate the QoS guarantees for established connections. CAC also is used when routing a connection request through an ATM network. CALEA: Communications Assistance for Law Enforcement Act
Communications Assistance for Law Enforcement Act (CALEA) is a US law established in 1994 that defines obligations of telecommunications carriers to assist law enforcement in executing electronic surveillance (or wiretapping) pursuant to court order or other lawful authorization. The purpose of CALEA is to preserve the ability of law enforcement to conduct electronic surveillance in the face of rapid advances in telecommunications technology. Call A call, also knowns as phone call in telecommunication, is the attemted connection to establish a voice conversation between two people. Call Accounting System
Call Accounting System is the software that is essential to telecom cost management typically for business or organizations. It usually provides services like phone call tracking, telephone usage monitoring, corporate bill back, telephone usage bulling to, and etc. Call Center
Call Center is a functional area within an organization, business or an outsourced, separate facility that exists solely to answer inbound or place outbound telephone calls; usually a sophisticated voice operations center that provides a full range of high-volume, inbound or
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outbound call-handling services, including customer support, operator services, directory assistance, multilingual customer support, credit services, card services, inbound and outbound telemarketing, interactive voice response and web-based. Call Collision
Call Collision is the contention that occurs when a terminal and data circuit-terminating equipment (DCE) specify the same channel at the same time to transfer a call request and handle an incoming call. When call collision occurs, the DCE proceeds with the call request and cancels the incoming call. Call collision also refers to the condition that occurs when a trunk or channel is seized at both ends simultaneously, thereby blocking a call. Call Deflection
Call Deflection is a feature of voice over IP (VoIP) that automatically redirects a call from the called endpoint to another endpoint (usually a voice mailbox) when the called endpoint is busy. Call deflection is one of several forms of call diversion (also known as call forwarding) defined under the H.450.3 specification. Call Duration
Call Duration is 1. the time between (a) the instant a connection, i.e., off-hook condition at each end, is established between the call originator and the call receiver and (b) the instant the call originator or the call receiver terminates the call. 2. In data transmission, the duration of the information transfer phase of an information transfer transaction. Call Filters
Call Filter is a feature in an ISDN moden that is performed by the port monitor to determine if the caller has authorization to run the type of service requested. The caller ID (telephone number of the calling system) must be listed in the Call Filter file, together with a list of service types which that caller is authorized to use.
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Call Management
Call Management refers to the following functions in telecommunication system: 1. In telegraphy, it's about route selection, signaling, and circuit usage and availability for a call. 2. In universal personal telecommunications, it is about the ability of a user to inform the network how to handle incoming calls in accord with certain parameters, such as the call originator, the time of day, and the nature of the call. Call Originator
Call Originator is an entity, such as a person, equipment, or program that originates a call. Call Priority
Call Priority is the priority assigned to each origination port in circuit-switched systems. This priority defines the order in which calls are reconnected. Call priority also defines which calls can or cannot be placed during a bandwidth reservation. Call Process Signals
Call Process Signals refer to signals for call processing. Examples of Call Process Signals are various audible tones (such as dial tone, ringing tone, audible ringing tone, audible busy tone, and congestion tones) or announcements that inform the subscriber of the call progress status. Call Set-up
Call Set-up is one of the many states of call processing. The call Set-up state establishes a communications path: (1) between the calling party and the called party, and (2) between the calling party and the network entities. Call Setup Time
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In telecommunication world, Call Setup Time is the time required to establish a switched call between users. For data communication, Call Setup Time refers to the the overall length of time required to establish a circuit-switched call between terminals, i.e., the time from the initiation of a call request to the beginning of the call message. Call Waiting Tone
Call Waiting Tone is a special service that allows a busy line to answer an incoming call by flashing the switch-hook. Audible ring (instead of line busy) is applied to the calling line, and the Call Waiting Tone is applied to the called line. (So that only the called party hears the tone, the connection is momentarily broken, and the other party to that connection experiences a moment of silence.) Flashing the switch-hook places the existing connection on hold and connects the customer to the waiting call. Call Waiting Tone is two bursts of 440 Hz at -13 dBm0/frequency for 0.3 seconds plus or minus ten percent every ten seconds. Called Party
Called Party refers to a end user (person or his device) that receives a telephone call initiated by a calling part. Caller ID
Caller ID is, also known as calling number delivery (CND), a telephone service intended for residential and small business customers. It allows the called Customer Premises Equipment (CPE) to receive a calling party's directory number and the date and time of the call during the first 4 second silent interval in the ringing cycle. Calling Card
Calling Card refers to a physical object, often in the form of a wallet-sized card made of plastic or paper, which contains contractual information as to using postpaid or prepaid long distance services from the calling card provider. Calling card based long distance phone call
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is a form of dial-around, which is a two-step method for selecting a long distance service provider on a call-by-call basis. Calling Card Service Prompt Tone
Calling Card Service Prompt Tone is used to inform the customer that his/her credit card information must be keyed in. The first 60 milliseconds of this composite tone is 941 Hz and 1477 Hz which is the DTMF '#'. This tone will release and DTMF to dial pulse converter in the connection. Calling Card Service Prompt Tone is 941 Hz and 1477 Hz at -10 dBm0/frequency at -3 Transmission Level Point for 60 milliseconds and then 440 Hz and 350 Hz at -7 dBm0 for 0.940 seconds exponentially decayed from -10 dBm per frequency at -3 Transmission Level Point at time constant of 0.2 seconds. Calling Party
Calling Party is a user (person or his device) that initiates a telephone call over the public siwiched telephone network. It is also refered as Call Originator. CAM: Carrierless Amplitude Modulation
Carrierless Amplitude Modulation (CAM) refers to the original approach for modulation of a Digital Subscriber Line (DSL) signal. Currently, Discrete multitone (DMT) is the preferred modulation alternative over CAP CAMA: Centralized Automatic Message Accounting
Centralized Automatic Message Accounting (CAMA) refers to an automatic message accounting system that serves more than one switch from a central location. When using CAMA, human intervention may be required. Camp-On Camp-On, also referred as Called-party Camp-on, is a telecommunication system feature that enables the system to complete an access attempt in spite of issuance of a user blocking
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signal. The system constantly monitors the busy user until the user blocking signal ends, and then proceed to complete the requested access. CAP: Carrierless Amplitude Phase Modulation
Carrierless Amplitude Phase (CAP) modulation is a viable alternative for the Digital Subscriber Loop (DSL) systems such as the HDSL, ADSL and VDSL. The conventional twodimensional CAP-16 line code is extended to a three-dimensional scheme. The threedimensional system is designed so that the new overall transfer matrix maintains perfect reconstruction of the transmitted information. The system is designed by solving a minimax optimization problem by using the sequential CAP: Competitive Access Provider
Competitive Access Provider (CAP) is a type telecommunication service providers that provide local telecommunications services mainly to business customers in competition with a local Bell Operating Company (BOC). Teleport and MFS are the two major CAPs operating in major metropolitan areas in the United States. Capping Capping refers to the activity of ISPs (Internet Service Provider) to limit (capping) the accessing speed of cable modem so that cable modem ISPs can easily distribute bandwidth among users. The upload cap in particular is intended to discourage users to run big servers. In general, these caps are also put in place to make the system more robust. At slower speeds, packet loss is usually lower and the system can handle worse signal quality. Carrier Carrier refers to the following definitions: 1. in telecommunication service, it refers a company which provides physical media circuit for telecommunication service. 2. in telecommunication technology, it refers to an physical signal (optical, electrical, infrared and etc.) at a continuous frequency capable of being modulated to variation of physical format in order to carry information. 3. in networking, some physical media for transmitting signal like wideband circuits. T1 line for instance, is also called carrier which means that telecommunication signal is being carried and transmitted by them.
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Carrier Frequency
Carrier Frequency refers to the nominal frequency of a carrier wave, the frequency of the unmodulated electrical wave at the output of an amplitude modulated, the center frequency of a frequency modulation signal, frequency modulated, or phase modulated transmitter of the output of a transmitter when the modulation is zero. Carrier Hotel
Carrier Hotel refers to a type of data center where multiple telecommunications network or service providers, such as tacos or internet service providers, site their connections to one another's networks (points of presence). Carrier Service Provider
Carrier service provider is a company offering telecommunication (voice or data) service between points in a state or in one or more countries. Examples of Carrier service provider are AT&T, British Telecom etc. Carrier System
Carrier system refers to, in the telecommunication system, a system utilizing a method of providing several communications channels over a single path by modulating the data, voice or video transmissions onto a higher frequency carrier wave for transmission between nodes of a network. Loosely, in the transmission context of telecommunication system, it is sometimes a synonym with carrier.
D Channel
D Channel, an ISDN term, refers to the channel that carries control and signaling
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information. (The "D" stands for "delta" channel.) The B-channel ("B" for "bearer") carries the main data. The D-channel carries control and signaling information. D Type Channel Bank
D type Channel Bank refers to the terms used in T1 technology. Channel Bank defines the type of formatting that is required for transmission on T1 trunk. The purpose of a Channel Bank in the telephone company is to form the foundation of multiplexing and demultiplexing the 24 voice channels (DS0). D type Channel Bank is one of the type of Channel Bank which is used for digital signals. There are five kinds of Channel Banks that are used in the System: D1, D2, D3, D4, and DCT (Digital Carrier Trunk) DA: Directory Assistance
Directory Assistance (DA) is a telephone service in which a customer will be connected to an operator at a DA bureau by dialing the proper service code or number and shall be told the directory number of the customer whom he/she desired to call, provided that the customer's number is, or will be, published (listed) in the telephone directory. DACS: Digital Access and Cross-Connect System
Digital access and cross-connect system (DACS, DCS or DCCS) is a digital switching device in telecommunications for routing T1 lines. The DACS can cross-connect any T1 line in the system with any other T1 line also in the system. DACS is a simple form of channel switch which works at the DS0, DS1(T1/E1) and DS3(T3/E3), as well as STS-level. DAL: Dedicated Access Line
Dedicated Access Line (DAL) refers to a direct connection between customer location and telecommunication service facility to eliminate all local switching aspects of interexchange calling to/from this specific customer location Dark Fiber
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Dark fiber refers to unused fiber-optic cables that have been laid out in the field. Oftentimes companies lay more lines than what's needed in order to curb costs of having to do it again and again. The dark strands can be leased to others who want to establish optical connections among their own locations. Data Set Answer Back Tone
Data Set Answer Back Tone is one of telephone system audible tones that it will be heard when manually initiating a data call. It normally occurs shortly after the start of audible ringing and means that the remote data set has answered. The data set at the calling end should then be put into the data mode. Data Set Answer Back Tone is 2025 Hz steady at -13 dBm/frequency. Data Strobe Encoding
Data Strobe Encoding is a coding scheme for transmitting data in digital circuits which uses two signal lines, Data and Strobe. These have the property that either Data or Strobe changes its logical value in one clock cycle, but never both. This allows for easy clock recovery with a good jitter tolerance by XORing the two signal line values. Datakit Datakit is proprietary packet switching system similar to X.25 widely deployed by the RBOCs. Datakit supports host-to-host connections and EIA-232 connections for terminals, printers, and hosts. Datacasting Datacasting is broadcast of digital information over networks to receivers and players. Datacasting is sometimes used as an alternative to traditional video broadcasting, because the receivers and player units can have the "intelligence" to customize their playback programming for the location and intended audience. The system of receivers set up to receive messages from a particular datacasting is known as Datacasting Networks, which are a venue for advertisers.
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DATU: Direct Access Test Unit
Direct Access Test Unit (DATU) is a loop conditioning system which is installed in the Metallic Facility Terminal (MFT) frame and connected through a No-Test trunk to a switching facility. DATU is then accessed by dialing a telephone number and following the voice prompts. DCB: Digital Channel Bank
Digital Channel Bank (DCS) is a device at a telephone company central office (public exchange) that converts analog signals from home and business users into digital signals to be carried over higher-speed lines between the central office and other exchanges. The analog signal is converted into a digital signal that transmits at a rate of 64 thousand bits per second (Kbps). This 64 Kbps signal is a standard known as a DS0 signal. The signal is multiplexed with other DS0 signals on the same line using time-division multiplexing (TDM) . Usually, the digital information is put on each DS0 signal using pulse code modulation (PCM). The channel bank is the foundation for all digital telecommunication transmissions. It is the part of a carrier-multiplex terminal that multiplexes a group of channels into a higher bit-rate digital channel and demultiplexes these aggregates back into individual channels. A channel bank changes analog voice and data signals into a digital format. It is called a "bank" because it can contain enough processing power to convert a bank of up to 24/32 individual channels to a digital format, and then back to analog again. DCE: Data Circuit-Terminating Equipment
Data Circuit-terminating Equipment (DCE) is a device that establishes, maintains and terminates a session on a network. It may also convert signals for transmission. DCE is typically the modem, contrast with DTE which is a terminal or computer. DCF: Dispersion Compensating Fiber
Dispersion Compensating Fiber (DCF) is a type optical fiber installed in a network which is a
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good way to compensate for dispersion. What is not widely known, however, is that to achieve adequate results with DCF, highly precise dispersion test must be carried out several times, at various levels. DCS: Digital Cross Connect System
Digital Cross Connect System (DCS) is a digital system in which: (a) access is performed by T-1 hardware architecture in private and public networks with centralized switching, and (b) cross-connection is performed by D3/D4 framing for switching digital-signal-0 (DS-0) channels to other DS-0 channels. Modern digital access and cross-connect systems are not limited to the T-carrier system, and may accommodate high data rates such as those of SONET. DDD: Direct Distance Dialing
Direct Distance Dialing (DDD) is a telecommunications service feature in North American Numbering Plan, in which a call originator may call any other user outside the local calling area without any operator assistance. It requires more digits in the dialing than are required for calling within the local area. DDD also extends beyond the boundaries of national public telephone networks. DDI: Direct Dialing In
Direct Dialing In (DDI), also known as Direct Inward Dialing (DID), is the ability or service feature for a caller outside a company to call an internal extension without having to pass through an operator or attendant. In large PBX systems, the dialed digits are passed down the line from the CO (central office). The PBX then completes the call. Direct Inward Dialing is often proposed as Centrex's major feature. But automated attendants (a specialized form of interactive voice response systems) also provide a similar service. Decode Decode is the process of interpreting previously coded information back into the usable form in which it existed before the coding process.
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Decoder Decoder, in telecommunication, refers to a device in some telephone switching for translating dial digits into control signals. Dedicated Line
Dedicated Line is a communications cable in telecommunications that is dedicated to a specific application, in contrast with a shared resource such as the telephone network. Practically, Dedicated Line may not be implemented by using a single, discrete, end-to-end cable, but they do provide guarantees of constant bandwidth availability and near-constant latency, properties that cannot be guarantied for more public systems. Such properties add a considerable premium to the price charged. Degree of Start-Stop Distortion
Degree of start-stop distortion refers to the following definitions: 1. In asynchronous data transmission, the ratio of a) the absolute value of the maximum measured difference between the actual and theoretical intervals separating any significant instant of modulation or demodulation from the significant instant of the start element immediately preceding it to, b) the unit interval. 2. The highest absolute value of individual distortion affecting the significant a early ( negative) distortion. Delay Dial Signaling instants of a start-stop modulation. percentage. The degree of distortion of a start-stop modulation (or demodulation) is usually expressed as Distinction can be made between the degree of late ( positive) distortion and the degree of
Delay Dial Signaling is one of the Start Dial Supervision Protocol. The Originating switch and trunk circuit will go off-hook. After a timing interval (75 to 300 mS), the Originating switch will look at the status of the incoming signaling from the Remote switch. If the supervision is on-hook, the Originating office will output digits to the Remote switch. If the supervision is off-hook, the Originating office will wait for the supervision to return to an on[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]
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hook state, then output digits. There is no minimum time to wait for a delay-dial pulse from the Remote switch. In fact, if the remote switch was in an on-hook state, there is no waiting at all prior to output of digits. If the Remote switch was not ready to receive digits, improper call completions can result. Delay Distortion
Delay Distortion is the signal distortion caused by the differing transmission delays of signals of different frequencies to pass through a telecommunications transmission line. Delay Equalizer
Delay Equalizer is a device used to equalize the signal distortion caused by the differing frequency delay characteristics of a transmission line. The delay equalizer operates by adding delay to the faster transmitting frequencies. Delta Modulation
Delta Modulation is a method of sampling and converting analog signals such as voice to digital signals. It is based on encoding the direction of signal change, indicating the direction of signal change with a single bit. Demodulation Demodulation is the process of recovering the original modulating signal from a modulated carrier. The original modulating signal is usually the information being transmitted, typically voice or data. Demodulator Demodulator is a device for assembling signals after they have been received by an antenna. A demodulator is typically the first major device downstream from an antenna receiving system. The corresponding device on the transmission side of a system is a modulator. Deposit Coin Tone
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Deposit Coin Tone is one of the audible tone in telephone system. It is sent from a Community Dial Office to a post-pay coin telephone, informs the calling party that the called party has answered and that the coin should be deposited. Deposit Coin Tone is a steady Low Tone. Dial Around
Dial Around is a telephone service feature which allows customers to dial a toll-free number before entering the destination number for long-distance calling. Dial around is especially convenient for residential customers and cellular users who wish to bypass their primary long-distance provider and take advantage of discounted calling rates. Dial Jack Tone
Dial Jack Tone is used as a start-dial signal to tell a DSA operator that the connection reached through a dial jack is ready to receive dialing. Dial Jack Tone is a steady Low Tone. Dial Long Line
Dial Long Line is an equipment (usually located in a central office) that extends the dialing, supervision and other signaling range of a loop. Dial Off-Normal Tone
Dial Off-Normal Tone is a steady Low Tone. It is returned to an operator after he/she has completed a call into a step-by-step office and after the calling party has answered to remind him/her to restore the dial key Dial Pulses
Dial Pulse is regular, momentary interruption of signaling current used to transmit numerical
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information either into a register or to control a switch directly. There are different ways of generating Dial Pulses. When end-users pick up the receiver on a telephone, an electrical connection is made to the lines leading to the central office. When end-users replace the receiver on the cradle the connection is broken or interrupted. This applies to both pushbutton and rotary dial telephones. By periodically breaking the connections leading to the central office, a number can be dialed. The number of interruptions is equal to the digit dialed, with the exception that ten interruptions correspond to zero. These pulses may be generated at the rate of ten times per second and there should be a 1/2 second delay between each two digits. The rotary dial on the telephone is a mechanical device which periodically breaks the connection leading to the central office. Dial Pulsing
Dial Pulsing is a means of signaling consisting of regular momentary interruption of a direct or alternating current path at the sending end in which the number of interruptions corresponds to the value of a digit or character. The interruptions are usually produced by a rotary telephone dial, but may be produced by a sender in a switching system. Dial Tone
Dial Tone is sent to a calling customer or operator to indicate that the receiving end is ready to receive dial pulses or DTMF signals. It is used in all types of dial offices when dial pulses are produced by the customer's or operator's dials. Normally dial tone means that the entire wanted number may be dialed; however, there are some cases where the calling party must await a second dial tone or where an operator, after dialing an initial group of digits, must wait for a second dial tone before the rest of the number can be dialed. Some dialing switchboards are arranged to permit listening for dial tone between certain digits. Dial Tone is 350 Hz and 440 Hz held steady at -13 dBm0/frequency. Dial Tone Delay
Dial Tone Delay is a measure of time required to provide dial tone to customers. This measures one aspect of the performance of a switching system
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Dial Tone Marker
Dial Tone Marker is the common control equipment used to control call-operating operations in a Number 5 Crossbar System. Dial Train
Dial Train is the series of pulses or tones that is sent from the originating station and the switching equipment in order to specify the destination of the desired call. Dialing Parity
Dialing Parity is equal dialing access provided to consumers. No additional codes or numbers are necessary to access a different telephone service provider. Dial-Normal Transmission Signal
Dial-Normal Transmission Signal is a second dial tone returned to an operator between digits indicating that he/she may dial the remainder of the number. For example, when an operator reaches a link-type Community Dial Office via a step-by-step office after dialing a routing code, he/she must pause until an idle link at the Community Dial Office returns dial tone. This method of operation is not recommended or considered standard. Dial-Normal Transmission Signal is a steady Low Tone. Dialup Dialup is the technique of initiating and routing a call by means of dial signals from the originating station. Dial-up Access
Dial-up Access refers to the method of accessing a telecommunications system via dialup.
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Dial-up Line
Dial-up Line is a communications circuit that is established by a switched-circuit connection using the telephone company network. Diaphragm Diaphragm is a thin, flexible sheet that can be vibrated by sound waves as in a microphone, or by magnetic waves as in a telephone receiver. DIB: Directory Information Base
Directory Information Base (DIB) is the complete set of information to which the directory provides access, and which includes all of the pieces of information which can be read or manipulated using the operations of the directory DID/DNIS: Direct Inward Dialing/Dialed Number Identification Service
Direct Inward Dialing/Dialed Number Identification Service (DID/DNIS) refers to a service when a call arrives at an ACD or PBX, the carrier sends a digital code on the trunk line. The switch can read this code to determine how it should dispatch the call. Typically, this value is the specific number dialed by the user. By mapping each possible code with an internal extension, the switch can provide direct inward dialing (DID). DID: Direct-Inward-Dial
Direct-Inward-Dial (DID), also known as Direct Dialing In (DDI), is a service offered by telephone companies that enables callers to dial directly into an extension on a PBX and not use an auto-attendant. Direct-inward-dial (DID) is the call in which the gateway uses the number initially dialed (DNIS) to make the call, as opposed to a prompt to dial additional digits. Differential Signaling
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Differential Signaling is a method of digital data transmission using two wires for each electrical path for high immunity to noise and crosstalk. The signals are sent down one wire as positive and the other as negative, and the circuit at the receiving end derives the signal from the difference between the two. It is superior to single-ended signaling, where the reference voltage is ground and can vary over long distances. In differential signaling, the reference voltage is controlled. Typically, twisted pairs are used so that external radiation impacts both wires at the same place, and the noise can be detected more easily. Digital Digital refers to, in telecommunications system, a means for encoding information of communication signals through the use of bits (binary digits). Digital transmission is increasingly replacing analog transmission because it provides more efficiency and flexibility for networking. Digital Carrier System
Digital Carrier System is a carrier system for digital signals that uses regenerative versus linear repeaters and time division multiplexing. Digital Transmission
Digital Transmission is the transmission of a digital signal between two or more points. The usual definition applies to the manner in which the transmission carrier is modified to carry the transmitted information. For example, in digital microwave systems, the radio frequency carrier is an analog signal, but its information modulation is derived from the digital signal. Digitize Digitize is the process of converting any information from its base states to a digital form; i.e., a form in which only a limited number of states exist. It should be noted that a digital form does not necessarily imply a character encoded form of information. Direct Interlata Connecting Trunk Groups
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Direct Interlata Connecting Trunk Groups refer to those trunk groups used for switched LATA access that interconnect an IC's POP directly with a BOC end office switching systems. Direct Progressive System
Direct Progressive System is a switching system in which the switches are at least partially under the direct control of a customer's dial and in which the path through the switching office is selected progressively one step at a time. Directive Gain
Directive Gain, usually expressed in dB, refers to the following definitions: 1. Of an antenna, the ratio of (a) 4 times the radiance, i.e., power radiated per unit solid angle (watts per steradian), in a given direction to (b) the total power, i.e., the power radiated to 4 steradians. 2. Of an antenna, for a given direction, the ratio of the radiance produced in the given direction to the average value of the radiance in all directions. If the direction is not specified, the direction of maximum radiance is assumed. Directory Assistance Trunk Group
Directory Assistance Trunk Group is a trunk group that provides the means for customers or operators to obtain listed directory numbers and newly connected numbers. Applications commonly employ the following types of trunk groups: End Office to Trunk, Concentrator, End Office to Desk, Tandem to Trunk Concentrator, Tandem to Desk, Cord Switchboard to Trunk Concentrator, End Office to Automatic Call Distributor, and Tandem to Automatic Call Distributor. Directory Number
Directory Number is the telephone numbers assigned to subscribers' main stations, which is typically listed in the phone book or directory.
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Disparity Disparity refers to the digital algebraic sum of set of signal elements in Pulse-code modulation (PCM). The disparity will be zero and there will be no cumulative or drifting polarization if there are many positive elements ("1s") as there are negative elements ("0s"). Dispersion-Limited Operation
Dispersion-limited operation is operation of a communications link in which signal waveform degradation attributable to the dispersive effects of the communications medium is the dominant mechanism that limits link performance. Dispersion is the filter-like effect that a link has on the signal, due to the different propagation speeds of the eigenmodes of the link. Practically, this means that the waveform at the input will be different from the waveform at the output of the link. Distinctive Call Waiting Tone
Distinctive Call Waiting Tone is a feature in telecommunication system that enable a customer who has call waiting feature to hear a distinctive call waiting tone for those incoming calls from a preselected number while they are talking. This feature is sometimes called VIP Alert or Call Selector. Distribution Cable
Distribution Cable is a hierarchical level of cable plant usually referring to that cable which is installed between the trunk or feeder cable and the drop cable to a customer's premises. Diversity Diversity, in telecommunications system, refers to the technique of using one, two, or more separate transmission channels. These channels may be along the same paths, in which case the diversity is that of frequency or polarization. The channels may be along separate physical paths, in which case there is a space diversity. DLC: Digital Loop Carrier
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Digital Loop Carrier (DLC) is an equipment that combines a number of individual phone line signals into a single multiplexed digital signal for local traffic between a central office (of a telephone company) and a business complex or other outlying service area. Typically, up to 24 analog voice calls are combined into a single signal and transmitted over a single copper T-carrier system or E-carrier line, an optical fiber cable, or a wireless connection. In a home, business, or other installations using digital loop carrier, the analog phone lines of individual users are connected to a local DLC box which then converts the analog signals into digital and combines (multiplexes) them into one signal that it sent to the phone company's central office on the single line. At the central office, the combined signal is separated back into the original signals. Digital loop carrier can carry traffic for regular phone calls (so-called plain old telephone service) and Integrated Services Digital Network (ISDN) service. Approaches have been developed for using DLC to handle the higher bandwidth of Digital Subscriber Line (DSL) service. Digital loop carrier is typically used as an efficient way to provide service to an office building or complex and to extend service to new areas outside the current local loop. DLC is also used to set up telephone services in emergency situations. D-Link: Diagonal Link
SS7 Diagonal Link (D-Link) connects a secondary (e.g., local or regional) STP pair to a primary (e.g., inter-network gateway) STP pair in a quad-link configuration. Secondary STPs within the same network are connected via a quad of D-links. The distinction between a "B" link and a "D" link is rather arbitrary. For this reason, such links may be referred to as "B/D" links. DLTU: Digital Line and Trunk Unit
Digital Line and Trunk Unit (DLTU) is a Lucent term which refers to a telecommunication device or component of 5ESS switch that provides the interface to digital trunks and lines. DM: Delta Modulation
Delta Modulation (DM) is a method of sampling and converting analog signals to digital
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signals. It is based on encoding the direction of signal change, indicating the direction of signal change with a single bit. DMS: Digital Multiplex System
Digital Multiplex System (DMS) refers to a family of switching systems made by Nortel Networks that provides digital circuit-switched service for voice and data transmission, and packet switched service for data transmission. DMS is characterized by the use of pulse code modulation (PCM) and time division multiplexing (TDM) throughout the switched network. The system allows the direct switching of PCM signals used in transmission systems without their conversion to analogue format DMS-10 Digital Switching System
DMS-10 Digital Switching System is a family of time division multiplexed digital switching systems for local, tandem, and toll applications, by the Nortel Networks (formerly Northern Telecom). DMS-lOE digital switching system is a small Class 5 digital switch that can satisfy the need as a Community Dial Office (CDO) replacement vehicle. This system can be expanded to 8000 subscriber lines. The DMS-lOE digital switching system offers Custom Calling Features, CAMA, LAMA (Local Automatic Message Accounting), Integrated Business Services (IBS), Equal Access, and Operations Support System (OSS) interfaces. DMS-100 Digital Switching System
DMS-100 Digital Switching System is a large local Class 5 digital switching system that can be expanded up to 100,000 subscriber lines. Major features offered include LAMA, Integrated Business Network (IBN), Equal Access and OSS interfaces. The DMS-100 digital switching system is manufactured by Northern Telecom Ltd., now called Nortel Networks. DMS-200 Digital Switching System
DMS-200 digital switching system is a large toll/tandem digital switching system that can be expanded up to 60,000 trunk circuits. Major features offered include CAMA, Traffic
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Operator Position Service (TOPS), CCIS, Equal Access, and OSS interfaces. The DMS-200 digital switching system is manufactured by Northern Telecom Ltd., now called Nortel Networks. DMT: Discrete Multitone
Discrete Multitone (DMT) is a method of separating a Digital Subscriber Line (DSL) signal so that the usable frequency range is separated into 256 frequency bands (or channels) of 4.3125 kHz each. Discrete multitone uses the fast Fourier transform algorithm for modulation and demodulation. Dividing the frequency spectrum into multiple channels allows DMT to work better when AM radio transmitters are present. Within each channel, modulation uses quadratude amplitude modulation (QAM). By varying the number of bits per symbol within a channel, the modem can be rate-adaptive. DNIS: Dialed Number Identification Service
Dialed Number Identification Service (DNIS) is a telephone service that identifies for the receiver of a call the number that the caller dialed. It's a common feature of 800 and 900 lines. If you have multiple 800 or 900 numbers to the same destination, DNIS tells which number was called. DNIS works by passing the touch tone digits (dual tone multi-frequency or MF digits) to the destination where a special facility can read and display them or make them available for call center programming. DOC: Dynamic Overload Control
Dynamic Overload Control (DOC) is a control application that is automatically activated by switching systems to speed up call processing and limit attempts from connected offices. DOD Communication System
DOD communication system, the US Department Of Defense (DOD) communication system, is one of the most advanced communication systems in the world. DOD communication systems are used not only for the administration of the Department, but, most critically, for
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the command and control of force structures. To this end, the Defense Communications Agency (DCA) strives to ensure that the Department's missions are carried out with state-ofthe-art communications systems. DOD: Direct Outward Dialing
Direct Outward Dialing (DOD) is a service of a local exchange carrier that allows subscribers within a company's private branch exchange (PBX) system to connect to outside lines directly. Using DOD, a company can offer each person or workstation within the company the ability to dial numbers directly, without the need to go through an operator or dial other numbers first. DOD is often used together with Direct Inward Dialing (DID). Double Order Tone
Double Order Tone is one of the Order Tones. For the double-order tone, the signal is two short spurts of High Tone in quick succession, and means that the operator should pass only the desired number. Double-ended Synchronization
Double-ended Synchronization is a synchronization control scheme used in two connected exchanges in a telecommunications network. In Double-ended synchronization, the phase error signals used to control the clock at one telephone exchange are derived by comparison with the phase of the incoming digital signal and phase of the internal clocks at both exchanges. DP: Dial Pulse
Dial Pulse (DP) is a short, direct current signal which is produced by, or simulated to look like, the opening and closing of contacts in a rotary-dial telephone when numbers are dialed. Dial pulses control the action of telephone switching equipment. DPC: Destination Point Code
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Destination Point Code (DPC) refers to the scheme in SS7 signaling to identify the receiving signaling point. In SS7 network, the point codes are numeric addresses which uniquely identify each signaling point. DPCM: Differential Pulse-Code Modulation
Differential Pulse-Code Modulation (DPCM) is a PCM technique that codes the difference between sample points to compress the digital data. Because audio waves propagate in predictable patterns, DPCM predicts the next sample and codes the difference between the prediction and the actual point. The differences are smaller numbers than the numerical value of each sample on the full scale and thereby reduce the resulting bitstream DPSK: Differential Phase Shift Keying
Differential Phase Shift Keying (DPSK) is a digital modulation format where information is conveyed in phase difference of a carrier signal between consecutive symbols. DRE: Directional Reservation Of Equipment
Directional Reservation Of Equipment (DRE) is a control application that reserves trunk capacity for incoming traffic. Drift Drift is a term in telecommunication system that is a comparatively long-term change in an attribute or value of a system or equipment operational parameter. Drift is usually undesirable and unidirectional, but may be bidirectional, cyclic, or of such a long-term duration and low excursion rate as to be negligible. The drift can be characterized as "diurnal frequency drift" and "output level drift". Drop Drop refers to the following meanings in telecommunications: 1. the portion of a device directly connected to the internal station facilities, such as toward a switchboard or toward a
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switching center. 2. a wire or cable between a building and a pole or cable terminus. 3. test jacks on the central office side. DS2: Digital Signal 2
Digital Signal 2 (DS2) refers to a higher level digital frame made of four T1 frames and transmitted at 6.312 Mbps. DSB-RC: Double-SideBand Reduced Carrier
Double-SideBand Reduced Carrier (DSB-RC) is a transmission scheme in which (a) the frequencies produced by amplitude modulation are symmetrically spaced above and below the carrier and (b) the carrier level is reduced for transmission at a fixed level below that which is provided to the modulator. DSB-SC: Double-SideBand Suppressed Carrier
Double-SideBand Suppressed Carrier (DSB-SC) is a transmission scheme in which (a) frequencies produced by amplitude modulation are symmetrically spaced above and below the carrier frequency and (b) the carrier level is reduced to the lowest practical level, ideally completely suppressed. DSF: Dispersion Shift Fiber
Dispersion-shifted fiber (DSF) is a type of single-mode fiber designed to have zero dispersion near 1550 nm. Dispersion Shift Fiber (DSF) is specified in ITU-T G.653. It has had dopants added which shift the zero-dispersion wavelength from the natural 1300 nm in silica-glass fibers to the minimum-loss window at 1550 nm. DSI: Digital Speech Interpolation
Digital Speech Interpolation (DSI) is a technique of sharing voice communication paths

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among a larger number of users by means of allocating the silent periods inherent in human speech to active uses. An earlier technology was called Time Assignment Speech Interpolation or TASI. The technique is somewhat analogous to that of the statistical multiplexing of data transmission. DSN: Defense Switched Network
Defense Switched Network (DSN) is a worldwide private-line telephone network. Multilevel precedence and preemption (MLPP) capabilities on the DSN are utilized by command and control users to ensure that the highest-priority calls achieve connection quickly, especially during a crisis situation. The DSN also provides global data and video services using dial-up switched 56 kbps or 64 kbps Integrated Services Digital Network (ISDN) services. DSR: Data Signaling Rate
Data Signaling Rate (DSR) refers to the aggregate signaling rate at which data pass a point in the transmission path in a data transmission system. DS-SMF: Dispersion-Shifted Single Mode Fiber
Dispersion-Shifted Single Mode Fiber (DS-SMF) is a type of optical fiber in a telecommunications transmission system using single-mode fiber that is best designed for longer transmission distances, making it suitable for long-distance telephony and multichannel television broadcast systems. DSU: Data Service Unit
Data Service Unit(DSU), often referred to together with CSU as CSU/DSU, is the device used in digital transmission that adapts the physical interface on a Data Terminal Equipment(DTE) device to a transmission facility, such as T1 or E1. The DSU also is responsible for such functions as signal timing.
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DSX:
Digital
Signal
Cross-Connect
Digital Signal Cross-connect (DSX) is a cross-connection point for DS-1 signals. DSX-1 Digital Signal Cross-connect Level 1(DSX-1) is a standard that defines the voltage, pulse width and plug and socket for connecting DS-1 (T1) signals. DTMF: Dual Tone Multifrequency
Dual Tone Multifrequency(DTMF), also known as Touch Tone or Tone Dialing, is used for telephone signaling over the line in the voice frequency band to the call-switching center. DTMF is the tones generated when a button is pressed on a telephone, primarily used in the U.S. and Canada. DTMF is an example of a multifrequency shift keying (MFSK) system and is standardised by ITU-T Recommendation Q.23. DTP: Data Transfer Process
Data Transfer Process (DTP) refers to the process in telecommunications system that establishes and manages the data connection. The DTP can be passive or active. Dual Access
Dual Access refers to the following meanings in telecommunication system 1. The connection of a user to two switching centers by separate access lines using a single message routing indicator or telephone number. 2. In satellite communications, the transmission of two carriers simultaneously through a single communication satellite repeater. Dual Seizure
Dual seizure refers to the condition when two exchanges attempt to seize the same circuit at approximately the same time (kin to a two-way operation mode).
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Duplex Duplex refers to a channel or a device which can communicate in both directions simultaneously. There are varous forms of duplex such as full duplex and half duplex. DX Signaling
DX Signaling is a signaling process used on long metallic circuits. The process uses a bridge circuit to detect the small current signals. The term DX is an old term used to refer to distant transmission. E Channel: Echo Channel
Echo Channel (E Channel) refers to the 64-Kbps ISDN circuit-switching control channel. The E channel was dropped in the 1988 ITU-TISDN specification. Now ISDN has only B channel, D channel, and H channel. E&M Leads Signaling
E&M Leads Signaling is a type of signaling in telecommunications industry. It indicates the use of a handset that corresponds to the ear (receiving) and mouth (transmitting) component of a telephone. E&M Signaling
E&M Signaling is a signaling method on a DS0 timeslot such that the signaling bits are used to indicate call states, such as on-hook, off-hook, alerting, and dial pulsing. E&M: recEive and transmit
recEive and transMit (E&M), also known as Ear and Mouth, is the trunking arrangement generally used for two-way switch-to-switch or switch-to-network connections. E&M also is available on E1 and T1 digital interfaces.
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E.123 E.123 refers to the ITU-R recommendation which is the notation for national and international telephone numbers recommendation. E.123 defines a standard way to write telephone numbers, email addresses, and web addresses. FAA: Facility Accepted
Facility Accepted (FAA) is one of the message type codes in BICC protocol. It indicates that the FAR is accepted and the use of the facility or operation towards the other side is accepted. Facilities Based Private Switched Network Services
Facilities Based Private Switched Network Services refers to the services provided by so called Facilities Based Carriers, a long-distance service provider that owns its own physical facilities as opposed to the bulk of the long-distance companies who are resellers. Facility Loopback
Facility Loopback refers to signal looped back toward the incoming facility. This technique is often used in T1 testing. Facility-Based Carriers
Facility-based Carriers refers to a local or long-distance service provider that owns its own physical facilities. Fax: Facsimile Transmission
Fax, also called Facsimile Transmission, is a system of communication or delivery for paper documents or other graphics material in which a special digital image scanner scans the pages of the document, compresses the scanned image using CCITT Group Compression, and transmits the digital signals by wire or radio to a FAX receiver at a remote point.
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Gateway Redundancy
Gateway Redundancy refers to a feature that enables the Gatekeeper to request that other Gatekeepers search their zones to locate a Gateway when Line Hunting fails to find a suitable service provider. If there is no service provider available, the Gateway Redundancy policy reables the Gatekeeper to complete the call by referring the call to other Gatekeepers. Gateway Supported Prefixes
Gateway Supported Prefixes refers to some features in standard of H.323 version 2. It enables a Gateway to specify prefixes that the user should dial before the WAN number in order to make a call using a certain medium. Gateway Switched Exchange
Gateway switched exchange is the exchange that on top of trunk exchanges for international calls. The international gateway switch provides connections between different countries that have a wide range of operating parameters. Specifically, a gateway switch must support conversions between different signaling formats. Another issue for international calls is voice quality and echo control. GETS: Government Emergency Telecommunications Service
Government Emergency Telecommunications Service (GETS) is a White House-directed emergency phone service provided by a division of the Department of Homeland Security. GETS uses enhancements based on existing commercial telecom technologies. GIS: Geographical Information System
Geographical Information System (GIS) refers to a computer system capable of capturing, storing, analyzing, and displaying geographically referenced information, that is, data
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identified according to location. Practitioners also define a GIS as including the procedures, operating personnel, and spatial data that go into the system. Globalstar Globalstar is a low earth orbit satellite system that deploys a network of 48 satellites to create a global voice and data service. This system is backed by Qualcomm, Loral, and Alcatel. GloBanD GloBanD is an European Switched Nx64 data service consisting of a single circuit whose bandwidth is a multiple of 64 kbps. This circuit consists of one or more B channels. For example, if a caller requests 512 kbps service, the line uses 8 B channels to supply the requested bandwidth. This service is available over T1 PRI lines only, and follows the CCITT Q.931 recommendation. It differs from MultiRate in being an overlay network, rather than an integral part of the worldwide switched digital infrastructure. GNE: Gateway Network Element
Gateway Network Element (GNE) refers to a Network Element (NE) that provides connections to other Network Element in most telecommunication and network systems, such as SONET/SDH/DLC, etc. GNE has a list of nests connected to it and their TIDs in the form of a route table. Whenever an input message comes to the GNE, it will route it to the appropriate NE using the TID in the route table. Hagelbarger Code
Hagelbarger code is a convolutional code that enables error bursts to be corrected as long as there are relatively long error-free intervals between the error bursts. Halftone Characteristic
Halftone characteristic refers to the following definitions in telecommunication: (1) in facsimile system, the relationship between the density of the recorded copy and the density of the original. (2) in facsimile system, the relationship between the amplitude of the facsimile
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signal to either the density of the original or the density of the recorded copy when only a portion of the system is under consideration. Hamming Code
Hamming code, sometimes referred to as an Error Correction Code (ECC), is an algorithm that can be used to detect errors in individual bits of transmitted data, and sometimes (dependent on the exact code used) correct that error. Although not particularly powerful, they are one of the "perfect" codes in that its standard array has all of the error patterns that can exist for single errors. Handset Handset refers to any of the various forms of manual telephone instruments held in hands that can receive and send voice. Hardwired Hardwired refers to: (1) equipment which is wired together so that its function if fixed as compared to equipment in which plug-in components may be varied to change the function. (2) equipment units which are permanently cabled together as compared to those which may be flexibly interconnected at a distributing frame. HCO: Hearing Carry Over
Hearing Carry Over (HCO) refers to a method for using TTYs (Teletypewriter). HCO allows a person with a speech disability to hear a response from their party directly. HCO is often used in conjucntion with a Relay Service. HCS: Header Check Sequence
Header Check Sequence (HCS) is a 16-bit cyclic redundancy check (CRC) check sequence (CS) that is derived from bits from the first 8 octets (excluding flags) of a UIH format packet. I.N.: Intelligent Network
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The Intelligent Network (I.N. or IN) is a network architecture for both fixed and mobile telecommunication networks. It allows operators to to differentiate themselves by providing value-added services in addition to the standard telecoms services such as GSM services on mobile phones. It can also be regarded as an overlay on the core network. IAC: Initial Alignment Control
Initial Alignment Control (IAC) is an SS7 MTP 2 function that provides the link alignment processing. IAD: Integrated Access Device
An Integrated Access Device (IAD) is an access device that can simultaneously deliver traditional PSTN voice services, packet voice services, and data services (via LAN ports) over a single WAN link. It aggregates multiple channels of information including voice and data across a single shared access link to a carrier or service provider PoP (Point of Presence). The access link may be a T1 line, a DSL connection, a cable (CATV) network, a broadband wireless link, or a metro-Ethernet connection. IAM: Initial Address Message
Initial Address Message (IAM) is defined in SS7 (Signaling System No. 7). It is part of the ISUP (Integrated Services Digital Network User Part) call setup. The message is used to seize a circuit and transfer addressing and call handling or routing information. The IAM includes the address and other information relating to routing and handling a call. ICPIF: Calculated Planning Impairment Factor loss/delay busyout threshold Calculated Planning Impairment Factor loss/delay busyout threshold (ICPIF) is an ITU-T G.113 standard for measuring quality of service. ICPIF replaces the old QDU (Quantisation Distortion Units) which were a subjective measurement. ICPIF represents predefined combinations of loss and delay in a VOIP network call. Packet loss and delay determine the
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threshold for initiating the busyout state. Gateways generate ICPIF values for each VoIP call, and these calculations can be stored for each VoIP call record. Jack Jack is a connecting device usually in the wall into which a plug can be plugged to from a connection such as the telephone jack Jumper Jumper may refer to the following things: (1) a wire that connects equipment and cable on a distributing frame in a telephone system. (2) when called as a jumper wire, it is a wire or connector used to establish a circuit for testing. (3) a metal bridge that connects parts of an electrical circuit that can be used to configure expansion boards. (4) an electrical switch consisting of a number of pins and a connector that can be attached to the pins in a variety of ways. Junction A junction is a point in the telecommunications network that comprises a switching office or facility cross-connect and/or ADM hardware, a point of connectivity where multiple fiber links come together, and/or a source or destination for a wavelength path. Junctor Junctor refers to a connection or circuit, within a switching system, between inlets and outlets of the same or different switching networks. An interoffice trunk is an example of junctor. Junctor Trunk Group
Junctor Trunk Group is a special-purpose trunk group providing a particular feature such as coin control, billing supervision, etc. Jurisdiction Jurisdiction refers to, in telecommunication, a geographic area presided over by the same regulatory body, within the boundary of a single state or an area in which a common carrier is authorized to provide telephony service. Key Pulsing
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Key Pulsing is a method of signaling by depressing keys on a line otherwise arranged for rotary pulse dialing. Key Station Line
Key Station Line refers to the circuit which extends from the key set to the key system common equipment. Label Label, in telecommunication, is one type of information contained in a signaling message that is used to identify the particular circuit, call, or management transaction to which the message is related. LAMA: Local Automatic Message Accounting
Local Automatic Message Accounting (LAMA) refers to a set of automatic message accounting equipment and automatic number identification equipment in the central office of local telephone company used for the billing of local phone calls. LAPB: Link Access Procedure, Balanced
Link Access Procedure, Balanced (LAPB) is a data link layer protocol used to manage communication and packet framing between data terminal equipment (DTE) and the data circuit-terminating equipment (DCE) devices in the X.25 protocol stack. LAPB, a bitoriented protocol derived from HDLC, is actually the HDLC in BAC (Balanced Asynchronous Class) mode. LAPB makes sure that frames are error free and properly sequenced. LAP-D: Link Access Procedure, D-Channel
Link Access Procedure, D-Channel (LAP-D), a Layer 2 protocol in the ISDN suite, is used to do call setup and other signaling over the D Channel. Data transmissions take place on B
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channels. LAP-D is almost identical to the X.25 LAP-B protocol. LAPD is defined in the ITU Q.921 protocol. LAPF: Link Access Procedure for Frame Mode Services
Link Access Procedure for Frame Mode Services (LAPF), as defined in ITU Q.922, is an enhanced LAPD (Q.921) with congestion control capabilities for Frame Mode Services in the Frame Relay network. LADF is used in the Frame Relay network for end-to-end signaling. LAPF conveys data link service data units between DL-service users in the User Plane for frame mode bearer services across the ISDN user-network interface on B-, D- or H-channels. LAP-H: Link Access Procedure for H-Channel
Link Access Procedure for H-Channel (LAP-H) performs the same function as B-Channel (LAPB) but operates at rates exceeding DS-0 (64 Kbps). The H-Channel is good for fast facsimile, video, high-speed data, high-quality audio, and multiple info streams at lower data rates. LAP-M: Link Access Procedure for Modems
Link Access Procedure for Modems (LAP-M) is the data link protocol used by V.32 errorcorrecting modems. When two LAPM modems establish a session, they transmit data in frames using bit-oriented synchronous techniques. An attached computer still sends data to the LAPM modems as standard asynchronous input, but the modem transmits it as frames. LAPS: Link Access Procedure-SDH
Link Access Procedure - SDH (LAPS), a variant of the original LAP protocol, is an encapsulation scheme for Ethernet over SONET/SDH. LAPS includes data link service and protocol specification used in transporting IP packets over SDH networks. LAPS provides a point-to-point unacknowledged connectionless service over SONET/SDH. LAPS enables the encapsulation of IPv6, IPv4, PPP, and other higher-layer protocols. X.86 Defines Ethernet over LAPS.
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M Plane: Management Plane
Management Plane(M Plane) refers to one of the three entities in the ATM reference model. The M plane addresses the management functions of network elements such as switches for their Operation, Administration and Maintenance (OA&M). The other two entities are user plane for the actual data transmission and the control plane for signaling. The concept and model of user plane, control plane and management plane have been extended to other telecommunication technology groups beyond the ATM technology. M2PA: MTP2 Peer-to-peer user Adaptation
MTP2 Peer-to-peer user Adaptation layer (M2PA), a protocol in the SIGTRAN protocol suite, enables SS7 signaling messages over IP using Stream Control Transmission Protocol (SCTP). M2PA is intented to be used on a Peer-to-Peer basis and replace the functionality provided by a traditional SS7 link. M2PA is for an OpenSS7 Network Device. M2UA: MTP2-User Adaptation layer
MTP2-User Adaptation layer (M2UA), a protocol in the SIGTRAN protocol suite, is for backhauling of SS7 MTP2-User signaling messages over IP using Stream Control Transmission Protocol (SCTP). M2UA is intended to be used on a Provider/User basis where MTP Level 2 resides on a Signalling Gateway (SG) and MTP Level 3 resides on an Application Server (AS). It is not intended for peer-to-peer operation: that is, it is not intended to emulate a signalling link between two SCTP endpoints M3UA: MTP3-User Adaptation layer
MTP3-User Adaptation layer (M3UA), a protocol in the SIGTRAN protocol suite, supports transport of SS7 MTP3-User signaling over IP using Stream Control Transmission Protocol (SCTP). M3UA is intented to be used on a Provider/User basis where MTP Level 3 resides on a Signalling Gateway (SG) and MTP Users reside on an Application Server (AS). Main Feeder
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Main Feeder is the first facility cable coming from the central office. The feeder cable runs to cross connect points in the network where the second facility cable feeds are connected. Main PBX
Main PBX refers to the initial PBX that interfaces with the public telephone network via central office trunk lines. Manual Ring-Down Line
Manuel Ring-Down Line is a number of phones connected together by a pair of wires and a talk battery. MAP: Mobile Application Part
The Mobile Application Part (MAP), one of the protocols in the SS7 suite, allows for the implementation of the mobile network (GSM) signaling infrastructure. The premise behind MAP is to connect the distributed switching elements, called mobile switching centers (MSCs), with a master database, called the Home Location Register (HLR). The HLR dynamically stores the current location and profile of a mobile network subscriber. The HLR is consulted during the processing of an incoming call. NAA: Next Available Agent
Next Available Agent (NAA) is a scheme for selecting an agent to handle a call. The strategy seeks to maintain an equal load across skill groups or services. Naked Call
Naked Call refers to an incoming call that receives no greeting message and no call menus/flexible routing before it is routed into an ACD (Automatic Call Distribution) queues.
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Naked DSL
Naked DSL is a digital subscriber line without a PSTN (Public Switched Telephone Network) service. In other words, only a standalone DSL internet service is provided on the local loop. In regular DSL, a wire runs from the telephone switch to a POTS (Plain Old Telephone Service) splitter. The POTS splitter separates the DSL and voice bands and then a wire carrying both services runs from the splitter to the cable head, where it continues on to the customer on an outside plant. But Naked DSL the portion of cable from the switch to the POTS splitter is removed, therefore removing dial tone from the line. NANP: North American Numbering Plan
North American Numbering Plan (NANP) is the North American telephone number arrangement or the process for assigning 10-digit (3+3+4) North American telephone numbers, NPA-NXX-XXXX. NPA is the Area Codes, NXX is the Exchanges and XXXX is the Line Numbers. National Access Fee
National Access Fee is a Federal tax placed upon telecommunication services provided by telephone companies. National Information Infrastructure
National Information Infrastructure is the foundation that supports the Information Superhighway by setting national standards that make networks and appliances compatible. NATO Phonetic Alphabet
NATO phonetic alphabet is a common name for the international radiotelephony spelling alphabet which assigns code words to the letters of the English alphabet so that critical combinations of letters (and numbers) can be pronounced and understood by those who
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transmit and receive voice messages by radio or telephone regardless of their native language, especially when the safety of navigation or persons is essential. It is used by many national and international organizations. It is a subset of the much older International Code of Signals (INTERCO), which originally included visual signals by flags or flashing light, sound signals by whistle, siren, foghorn, or bell, as well as one, two, or three letter codes for many phrases. The same alphabetic code words are used by all agencies, but each agency chooses one of two different sets of numeric code words. NATO uses the normal English numeric words (Zero, One, with some alternative pronunciations), whereas the IMO uses compound numeric words (Nadazero, Unaone). The name NATO phonetic alphabet became widespread because the signals used to facilitate the naval communications and tactics of the United States and NATO have become global. NCAS: Non-Call Associated Signaling
Non-Call Associated Signaling (NCAS) is a signaling that is independent of an end-to-end bearer connection, including support for the functions of registration, authentication, and validation OA&M: Operation, Administration and Maintenance
Operation, Administration and Maintenance (OA&M) is a group of management functions that provides system or network fault indication, performance monitoring, security management and diagnostic functions. Some systems require extensive end user provisioning functions, in this case, it is called Operation, Administration, Maintenance and Provisioning (OAM&P). OADM: Optical Add-Drop Multiplexer
Optical Add-Drop Multiplexer (OADM) is an optical multiplexing device used in wavelength-division multiplexing (WDM) systems for mixing and routing different channels of light into or out of a single mode fiber. It has the capability of adding one or more new wavelength channels to an existing muli-wavelength WDM signal, or removing (dropping) one or more channels, routing those signals to another network path.
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OAM&P: Operation, Administration, Maintenance and Provisioning
Operation, Administration, Maintenance and Provisioning (OAM&P) refers to a group of management funcions that provides system or network fault indication, performance monitoring, security management, diagnostic functions, configuration and user provisioning. Operations include coordinates actions between administration, maintenance, and provisioning. Administration includes designing the network, processing orders, assigning addresses, tracking usage, and accounting. Maintenance includes diagnosing and repairing problems that does not work as planned. Provisioning includes installing equipmet, setting parameters, verifying that the service is operational, updating, and de-installation. OBC: Out-of-Band Control
Out-of-Band Control (OBC) refers to the standard method of issuing signaling commands on the special control channel, versus In-Band Control (IBC), on the in-band data channel. PABX: Private Automatic Branch Exchange
Private Automatic Branch Exchange (PABX) is an automatic telephone switching system within a private enterprise. Originally, such systems - called private branch exchanges (PBX) - required the use of a live operator. Since almost all private branch exchanges today are automatic, the abbreviation "PBX" usually implies a "PABX." PAD Switching
PAD Switching refers to a technique of automatically cutting a transmission loss pad into and out of a transmission circuit for different operating conditions. Pair Cable
Pair Cable refers to a cable in which all of the conductors are arranged in the form of twisted pairs. This form of cable is, by far, the most common form of cable used for communications.
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Pair Gain
Pair Gain refers to the number of customers served by a communication system less the number of wire pairs used by that system. Pair gain can be achieved by multiplexing and by concentration. Paired Disparity Code
Paired disparity code is a code used in telecommunications in which some or all of the characters are represented by two sets of digits of opposite disparity that are used in sequence so as to minimize the total disparity of a longer sequence of digits. PAM: Pulse Amplitude Modulation
Pulse Amplitude Modulation (PAM) is a form of signal modulation in which the data is encoded in the amplitude of a series, or train, of regularly recurrent signal pulses. PAM is used less frequently than PCM (Pulse-Code Modulation). Parallel Transmission
Parallel Transmission is a method of data transmission in which the bits of a data character are transmitted simultaneously over a number of channels/ports. In parallel transmission, coded information are transmitted via a system with multiple ports/channels. The port 1 is used to transport the first MSB (Most Significant Bit) and the second port carries the second MSBs, so on and so forth. Parity Bit
Parity bit is the additional bit inserted into the string of user information in the telecommunications data stream for the purpose of error correction and checking. Partial Dial Tone
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Partial Dial Tone is a steady high tone in telephone system that is used to notify the calling party that he/she has not commenced dialing within a pre-allotted time, measured after receipt of dial tones (permanent signal condition), or that he/she has not dialed enough digits (partial dial condition). This is a signal to hang up and dial again. Partially Dedicated Access
Partially Dedicated Access is a long distance carrier access method in which a non-local call is carried by the long distance carrier via a dedicated trunk facility for either the first or last part of the call's journey, and on the carrier's network for the middle part of the journey. It is also called "dedicated to switched", "switched to dedicated", "on-net to off-net" and "off-net to on-net". QDI: Quasi Delay Insensitive Circuits
Quasi Delay Insensitive (QDI) Circuits are those whose correct operation does not depend on the delays of operators or wires, except for certain wires that form isochronic forks. QPSK: Quadrature Phase Shift Keying
Quadrature Phase Shift Keying (QPSK) is a digital modulation scheme that conveys data by changing, or modulating, the phase of a reference signal (the carrier wave). Sometimes known as quaternary or quadriphase PSK or 4-PSK, QPSK uses four points on the constellation diagram, equispaced around a circle. With four phases, QPSK can encode two bits per symbol, shown in the diagram with Gray coding to minimize the BER. QRSS: Quasi-Random Signal Sequence
Quasi-Random Signal Sequence (QRSS) is a test pattern widely used to simulate voice signals. QSIG: Q Signaling
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Q Signaling(QSING) is a common channel signaling protocol based on ISDN Q.931 standards and used by many digital PBXs. Quad Lock Conduit
Quad Lock Conduit is the conduit to protect telephone wires intended to be buried. Quadruple Order Tone
Quadruple Order Tone is one of the Order Tone (See Order Tone). This signal is four short spurts in quick succession and means that the operator should pass the city name only and wait for another challenge. It is used in manual toll tandem (also called zip tones or trunk assignment tones). Quadruple-order tone is four short spurts of High Tone. Quantizing Distortion
Quantizing Distortion refers to a form of distortion that causes an irregular facsimile of the original audio. It is a result of a digital signal being corrupted to a degree which occurs in the digital-to-analog translation process. Quantizing Noise
Quantizing Noise refers to signal errors which result from the process of digitizing (and therefore ascribing finite quantities to) a continuously variable signal (analog signal). RADSL: Rate-Adaptive Asymmetric Digital Subscriber Line
Rate-Adaptive Asymmetric Digital Subscriber Line (RADSL) is a variation of ADSL which automatically adjusts the connection speed depanding on the quality and length of the telephone line. In RADSL, the broadband modem is configured at startup to test the phone line and adjust the data rate. RADSL typically operates at a lower date rate than regular
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ADSL. Like ADSL, RADSL provides relatively more bandwidth for downloads and less for uploads. RAI: Remote Alarm Indication
Remote Alarm Indication (RAI), also known as yellow alarm signal, is a signal transmitted in the outgoing direction when a terminal determines that it has lost the incoming signal. Receiving remote alarm indication (RAI) means the far-end equipment over the T1 line has a problem with the signal it is receiving from the upstream equipment. Rain Barrel Effect
Rain Barrel Effect refers to signal distortion of a voice telephone line caused by the under attenuated echo on the return path. The resultant distortion gives a near-singing effect like that of speaking into a rain barrel. Range Extender With Gain
Range Extender With Gain is a unit that provides a range extension in a loop for both signaling and transmission. RBHC: Regional Bell Holding Company
Regional Bell Holding Company (RBHC), also known as Regional Bell Operating Companies (RBOC), refers to one of 7 regional companies created by the AT&T divestiture to assume ownership of the Bell operating companies. They are Ameritech, Bell Atlantic, Bell South, NYNEX, Pacific Telesis, Southwestern Bell and US West. RBOC : Regional Bell Operating Companies
Regional Bell Operating Companies (RBOC) refers to those telephone carriers who were formed as a result of the breakup of AT&T and are based on a restructuring agreement that
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took effect in 1984. The RBOCs were organized into seven regional Bell holding companies called Ameritech, Bell Atlantic, Bell South, Nynex, Pacific Telesis, Southwestern Bell, and US West. Each RBOC was assigned a specific geographical area, and each geographical area was divided into service areas called LATAs (local access and transport areas). The RBOCs are also called the ILECs (incumbent local exchange carriers). In contrast, CAPs (Competitive Access Providers) and CLECs (competitive local exchange carriers) are companies that compete against the RBOCs in the local service areas. IXCs (interexchange carriers) are long-distance service providers such as AT&T, MCI, and Sprint. The Telecommunications Reform Act of 1996 changed the telecommunications landscape yet again. RBOCs were allowed to merge and the following mergers or acquisitions took place in the following years. The Act also attempted to increase competition by opening local markets. RBOCs were required to open their facilities to competitive providers and, if they complied according to the rules, were allowed to expand into long-distance markets. RDI: Remote Defect Indication
Remote Defect Indication (RDI) is an indication in an ATM network that indicates a failure has occurred at the far end of the ATM network. The RDI alarm indication does not identify the specific circuit in a failure condition. When the physical layer detects loss of signal or cell synchronization, RDI cells are used to report a VPC/VCC failure. RDI cells are sent upstream by a VPC/VCC endpoint to notify the source VPC/VCC endpoint of the downstream failure. Receive-After-Transmit Time Delay
Receive-after-transmit time delay refers to the time interval between (1) the instant of keying off the local transmitter to stop transmitting and (2) the instant the local receiver output has increased to 90% of its steady-state value in response to a fro signal from a distant transmitter. Received Noise Power
Received noise power refers to the following different meanings: 1. The calculated or measured noise power, within the bandwidth being used, at the receive end of a circuit,
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channel, link, or system. 2. The absolute power of the noise measured or calculated at a receiving point. The related bandwidth and the noise weighting must also be specified. 3. The value of noise power, from all sources, measured at the line terminals of telephone set's receiver. Either flat weighting or some other specific amplitude-frequency characteristic or noise weighting characteristic must be associated with the measurement. Receiver Receiver is a device on a transmission path which converts the signals as received from the transmission system into the signals required by the destination equipment. Receiver Off-Hook Tone
Receiver Off-Hook Tone is one of the audible tones in telephone system, which is used to cause off-hook customers to replace the receiver on-hook on a permanent signal call and to signal a non-PBX off-hook line when ringing key is operated by a switchboard operator. Recorder Connected Tone
The Recorder Connected Tone is used to inform the customer that his/her call is connected to a recording machine and that he/she should proceed to leave a message, dictate, etc. It is to be distinguished from the recorder warning tone, which warns the customer that his/her 2-way conversation is being recorded. Recorder Warning Tone is a .5 second burst at 440 Hz every 5 seconds. Recorder Warning Tone
Recorder Warning Tone is one of the audible tones in the telephone system. When recording equipment is used, the Recorder Warning Tone is connected to the line to inform the distant party that the conversation is being recorded. The tone source is located within the recording equipment and cannot be controlled by the party applying the recording equipment to the line. This tone is required by law and is recorded along with the speech. Recorder Warning Tone is a .5 second burst at 1400 Hz every 15 seconds.
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Redialer Redialer is an interface hardware device that interconnects between a fax device and a Public Switched Telephone Network (PSTN). A redialer forwards a dialed number to another destination. Redialers contain a database of referral telephone numbers. When the user dials a specific number, the redialer collects the dialed digits and matches them to a listing in its database. If there is a match, the redialer dials the referral number (transparent to the user) and forwards the call to the referral number. Reed-Solomon Codes
Reed-Solomon codes are block-based error correcting codes with a wide range of applications in digital communications and storage. Reed-Solomon codes are used to correct errors in many systems including: (1) Storage devices (including tape, Compact Disk, DVD, barcodes, etc) (2) Wireless or mobile communications (including cellular telephones, microwave links, etc) (3) Satellite communications. (4) Digital television / DVB. (5) Highspeed modems such as ADSL, cDSL, etc. Reference Circuit
Reference circuit is a hypothetical electric circuit of specified equivalent length and configuration, having a defined transmission characteristic or characteristics, used primarily as a reference for measuring the performance of other, i.e. real, circuits or as a guide for planning and engineering of circuits and networks. Reference Noise
Reference noise in telecommunication is the magnitude of circuit noise chosen as a reference for measurement. Many different levels with a number of different weightings are in current use, and care must be taken to ensure that the proper parameters are stated. Regeneration Regeneration in telecommunication refers to the process of reshaping and amplifying received signals to their original form. This technique is usually applied to digital pulses.
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Regenerative Repeater
Regenerative Repeater is a device which regenerates incoming digital signals and then retransmits these signals on an outgoing circuit. Register Register, in telecommunication, is a part of an automatic switching system that receives and stores signals from a calling device or other sources for interpretation and action, some of which is carried out by the register itself. Register Progressive Control
Register Progressive Control refers to a generic type of switching system in which the call progresses blindly one step at a time through the network under control of a translator and a register into which the originating subscriber has dialed the desired telephone number. Registered Endpoint
Registered Endpoint, a concept in a VOIP netowrk, is an endpoint that has informed the Gatekeeper that it is online, active and ready to receive calls, and has received confirmation from the Gatekeeper of its registration request. SAC: Service Access Code
Service Access Code (SAC) refers to a code of the form "NO/lX" that takes the place of an NPA in the dialing sequence in order to access a particular service provided by an IC, BOC, or independent company. SACs currently in use include 700 (IC Services), 800 (800 Service), and 900 (National DIAL-IT* network communications service). SACs are associated with supplementary features that may be ordered by an IC as part of the access charge tariff. A BOC may screen calls and route to an IC-specified point of presence based upon a SAC dialed. There is no requirement that SACs be of the Form N00 nor that all N00 codes be SACs.
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SAM: Subsequent Address Message
Subsequent Address Message (SAM) refers to a SS7 (Signaling System No. 7) signaling message which carried further dial numbers after the initial address message has been sent. SAS: Switched Access Service
Switched Access Service (SAS) refers to the services provided by telecommunication carriers to their customers for their use in furnishing their services to end users. It provides a twopoint electrical communications path to a customer's facilities from an end user's premises. It provides for the use of common terminating switching and transport facilities and common subscriber plant of the Telephone Company. Switched Access Service provides for the ability to originate calls from an end user's premises to a customer's facilities, and to terminate calls from a customer's facilities to an end user's premises in the LATA where it is provided. There are 4 types of Switched Access Services: (1) Feature Group A: Switched Access provides line-side interconnection to Verizon's end office switches through an end user seven-digit access code (NXX-XXXX) for the long distance customer's use in originating and terminating calls to end users. (2) Feature Group B: Switched Access provides trunk-side interconnection to Verizon's end office switches through a uniform seven digit access code (950-XXXX) for the long distance customer's use in originating and terminating calls to end users. (3) Feature Group C: Switched Access provides trunk-side interconnection to Verizon's end office switches for providers of MTS and WATS for originating and terminating communications. (4) Feature Group D: Switched Access provides trunk-side interconnection to Verizon's end office switches through either a 101XXXX arrangement or on a presubscribed basis for the long distance customer's use in originating and terminating calls to end users. Satellite Operated PBX
Satellite Operated PBX is a PBX system which is operating at a remote location and is tied into the primary PBX by means of tie lines. The satellite does not have its own unique incoming central office trunks. All incoming calls are extended to the stations by means of the tie lines.
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SCA: Selective Call Acceptance
Selective Call Acceptance (SCA) is a telecommunication feature that allows customers to create a list of phone numbers from which they are willing to accept calls. Callers with phone numbers not on your list hear an announcement informing them that you are not receiving calls at this time. Scanner Scanner, in a telecommunication network, refers to a device in an electronic switching office that scans various parts of the switching network to determine when some change in operations is occurring. Information about the change is passed from the scanner to temporary memory in the controlling computer. SCF: Selective Call Forwarding
Selective Call Forwarding (SCF) is a feature in telecommunications system. Not every call is important. With Selective Call Forwarding, customers can forward callers from a select group of numbers to another number. Customer's list of acceptable numbers can be changed at any time from your phone. Selective Call Forwarding reserves customer's time for only the most important calls. SCN: Service Control Node
Service Control Node (SCN) is an intelligent network function in a communication network which collects traffic data for call services without requiring alteration of, or addition to, programs in all of the service switching nodes in the communication network even if a new call service is introduced as an intelligent network service. A service control node (SCN) has a unit assigning a call service identification (ID) to a new call service and the service switching node provides a registration table receiving the identification (ID) and registering the same in it. If a call service requested by the calling party is in the registration table, the traffic data is collected for the call service. SCR: Selective Call Rejection
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Selective Call Rejection (SCR) is a feature in telecommunication system that enable customer to reject incoming calls they don't want to take. Selective Call Rejection screens every call against a "do not accept" list of numbers customers create and rejects those calls on the list. Selective Call Rejection assures you of avoiding calls, freeing customer's line for the calls you want to make and receive! Screen Phone
Screen phone is a device that looks similar to a standard desk telephone, but is equipped with a screen (LCD screen) to display communication information such as caller ID. It may also include a small keyboard for the Internet access. SDA: Selective Distinct Alerting
Selective Distinct Alerting (SDA) is a feature in telecommunication system that enables customer's telephone to identify special or important calls. Selective Distinctive Alert easily allows customer to create and update a list of telephone numbers from which calls will ring differently than other calls. The service alerts customer to calls from numbers on your list by providing a distinctive ringing pattern or a distinctive Call Waiting tone. SDH: Synchronous Data Link Hierarchy
Synchronous Data Link Hierarchy (SDH) is an European standard for data transmission over optical fiber network equivalent to SONET of North America. SDH's basic unit, the STM-1 (Synchronous Transport Module-level 1), operates at 155.52 Mbit/s. Transmission rates of up to 10 Gbit/s can be achieved in today's SDH systems and the 40 Gbit/s systems are possible. SDH systems are fully compatiable to SONET systems. A: Terminal Adapter
Terminal Adapter (TA) is a device used to connect ISDN BRI connections to existing interfaces, such as EIA/TIA-232. Essentially, Terminal Adapter is an ISDN modem.
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TAB: Telephone Answering Bureau
Telephone Answering Bureau (TAB), also called Telephone Answering Service, is a supplementary feature of telephone services whereby incoming calls on central office, Centrex Service, Inward Wide Area Telecommunications Service, Airport Telephone Service, and Administrative Terminal Lines may be answered at a common point through the use of answering lines and equipment. The service is available only where selective ringing is used. Various Telephone Answering Services are provided based on equipment, line configuration, and types of equipment used. TABS: Telemetry Asynchronous Block Serial
Telemetry Asynchronous Block Serial (TABS) refers to the former AT&T polled point-topoint or multipoint communication protocol that supports moderate data transfer rates over intra-office wire pairs. Tactical Designator
Tactical Designator, also called Tactical Callsign, refers a system consisting of a letter of the police phonetic alphabet followed by one or two numbers. For example, "Mary One" might identify the head of a city's homicide division. TALI: Tekelec's Transport Adapter Layer Interface
Tekelec's Transport Adapter Layer Interface (TALI), a protocol in the SIGTRAN suite, is the interface of a Signaling Gateway, which provides interworking between the Switched Circuit Network (SCN) and an IP network. Since the Gateway is the central point of signaling information, not only does it provide transportation of signaling from one network to another, but can also provide additional functions such as protocol translation, security screening, routing information and seamless access to Intelligent Network (IN) services on both networks. Talk Battery
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Talk Batter refers to a DC voltage supplied by the central office to the subscriber's loop so as to supply the power to voice conversation. Tandem Switching
Tandem Switching, also called class 4 switching, refers to the switching of long distance calls in PSTN. Tandem is a telephony term meaning "to connect in series." Thus, a tandem switch connects one trunk to another. A tandem switch is an intermediate switch or connection between an originating telephone call and the final destination of the call. Tandem Tie Trunk Switching
Tandem Tie Trunk Switching is a switched network configuration in which transmission can be routed through two consecutive tie trunks. Tandem Trunk
Tandem Trunk is a trunk circuit which connects a tandem switch to another tandem switch or to a telephone company central office. TASI: Time Assignment Speech Interpolation
Time Assignment Speech Interpolation (TASI) is an analog technique used in telecommunications on certain long transmission links to increase voice-transmission capacity. Time Assignment Speech Interpolation works by switching additional users onto any channel temporarily idled because an original user has stopped speaking. While the original user resumes speaking, that user will, in turn, be switched to any cannel that happens to be idle. TAT-12/13 TAT-12 is former AT&T's 12th and 13th transatlantic telephone cables in a ring structure which has been in operation since 1996, initially carrying 2x5 Gbit/s. This was the first TAT
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cable to use a ring structure, involving two stretches of cable across the ocean floor, which explains why two numbers (12 and 13) were used. All later cables also use a ring structure, but only use one number, TAT-14 etc. TAT-8 TAT-8 is the 8th Transatlantic telephone transport cable. It initially carried 40,000 telephone circuits which means 40,000 simultaneous calls between USA, France, and UK. It was constructed in 1988 by a consortium of companies led by former AT&T, France Telecom, and British Telecom. It was able to serve the three countries with a single trans-Atlantic crossing with the use of an innovative branching unit located underwater on the continental shelf off the coast of Great Britain. The cable lands in Tuckerton, NJ, USA Widemouth, England, and Penmarch, France. TBOS: Telemetry Byte Oriented Serial Protocol
Telemetry Byte Oriented Serial(TBOS) protocol is an open standard for network management, originally developed by Bellcore for AT&T. TBOS transmits alarm, status, and control points between NE and OSS. TBOS defines one physical interface for a direct connection between the telemetry equipment and the monitored equipment. TCAP: Transaction Capabilities Application Part
Transaction Capabilities Application Part (TCAP), a protocol in the SS7 protocol suite, enables the deployment of advanced intelligent network services by supporting non-circuitrelated information exchange between signaling points, using the Signaling Connection Control Part (SCCP) connectionless service. TCAP also supports remote controlability to invoke features in another remote network switch. T-Carrier T-Carrier is a digital transmission system standardized by former AT&T for short and medium distance transmissions. T-Carrier is a PCM (Pulse Code Modulation) system using 64 Kbps for a voice channel. T-CCS: Transparent Common Channel Signaling
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Transparent Common Channel Signaling(T-CCS) is a feature that allows the connection of two PBXs with digital interfaces that use a proprietary or unsupported CCS protocol without the need for interpretation of CCS signalling for call processing. T1/E1 traffic is transported transparently through the data network and the feature preserves proprietary signalling. From the PBX standpoint, this is accomplished through a point-to-point connection. Calls from the PBXs are not routed, but follow a pre-configured route to the destination. TCM: Trellis Coded Modulation
Trellis Coded Modulation (TCM) is one of the coded modulation techniques used in digital communications. It combines the choice of a modulation scheme with that of a convolutional code together for the purpose of gaining noise immunity over encoded transmission without expanding the signal bandwidth or increasing the transmitted power. TDD: Telecommunications Device for the Deaf
Telecommunications Device for the Deaf (TDD) refers to a telephone service that is specially designed for people who have severe speech or hearing disabilities. As of January 26, 1992, all public entities were required by the ADA (Americans with Disabilities Act) to provide people who have severe speech or hearing disabilities equal access to emergency services. This means direct access to 9-1-1 using TTY/TDD's and computer modems. Telecommunicators must be able to effectively handle calls from the community with speech and hearing disadvantage. This involves dispatching these calls for assistance using the appropriate resources in a rational and timely manner. One of the most critical skills that a telecommunicator must possess is recognition of a TTY/TDD call. An entity may provide a separate seven-digit line for use exclusively by non-voice calls in addition to providing direct access for these calls on the 9-1-1 line. If 9-1-1 is not available, an entity can provide emergency service through a seven-digit number. It may provide two separate lines, one for voice calls and one for non-voice calls. If this is done, the entity must ensure that the services provided on the non-voice line are as effective in terms of time response and availability in hours as the voice line. Also this non-voice number must be publicized effectively as the voice number and displayed as prominently.
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TDD: Time Division Duplexing
Time Division Duplexing (TDD) refers to a transmission scheme that allows an asymmetric flow for uplink and downlink transmission which is more suited to data transmission. In a Time Division Duplex system, a common carrier is shared between the uplink and downlink, the resource being switched in time. Users are allocated one or more timeslots for uplink and downlink transmission. TDM Cross-Connect
TDM Cross-Connect allows DSO channels from one T1 or E1 facility to be cross-connected digitally to DS0 channels on another T1 or E1. By using this method, channel traffic is sent between a PBX and CO PSTN switch or other telephony device, so that some PBX channels are directed for a long-distance service through the PSTN while the router compresses others for interoffice VoIP calls. In addition, Drop and Insert can cross-connect a telephony switch (from the CO or PSTN) to a channel bank for external analog connectivity. TDM: Time Division Multiplexing
Time Division Multiplexing (TDM) refers to a transmission technique in which a single communications channel is subdivided into a number of time slots, each of which carries the information of a separate data stream. Bandwidth is allocated to each channel regardless of whether the station has data to transmit. Telco Telco means a local or regional telephone company that owns and operates lines to customer locations and Class 5 Central Office Switches. Telcos have connections to other Cos (Central Office), Tandem (Class 4 Toll) offices and may connect directly to long distance carriers such as IECs. Telco-Return CM
Telco-Return cable modem(CM) is a device which uses the cable network only for subscriber
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downstream traffic, and uses the PSTN for subscriber upstream traffic (which is necessary in older cable plants). Telecommand Telecommand refers to the transmission of non-voice signals for the purpose of remotely controlling a device. Telecommunication Telecommunication refers to the transmission of signals over a distance for the purpose of communication. Telecommunication is widespread and devices that assist the process such as the television, radio and telephone are common in many parts of the world. There is also a vast array of networks that connect these devices, including computer networks, public telephone networks, radio networks and television networks. Computer communication across the Internet, such as e-mail and instant messaging, is just one of many examples of telecommunication. Telecommunication Circuit
Telecommunication circuit refers to a physical telephone and other communication path that is used to transmit information from one location to another. It is also called Telecommunication line. Telecommunications Act of 1996
Telecommunications Act of 1996 refers to a United States telecommunications law, which was the first major overhaul of United States telecommunications law in nearly 62 years, amending the Communications Act of 1934. The general intention of the Act was deregulation and promotion of competition. The Act removed barriers which had previously prevented telecoms from competing head-to-head. A new group of telephone companies, "Competitive Local Exchange Carriers" (CLECs), grew to compete with the incumbents ("ILECs" or Incumbent Local Exchange Carriers). Deregulation and the new entrants provided consumers and businesses with choices in local phone service. When the smaller CLECs faced financial problems, the trend toward competition slowed, turning in to a decade of reconsolidation. The 1996 has widely been regarded by some as a failure. As former FCC
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Chair Reed Hundt stated, the telecommunications companies chose consolidation over competition. Ten years later, there are fewer telecommunications carriers then there were at the time of enactment. The US Congress is currently considering legislation that would essentially replace the Telecommunications Act of 1996. Telecommunications Closet
Telecommunications Closet (TC), also called Wiring Closet, is a room or closet that houses all the telecommunication equipment. The TC also serves as a termination point for the horizontal cabling system of a network, the point of circuit administration and contains the network's distribution panels, cross-connects and backbone. The TC may also house auxiliary power supplies for workstation equipment. Telecommunications Network
Telecommunications Network is a network of telecommunications paths arranged so that information may be passed from one part of the network to another over multiple paths. The following are some examples or Telecommunications Network: Computer network, the Internet, the public switched telephone network (PSTN). Telecommunications Network generally conceptually consists of three planes (so called because they can be thought of as being, and often are, separate overlay networks.): (1) The Control Plane is the part of the network that carries control information sometimes called signaling. (2) The Data Plane or User Plane is the part of the network that carries its user's traffic or messages. (3) The Management Plane is the part of the network that carries the operations and administration traffic required for network management. Telecommunications Service
Telecommunications Service refers to the transmission, emission, or reception of intelligence of any nature, by wire, cable, satellite, fiber optics, laser, radio visual or other electronic, electric, electromagnetic, or acoustically coupled means , or any combination thereof. Telecommunications Service Priority (TSP) System User
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Telecommunications Service Priority (TSP) system user refers to any individual, organization, or activity that interacts with the NS/EP TSP System. Telecommunications Tariffs
Telecommunications tariffs refer to the prices charged to consumers by telecommunications service providers. Telecommuters Telecommuters refers to those who are working remotely accessing the related resources by means of telecommunication. In todays business climate, companies have become more distributed, and frequently work across time, space, and organizational boundaries. Telecommuters are increasing in the percentage of work force. Teleconference Teleconference refers to holding a conference via a telephone or network connection. The most simple form of teleconferencing is using three-way calling to setup your own teleconference. More advanced PBX equipment can setup conference calls between more than three participants. Computers have given new meaning to the term because they allow groups to do much more than just talk. Once a teleconference is established, the group can share applications and mark up a common whiteboard. There are many teleconferencing applications that work over private networks. Teledesic Teledesic is a global "Internet-in-the-Sky" that will provide broadband and Internet access, videoconferencing, high-quality voice and other digital data services through a constellation of 288 satellites. The Teledesic Network consists of terminals that interface between the satellite network and the terrestrial end-users, network gateways and network operations and control systems that perform network management functions, and a space segment that provides the communication links and switching among terminals. Teledesic's space-based network uses fast-packet switching to provide seamless, global coverage. Each satellite is a node in the fast-packet-switch network and communicates through crosslinks to other satellites in the same and adjacent orbital planes. Communications are treated within the network as streams of short, fixed-length packets. Each packet carries the network address of
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the destination terminal, and each node independently selects the least-delay route to that destination. Teleflip Teleflip is a service that makes it possible for a customer to send short email messages to anyone's phone using only their phone number. The way it works is like this: Open any email program or webmail site, then in the To: field, put your friend's phone number (don't use any parentheses around the area code), followed by @teleflip.com. For instance, if your friend's number was 415-555-1212, you'd just enter: 415-555-1212@teleflip.com. In the body of the message, type a short message, up to 160 characters. You can put something in the subject line too, but it will count towards that 160-character limit, finally,hit Send. Your message will go to TeleFlip, and TeleFlip will convert it into a text message and deliver it to your friend's phone via SMS (Short Message Service). Telehealth Telehealth is the use of electronic information and telecommunications technologies to support long-distance clinical health care, patient and professional health-related education, public health and health administration. Technologies used for this purpose typically are: videoconferencing, the Internet, store-and-forward imaging, streaming media, and terrestrial and wireless communications. Teleoperation Teleoperation refers to the operation of a machine at a distance. It is in analogy to the phrase "remote control". It's most commonly associated with robotics and mobile robots but can be applied to a whole range of circumstances in which a device or machine is operated by a person from a distance. Telephone Number Mapping
Telephone Number Mapping, also referred to "E164 NUmber Mapping" or Electronic Numbering (ENUM), is a scheme for mapping telephone numbers to the Domain Name System (DNS) using Dynamic Delegation Discovery System(DDDS). ENUM includes a suite of protocols to unify the telephone numbering system E.164 with the Internet addressing system DNS by using an indirect lookup method, to obtain NAPTR records. The records are stored at a DNS database. ENUM is a DNS-based protocol that is best suited to offer services
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that not only help facilitate, but expand on ways to complete calls over VoIP networks. It provides a user with a domain name on an E.164 server in order to associate a common international telephone number with a URI and provide other DNS-related services. The server is maintained by the Service Provider and is expected to become a standard since it can successfully address locating URIs with nothing more than a common international telephone number. Telephony Telephony is a general term for the technologies behind voice communications, including traditional circuit switched telephone networks and the newer IP telephony technologies (VOIP) over the packet switched networks. Teletext Teletext is a one-way, or non-interactive, system for transmission of text and graphics via broadcasting or cable for display on a television set. A decoder or microchip resident in the TV set is needed to extract the teletext information. Teletext can be transmitted over one-way cable or over-the-air broadcasting via radio or television. Telework Telework, also called telecommuting, is the ability to do work at a location other than the "official duty station", using networking technologies. With portable computers, high speed telecommunications links, and ever-present pocket communications devices, many employees today can work almost anywhere. Telex Telex is a teletypewriter service allowing subscribers to send messages over the PSTN. Terminal Equipment
Terminal Equipment (TE) refers to any ISDN-compatible device that can be attached to the network, such as a telephone, a fax, or a computer. Terminated Line
Terminated Line is a transmission line with a resistance connected across the conductors at
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the far end. If this resistance matches the characteristic impedance of the line, no signals will be reflected from the far end to distort information transmissions. Ternary Signal
Ternary Signal is a type of digital signal which has three voltage levels (e.g., +5v, 0v, and -5v). Testing Signal
Testing Signal is a signal in telephony system used for measuring telephone circuit performance, such as noise bit error rate via loopback arrangement, and also to "trouble shoot" circuit problem and/or equipment faults. U Interface
U Interface is the interface between the telco and the user, also known as the local digital subscriber line (DSL) loop. Uncapping Uncapping refers to the activities performed to alter customer's ISP (Internet Service Provider) modem settings. One of the purposes of uncapping is to change the bandwidth limitation, such as altering a 512kbit/s access modem to 10Mbit/s. Uncapping is an illegal activity and many ISPs check modem configuration files nightly to detect uncapped modems. UNE: Unbundled Network Elements
Unbundled Network Elements (UNE), a requirement mandated by the Telecommunications Act of 1996 of USA, are the parts of the network that the ILECs are required to offer on an unbundled basis. Together, these parts make up a loop that connects to a DSLAM or a voice switch (or both). The loop allows non-facilities-based telecommunications providers to deliver service without laying network infrastructure. On February 20, 2003, the FCC adopted new rules for network unbundling obligations of incumbent Local Phone Carrier.
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UNE-L: Unbundled Network Elements Loop
Unbundled Network Elements Loop (UNE-L), an alternative to the UNE-P, allows CLECs access to or operate their own local switch. The underlying copper (loop) that runs to customer's house is then leased by the CLEC, and cross-connected to the CLEC's switch. Both UNE-P and UNE-L have their own unique advantages and disadvantages. Other CLECs bypass the ILEC's network entirely, using their own facilities. These facility-based LECs include cable companies offering phone service over coaxial cable. UNE-P: Unbundled Network Elements Platform
Unbundled Network Elements Platform (UNE-P) is a combination of UNEs that allows endto-end service delivery by a CLEC without ANY facilities. Despite not involving any CLEC facilities, it still requires facilities-based certification from the PUC to deliver services via UNE-P. Uniform Call Distributor
Uniform Call Distributor is the feature that accepts incoming calls and distributes them equally among agents in a call center. V5UA: V5.2-User Adaptation Layer
V5.2-User Adaptation Layer (V5UA) is a protocol in the SIGTRAN protocol stack for the backhauling of V5.2 messages over IP using the Stream Control Transmission Protocol (SCTP). This protocol may be used between a Signaling Gateway (SG) and a Media Gateway controller (MGC). It is assumed that the SG receives V5.2 signaling over a standard V5.2 interface. Vacant Code Tone
Vacant Code Tone is used in crossbar systems to indicate that the dialed office code is unassigned. In step-by-step areas, this signal is called vacant level tone. For operatororiginated calls, the verbal announcement is preceded by two flashes. In modern systems,
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recorded verbal announcements are used for this service. Vacant Code Tone is Low Tone for 0.5 seconds on, 0.5 seconds off, 0.5 seconds on and 1.5 seconds off. Vacant Position Tone
Vacant Position Tone is a steady low tone. It is applied to all straightforward trunks terminating in a vacated position in manual offices. VAD: Voice Activity Detection
Voice Activity Detection(VAD) is a function when enabled on a voice port or a dial peer, silence is not transmitted over the network, only audible speech. When VAD is enabled, the sound quality is slightly degraded but the connection monopolizes much less bandwidth. VAD: Voice Activity Detector
Voice Activity Detector (VAD) is the device that detects voice activity and allows DTX to operate. In conjunction with DTX, VAD reduces power consumption in the mobile station and RF interference in the system by muting the transmitter when there is no voice to transmit. Validity Check
Validity Check refers to any check that is designated to ensure the quality of a transmission in telecommunications system. A validity check compares a group of bits with the code being used to ensure that group of bits constitutes a valid character. Variable Length Buffer
Variable length buffer is a buffer in telecommunication system. The characteristic of this buffer is that data may be entered at one rate and removed at another rate without the data sequence.
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VAS: Value-Added Service
Value-Added Service (VAS), in telecommunications industry, refers to the non-core services or all services beyond standard voice calls. Conceptually, value-added services add value to the standard service offered by the telecommunications carrier, encouraging the user to use their phone more and allowing the carrier to drive up their ARPU (Average Revenue Per User). VCDX: Very Compact Digital eXchange
Very Compact Digital eXchange (VCDX) refers to the smallest configuration of the Lucent 5ESS family which is a compact, packet-ready switch that delivers a full range of services from a single platform, using the same hardware and software as the full-size 5ESS switch. The VCDX can easily evolve into a full-size switch or become an element in a packet network within our Circuit-to-Packet Networks architecture, a convergent architecture that provides both cost-saving packet functionality and high-quality voice functionality. It is the product for bridging the transition of circuit networks to Asynchronous Transfer Mode (ATM)/Internet Protocol (IP) networks. VCO: Voice Carry Over
Voice Carry Over (VCO) refers to a method for using TTYs (Teletypewriter). VCO allows people who are hard of hearing or oral deaf (deaf with intelligible speech) to use a TTY without typing. They only use the TTY for reading during the inbound direction of the call. They talk to their party by speaking into a microphone. VCO is often used in confunction with a Realy Service. VCS: Virtual Circuit Service
Virtual Circuit Service (VCS) refers to a service made possible by virtual circuit technologies. Virtual Circuit is created within a shared telecommunication network system
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between two network devices. There are two types of Virtual Circuits: switched virtual circuits (SVCs) and permanent virtual circuits (PVCs). VDSL: Very-High-Data-Rate Digital Subscriber Line
Virtual Circuit Service (VCS) refers to a service made possible by virtual circuit technologies. Virtual Circuit is created within a shared telecommunication network system between two network devices. There are two types of Virtual Circuits: switched virtual circuits (SVCs) and permanent virtual circuits (PVCs). Warning Tone
Warning Tone is a high steady tone which warns an operator that the circuit he/she is connected to is not in condition for normal operation. Examples: An operator at an Automatic Display Call Indicator puts a plug into wrong jack, or an operator at a sender monitor puts a plug into a sender supervisory jack while the sender is under a test. WATS: Wide-Area Telephone Service
Wide-Area Telephone Service (WATS), also known as Wide Area Telecommunications Service, is a specialized form of fixed-rate long-distance telecommunication service. WATS lines are commonly used by businesses and government agencies. Some individuals and small corporations also have WATS subscriptions. There are three types of WATS lines: INWATS (for incoming calls), OUT-WATS (for outgoing calls), or a combination of both services. IN-WATS lines have telephone numbers with certain area codes reserved expressly for that purpose, such as 800, 888, or 877. People calling these numbers are not charged a long-distance toll. Instead, the recipient (subscriber) is charged a fixed monthly rate up to a certain number of hours of usage. Beyond the limit, an additional toll is imposed. OUTWATS lines are, in effect, fixed-rate long-distance subscriptions. Wink Start
Wink Start is a method of E&M signaling. When the signaling leads indicate a change to an
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off-hook state, the other side must send a momentary wink (on-hook to off-hook to on-hook transition) on the correct signaling lead before the call signaling information can be sent by the sending side. After the call signaling information is received, the side that sent wink goes off-hook again and stays that way for the duration of the call. Wink Start Signaling
Wink Start Signaling is the most commonly used trunk signaling type. In Wink Start operation, the originating trunk circuit goes off-hook. The remote switch detects the off-hook signal, transmits an off-hook pulse that is between 140 and 290 mess in length, and returns to the idle (on-hook) state. The originating trunk detects the Wink Back, waits for at least 210 mess and outputs digits to the remote switch. When the call is answered, the terminating switch will indicate this by an off-hook condition. Wire Center
Wire Center is the building in which one or more local switching systems are installed and where the outside cable plant is connected to the central office equipment. Wire Center Serving Area
Wire Center Serving Area refers to the area of an exchange served by a single wire center. Wire Tap
Wire Tap is an apparatus which is utilized to monitor conversations over telephone lines or the Internet by a third party, often by government agents. Historically, the monitoring connection was applied to the wires of the telephone line of the person who was being monitored and drew off or tapped a small amount of the electrical signal carrying the conversation so it is also called Telephone Tapping. Work Area
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Work Area in telecommunication system is the collection of all cable components between a horizontal-wiring wallplate or LAN outlet and end-user telecomm devices, such as telephones, data terminals, computers, modems, etc. X.25 Packet Switching
X.25 Packet Switching refers to the switching process between the data terminal equipment (DTE, a user machine) and the data circuit terminating equipment (DCE, a network component), using X.25 protocol. In a typical X.25 Packet Switching network, the major components are the customer premises equipment (CPE, e.g., user terminals or host computers), packet assemblers/Dis-assemblers (PADs), concentrators, and X.25 switches. xDSL: Digital Subscriber Line
xDSL refers to a collection of Digital Subscriber Line(DSL) technologies, which is a modem technology for broadband data access over ordinary copper telephone lines (POTS) from homes to businesses. xDSL refers collectively to all types of DSL, such as ADSL (and G.Lite), HDSL, SDSL, IDSL and VDSL etc. They are sometimes referred to as last mile (or first mile) technologies because they are used only for connections from a telephone switching station to a home or office, not between switching stations. Yellow Alarm
Yellow alarm, also known as Remote Alarm Indication (RAI), is an indication provided to a source device indicating a signal failure condition at a sink device. An incoming yellow alarm indicates that the T1 network element connected to the T1 interface has a problem with the signal it is receiving from the T1 interface. ZBTSI: Zero Byte Time Slot Interchange
Zero Byte Time Slot Interchange (ZBTSI) is a technique used to ensure pulse density for clear channel capability. ZBTSI is applied to a DS1 frame to ensure that pulse density
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requirements are met, where bits 2 through 193 of each frame are scrambled to minimize the occurrence of all-zero octets. Zero-Dispersion Slope
Zero-dispersion slope, in a single-mode optical fiber, refers to the rate of change of dispersion, with respect to wavelength, at the fiber's zero-dispersion wavelength. Zimmermann Telegram
The Zimmermann Telegram was a telegram dispatched by the Foreign Secretary of the German Empire, Arthur Zimmermann, on January 16, 1917, to the German ambassador in Mexico, Heinrich von Eckardt, at the height of World War I. It instructed the ambassador to approach the Mexican government with a proposal to form an alliance against the United States. It was intercepted and decoded by the British and its contents hastened the entry of the United States into the war. Zulu Date
Zulu Date refers to the date at Greenwich England. Zulu Date may be ahead of the date in some time zones such as the USA, or behind some other time zones such as Japan, etc. Zulu Time
Zulu Time, also known as Greenwich Mean Tme (GMT), is the time at the Longitude Zero Greenwich (England). Zulu Time is 6 hours later than Central Standard Time (US) and 5 hours later than Central Daylight-Savings Time. Zulu Time (GMT) is always the same worldwide. Communication network switches are coordinated on Zulu Time.
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23. BIBLIOGRAPHY 23.1. BOOKS

Zeithaml, Valarie (2008), Service Marketing, 4th Ed. New Delhi: Tata McGraw Hill Publishing Company Lmt. Marketing Management Philip Kotler Marketing.Com Vijay Mukhi E-Business Essentials- Matt Haig Consumer Behavior 23.2. ARTICLES: Arab news
23.3. PERSONNEL: Mr. Sahul hamid-project guide Dr.Saleh Saeed Al Khayar (Executive Director Knoah Technology Factory .) Mr.Arman ul Nasar
23.4.WEBSITE: http://mashpedia.com/Telephone_exchange http://mashpedia.com/Landline http://mashpedia.com/Mobile_phone http://mashpedia.com/Outside_plant http://www.its.bldrdoc.gov/projects/devglossary/ http://www.its.bldrdoc.gov/projects/devglossary/ http://mashpedia.com/Central_office http://mashpedia.com/Bluetooth http://mashpedia.com/Smartphone http://mashpedia.com/Infrared_port
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http://mashpedia.com/Internet http://mashpedia.com/Text_messaging http://mashpedia.com/Motorola http://mashpedia.com/GSM_services http://mashpedia.com/Fixed-line http://www.economywatch.com/world-industries/telecommunications/ https://www.go.com.sa/atheeb-cms/index.php?page=technologies http://www.comworldseries.com/saudi/conference/speakers2 http://www.consumerpsychologist.com/distribution.html http://www.historyofcellphones.net/history-of-cell-phones.html http://www.telegeography.com/research-services/ http://www.itc.net.sa/wholesale.htm http://www.technologymarket.eu http://www.ameinfo.com/99941.html#story http://www.isp-planet.com/research/rankings/ksa.html www.rediff.com http://www.wikipediaorg www.marketing-online.co.uk http://www.rafal.com.sa/index.asp?id=6&newsid=22 www.buseco.monash.edu.au/mkt/dictionary/xyz.html#z http://www.networkdictionary.com/telecom http://www.consumerpsychologist.com/international_marketing.html http://www.historyofcellphones.net/history-of-cell-phones.html http://www.consumerpsychologist.com/index.html http://www.emeraldinsight.com
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Mba-Final - Project 2011 - Customer Stisfaction On Mobile Service Providers by Zamir Smu Roll No. 540910634

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SMU-RIYADH CENTRE

CUSTOMER SATISFACTION ON MOBILE SERVICE PROVIDERS

SIKKIM MANIPAL UNIVERSITY

PROJECT GUIDE MR. SAHUL HAMID

DATE OF SUBMISSION: ROLL NO. 540910634

[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]

________________ Signature of Student

Signature of the Principal

[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]

[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]

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INTRODUCTION THEORETICAL BACKGROUND OF THE TOPIC CUSTOMER SATISFACTION

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CUSTOMER SATISFACTION IN 7 STEPS

. ENCOURAGE FACE-TO-FACE DEALINGS

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METHOD TO MEASURE CUSTOMER SATISFACTION

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COMPLAINTS AND SUGGESTION SYSTEM:

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alternatives (e.g., brands, products, and retailers);

culture, family, signs, media);

decisions and marketing outcome;

There are four main applications of consumer behavior:

[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]

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Fixedcurrencies may be pegged to another currency (e.g., the Argentine

3.3. POLITICAL AND LEGAL INFLUENCES:

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4. THE HISTORY OF THE TELEPHONE:

ALEXANDER GRAHAM BELL

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4.2.1. FIRST SOUNDS TWANG:

4.2.3. ALEXANDER GRAHAM BELL - BRIEF BIOGRAPHY:

5. HISTORY OF CELL PHONES:

5.1. FIRST GENERATION CELL PHONES:

[CUSTOMER SERVICE ON MOBILE SERVICE PROVIDERS]

5.2. SECOND GENERATION CELLULAR PHONES

5.3. THIRD GENERATION CELLULAR PHONES

5.4. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA

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5.7. MOBILE TV:

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video downloads, sports updates)

5.8. SOCIAL AMPLIFICATIONS :

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6. THE EVOLUTION OF MOBILE PHONES IN SAUDI ARABIA:

6.2. PHONES OVERVIEW :

6.3. TALKING SANDS

CELL-PHONES AND ROMANCE:

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6.6. STCS MISSION:

SERVICES AND USAGE;

6.8.THE BUNDLED SERVICES FOR ALJAWAL:

6.12. TADAWUL AL JAWAL