PREFACE The MBA course is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA course provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I have learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of MBA and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.


ACKNOWLEDGEMENT An individual cannot do project of this scale. I take this opportunity to express my acknowledgement and deep sense of gratitude to the individuals for rendering valuable assistance and gratitude to me. Their inputs have played a vital role in success of this project. I would like to express my sincere thanks to all those instrumental in this project Work. First, I would to thank Prof. Dr. N.C.Ghosh ( Director of Management Institute of Durgapur) Prof. A.K. Ghosh, (Principal Department of Business

Administration), for giving me this opportunity to do this project and learn from it. I am thankful to Vodafone for giving me helpful information to complete this project (Research).I express my sincere thanks to Mr. Koushik (Sales Manager), Mr. Bibhas Chandrs, (Asst Professor & HOD, MBA department) Sr.Lecturer R.K.Jha (MID faculty), for helping me in giving me all relevant information about the product and service. My heart full thanks to the whole staff and customers of Vodafone, who gave me continuous support in every possible manner to gain practical knowledge in Industry. Finally, I would like thank all lecturers, friends and my family for the kind of support and to all who directly or indirectly helped me in preparing this project report.


4 .

Once the estimated market potential has been calculated. 5 . a business will capture a share of the total estimated market potential not all of it.EXECUTIVE SUMMARY Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture. Estimating the market potential will determine if the market is large enough to support the businesses. This checklist will address a number of questions that need to be answered before an estimate can be calculated. it is possible to determine if the market is large enough to sustain the proposed business or sustain an addition competitor in the marketplace. What type of customer will buy the product or service? Where are these customers located? How often do they use it? What is the Competition? What are people paying? What is the Potential for the Market to Develop? What is my share of the Market? Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. It is important to remember that the estimated market potential sets an upper boundary on the market size and can be expressed in either units and/or sales. Unless there are no direct or indirect competitors.

Determine the average annual or monthly consumption. 6 . academicians as well as other professionals need to access emails and corporate applications as well as personal requirements during urgent trips and travels. 2. Durgapur and Asansol markets. Key Steps in Estimating Market Potential: 1. The project aims to identify the market potential of Vodafone in the internet data card in Burdwan. 3.The following provide the steps and data necessary to estimate the market potential. Define the geographic boundaries of your market. Growth on the Data Cards especially happen when business travelers. The cutthroat competition in the telecommunication sector of India posed a great threat to the development of Vodafone. These will be discussed in detail later. Define your target market and market segments.

.. II. Chapter 1: About Indian Telecom Industry……………………………………. Analysis and Results……………………………………………………………… Chapter 1: Market Potential Analysis…………………………………………. Chapter 3: Graphs and charts…………………………………………………… 7 .. in Chapter 3: The drivers for penetration of broadband in India………………. The company……………………………………………………………………….. Chapter 5: History of Indian Telecom Industry……………………………….. III. Chapter 2: Data Collection……………………………………………………… Chapter 3: Statistical models used……………………………………………. Chapter 6: Facts about Indian telecom industry………………………………. About the Data Card……………………………………………………………. an ideal destination for investment in telecom sector…….. Chapter 4: India. V.Contents Page no. Chapter 8: The Internet in India………………………………………………… Chapter 9: India Telecom Report: Internet and Broadband Services………. I. Chapter 7: Experts review on Indian telecom sector…………………………. IV. Chapter 1: How the project has been carried out…………………………….... Methodology……………………………………………………………………….. Literature Survey…………………………………………………………………. Chapter 2: Development of Hypothesis and its testing………………………. Chapter 2: Broadband services to derive internet penetration India…….

Annexre……………………………………………………………………………. VIII.. Conclusions and recommendations……………………………………………. Bibliography…………………………………………………………………………… 8 .VI. VII..

postpaid tariff plan change. Vodafone Essar. which are based on 1800 MHz and 900Mhz GSM digital technology. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 303 million proportionate customers worldwide. Vodafone is the world’s leading international mobile communications company. the Middle East. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. under the Hutch brand. Vodafone Essar Ltd provides services like 3G. The company is a joint venture of Essar Communication Holdings Ltd and the UK-based Vodafone Group. Power. the Caribbean and South East Asia and employs 30. Shipping & Logistics. prepaid SIM cards and recharge coupons sale. In addition. Energy. they offers postpaid connections activation. Vodafone Essar now has operations in 22 circles with over 65.92 million customers. customer query resolution.The company Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. has been named the ‘Most Respected Telecom Company’. service activation/deactivation. Vodafone has partnered with the Essar Group as their principal joint venture partner for the Indian market. Over the years. Canada. USA. and Projects. Africa.000 people worldwide. They are in the business of cellular telephony. prepaid/postpaid SIM card replacement 9 . The group has operations and investments in India. They offers voice and data services. the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective Advertiser of the Year’. Communications. Essar Global Limited (EGL) is a diversified business group spanning the manufacturing and services sectors of Steel.

08 million customer.HTIL is HK Based Telecom Company and Essar is India based diversified corporation 4th largest cellular operator in India 74. Vodafone’s Objective • • • To venture into the world’s most lucrative cellular market Strengthen its operation worldwide To obtain the majority stake of Hutchison 10 . and information on and subscription of value added services through stores. data related services. Energy. Communications. Shipping prots & Logistics and Projects. The Joint venture 67% stake by HTIL and 33% owned by Essar. Power. Advanced mobile telecommunications services provided by vodafone are 3G. England. mobile number change.and up gradation. 303 million customers.HTIL – Li Ka-Shing . 40 partner networks. is the world’s leading international mobile communications group with 29Million revenues 27 countries. The Essar Group is a diversified business corporation with a balaned portfolio of assets in manufacturing and service sectors of Steel. The Essar Group is Vodafone’s principle partner in India. About Hutchison-Essar Vodafone Negotiations The name Vodafone comes from “Voice data fone” HQ in Berkshire. Essar – Ruia Family.

Literature survey 11 .

One of the fastest growing cellular markets in the world in terms of number of subscriber additions – 261.22 percent (March 2009 )  Number of new mobile subscribers added last quarter – 27. the world's cheapest mobile handset (USD 19) and the world's most affordable colour phone (USD 31).e. the fastest sale of million mobile phones (1 week)./sub/ month)  Telecom equipment market – USD 34.100 million (2008–09)  Handset market – USD 7.. the Indian telecom industry has witnessed phenomenal growth. India achieved the distinction of having the world's lowest call rates (2–3 US cents).07 million (March 2008)  Expected to reach total subscriber base of about 500 million by 2010 (i. more than one phone for every household)  Annual growth rate of the telecom subscribers – 42 percent (2008–09)  More GSM subscribers than fixed-line subscriber  Total telecom subscribers – 300. A conducive business environment.28* (USD. favorable demographic outlook and the political stability enjoyed by the country have contributed to the growth of the industry.CHAPTER 1: ABOUT INDIAN TELECOM INDUSTRY In recent years.250 million (2008–09) 12 .62 million (March 2009)  ARPU for GSM – USD 5.49 million (March 2009 Cellular + Fixed Line  Tele density – 26.

It registered a CAGR of approximately 32 percent from 2002–03 to 2008–09. Source** TRAI Revenues of Indian Telecom Industry: 2002–08 (USD billion) 13 . Telephony services (mobile and basic) and Internet services dominate the Indian telecom services. other valueadded services are also gaining importance. The Indian telecom services can be divided predominantly into basic. mobile and Internet services. such as radio paging services. It also comprises smaller segments. The growth witnessed in the mobile services and Internet services segments was much higher as compared to other services. Public Mobile Radio Trunked Services (PMRTS) and Global Mobile Personal Communications by Satellite (GMPCS). Apart from mobile telephony services. The Indian telecom market generated revenues of approximately USD 32 billion in 2008–09. Very Small Aperture Terminals (VSATs). such as basic services and radio paging services which are nominal in terms of numbers. The CAGR from 2008–09 to 2011–12 is expected to stabilize at 21 percent.

The Internet subscriber base registered a CAGR of 60 percent for the period 1997–98 to Source: TRAI report 2008 14 . with significant 2007–08. improvement in the telecom infrastructure.CHAPTER 2 : Broadband services to drive Internet penetration in India The emergence of private players and new technologies has provided a strong impetus to the growth of Internet and broadband services. The quality and penetration of these services have undergone changes.

2008.BSNL and MTNL caters to more than two-thirds of Internet subscribers in India.35%) subscribers in the quarter ending March. The total no.72 million (23. Source: TRAI report on market shares of telecom companies in India. The telecom market will experience high penetration of Internet services with the support from government policies and introduction of novel technologies in India. 15 .82 million by adding 0.1 million to 3. Private players are catching up fast due to increased penetration of Internet and broadband services in India. of Broadband Subscribers of these 13 Service Providers have increased from 3.

The cost of a wireless network is high in the first stage of deployment. However.decrease in the cost of equipment and from the inherent advantage of wireless when adding new lines. once those costs are recovered from enterprise services. housing. adding new subscriber will come at a minimal cost. cabling. Especially. the cost of PC is going to be less than 16 .CHAPTER 3: The drivers for penetration of broadband in India The drivers for penetration of broadband in India are: • Decreasing cost per line: The decrease in cost per line has come from two factors. In addition. The operators who own the spectrum are now reselling the spectrum to other smaller players who will mushroom in various parts of India to cater to non-metros. and connecting the tower to the network. • Decreasing operating expense: We are witnessing more and more infrastructure completely sharing between various in operators rural which was this absent before. installing base stations. the coming of Virtual Network Operators will add to competition. because of factors like taking up space for tower. infrastructure sharing has turn out to be mere common sense. The base stations which cost $3000-$5000 is now costing $400-$800 from the end of 2008. etc. networks. erecting the tower. The CPE (Customer Premise Equipment) which costs $200-$400 is now costing $30-$80 from the end of 2008. • Decreasing cost of PC (or similar device): With projects like one laptop per person. and other initiatives.

7%. in the mobile telephony space. These kids in turn will make way for their families owning a PC and therefore an Internet connection. subscriber base (as per June 2009 data) 17 . Vodafone with 14. Airtel controls 21. of fixed line share in the country. BSNL with 18. On the other hand.Rs. Other concepts like Novatium. BSNL and MTNL are the incumbents in their respective areas of operation and continue to enjoy the dominant service provider status in the domain of fixed line services. if they tend to be aggressive can also make a marginal impact on the penetration of broadband.4% subscriber base followed by Reliance with 20. More Indian language content. more applications suitable to Indian social context will come up in the next few years which will in turn contribute to increasing broadband penetration.22 million (March 2009) "Present scenario" In the fixed line arena. • More Indian content: What will further fuel the penetration is the content which is more relevant to the masses of India.6% &. Those kids who never knew PCs will now be used to using them at these schools. For example BSNL controls 79%. Broadband connection: 6. (BSNL is rolling out its broadband services to one lakh schools across the country from December 2008) • Social attitudes and habits embracing broadband facilities: Every school in India is going to have a PC and also an internet connection.3%. Subscribers would like to see more content tailored to their needs and desires. All government employees are now moving towards using PCs and broadband connectivity. 5000 by the end of 2009.

Expected to become the second largest telecom market by 2010 18 . about 6–7 million new users added per month.9 percent teledensity in rural markets as compared to the national level of 18 percent 9. the rural telecom equipment market is also open to large investments 7. Among the countries offering the highest rates of return on investment 8. second largest among the emerging economies after China 5. An Ideal Destination for Investments in Telecom Sector India is an ideal destination for investments in the telecom sector. the reasons are as follows: 1. Skilled and competitive labour force 4. on an average. making India the world’s fastest growing wireless services market 6. Independent judiciary 3.CHAPTER 4: India. Liberal Foreign Investment Regime–FDI limit increased from 49 percent to 74 percent. World’s largest democracy 2. The large untapped potential in India’s rural markets–1. Fifth largest telecom network in the world.

CHAPTER 5 : HISTORY OF INDIAN TELECOM INDUSTRY  1881 Telecom Services Introduced in India.10.  1986 DoT converted into two wholly government-owned companies: The Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.  1947 Posts.  2000 DoT becomes a corporation.  1996 Cellular Services launched in India. Bharat Sanchar Nigam Limited (BSNL). Telegraph and Telephones(PTT) come under the aegis of the Ministry of Communication.  1985 The Department of Telecommunication (DoT) comes into existence which would be a self regulator.  1997 Telecom Regulatory Authority of India (TRAI) formed. Introducing private players in the market. 19 . Fully repatriable dividend income and capital invested in telecom equipment manufacturing. The government promoting telecom manufacturing by providing tax sops and establishing telecom specific Special Economic Zones 11.

 2005 Foreign Direct Investment (FDI) increased to 74%.  Growth impetus from wireless segment with 84% wireless and 16% wired.  Average growth rate of over 40% in respect of subscribers. CHAPTER 6: Facts about Indian Telecom Industry  The Indian Telecom sector is third largest network in the world.  Monthly additions of above 7 million phones.5 million broadband subscribers.  Further access is provided by 54 lakh PCOs and 5 lakh VPTs.  9 million Internet and 2.  Subscriber numbers already crossed 250 million.  Rural teledensity stands at 7%.  National teledensity at 26%. 20 . while the urban at 57%.  2008 India becomes 2nd largest Telecom Market in the World.

cross-subsidies. CHAPTER 7: EXPERTS REVIEW ON INDIAN TELECOM SECTOR Girija (1998). The choice of a high component of competition. in its article “Socioeconomic Implications of Telecommunications Liberalization: India in the International Context” says that Telecommunications restructuring have evolved differently in Asia and Latin America. such as the cost of services. or de-monopolization. increased private participation. This article identifies and highlights the likely implications of the Indian reform on key economic and social issues. Chowdary (1999) discusses how Telecom reform. universal services. network interconnection. Latin American nations have implemented radical ownership and market transformations. and no privatization of the national carrier set conditions that will trigger unique socioeconomic effects. employment. While Asian governments have moved cautiously in bringing changes to the sector. It does so by comparing and contrasting the Indian experience with dominant reform strategies elsewhere in the developing world. The Indian telecommunications reform falls in between these two general regional trends. private investments. in India has been bungled. Shaped by legislation dating back to the colonial 21 . and the possible rise of an information-intensive economy. More than a thousand cities have been provided with broadband connectivity out a total of five thousand cities.

regulator. sectoral issues relating to agriculture. in the wake of a balance of payments crisis. The agents of change have been broadly categorized into economic structure. This created an untenable situation in which the DOT became policymaker. industry and infrastructure are briefly discussed. Some of this fall under the “economic agenda'' of measures needed to maintain economic growth. In this article. Progress with regard to the former is not sufficient to produce results concerning the latter. He discusses the question: ‘Why did India get it so wrong? and What India should do now? Anand (1999). Das (2000). operator and also arbitrator in disputes between itself and licensed competitors.of improving human development. in her paper described the Liberalisation of the Indian telecommunications services which started in mid nineties with no change in 22 . others can be termed the “development agenda'' . As reforms enter a more difficult phase. networks and services.era and post Second World War socialist policies. At the heart of the problem lay the monopoly by the government’s Department of Telecommunications (DOT) in equipment. several challenges remain. impact of the reforms on poverty. licenser. Issues concerning economic policy. Bhattacharya (2000) constructs a vision of the Indian telecommunication sector for the year 2020. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. in his article named “India's economic policy reforms” says that India was embarked on economic reforms in July 1991. by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. competition policy and technology. The paper aims at isolating agents of change based on international experiences and situates India in the development continuum. an attempt is made to review two books and a set of World Bank reports concerning the progress of these reforms.

the existing public monopoly structure, entirely controlled by Department of Telecommunications (DoT). In order to evaluate any proposed industry structure, it is essential to analyse the production technology of DoT so as to determine the rationale of liberalisation and sustainability of competition. Accordingly, the researcher estimates a frontier multi-product cost function for DoT, where the cost function has been duly modified to account for the production technology of a public monopoly. The study finds that although DoT displays high allocation inefficiency, it is still a natural monopoly with very high degree of sub additively of cost of production. This study implies that the choice of any reform policy should consider the trade-off between the loss of scale and scope economies and cost saving from the reduction in inefficiency of the incumbent monopoly in the event of competition. Rao (2000), in her article named “Internet service providers in India”, provides a broad view of the role of an Internet service provider (ISP) and the factors to be considered before entering the ISP market. Describes the Internet/ISP scene within India and discusses the configuration of local, regional and national level ISPs, and the supporting infrastructure. She also identifies the various success factors. The global Internet scenario is discussed regarding the phases of the Internet in India, i.e. pre and post commercialization. The main players are described: ERNET, NICNET, STPI, VSNL, MTNL, Satyam Infoway and Bharti-BT. The financial and legal implications are highlighted in the Indian context. Many companies entered the nascent ISP business in India due to deregulation. Building local content, foreknowledge of new Internet technologies, connecting issues, competitiveness, etc. would help in their sustainability. She concludes that though many companies entered the nascent ISP businesses in India due to deregulation, many of them are unlikely to survive in the longer term. Vrmani (2000) estimates the contribution of telecommunication (or telecom) services to aggregate economic growth in India. Estimated contribution is distinguished between public and private sectors to highlight

the impact of telecom privatization on economic growth. Knowledge of policy determinants of demand of telecom services is shown to be essential to enhance growth contribution of telecom services. Using a recent sample survey data from Karnataka State in South India, price and income determinants of demand for telecom services are estimated by capacity of telephone exchanges Estimation results offer evidence for significant negative own price elasticity and positive income elasticity of demand for telecom services. Narinder (2004), in his article “Enhancing Developmental Opportunities by Promoting ICT Use: Vision for Rural India” talks about the foremost benefits of Information and Communication Technologies (ICTs) in developing countries that can be helpful in improving governance including public safety and eradication of illiteracy. The benefits of ICTs have not reached the masses in India due to lack of ICT infrastructure, particularly in rural areas, where two-third of the population of the country lives. Even in cities and suburban areas, use of ICTs is not popular due to lack of awareness to its use, computer illiteracy, and absence of practical applications. India is the largest country in South Asia, with a population of over one billion people and its telecom sector is presently experiencing fast growth phases. However telephony penetration in villages is less than two percent of the rural population and about 15 percent of the villages are still without any telephony service. Universal access to ICTs in rural areas has been planned and is being implemented through Public Tele Info Centers having voice data and video, as majority of villagers in India cannot afford a separate home connection. Illiteracy in rural areas is as high as 40 percent and in some tribal belts hardly about 20 percent people are literate. There are 35 million children in age group of 6–11 years, who are out of school and one out of four drops out during primary classes. Education and training, therefore, must be given the top priority if advantages of ICTs are to be harnessed. Indian economy is agriculture based and employs maximum

workforce. Improvement in agriculture productivity can help in reducing rural poverty. Adoption of ICT in agriculture will play an increasingly important role in crop production and natural resource management. The other critical factor is technological challenges for universal access to ICTs to bring down the network access cost. Nikam, Ganesh, Tamizhchelvan (2004), analyses that changing face of India in bridging the digital device. He reiterated - “India lives in villages” said the Father of the Nation, Mahatma Gandhi. With 1,000 million people and 180 million households, India is one of the biggest growing economies in the world. With the advent of the Information, Communication and Technology (ICT) revolution, India and its villages are slowly but steadily getting connected to the cities of the nation and the world beyond. Owing to the late Rajiv Gandhi, India is now a powerful knowledge economy, and though India may have been slow to start, it certainly has caught up with the West and is ahead in important respects. The Government, the corporate sector, NGOs and educational institutions have supported rural development by encouraging digital libraries, e-business, e-learning and egovernance. The aim of this paper is to touch upon and highlight some of the areas where, by using ICT, the masses have been reached in this way. A follow-up paper will outline collections of significant cultural material which, once national IT strategies are fully achieved, could form part of a digitally preserved national heritage collection. Dey (2004), in her article talks about the discussions between the Federal Communications Commission (FCC) and communications policy makers and regulators in other countries and how they have gleaned several clusters of issues where further research would directly benefit them. Recently, there have been two notable shifts. First, as the acceptance of the competition model over the monopoly model for telecommunications markets takes deep effect in regulators all over the world, questions regarding process and procedure for regulation are becoming ever more urgent. This paper

especially when compared to other large sectors in the economy like agriculture and manufacturing. Similarly. the overlap of wireline telecom. The paper has taken an approach to find the historical situation and present the prevailing scenario as well as the change that are taking place with the application of ICT to the advantage of the society in different areas including daily life. in his article “The role of technology in the emergence of the information society in India” describes the role that information and communication technologies are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society. development of infrastructure and human resource for meeting national needs. The paper also enforces that comparisons of India’s telecommunication statistics with those 26 . Technology has helped society to cut across the traditional boundaries for getting converted into anemerging information society. wireless telecom and cable television has become more pronounced. Second. The study concludes that The Indian software and services industry has significantly helped to boost the Indian economy. and understanding consumer issues that arise often in the FCC's discussions with other regulators. India has been clearly perceived to be the dominant hub. the illiteracy rate is also huge in this country. India is making all out efforts to be counted among the developed nations of the world. In the FCC's discussion with other regulators over the last two years. Singh (2005). Basically India is building an information society. technological change is potentially shifting market definitions. The Indian software sector is being recognized as the single largest contributor to incremental market capitalization in India but the sector is still small in terms of contribution to GDP. Though India has a huge population. enforcement. The article also describes the considerable attention India is taking for application of technology.discusses current questions regarding decision making. In IT-enabled services too. the telecommunication sector has contributed a lot but still has a considerable way to go.

of developed and other emerging economies show that the country is still far behind its contemporaries. According to him Governments decision to raise the foreign investment limit to 74% is expected to spur fresh rounds of mergers and takeovers in India. It uses archival sources. He foresees a sector that represents humongous opportunity waiting to be tapped by Indian and foreign conglomerates. in his article describes the contribution made by telecommunications in India by the state and civil society to public service. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. The findings of the paper suggests that public service in telecommunication is a relatively ‘‘new’’ concept in the annals of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service telecommunications a real alternative. Thomas (2007). and published information as its research material. this article aims to identify the state’s initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to the postal services and finds hope in the renewal of public service telecommunications via the Right to Information movement. All studies done by the researcher suggests that the right to information movement has contributed to the re-vitalization of participatory democracy in India and to a strengthening of public service telecommunications. personal correspondence. critical account of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a people-based demand model linked to the Right to Information Movement. 27 . Banka (2006) gives an overview of the mergers and acquisitions in the telecommunication industry. The article provides a reflexive.

and the country is witnessing wild momentum in the telecom industry. With almost 5-6m subscribers are being added every month. Hutch India” suggests that managers need to go beyond traditional approaches to serving the poor. The estimate for the next five to ten years is that the rural market will form 40 % of the subscriber base. The company has proactively established relationships with individual entrepreneurs. Uttar Pradesh. which is an emerging market for the industry. Operations Director. in his single executive interview titled “Developing a route to market strategy for mobile communications in rural India An interview with Gurdeep Singh. (2008) . in its “Quarterly Performance Analysis of Companies (April-June 2008)” has analysed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. the Indian telecom industry is expected to maintain the growth trajectory in the next quarter as well. and India is has surpassed US to become the second largest wireless network in the world. This growing subscriber base is basically created by tapping into rural India. His practical implication says that the experience of Hutchison Essar in India provides some important lessons for mobile network operators (MNOs) and other firms in other developing markets who are hoping to serve the rural poor: Hutchison has recognized the value of corporate and noncorporate partners. in her report analysed the Indian telecom industry and ascertain that Indian telecommunications has been zooming up the growth curve at an mounting pace.Cygnus Business Consulting & Research Pvt. Cygnus estimates. and 28 . and innovate by taking into account the unique institutional context of developing markets. Maheshwari (July-September 2008). and specially the latest trends of recruitment of this massively growing industry. Ltd. The study has analysed the human resource management process of the industry. The analysis is done in the background of wake of global recession and rising inflation. Anderson (2008).

The company has recognized the value of leveraging existing local institutions. The benefits to the Indian economy from having both a strong services and manufacturing segments in the telecom sector cannot be undermined. Knowledge of policy determinants of demand of telecom services is shown to be essential to enhance growth contribution of telecom services. The formation of a Telecom Equipment Export Forum and the announcement of the Indian Semiconductor Policy 2007 are steps in this direction. The telecom industry in India could slowly become an example of the service sector acting as a fillip to the growth of the manufacturing sector. Using a recent sample 29 . Success crucially depends on the response of the private sector to these incentives. A beginning towards this has been made. Given the importance that a regulatory agency can play in this crafting. Estimated contribution is distinguished between public and private sectors to highlight the impact of telecom privatization on economic growth. Mani (2008) addresses a number of issues arising from the growth of telecom services in India since the mid-1990s. It also discusses a number of spillover effects for the rest of the economy and one of the more important effects is the potential to develop a major manufacturing hub in the country for telecom equipment and for downstream industries such as semiconductor devices. Narayana (2008) estimates the contribution of telecommunication (or telecom) services to aggregate economic growth in India.has provided has provided development support to other partners such as distributors. no effort should be lost in strengthening the powers of the TRAI. and has seen gaps in local infrastructure or missing services as potential opportunities rather than barriers to growth. Also this article demonstrates that MNOs can deliver availability and affordability to achieve increased individual or household penetration through business model innovation. The company has seen the rural market as an opportunity – not just an obligation to be served because of universal service obligations.

With the help of newer technologies. has analysed Indian telecom industry and studied the sector keeping in mind three companies. In 2006-07. wireless penetration is expected to increase in the near future. namely Bharti. 2009). price and income determinants of demand for telecom services are estimated by capacity of telephone exchanges. This is not favourable to long-term sustained growth of the telecom sector. This trend has far-reaching implications for the economy and should not be allowed to continue for long. The study suggests that though there is no sign of slowdown in this sector. better quality doctoral education and incentives to entrepreneurs for start-ups in telecom equipment manufacturing. While the 3G / Broadband adoption would ensure long term growth momentum.Comm and idea in the background of recent global meltdown. Sharma (2009) deals with the major challenges faced by India’s telecom equipment manufacturing sector. The country is also far behind in R&D spending when compared to other leading countries. India needs to see an increase in R&D investment. R. Only 35% of the total demand for telecom equipment in the country is met by domestic production. high capital 30 . the manufacturing sector should be promoted to create more employment opportunities. 65% of the total consumption of equipment was met through imports. industry-academia-government partnership. Estimation results offer evidence for significant negative own price elasticity and positive income elasticity of demand for telecom services. The study states that the sector is fairly immune from the current economic downturn & does provide a good defensive bet in medium term. Shah (February.survey data from Karnataka State in South India. the article has thoroughly investigated about the intense competitive scenario. which is basically fuelling the growth of the sector. pricing pressure. In a country like India which has a problem of massive unemployment. but surely a strong turmoil is going on in the industry. which lags behind telecom services.

However. substantially low tariffs & established brand/distribution. a division of the Department of Electronics (DoE). the study also cautions the telecom industry that a steeper economic slowdown could start impacting the subscriber usage patterns as well as operator capital investments & thereby could substantially restrict revenue growth rates going forward. declining handset/subscription costs.intensity & substantial regulatory uncertainties currently faced by the industry. The causes described by Shah are increasing rural coverage. CHAPTER 8: THE INTERNET IN INDIA Internet History and Culture The history of the Internet in India can be traced back to the early 1990’s when ERNet. The article has also described the cause of being relatively safe of this industry. and NICNet 31 . rising affordability.

the rise to power of the Bharatiya Janata Party (BJP) was accompanied by a series of legislations that opened up opportunities for business online. the Indian government had directed ISPs to block seventeen websites. although the tough unregulated market has caused many to close. As early as 2000. it was estimated that between 22 and 30 million people were online in 2007 with a 3% penetration of India’s market. including some hosted on the Geocities. which ended VSNL’s ISP monopoly and mandated that any Indian company with a maximum foreign equity of 49% could provide hosting services.(Department of Statistics) began to experiment with Internet services. While the industry has been mainly free from content regulation. 32 . some high profile instances of censorship have occurred and as of July 2006. Blogspot and Typepad domains. most users are located near the country’s main population centers including Delhi and Bangalore. Over time this policy has led to a rise in the number of Indian web hosting companies. although penetration in major urban areas is believed to be as high as 9%. making India one of the world’s fastest growing markets. Industry experts have predicted this number to balloon to 100 million by 2010. Ebay and MSN began establishing web portals in the country and examining India’s strong e-commerce potential. While figures on the exact number of internet users varies. became the country’s 1st official Internet Service Provider (ISP). foreign companies including Yahoo. But it was not until 1995 that government owned VSNL (Videsh Sanchar Nigam Limited). These pieces of legislation ushered in a new era of internet growth that has increased steadily. According to studies into the demographics of internet users in India. One of the most significant changes during this period was The New Telecommunications Policy of 1999. In 1997.

While outsourcing for SEO. up from 19% the year before. Google.com are doing well and continue to dominate the e-commerce landscape. although there are still opportunities professionals. entrepreneurs considering starting an SEO company in India are advised to be cautiously optimistic. web and graphic design have proved to be profitable. most portals are still working towards 33 for expert search engine optimization and marketing . Although accurate figures on the amount spent on online advertising are difficult to verify. Microsoft and Rediff.The early years of the internet saw users connecting primarily in public spaces such as Internet cafes and kiosks. despite a weak global economy and lack of infrastructure. Business Outlook India’s e-commerce and IT sectors continue to hold promise and are expected to grow steadily in the coming years. trends suggest rapid growth and the need for Search Engine Optimization Companies and Search Engine Optimization Specialists steadily increasing. While industry giants Yahoo. Even with this new growth. Reports from consulting company JuxtConsult suggest that beginning in 2007. Competition among web site promotion firms on the rise. with 59% of new users using home based connections. The growth is largely driven by requests for outsourced services including web site design and Search Engine Optimization. e-commerce in general is still in the nascent phases even as Internet advertising expenditures continue to grow. Throughout India. but this is rapidly changing. the majority of internet users are opting for personal computing. web site design services are readily available in major cities and the low cost of web design is one of the main factors companies cite when choosing to outsource web design to India.

CHAPTER 9: India Telecom Report: Internet and Broadband Services 34 .financial success. citing cost of customer acquisition and lack of reliable high speed broadband as major sticking points.

22 million 117. While the wireless data internet subscriber show close to 118 million subscribers majority of them are GPRS connections on mobiles.3%. To achieve is 500 million subscriber base in next 3 years seems to be near impossible target ! Lets look at the where Indian Internet & Broadband services stand for the quarter ending March 2009: Indian Internet & broadband services snapshot Internet & Broadband Subscribers Total internet subscribers (including Broadband) % of Growth During the Quarter Broadband Subscribers Wireless Data Subscriber 13.The Telecom Regulatory Authority of India released a comprehensive report on the growth of Indian telecommunication Industry for quarter ending March 2009.82 million According to TRAIs report. which according to me should not be counted a internet subscribers.54 million 5. we seriously have problems when it comes to internet penetration. 35 . India currently has only 13. but it is growing steadily nevertheless.54 million Internet subscribers. Internet & Broadband services have been unable to emulate the growth that is seen by Indian Mobile sector. This is a ridiculously low number ! Even the growth rate is only 5. The Indian government has heady plans when it comes to Broadband and Internet services growth.30% 6. which includes broadband.

82 wireless data customers at the end of March 2009 ( capable of accessing data services including internet through mobile handsets (GSM/CDMA))  Broadband Subscriber Growth – The number of Broadband subscribers (with a download speed of 256 kbps or more) was 6.01% at the end of December 2008. registering a growth of 5.  Besides above . The growth rate of broadband subscribers in this quarter is 12. there were 117.54 million subscribers at the end of March 2009 as compared to 12.85 million Internet Subscribers at the end of December 2008.Indian Internet Subscriber Growth SOURCE: TRAI REPORT MARCH 2009  There were 13.22 million at the end of March 2009 as compared to 5.30%.  The growth rate is higher as compared to growth rate of 5. 36 .52 million at the end of December 2008.68%.

Technology Used to Access Internet SOURCE : TRAI REPORT 2009 Broadband Subscribers Share (Technology wise).002 Million use other technologies.042 million Fiber.  5.  0.  0.364 million are DSL based.Out of total 6.072 million Wireless .  0.  0.244 million Ethernet LAN.  0.474 million Cable Modem.  0.22 million Broadband.020 million Leased Line. 37 .

221.0 1 10.ARPU(Dia 220 225 213.0 9 42.4 8 26. of use(Dial 34 23 58 up internet) (MOU/Sub/ Month) 3.37 16. internet 0 7 7 10 82 iii)Broadba 3.87 4.71 5.76 7.10 10.Internet 11.0 11.8 13.8 8 60.2 101.0 9 79.52 6. 117.90 5.Subscribe r base(in million) i). 226.Internet Subscriber Growth Quarter to Quarter Growth of Internet and Broadband Services QE Mar 200 8 QE QE QE QE June Sep Dec Mar 200 2008 2008 2009 8 % of grow th over Mar 08 (12 mon ths) % of grow th over June 08(9 mon ths) % of gro wth ove r Sep 08 (6 mon ths) % of Gro wth over Dec 08(3 mon ths) 1.38 4.49 5.6 2 33.9 88.22 nd connection( >=256kbps download speed) 2.1 2 55. 38 .6 12.9 4 5.7 2 16. l up 08 97 47 internet) (Rs/Subs/M onth) *Accessing internet through wireless (GSM/CDMA) 22.9 6.5 75.53 8 networks.6 8 2.Minutes 220 225 212.5 4 12.2 12. 236.5 9 6 4 5 4 ii)Wireless 65.70 6. 214.99 0.

6. METHODOLOGY CHAPTER 1: How the project has been carried out Following figure shows an overview over the works proceed.Although Indian Broadband connections have doubled in last one year. the growth rate is still not enough. With a country population of close to 1.22 million broadband connections is just ridiculous. 39 .2 billion.

CHAPTER 2: Data Collection 40 .

Perception of potential customers towards internet data card. Technology used for internet connections. and contact information for distributors. Awareness of internet data cards and awareness of Vodafone’s product. • • Primary data has given answer in following questions in each of the studied markets: • • • • • Competitors name and position Customers and the different segments they belongs. Printed literatures are articles and books in telecom sector and marketing. Primary data In this project primary data has been collected by: • Interviews with existing internet users for collecting of background information such as: products explanation. Durgapur. primary and secondary data. The questionnaires are used to get exactly and comparable answers in questions. Secondary data • Printed literatures are used to get relevant theories for this Project. there are two types of data. Questionnaires have been used for extracting information from representatives and distributors about internet usage. Asansol. Deep going discussions have been done with Vodafone´s representatives in the investigated markets to apply information and further discussions after the questionnaires. 41 .As the used methodic in figure shown. market situation in Burdwan.

Information about the current scenario. Information about tariff plans and prices of data cards. tariff plans and price of different products. Secondary data has given answer in following questions in each of the studied markets: • • • • • • Information about competitors Information about features and different products of the competitors. 42 . features of different companies data cards. Information about indian telecom sector.• Homepages are used for information about competitors. Information about different technologies used to connect internet.

first formulated by Helmert and then discovered by Karl Pearson. in Sampling theory.  NORMAL DISTRIBUTION (z test) Normal distribution is an important contineous probability distribution having two parameters m and σ. in particular. Normal distribution plays a very important role in Statistical theory and .  ANALYSIS OF VARIANCE Analysis of Variance (ANOVA) can be used to test for the equality of three or more population means using data obtained from observational or experimental studies. 43 .CHAPTER 3: STATISTICAL MODELS USED The statistical models and analysis methods which are used in this project are as following:  Chi-square test (χ2 test) Chi square distribution is an important contineous probability distribution.

What type of technology is more preferred to connect internet? 9. What people are paying for using internet? 8. Who are the competitors of Vodafone? 7. 6. 5. What is the current situation in the market of Internet Data Cards at Asansol.Objectives of the project The objectives of this project is to find the answers to following questions: 1. Is there any significant difference between the markets? 3. The awareness of internet data card in the market and the awareness of Vodafone’s data card in the market. How potential customers perceive towards the internet data card? 44 . Durgapur & Burdwan? 2. What is the total market potential of these three markets? 4. What are the different segments in the market that uses Internet Data Cards.

6499/2599/5499/2800/7500/2499/2249/2499/3500/2490/2500/2500/3500/2999/- BSNL TATA INDICOM Reliance Airtel 45 . Table shows different companies in data card business. A data card comes with different verities and models. some of the models of data cards of different service providers are mentioned below. their products and their prices. Company Vodafone Product Name Vodafone Mobile Connect Edge Data Card Vodafone Mobile Connect USB Modem Vodafone Mobile Connect 3G USB stick( Broadband) Huawei .EC 321 BSNL EVDO (Broadband) Plug 2 Surf photon Plug 2 Surf photon whiz Data for laptops Photon+ (Broadband) Net Connect MG880 USB Modem Huawei EC-121 USB Modem Net connect PCMCIA Card Net Connect Broadband plus (Broadband) USB Modem Technology Used PCMCIA USB USB USB USB USB USB PCMCIA USB USB USB PCMCIA USB USB Price in Rs.About the data card A data card is a modem which can be connected to the PCs or Laptops any where any time to get connected with the internet.

A DATA CARD OF USB TECHNOLOGY A PCMCIA CARD A BROADBAND DATA CARD OF USB TECHNOLOGY ANALYSIS AND RESULTS CHAPTER 1: MARKET POTENTIAL ANALYSIS I made a survey on the different outlets of the companies selling data cards. on an average how many data cards were sold by them in a month? Then we got the following results: 46 . I asked them.

5 17.5 425 7.5 1175 22.5 Units/pm 250-300 200-250 300-350 05-010 15-20 Average 275 225 325 7.5 1222.Survey report of Burdwan Company Reliance Tata Indicom Bsnl Airtel Vdafone Total market potential Survey Report of Durgapur Company Reliance Tata Indicom Bsnl Airtel Vdafone Total market potential Survey Report of Asansol Company Reliance Tata Indicom Bsnl Airtel Vdafone Total market potential Units/pm 300-350 350-375 400-450 05-010 15-20 Average 325 362.5 962.5 3210 47 .5 Units/pm 375-400 350-400 400-450 05-010 25-30 Average 387. Durgapur & Burdwan is calculated by summing up the average monthly sale by each company in these areas.5 375 425 7.5 1137.5 62.5 27. Company Reliance Tata Indicom Bsnl Airtel Vdafone Total Market Potential Units/pm 987.5 850 Total market potential of Asansol.5 17.

Development of Hypothesis: 48 . CHAPTER 2: DEVELOPMENT OF HYPOTHESIS AND ITS TESTING What is a Hypothesis? A hypothesis is the assumption that we make about the population parameter. This can be any assumption about a population parameter not necessarily based on statistical data. Durgapur & Asansol.The result what we got is an average of 3210 units of data cards sold in the market of Burdwan.

21 = 0.04 Status of Hypothesis H0 Accepted H0 Accepted Decision: We accept the Null Hypothesis because we found out that there is no significant difference among the competitive brands and the market potential of data cards at Burdwan.20/10.85 4 10.01 Ftabulated 19.21 F2 = 0.F 2 Mean Square(MS ) 0.20/0.80 8 14 Conclusion table D. H1 : There is a variance in the market potential with respect to the cities across the competitive brands. H0 : The market potential remains same with respect to the cities across the competitive brands.4 6. To test this hypothesis I have used Two Way ANOVA.F V1=8.66 = 0. Durgapur. Interpretation 49 .30 0. V2=4 Level of significance 5% 5% F– observed 0.30 40.63 43. as it is a Bivariate Analysis.There is no significant difference in the market potential of data cards at Burdwan. Durgapur and Asansol markets. V2 =2 V1= 8. Asansol.01 1.32 D. ANOVA TABLE Source of variation Between cities Between companies Residual(erro r) Total Sum of squares(SS) 1.66 Variance ratio F1 = 0.

50 . these three towns are rich in industry also and today as we all know industries are being globalized. Sample size = 220 Value of χ2 observed 29.815 Status of Hypothesis H0 Rejected 3 5% Decision: We reject the Null Hypothesis because we found out that the different technologies used for connecting internet are not equally preferred. All this become have become possible because of technology of Internet. and Burdwan does not very much. To test this hypothesis we did Chi-square test for Goodness of fit. online transactions etc are getting popular day by day. so there is a need for continuous connectivity. Colleges providing free laptops to the students. the masses are taking this product very consciously and the trial purchase of this product is very high. Development of hypothesis There is a difference in the preference of different technologies used to connect internet. H1 = All the different types of technologies used for connecting internet are not equally preferred.From the above analysis. and presence of reasonable number of colleges offering both professional and educational courses. they use internet as a medium to gather knowledge. H0 = All the different types technologies used to connect internet are equally preferred by the customers. As a product of FMCG category. one of the reasons of this stability is that these three towns are well developed. for entertainment purposes etc. especially private colleges offering professional courses are involving technology as a part of their programme. e banking. etc is some of the examples of adaptation of technology. Again.f Level Tabulated value 7.56 d. it was found that the market potential of Asansol. Durgapur. classroom teaching with help of power point presentations. 1. concepts like virtual offices. and this young generation is very much aware and adaptable towards the internet technologies.

Data Cards are USB modems or PCMCIA modems which can be connected with the PC’s (only USB one) and Laptops (both USB and PCMCIA) through USB slot and laptops supporting PCMCIA card slot for internet connectivity. These mobile phones can be connected to the PC’s or Laptops for browsing internet. Now days Multimedia mobile phones are very popular among the masses. Development of hypothesis A significant relationship exists between the types of technologies used in internet connections with the nature of occupation.6 kbps to 3mbps and more. H1 = The types of technologies used to connect internet are dependent of the different occupation categories. The data card can also be used for receiving. and all the telecom service providers both GSM and CDMA are providing GPRS connections at a cheap rate. 2. The next type of technology used for internet connectivity is cable connections or fiber optic cable connections provided by the local service providers. and receiving voice calls etc. The data transfer speed in this type of technology is also very high. Bsnl is the market leader in this type of technology. A simple landline connection attached with a modem is traditionally used for internet connectivity. the user can connect internet anywhere till the time he/she is in the coverage area of the service provider. sending SMS. To test this Hypothesis we did Chi-Square test for Independence of attribute. This service is cheap and getting popular day by day with new companies entering this segment. H0 = The types of technologies used to connect internet are independent of the occupation categories. The other type of technology for connecting internet is Data Cards. and this type of technology is popular because of multiple usability of mobile phone and cheap tariff plans.Interpretation In the research. making. it discovered that there are different types of technologies used by the users of internet for internet connectivity. comparing to other technologies available. With the introduction of 3G and Broadband service in this technology the speed of browsing internet has increased drastically from 153. The biggest advantage of this type of technology is its mobility. Sample size = 220 51 .

not have to travel constantly opts for a fixed connection. etc used for internet connectivity are independent of occupation categories like students. H0 = The types of technologies used to connect internet are independent of the students categories. The preference of the technology depends on different factors.f Level Tabulated value 12. and executives with constant mobility chooses a Data card or Mobile phones to connect internet. H1 = The types of technologies used to connect internet are dependent of the different students categories. 3. Sample size = 59 52 . Interpretation The research discovered that different technologies used to connect internet such as Data cards. mobile phones. To test this Hypothesis we did Chi-Square test for Independence of attribute.Value of χ2 observed 11.59 Status of Hypothesis H0 Accepted 6 5% Decision: We accept the Null Hypothesis because we found out that different technologies like data cards. mobile and landline phones. In the same way jobholder who does.263 d. landline phones. students continuing their studies from home probably opting for a landline or cable connection. Development of Hypothesis: A significant relationship exists between the types of technologies used for internet connections with different categories of students. For example. jobholders and businesspersons’. because of its low cost and low maintenance factors. it means that there is no specific preference of a particular technology by any specific occupation segment such as students. while students residing in rented apartments or hostels probably opting a Data card or Multimedia mobile phone because of its mobility factor. cable connections etc are independent of occupation categories. jobholders and businesspersons.

f Level Tabulated value 12. H1 = The types of technologies used to connect internet are dependent of the different job categories.59 Status of Hypothesis H0 Accepted 6 5% 53 . students perusing their professional courses and students perusing their educational courses. as the younger generation is very much tech friendly. 4.e. collecting information about different things.81 Status of Hypothesis H0 Accepted 3 5% Decision: We accept H0 Hypothesis because we found out that the technologies used for connecting internet are independent of different categories of students such as students of educational and professional courses. downloading. H0 = The types of technologies used to connect internet are independent of the different job categories..243 d. chatting. The use of internet in the educational course is less but it is constantly raising.Value of χ2 observed 3. case the technology for connecting internet not at all dependent of student’s categories. In this.f Level Tabulated value 7. However. To test this Hypothesis we did Chi-Square test for Independence of attribute. Development of Hypothesis: A significant relationship exists between the types of technologies used for internet connections with different job categories. Interpretation The students are divided into two segments i. where as the use of internet in educational courses is very high. Sample size = 71 Value of χ2 observed 3.32 d. they use internet for entertainment. a PC or laptop has become a household product. It hardly matters anything for a student what course he/she is perusing. browsing etc.

Development of Hypothesis: A significant relationship exists between the types of technologies used for internet connections with different types of businesses. 5.. government jobs and public sector jobs. franchisees. and internet is used greatly in this entire sector. Executives with fixed offices prefer fixed connections and executives with more mobility prefer Data cards and mobile connections. Interpretation Jobs are divided into three categories here i. H1 = The types of technologies used to connect internet are dependent of the different types of businesses. private jobs. and other types of businesses. 54 . Now the companies are being globalised and all the processes are using online systems to operate.Decision: We accept H0 Hypothesis because we found out that the technologies used for connecting internet are independent of different categories of jobs such as private jobs. public sector jobs and government jobs.59 Status of Hypothesis H0 Accepted 6 5% Decision: We accept H0 Hypothesis because we found out that the technologies used for connecting internet are independent of different types of businesses such showrooms. To test this Hypothesis we did Chi-Square test for Independence of attribute.764 d. the technology used for internet connection plays a significant role.f Level Tabulated value 12. H0 = The types of technologies used to connect internet are independent of the different types of businesses. The nature of the internet connection depends on the profile of the job not on the category of the job. Sample size = 90 Value of χ2 observed 2.e.

Tata indicom. Development of Hypothesis There is a difference in the preference of service providers of internet connections in the market.Interpretation In this. franchise and other types of businesses. Now days the online billing is getting popularizing. 6. To test this hypothesis we did Chi-square test for Goodness of fit.. Airtel. the showrooms. research the businesses are divided into three categories i. Reliance are giants in this business. H0 = All the different service providers of internet connections are equally preferred in the market H1 = All the different service providers of internet connections are not equally preferred. So it is important for the franchise. Some of these companies like BSNL.e. Interpretation The telecom companies present in the market provide the internet services.f Level Tabulated value 11. and have established a good customer base. by this way the companies’ gets information about their products performance in the market.07 Status of Hypothesis H0 Rejected 5 5% Decision: We reject the Null Hypothesis because we found out that the service providers who are providing internet connections are not equally preferred. it s observed in the research that other types of connections are also used. sales figures and other valuable information’s. for regular transactions most of the time a fixed connection is preferred.98 d. most of the big showrooms and franchise are adapting this technique. However. the type of connection depends on the nature of the business. All these 55 . Sample size = 220 Value of χ2 observed 47. showroom and other types of businesses to get connected with the server of the companies and for that they need an internet connection.

entertainment. it’s just one click of your mouse away. ticketing and many more things can be done by using internet. and different service providers specializes in different areas. business etc. Development of Hypothesis There is a difference among the different purpose of using internet by the internet users. Online shopping. such as work. but they are expanding now.f Level Tabulated value 7. Therefore. such as work. Vodafone is comparatively new in this business but Vodafone is providing GPRS services in the past also. H0 = the internet users uses internet equally for all the purposes. entertainment. H1 = the internet users does not prefer internet equally for all the purposes. while a job holder may use internet for reporting to his/her bosses. business etc. Data cards. Sample size = 220 Value of χ2 observed 17. Interpretation The interfere of internet in our lives is getting more and more day by day. whatever you want you can search it on the net with sitting at the comfort of your office or home. banking. net speed. With this huge amount of versatility. the preference of using internet by the users also differs according to their requirements. fixed line connections and 3G. The user of internet prefers the service providers based on their requirements. network quality etc. while a businessmen can use it for online billing. 56 . hotel reservations. For example a student most preferably use internet for collecting information and for entertainment purpose. 7. To test this hypothesis we did Chi-square test for Goodness of fit. the service providers are not equally preferred in the market.companies provide internet connections through GPRS services.81 Status of Hypothesis H0 Rejected 3 5% Decision: We reject the Null hypothesis because we found out that there is a difference in the preference of using internet by the internet users.19 d. such as tariff plans.

which the buyer considers at the time of making purchase. H2 = Installation process plays an important role in the purchase decision. iii. Installation of data card: Installation process of data card plays an important role in the purchase of data card. H0 = Price plays an insignificant role in purchase of data card. H0 = Durability of data card does not bothers the buyers purchase decision. i. User friendliness: User friendliness of the product is an important factor for purchasing the data card. Durability of data card: Durability is an important feature. Cost of data card: Price plays an pivotal role in the purchase of data card. Development of Hypothesis for potential customer’s perception towards different features of data card. ii. which affects the buyers purchase decision. H0 = Durability of data card is an important factor. iv. 57 .and that is why all the uses of internet are not equally preferred by all the classes. H0 = User friendliness plays an insignificant role in the purchase of data card. 8. H1 = Price plays a significant role in purchase of data card. H0 = Installation process of data card does not play an important role in the purchase.

vii. viii. H1= Tariff plans plays an important role at the time of purchasing the data card. H0 = After sale service is not an important factor of purchase decision. H0 = The image of the company plays an insignificant role in the purchase of the data card. H1 = Speed of the internet plays a significant role in the purchase of data card. H0 = Tariff plans are not given much importance at the time of purchase.H1 = User friendliness plays a significant role in the purchase decision of data card. Tariff plans: decision. After sales service: After sales service plays an pivotal role in the purchase of data card. v. 58 Tariff plans play a pivotal role in the purchase . vi. Image of the company: image of the service provider plays a pivotal role in the purchase of the data card. H0 = Speed of the internet plays an insignificant role in the purchase. H1 = After sale services plays an important role in the purchase decision of the data card. Speed of Internet: Speed of the internet provided by the service provider plays an important role in the purchase decision of the data card.

The table below shows the perception of internet users towards different factors.96 1.07 tailed) 3.96 1.96 1.96 H0 Rejected H0 Rejected H0 Rejected H0 Rejected H0 Rejected H0 Rejected H0 Rejected H0 Rejected Observ ed value of Z Tabl Status e e at 95% of sis valu hypothe Interpretations 59 .06 0.81 4.073 0.76 – 3 /0.50 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 H0: µ = 3 H1: µ ≠ 3 0.96 1.07 0.08 0.08 – 3 /0.073 4.064 0.80 – 3 /0.08 3.96 1.14 1.31 3.81 12.07 0.064 3.07 0.87 1.08 3.87 16.87 11.07 3.96 10.12 – 3 /0.57 18.96 1.06 3.85 10.81 – 3 /0.07 4.94 4.50 – 3 /0. Feature Gran Hypothe d mea n sis Stande Test rd error of x̄ Statist ics apply ztest(t wo Price Installati on Durabilit y User friendly Tariff Speed After sale service Compan y’s image 3.07 3.80 3.31 – 3 /0.94 – 3 /0.12 3.07 3.H1 = The image of the company plays a significant role in the purchase of the data card.76 3.66 7.

it is not possible for everyone to handle this installation process. if he/she needs to install some special software’s in the PC or Laptop for using the data card. so a Data must have to be durable enough to meet the requirements of the user. if it is little complicated it becomes a hassle for the user and ultimately affects the purchasing decision. because the user is the one who is going to operate it with the machine. just plug in the data card and connect. Installation process: The installation process of data card should be simple and can be easily understood by the user. Tariff Plans: Apart from the price of the Data. Data cards with high prices are less preferred. which is providing Data cards on rental basis.1. should be made up of un-breakable plastic are some features of durable Data card. 2. Apart from connecting internet. Normal Data cards ranges from Rs 2000 to Rs 3000 and 3G. card how much the internet service is costing to the pocket of the user is very important 60 . and if it is a complicated process then user might think for other options. Price of the data card: In this research. A Data card should not get over heated while in use. User Friendly: A Data should be user friendly in operations. it is discovered that price of the Data card is playing an important role in the purchase decision of the customer. Data cards comes with multiple features such as receiving and sending SMS. so installation process plays an pivotal role in the purchase decision. 5. 4. making and receiving voice calls. Reliance Communication and Tata Indicom is also providing data cards at cheaper rates. BSNL is the only company in the market. 3. A user wants simplest process to get connected with the internet. etc. Durability: Purchasing a Data card is mostly a long-term investment. and it is one of the main reasons behind BSNL’s success. Broadband Data cards range starts from Rs 3500 onwards. so all these functions should be easy to operate.

it makes a positive impact on the purchase decision. A internet user wants tariff plans which fits into his/her budget and fulfills all the other requirements. Customers prefers internet with good downloading speed. After Sale Service: After sales service like sending bills on time. Conclusions & recommendations On our research. Again BSNL is the market leader in this segment with cheapest tariff plans and after that Reliance and Tata Indicom comes. 6.factor in the purchase of any Data card. because it’s the image of the company in the minds of the customer who is going to purchase the data card. With the introduction of Broadband and 3G in the market of Data cards. Net Speed: The internet speed is very important for the users and slow internet is not at all preferred in our fast moving lives. we have found out the followings: 61 . 8. If the brand is trusted in the market. and plays an important role in the purchase decision of the customer also. the competition has got even tougher. 7. Image of the company: The goodwill created in the market through years of providing superior service quality helps the company to sale its products. keep the customers updated with the new developments in different areas etc improves the chances of increasing the sale of data card.

7. so it is not going to be easy for Vodafone to crack the customer base of theirs. landline connections and WLL phones. and they spend on an average around Rs. 15% market share respectively in our survey. that’s the reason awareness about Vodafone’s data card is very low. Tata indicom and Airtel. at the same time awareness about the data cards in the market cannot be said bad.  Multiple usability. Vodafone is not actively promoting its Data card products in the market. 21%. i. Vodafone mainly focusing on a niche segment in the market. 5. For Vodafone they lack in both. as the service is good Airtel charges a high tariff but at the same time Bsnl charges the lowest tariffs. Vodafone emphasizes on its high quality service. which Vodafone presently is not providing. their tariffs are high and not have strong coverage also. 4. They are having a good signal strength and network support in almost every villages and towns. around 39% of the respondents are aware of data cards.e. It establishes the fact that they have a good customer base and all four companies are old players in the field of providing internet services. We found out in the survey that. 17%. Maximum of the population. Airtel and Bsnl have their expertise in providing internet connections through mobile phones. etc who needs to travel more frequently and required to be connected with internet all the time.1. those who are using internet are using it for an average of 30 hrs in a month.. but the price at which they are providing the services is a bit too high. 3. 2. executives. the reason behind this are :  Cheaper tariff plans. 6. they target working professionals. Reliance. 62 . 350 a month on it. they have 30%. maximum of the population is using either mobile phones or landline phones to get connected to the internet.  Low installation cost. There is a strong competition between Bsnl. so there is a need for low cost service.

The market is having great potential and scope for development. as the use of internet is increasing day by day and computers have become a part of our lives. 11. they have to make aware of their products to the masses. Vodafone needs to enter in new segments of the markets. but due to high prices and lack of promotion its lagging behind. Strategic recommendations Following recommendations are essential for success in the future: 1. 9.8. who are having internet connections. 63 . the respondents gave more emphasis on the price of the data card. 3. in the same way an internet connection is becoming necessary. Vodafone should look to explore new segments in the market. 2. then Reliance communication comes with its cheaper data cards and attractive tariff plans and with reasonable speed. We asked to the respondents. job holders (needs to be connected with their offices) and show rooms (now online billing is started). and they have to offer more value for money product. as you are already using an internet connection. Vodafone lacks in price of the data card and the tariff plans. the tariff plans and the speed of the internet. The companies are targeting students both educational and professional courses (as courses are becoming more technology based). what will be the important factors for you while choosing a data card. its price & tariffs are high but its speed it reasonably good. But because of providing data cards on rental basis and lowest tariff plans Bsnl is the leader. They have to be more prices competitive. Vodafone should actively promote their products. and after that its Tata indicom with almost the same services as Reliance offers. Vodafone cannot succeed with its high price tag. as the competitors are charging low prices. Vodafone is having a very strong product. 10. as the other companies are doing.

CHAPTER 3: GRAPHS AND CHARTS 1. Occupation of the respondents 64 . Vodafone is a multinational company. Age of respondents total = 600 We went to 600 respondents (200 each from Burdwan. they should use their goodwill to capture the market. Asansol) and asked them about there age.4. Durgapur. Maximum of the respondents were between the age of 18-35 2.

frenchaisis etc. around 36% were job holders from different sectors like government sector. and the remainig 15% were Business mens. private sector etc. Despite of goverments efforts the results were not satisfactory. 4. they are showrooms. Have internet connection or not ? 65 .total = 600 We asked the respondents what they do?around 49% of the respondents were students. from both professional and educatonal courses. Have to a PC or Laptop? total = 600 We asked the respondents that they are having or using a PC or Laptop? Around 57% of them out of 600 said yes they have or they use. This figure shows that a computer is still not available in each home. 3.

this fact shows that only 64% out of 340 are connected to the internet and maximum of them are through GPRS or GSM connections or through landlines. Aware of data card or not? total = 600 66 . 5. then the probability of having an internet connection connected to it getting more less.total = 340 If the avalability of the computer is low.

6.The awareness about the data card is also low in the market. Purpose of using internet. we need to educate our potential customers more about the product. Type of internet connection used by the respondents total = 220 From the respondents who are having internet connection we asked them what kind of connection they use? The maximum were in favour of Multimedia Mobile phones connection through GSM/CDMA connections. only 39% of respondents out of 600 were aware of data cards. 67 . and through landline connections. Only 17% out of 220 uses data cards to connect internet. 7. inspite of random advertisment there is a lot more to be done.

68 . blogging ets. so all the showrooms. like chating. facebook. Students gets huge amount of information on different subjects and topics from internet. gaming.com. shops.total = 220 The purpose of using internet also indicates the requirement of internet. and the companies gets instant information about the sales position and revenue detatils. Internet is also used for entertainment purpose. Now days online billing is getting popular. 8. nowdays the social networking sites like orkut. ets are very popular. franchisies needs to be connected with the companies server all the time. Awareness of Vodafone’s Data card.com. job holders needs to be connected with there offices (positioned globally) all the time. Internet is becoming a part of our lives now days.

Vodafone is having world class poducts.total = 600 The awareness of Vodafones data card is very low in the market. 69 . its only 9.5% of the total sample. but due to lack of promotion the awareness is very low. the main reason behind this was because Vodafone doesnot promote its products actively like others.

do you have an internet connection on it? a. Do you use PCs of Laptop? a.Annexture QUESTIONNAIRE 1. If you have a PC or Laptop then. No 5. Student b. Service holder c. No 4. What is your Age?_______________________ 2. Business men 3. Yes b. Yes b. Your occupation? a. Are you aware of internet data cards? 70 .

If you have an internet connection. No 6. Between Rs 300 to Rs 350 b. 30 hrs to 45 hrs or 1 GB to 2. Tata indicom d. Between Rs 500 to Rs 800 d. Between Rs 350 to Rs 500 c. Data card b. 10 hrs to 15 hrs or >500 MB b. expenditure? a. then what kind of connection do you have? a. 45 hrs & above or 2. Other types of connections 7. Others 8. Reliance Communication c. In a month. 15 hrs to 30 hrs or 500 MB to 1 GB c. If you use internet regularly. on an average how many hours do you use internet? a. Vodafone e. Use landline connection to connect to the internet d. Use mobile phone to connect to the internet c. Yes b. BSNL b.a.5 GB d. If you have an internet connection. Rs 800 and above then what is your average monthly 71 . Airtel f.5 GB and above 9. then which service provider is providing you this service? a.

What is your initial setup cost? a. then what is your purpose behind using it? a. For work purpose b. To collect information 11. Below Rs 1500 b. For business d. Between Rs 2500 to Rs 3500 d.If you are using internet. No 72 . please rate the importance of the following factors in selecting a data card. For entertainment c. Yes b.10. Factor Cost of Data card Installation process Durability User friendly Tariff plans Speed After sale service Image of the company Not Importa nt 1 1 1 1 1 1 1 1 Very Importa nt 5 5 5 5 5 5 5 5 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 13.Suppose you want to purchase an internet data card.Are you aware of Vodafone data card? a. Rs 3500 and above 12. Between Rs 1500 to Rs 2500 c.

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