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Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example. In the modern age of electricity and electronics, telecommunications now also includes the use of electrical devices such as telegraphs, telephones, and teleprinters, the use of radio and microwave communications, as well as fibres optics and their associated electronics, plus the use of the orbiting satellites and the Internet. A revolution in wireless telecommunications began in the first decade of the 20th century with pioneering developments Guglielmo Marconi. in wireless radio communications by Nikola Tesla and

Marconi won the Nobel Prize in Physics in 1909 for his efforts. Other highly notable pioneering inventors telecommunications and include developers Charles in the field and of electrical Samuel and electronic


Morse (telegraph),

Alexander Graham Bell (telephone), Edwin Armstrong, and Lee de Forest (radio), as well as John Logie Baird and Philo Farnsworth (television). The world's effective capacity to exchange information through two-way telecommunication networks grew from 281

petabytes of (optimally compressed) information in 1986, to 471 petabytes in 1993, to 2.2 (optimally compressed) exabytes in 2000, and to 65 (optimally compressed) exabytes in 2007. This is the informational equivalent of 2 newspaper pages per person per day in 1986, and 6 entire newspapers per person per day by 2007. Given this growth, telecommunications play an increasingly important role in the world economy and the worldwide telecommunication industrys revenue was estimated to be $3.85 trillion in 2008. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013.

The telecom sector reforms were undertaken in three phases. The first phase began in the 80s, when private manufacturing of customer promise equipment was given a go-ahead in 1984. A proliferation of individual STD/ISD/PCO network also took place throughout the country by way of private individual franchises. Maharashtra Telephone Nigam Limited

(MTNL) was created out of the department of telecommunication (DOT) to handle the sectors of Mumbai and Delhi respectively. A high powered telecom commission was set up in 1989. Later Videsh Sanchar Nigam (VSNL) became the international service provider catering to telecom services originating from India. The second phase of reforms

commenced in 1991 with the announcement of new economic policy. The government delivered the manufacturer of telecom equipment in 1991. It also ahead up radio services in 1992. In 1994, basic telephony was opened to the private sector by granting operating licenses to six companies. Also part of the second phase was the introduction of the National Telecom Policy 1994. It emphasized universal service and qualitative improvement in telecom services among other objectives. An independent statutory regulatory was established in 1997, Internet services were opened up in 1998.

The third phase & reforms began with the announcement of the new telecom policy in 1999. The theme of NTP was to usher in full competition through a restricted entry of private players in all service sectors. The policy favoured the migration of existing operators from the era of fixed license fee regime to that of revenue sharing. The policy further declined the strengthen of the regulator opening up of international long distance (ILD) and National Long Distance (NLD) services to the private sector and corporation of telecom services. The year 2001 witnessed the entry of private operators in offering basic telephony and NLD services.

The telecom sector began witnessing a trend of growth with these reforms basic services were opened for unlimited competition more licenses were issued to the private sector for cellular services. There has also been a considerable increase in the rate of tale density. The telecom sector has thus completely changed both in terms of coverage and efficiency of services. Provision of landlines a demand, digital telephone, exchanges and the acceptability of optic fibre and wireless technology are a few instances of the change that took instances of the change that took place in the industry.

Cellular telephone services have achieved great commercial success; because users recognize the mobile telephone access can improve productivity and enhance safety. A new subscriber is opting for cellular services for personal security, safety and convenience. Mobile service providers will be benefited from the research, the ways to improve their quality of service and to support more users in their system.

1.1 History
Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access

(CDMA). The GSM sector is dominated by Airtel, Vodafone, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue.

1.2 Growth of Indian Telecommunication Industry

The breathtaking growth of the telecommunication companies in India over the last twenty years has made a history. The economic resurgence affected in the early 1990s brought around a paradigm shift on the overall business scenario of India. With the arrival of private telecommunication companies in India, the industry observed introduction of mobile phones into the Indian market and it became extremely popular amongst the Indian masses.

India's telecom sector has shown huge expansion in the recent years in all respects of industrial growth due to liberalization in Government policies after 1991. Removal of restrictions on foreign capital investment and industrial de-licensing has allowed various private players to enter into the Indian telecommunication market. Today, The Indian telecommunication industry is the worlds fastest growing industry with 791.38 million mobile phone subscribers as of February 2011 according to Telecom Regulatory Authority of India (TRAI). It is also the second largest telecommunication network in the world in terms of number of telecommunications industry in the world. It is projected that India will have 1.159 billion mobile subscribers by 2014. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2014. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. The industry is expected to reach a size of 344,921crore rupees (US$76.57 billion) by 2014 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly.

1.3 About The Topic

This minor project has been carried out to study the customer (here the students) satisfaction and preferences towards VODAFONE and BSNL in RGSC, BHU. Research activities with the help of well-structured questionnaire have been carried out to interact with the customers for their feedback and also concentrated on a comparative study between VODAFONE and BSNL through direct interview method. The study at hand will throw light on the customer satisfaction status on various service offerings offered by VODAFONE and BSNL in RGSC, BHU. Consumer Preferences Consumer preferences is used primarily to mean to select an option that has the greatest anticipated value among a number of options by the consumer in order to satisfy his/her needs or desires. Preferences indicate choices among neutral or more valued options available. The preference of the consumer is the result of their behaviour they show during searching, purchasing and disposing the products. Consumer Satisfaction Every human being is a consumer of different produces. If there is no consumer, there is no business. Therefore, consumer satisfaction is very important to every business person. The consumer satisfaction after purchase depends on the product performance in relation to his/her expectations.

Consumer satisfaction is the level of a person's felt state resulting from comparing a product's perceived performance (outcome) in relation to the person's expectations. This satisfaction level is a function of difference between perceived performance and expectations. If the product's performance exceeds expectation, the customer is highly satisfied or delighted. If the performance matches the expectations, the customer is satisfied. If the products performance falls short of expectations, the customer is dissatisfied. Consumer satisfaction or dissatisfaction is the feeling derived by the consumer when he /she compares the product's actual performance with the performance that he expects out of it. Consumers make their expectations from the service quality, service, delivery, communications, past experiences and references.



Vodafone India

Type Industry

Private Telecommunications

Predecessor(s) Hutchison Essar Founded 1994

Headquarters Mumbai, Maharashtra, India Products Mobile telephony & Wireless broadband services Vodafone Group Vodafone International Holdings BV (VIH)

Owner(s) Parent


Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile network operator in India after Airtel by subscriber base. It is based in Mumbai, Maharashtra. It has approximately 140.84 million customers as of November 2011. On July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian

mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law. On 11 February, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on 8 May, 2007. It offers both prepaid and post-paid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology. Vodafone India launched 3G services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks. he brand trust report 2011 published by Trust Research Advisory has ranked Vodafone as the 16th most trusted brand in India.

1992: Hutchison Whampoa and MAX group establish Hutchison Max. 2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat markets through Essar acquisition. 2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai. 2003: Acquired AirCel Digilink (ADIL ESSAR Subsidiary) which operated in Rajasthan, Uttar Pradesh East and Haryana telecom circles and rebranded it 'Hutch' 2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West) and West Bengal. 2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'. 2008: Vodafone acquires the licences in remaining 7 circles and has starts its pending operations in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar. 2011: Vodafone Group buys out its partner Essar from its Indian mobile phone business. It paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone owning 74% of the Indian business.

2.2 BSNL

Type Industry Founded

State-owned enterprise Telecommunications 19th century, incorporated 2000

Headquarters New Delhi, India Key people Products Revenue Net income Total assets Owner(s) Employees Website R.K.Upadhyay (Chairman & MD) Fixed line and mobile telephony, Internet services 279.33 billion (US$5.1 billion) (2011-12) 88.51 billion (US$1.6 billion) (201112) 1176.32 billion (US$22 billion) (201112) Government of India 254,499 (as on 27 February 2013)

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector communications company in India. It is the India's largest telecommunication company with 25.14% market share as on December 31, 2007. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini-Ratna - a status assigned to reputed Public Sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints throughout

India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million Wire line, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service etc. Within a span of five years it has become one of the largest public sector units in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 lakhs villages. BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India.

BSNL cellular service, Cell One, has more than 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers. That means that almost every fourth mobile user in the country has a BSNL connection. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

The company has vast experience in Planning, Installation, network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute.

The references for the literature review used for the problem in hand are as follows: Leonard L. Berry and A. Parasuraman (1991) showed that inspired leadership, a customer-centered corporate culture, exceptional service-system design and perfect use of information and technology are vital for attaining superior service quality and service marketing. Ruth M. Bolton and James H. Drew (1991) developed a model of how customers with prior experiences and expectations assess service performance levels, overall service quality and service value. Pratibha A. Dabholkar (1993) stated that customer satisfaction and service quality are both important tools for creating competitive advantage. However, there is a lack of consensus on whether the two are separate constructs and how they should be measured. Bepko (2000) says that among the areas which need to be addressed in service quality research is the nature of consumer expectations across the range of intangibility. Carsten Fink et al. (2001) examined the liberalization of the basic

telecommunications sector in Asian countries in their research paper for World Bank, with a view to identify the elements of good policy and examine how it can be promoted through multilateral negotiations. Nandhini (2001) examined that attitude of the respondents using cell phones were not influenced by either education or occupation and income. Liu (2002) found that the choice of a cellular phone is characterized by two attitudes: attitude towards the mobile phone brand on one hand and attitude towards the network on the other. Samuvel (2002) observed that most of the respondents consider size, quality, price, instrument servicing as an important factors for selecting the handset while majority of the respondents are satisfied over the payment system, quality of services, coverage area and the process of attending the complaints regarding their mobile service provider. Maran et al. (2004) studied the consumer perceptions about fixed telephone lines in Chennai. The objectives of the study was (1) to find the most influencing factor in

selection of service provider, and (2) to measure customer perception and satisfaction as regards the service provided. Shanthi (2005) throws light on the telecommunication market of India in the scenario of falling prices, hyper competition and increasing attrition rates. The author provides a provides a predictive churn model for telecom segment, to allow a qualitative insight for understanding the structure and methodology of churn management in the Indian telecom sector, and also discusses the level of applicability of such models in the Indian context. Kalpana and Chinnadurai (2006) 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. Haque et al (2007) suggested that price, service quality, product quality & availability, and promotional offer play a main and crucial role during the time to choose telecommunication service provider. Seth et al (2008) 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.

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from the evaluation of services provided by an organization to an individual in relation to expectations. Service providers frequently place a higher priority on customer satisfaction, because it has been seen as a prerequisite to customer retention. As a positive outcome of marketing activities, high customer satisfaction leads to repeat visitation to stores, repeat product purchases, and word-of-mouth promotion to friends, while low customer satisfaction has been associated with complaining behaviour. A satisfied customer often stays loyal longer, and is likely to patronize the firm in future. Customer satisfaction can be conceptualized as either transaction-specific satisfaction or cumulative satisfaction. Transaction-specific satisfaction is a customers evaluation of his or her experience and reactions to a specific company encounter. Cumulative satisfaction refers to customers overall evaluation of patronage experience from inception to date.


Research is a common parlance refers to a search for knowledge. Here the research methodology followed is descriptive research. It includes surveys and fact-finding enquiries. The descriptive research design must make enough provision for protection against bias and must maximize reliability.

The sample size for the study is 50. The sample unit of the study included students of RGSC, BHU. For the study in hand, both the primary and secondary data is collected. The primary data for the study is collected directly from respondents through structured questionnaire. The secondary data for the study is collected from different sources such as journals, articles, magazines, internet, books & reports related to mobile phone service providers. With the help of the questionnaire I have collected the data through simple random sampling. Then I analyzed the outcomes by the answers provided by the respondents and based on the result I have made the analysis report. I have used the Percentage Analysis Method with proper charts/diagrams and average method to complete the analysis report successfully.

Percentage Analysis Method: Simple percentage analysis method refers to special kind of ratio. With the help of absolute figures, it will be difficult to interpret any meaning from the collected data, but when percentages are found out, and then it becomes easy to find the relative difference between two or more attributes. Percentage = No. of Respondents/Total No. of Respondents x 100 Research design- Comparative Research tools- Questionnaire survey Research technique- Interpretation is based on percentage analysis. Sampling technique- Random Sampling. Elements- Students of RGSC Source of data- Primary & Secondary Sampling size- 50



The key objectives of the project are: To ascertain the attributes that customer prefers in selecting VODAFONE & BSNL service provider. To study the consumers satisfaction level towards various services offered by VODAFONE & BSNL.

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

The sampling technique, which is used in the project, is Random Sampling. For the survey, the students from the hostels of RGSC, BHU were randomly chosen. The sample size is 50.


The study conducted is a descriptive statistical study as the research is used to obtain information concerning the current satisfaction and preference level of the students and the result obtained is precise and rational. The methods involved the questionnaire survey which describes the present status and tries to bring out the comparison between mobile phone providers. In this study the information is collected without changing the environment (i.e., nothing is manipulated). The study brings out the attitude and behaviour of a particular group towards the mobile phone provider. The study involved interaction with the participants through surveys or interviews to collect the necessary information so that proper analysis can be done regarding the research problem. The study is statistical because throughout the study all the similar samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated. Thus, this, descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision.


Data, facts, figures, other relevant material of past and present and surveying are the basis for study and analysis. Without an analysis of factual data no specific inferences can be drawn on the questions under study. Inferences based on imagination or guesses cannot provide correct answer to research questions. The relevance adequacy and reliability of data determine the quality of the findings of a study. For the purpose of the present study, data from two sources has been collected namely primary and secondary data. Primary Data: It is source from which the researcher collects the data. It is a firsthand data, which is used directly for the analysis purposes. Primary data always gives the researcher a fairer picture. In the present study primary data has been collected using questionnaires. For the purpose of collecting the same, 50 respondents have been randomly selected. Even the response of the respondents was taken into consideration. In this study, primary data plays a vital role for analysis, interpretation, conclusion and suggestions. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaires were structured non-disguised questionnaire because the questions, which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant. The questionnaire, were non-disguised because the questionnaire were constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they asked to fill the questionnaire. Secondary Data: Secondary data is collected and compiled for other purposes. Secondary data also plays a key role in providing various other data which will influence the conclusion. The secondary data for the study is collected from different sources such as journals, articles, internet, books and reports related to mobile phone service providers. Secondary data helps to make primary data collection more specific since with the help of secondary data we are able to make out what are the gaps and deficiencies and what additional information needs to be collected. It helps to improve the understanding of the problem.



1. Which mobile phone service do you use?

Options 1.Vodafone 2. BSNL 3. Others Total

Number of Respondents 38 8 4 50

Percentage of Respondents 76% 16% 8% 100%


Analysis: - From the survey I found that most popular brand in RGSC, BHU is Vodafone. 2. Reasons for selecting the particular service:a. Vodafone Options 1. Price 2. Brand Name 3. Network Coverage 4. Tariff 5. Easy Documentation 6. Call Rate 7. Voice Clarity 8. Internet Facility Total Number of Respondents 31 7 38

Percentage of Respondents 81.57% 18.43% 100%

b. BSNL Options 1. Price 2. Brand Name 3. Network Coverage 4. Tariff 5. Easy Documentation 6. Call Rate 7. Internet Facility Total Number of Respondents 3 1 4 8 Percentage of Respondents 37.5% 12.5% 50% 100%

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 37.50%


50.00% Vodafone BSNL 18.43%

20.00% 10.00% 0.00% Brand Name Network Coverage 0.00%

12.50% 0.00% Tariff 0.00% Call Rate 0.00% Internet Facility

Analysis: - From the survey it has been found that majority customers have selected Vodafone due to its network coverage while few have considered it for its internet facility. Whereas the main purpose of selecting BSNL as mobile phone service provider is due to its brand name and call rate.


3. Who influence you to use a particular mobile phone service? Options 1 .Self 2. Friends 3. Colleagues 4. Dealers 5. Advertisements Total Number of Respondents 31 9 0 6 4 50 Percentage of Respondents 62% 18% 0% 12% 8% 100%

8% 12% Self Friends Dealers 18% 62% Advertisement

Analysis: - Consumers himself are mostly taking decision at the time of buying the mobile operator and also they are influenced by their friends to some extent. 4. Are you aware of the following services provided by mobile service provider? Awareness Towards Various Services 1. Periodical Offers 2. Call Charges 3. Network Coverage 4. Value Added Services Aware No. 26 35 39 22 % 52% 70% 78% 44% Unaware No. 10 11 6 15 % 20% 22% 12% 30% Neutral No. 14 4 5 13 % 28% 8% 10% 26% No. 50 50 50 50 Total % 100% 100% 100% 100% Number of Respondents


90.00% 80.00% 70.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Periodical Offers Call Charges Network Coverage Value Added Services 28.00% 20.00% 22.00% 8.00% 12.00% 10.00% 32.00% 26.00% 52.00% 42.00% Aware Unaware Neutral 78.00%

Analysis: - According to the survey majority customers are aware about the call charges, network coverage, periodical offers and value added services. 5. What do you prefer towards mobile phone service provider on the basis of purpose? Options Incoming & Outgoing Calls SMS Internet Total Number of Respondents 40 10 50 Percentage of Respondents 80% 20% 100%

20% Incoming & Outgoing Calls

Internet 80%

Analysis: - According to the survey while selecting the mobile phone operator on the basis of

purpose customers preferred incoming and outgoing calls the most.

6. Tell me about your experience of getting, owning and using a mobile service operator? a. Vodafone Options 1. Excellent 2.Good 3. Fair 4. Poor Total Number of Respondents 4 19 10 5 38 Percentage of Respondents 10.52% 50% 26.33% 13.15% 100%

b. BSNL Options 1. Excellent 2.Good 3. Fair 4. Poor Total

50.00% 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Excellent Good Fair Poor 0.00% 13.15% 10.52% 25.00% 26.33% Vodafone BSNL 37.50% 37.50%

Number of Respondents 2 3 3 8

Percentage of Respondents 25% 37.5% 37.5% 100%

Analysis: - It has been found that most of the customers consider their experience of getting,

owning & using the Vodafone as good while in case of BSNL majority consider their experience as fair.

7. Have you switched between any operators? Options 1. Yes 2. No Total Number of Respondents 25 25 50 Percentage of Respondents 50% 50% 100%

Yes 50% 50%


Analysis: - According to the survey approximately majority of the customers have switched the operator 8. Reason for switching another operator. Options 1. Cost 2. Poor Network 3. Poor Service 4. Expensive Tariff 5. Others Total Number of Respondents 5 13 2 5 25 Percentage of Respondents 20% 52% 8% 20% 100%




Cost Poor Network


PoorService Expensive Tariff 50%

Analysis: - It has been found that poor service of the mobile phone service provider was considered as one of the main reason by the customers for changing the operator. Even some customers considered cost as the reason for changing the operator. 9. Are you satisfied of the following services provided by the mobile service operator? a. Vodafone Satisfaction Towards The Services Highly Satisfied
No. 1. Service Provision 2. Call Tariffs 3. Periodical Offers 4. Network Coverage 5. Customer Care Services 6. Internet Facilities 7. Value Added Services 7 8 9 4 4 1 % 18.6% 21.07% 23.68% 10.52% 10.52% 2.62%

Number of Respondents Satisfied

No. 25 17 22 29 24 29 20 % 65.7% 44.73% 57.89% 76.32% 63.15% 76.33% 52.66%

Dissatisfied Highly Cant Say Dissatisfied

No. 6 8 11 7 3 6 % 15.7% 21.05% 28.96% 18.6% 7.95% 15.7% No. 5 2 2 3 % 13.15% 5.2% 5.2% 7.95% 8 21.07% No. 5 1 % 13.15% 2.62%

No. 38 38 38 38 38 38 38 % 100% 100% 100% 100% 100% 100% 100%


90.00% 80.00% 70.00% 65.70% 60.00% 50.00% 40.00% 30.00% 21.07% 18.60% 21.05% 20.00% 15.70% 13.15% 10.00% 0.00% 28.96% 23.68% 18.60% 13.15% 21.07% 15.70% 57.89% 52.66% 44.73% Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied Cant Say




10.52% 10.52% 7.95% 7.95% 5.20% 5.20% 2.62% 2.62% Value Added Services

Service Call Tariffs Periodical Network Customer Internet Provision Offers Coverage Care Facilities Services

Analysis:- According to the survey majority customers are satisfied in terms of service provision, call tariffs and network coverage of Vodafone where as few respondents are dissatisfied in terms of periodical offers and customer care services. b. BSNL Satisfaction Towards The Services Number of Respondents Highly Satisfied
No. 1. Service Provision 2. Call Tariffs 3. Periodical Offers 1 2 2 % 12.5% 25% 25%

No. 5 6 5 % 62.5% 75% 62.5%

Dissatisfied Highly Dissatisfied

No. 2 % 25% No. %

Cant Say
No. % -

No. 8 8 8 % 100% 100% 100%



4. Network Coverage 5. Customer Care Services 6. Internet Facilities 7. Value Added Services 80.00% 70.00%


2 6 1 4

25% 75% 12.5% 50%

4 1 5 -

50% 12.5% 62.5% -

2 2 -

25% 25% -


8 8 8

100% 100% 100% 100%




62.50% 60.00%



50.00% 50.00% 40.00% 30.00% 20.00% 12.50% 10.00% 0.00% Service Call Tariffs Periodical Network Customer Internet Provision Offers Coverage Care Facilities Services 12.50% 12.50% 12.50% 12.50%

50.00% Highly Satisfied Satisfied




25.00% 25.00%

25.00% 25.00% 25.00%

Dissatisfied Highly Dissatisfied Cant Say

Value Added Services

Analysis: - It can be clearly seen that majority customers are very much disappointed regarding the network coverage of BSNL though most customers are satisfied with the customer care services.


10. What do you expect from the mobile phone service provider? a. Vodafone Options 1. Economical Call Rate 2. Good Network 3. Attractive Tariff 4. No Hidden Cost Total Number of Respondents 24 2 9 3 38 Percentage of Respondents 63.17% 5.26% 23.68% 7.89% 100%

b. BSNL Options 1. Economical Call Rate 2. Good Network 3. Attractive Tariff 4. No Hidden Cost Total Number of Respondents 7 1 8 Percentage of Respondents 87.5% 12.5% 100%

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 63.17%


Vodafone BSNL 23.68% 12.50% 7.89%


Economical Call Good Network Attractive Tariff No Hidden Cost Rate

Analysis: - From the survey it has been found that majority customers expected good network from the BSNL and economical call rate from Vodafone.


76% of respondents are using the Vodafone services, which is the highest percentage of users of cellular phone in RGSC, BHU. 16% of respondents are using BSNL and the remaining 8% are using other services such as Uninor &Airtel. Around 82% of respondents have selected Vodafone due to its network coverage while 18% preferred internet for selecting Vodafone whereas 50% respondents have selected BSNL due to its call rate and around 37.5% have been influenced by its brand name. The remaining 12.5% respondents have selected BSNL for its tariff. 62% of respondents have taken the decisions on their own while selecting particular service while 18% respondents have been influenced by friends. 12% respondents are influenced by dealers and the remaining 8% respondents chosen the particular service as they were influenced by advertisements. In case of periodical offers, only 52% respondents are aware and 20%respondents are unaware. Majority of respondents (70%) are aware of the call charges whereas only 12% respondents are unaware about the same. 78% respondents are aware about the network coverage of their mobile phone service provider while 12% respondents are unaware & 10% are neutral about the same. Only 44% respondents are aware of the value added services provided by their mobile phone service provider while 30% respondents are unaware and 26% are neutral. Majority of the respondents i.e. 80% respondents prefer mobile phone service provider on the basis of purpose while 20% prefer internet facility on the basis of purpose. 50% customers of Vodafone consider their experience of getting, owning and using Vodafone as good while according to 11% their experience is excellent. Around 26% consider their experience as fair and the rest 13% as poor. 25% customers of BSNL consider their experience of getting, owning and using BSNL as good and the 37.5% as fair. According to the remaining 37.5% their experience is poor. 50% of the respondents have switched the operator due to some reason while the 50% of the respondents have not switched any operator. Poor network has been considered as the major reason for shifting the operator. Even cost and expensive tariffs are the reasons for changing the operators.


Customer Satisfaction in case of following services provided by Vodafone:a. Service provision 18.6% of the respondents are highly satisfied 66% of the respondents are satisfied 15.7% of the respondents are dissatisfied b. Call Tariffs 21.07% of the respondents are highly satisfied 44.73% of the respondents are satisfied 21.05% of the respondents are dissatisfied 13.15% of the respondents are highly dissatisfied c. Periodical Offers 57.89% of the respondents are satisfied 28.96% of the respondents are dissatisfied 13.15% of the respondents are neutral or cant say d. Network Coverage 23.68% of the respondents are highly satisfied 76.32% of the respondents are satisfied e. Customer Care Services 10.52% of the respondents are highly satisfied 76.33% of the respondents are satisfied 7.95% of the respondents are dissatisfied 5.2% of the respondents are highly dissatisfied f. Internet Facilities 10.52% of the respondents are highly satisfied 76.33% of the respondents are satisfied 7.95% of the respondents are dissatisfied 5.2% of the respondents are highly dissatisfied g. Value Added Services 2.62% of the respondents are highly satisfied 52.66% of the respondents are satisfied 15.7% of the respondents are dissatisfied 7.95% of the respondents are highly dissatisfied 21.07% of the respondents can say


Customer Satisfaction in case of following services provided by BSNL:a. Service provision 12.5% of the respondents are highly satisfied 62.5% of the respondents are satisfied 25% of the respondents are dissatisfied b. Call Tariffs 25% of the respondents are highly satisfied 75% of the respondents are satisfied c. Periodical Offers 25% of the respondents are highly satisfied 62.5% of the respondents are satisfied 12.5% of the respondents are dissatisfied d. Network Coverage 25% of the respondents are satisfied 50% of the respondents are dissatisfied 25$ of the respondents are highly dissatisfied e. Customer Care Services 100% of the respondents are satisfied f. Internet Facilities 12.5% of the respondents are satisfied 62.5% of the respondents are dissatisfied 25% of the respondents are highly dissatisfied g. Value Added Services 25% of the respondents are highly satisfied 50% of the respondents are satisfied 25% of the respondents can say Around 63% customers of the Vodafone expect economical call rate while 24% expect attractive tariff. Few (8%) customers expect no hidden cost in any plan. In case of BSNL expectations for network coverage and no hidden cost account for 87.50% & 12.5% respectively.


In India, a number of cellular companies competing to provide efficient and quality services to their customers. Government and private operators are competing at close margin and are trying to provide multiple value added services to people. Hence the cellular operators should strive to provide cost effective quality equipments, affordable and competitive call tariffs for connectivity at various levels and customized services in order to satisfy and delight their consumers. The study in hand reveals that consumers prefer a particular mobile phone service provider on the basis of network coverage, call tariffs and value added services. The consumers are influenced by friends, dealers and advertisement while selecting or buying a mobile phone service provider. They generally prefer their mobile phone operator for fulfilling the purpose of both incoming and outgoing calls as well as for internet. The study reveals that Vodafone is the most preferred mobile phone service providers among consumers followed by BSNL. It is concluded from the study that majority of consumers are aware about the services offered by their mobile phone operators in terms of network coverage and call charges. The study reveals that the customers experience regarding owning and using Vodafone is up to the mark while BSNL is slowly losing ground due to its network coverage. The study indicates that consumers are overall satisfied with the various services offered by Vodafone except they are dissatisfied with the periodical charges and call tariffs. Majority customers are very much disappointed regarding the network coverage of BSNL though most customers are satisfied with the customer care services. The study says that consumers are satisfied with the process of solution of their problems and queries. The significance development in this field in the past ten years shows that there is a very bright scope for expansion and modernization in cellular area with a very short span of time. Thus, mobile phone service providers have to understand the ever changing

and the behaviour of consumers constantly in order to serve them better and satisfy them. In this age of ever increasing competition, it is very important for mobile phone operators to keep a constant eye on preferences and behaviour of their consumers in order to capture the large untapped market both in rural and urban areas of India.


The following suggestions can be given after detailed and careful investigation of the research problem. These suggestions would definitely help the mobile phone service providers to enhance their subscriber base by delivering consumer satisfying services: Advertising campaigns should be aggressively aired so that they can create new customers for the company among their family members, relatives and friends. Use of SMS &Voice mail among subscribers is very less and therefore, the use and features of these services should be promoted among subscribers through advertisements. Network Coverage is the most influencing factor which induced consumers to buy a particular mobile phone operator. Therefore, BSNL should focus to improve their network coverage in order to increase their market share. Network has been a key factor for customer dissatisfaction; majority of the respondents suggested to increase the number of network towers, widens the coverage area and reduce the network congestion. Have Good plan, schemes, and packages in order to provide the customer with a wide choice. Keep the subscriber well informed about any deductions or any change in the plan and provide value for what the customer is paying for. Customer grievances should be dealt more seriously and action has to be taken. Mobile phone service provider should provide subsidized rates for calling or messaging to one or few number of our choice. Vodafone especially should revise their call rates as per the competition prevailing because their call rates are still very high in comparison to other mobile phone operators. As most of the consumers are unaware of the value added services offered by mobile phone service providers, aggressive advertisements and schemes should be launched to create awareness and promote the use of these services. All the mobile phone operators should launch more and more periodical offers from time to time especially by BSNL. Customer care services play an important role in retaining consumers. Therefore, customer care services should be improved and there should be provisions of taking feedback from consumers so that necessary steps can be taken in this direction.


Accuracy of data depends upon the ability & willingness of the respondents. The study is limited to only in RGSC, BHU. Secondary data are available in the scattered manner due to which problem arises in data summarization. Limitation of the time.

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Indian Journal of Marketing

Web Resources:

1. Which mobile phone service do you use? Vodafone BSNL Others

2. Reasons for selecting the particular service: Price Brand name Network Coverage Tariff Easy documentation process Call rate Internet facility

3. Who influence you to use a particular mobile service phone service? Self Friends Colleagues Dealers Advertisements

4. Are you aware of the following services provided by mobile service provider? Periodical offers Call charges Network coverage Value added services aware aware aware aware unaware unaware unaware unaware neutral neutral neutral neutral


5. What do you prefer towards mobile phone service provider on the basis of purpose? Incoming & outgoing calls SMS Internet

6. Tell me about your experience of getting, owning and using a mobile service operator? Excellent Good Fair Poor

7. Have you switched between any operators in the past? Yes No

8. Reasons for switching another operator? Cost Poor network Poor service Expensive Tariff

9. Are you satisfied of the following services provided by the mobile service operator? 1. Service Provision 2. Call tariffs HS HS S S D D HD HD Cant Say Cant Say

HS S D HD Cant 3. Periodical Say offers HS S D HD Cant 4. Network Say Coverage HS S D HD Cant 5. Customer Say Care Services HS S D HD Cant 6. Internet Say Facilities HS S D HD Cant 7.Values Added Say Services *HS - Highly Satisfied, S - Satisfied, D Dissatisfied and HD - Highly dissatisfied 10. What do you expect from the mobile phone service provider? Economical call rate Attractive tariff Good Network No hidden cost