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RESEARCH METHODOLOGY – REPORT
Presented To: Prof. LEENA NAIR Chauhan - 21
Submitted By: Nishant S. Saarang Amritkar -28 Chetan Bothara- 11 Nand Kishor Rajput- 40 Rajesh Kumar- 42
PGPCS Batch - IV
Hereby declare that the project report entitled “STUDY OF STUDENTS PREFERENCE TOWARDS VARIOUS MOBILE SERVICE PROVIDERS” submitted for the RESEARCH METHODOLOGY of Master of Business Administration, is our original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.
Place: ISCOM, PUNE Date: 25-04-2009 RAJESH KUMAR NISHANT CHAUHAN CHETAN BOTHARA SAARANG AMRITKAR NAND KISHOR RAJPUT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. We too would like to do it as we really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. We would like to thank my professor Prof. Leena Nair who was always there to help and guide us when we needed help. Her perceptive criticism kept us working to make this project more full proof. We are thankful to her for her encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. We were very thankful to her for all the value addition and enhancement done to us.
RAJESH KUMAR SAARANG AMRITKAR NAND KISHOR RAJPUT CHETAN BOTHARA NISHANT CHAUHAN
SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of our study restricts itself to the analysis of students preference, perception of different mobile service providers. The scope of our study is also restricted to ISCOM only.
OBJECTIVES OF THE STUDY
The subject matter for this research Project is to study the students preference towards the various mobile service providers. This project consists of different objectives. They are as follows:
To know about the student preference level associated with different mobile service providers.
• To find out the students satisfaction towards the various service providers.
To know which advertisement media puts more impact on the buying decision of students.
The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.
Sample Size and Design:
A sample of 300 people was taken on the basis of convenience.
Research work is only carried for 2 or 3 weeks.
This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.
The data, which is collected for the purpose of study. • •
Primary Source: The data has been collected directly from respondent with the help of
Secondary Source: The secondary data was collected from internet.
The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that we have used is bar graphs, pie charts etc.
Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India has nearly 400 million telephone lines making it the second largest network in the world after China, with a growth rate of 40%, Indian telecom industry has the highest growth rate in the world. - Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. - India‘s mobile phone subscriber base is growing at a rate of 82.2%. - China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India’s share in Asia Pacific Mobile Phone Market is 6.4%. Considering the fact that India and China have almost comparable populations, India’s low mobile penetration offers huge scope for growth.
History of Indian Telecommunications
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 longdistance 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. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. 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, Vodfone-Hutch, 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. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.
Classification of Telecommunication services 1. Basic services 2. Cellular services
There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle. Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.
The Key players in the Telecom Market in India
Cellular Service provider: 1. BSNL 2. Airtel 3. Vodafone 4. Reliance 5. Tata indicom 6. Virgin 7. Idea
Subscribers • • Wireless subscribers crosses 400 million mark Tele density reaches 30%
The total number of telephone subscribers has reached 400 million at the end of December 2008 as compared to 232.87 million in July 2007. The overall teledensity has increased to 30% in December 2008 as compared to 20.52% in July 2007.
Market Share of the telecom Company in India
Market Share of Wireless Operators……( As of March 2008)
1.35% MARKET SHARE 0.65% 1.61% Bharti Reliance 9.19% 9.32% 17.54% 23.74% Vodafone BSNL TATA tele Idea 15.62% Aircel Spice MTNL 16.90% Others
“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 94 million subscriptions as of March 2009. It’s Revenue around 6 billion US$. It offers its mobile services under the Airtel brand and is headed by Mr. Sunil Mittal. The company also provides telephone services and Internet access over DSL in all 23 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.
Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network. In August 2007, the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers. Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.
A DREAM COME TRUE
The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who singlehandedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life. Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company.Reliance Infocomm is an Indian telecommunications company. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology HISTORY Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002 Reliance Infocomm built 60,000 km of fibre optic backbone in India. This network was commissioned on December 28, 2002. FOOTPRINT In past, Reliance Telecom's GSM cellular services were available in 340 towns within its eightcircle footprint. Now Reliance has launched its services in whole India. Reliance's CDMA services are available in 19 states and cover about 65% of the country, state wise. Reliance Infocomm also offered for the first time in India, mobile data services through its R-World mobile portal. This portal leverages the data capability of the CDMA 1X network.
BUSINESS REVIEW 2 008 January 12 Reliance Communications receives Start-up GSM Spectrum January 16 Yahoo partners with Reliance Communications to provide Yahoo One Search for its CDMA and GSM customers. January 31 RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the most profitable Telecom Company in India. February 4 Reliance Communications offers Lifetime Validity at Rs 199 RCOM’s subsidiary Infratel files Draft Red Herring Prospectus with SEBI February 5 Reliance Mobile strengthens its religious content portfolio on Mobile by tie-up with Sadhana TV February 14 RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games February 19 HDFC Bank ties up with RCOM, turns every Reliance Mobile into a credit card February 27 Reliance Communications consolidates Global Telecom Business under “Business Globalcom” Reliance Communications forays into International Mobile Market with GSM License in Uganda. March 3 Reliance Communications drops prices of Internet Data Cards March 10 Reliance Communications announces ESOPs for over 20,000 employees March 20 Reliance Communications and HTC forge Strategic Alliance March 27 Corporation Bank Launches Banking Services on Reliance Mobile World April 1 Reliance Communications forays into IT space, launches Reliance Technology Services
Company April 9 RCOM launches Educational Portal on Reliance Mobile Phones April 25 Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX Operator eWave World April 29 Reliance Communications Announces Unlimited Free STD calls April 30 Reliance Globalcom Launches Passport Global SIM RCOM's Net Profit up by 70.8% to Rs 5,401 crore May 2 Reliance Communications’ Net Profit up by 70.8% to Rs 5,401 crore (US$ 1,350 million), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 million) and EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 million) May 12 Reliance Communications and Alcatel form Joint Venture to offer Managed Network Services to telcos across the globe May 26 Reliance Globalcom acquires UK based VANCO Group Limited June 24 Reliance Globalcom, Stealth Communications forge Strategic Alliance to extend VOIP Network across 50 countries
July 12 CA Exam Results on Reliance Mobile July 22 Reliance Communications Mobile Subscriber base crosses 50 Million July 29 CA Professional Exam Results on Reliance Mobile
July 31 Reliance Communications (RCOM) announces its financial results for the first quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 million) BUSINESS REVIEW Reliance Communications Ltd has announced the Unaudited Consolidated financial results for the quarter ended December 31, 2008. The Group has posted consolidated profit after Adjustment of Share of Minority Interest & Associates of Rs 14103.10 million for the quarter ended December 31, 2008 as compared to Rs 13728.30 million for the quarter ended December 31, 2007. The Consolidated Total Income has increased from Rs 48742.00 million for the quarter ended December 31, 2007 to Rs 58502.40 million for the quarter ended December 31, 2008. The stock closed the day at Rs.160.15, down by Rs.7.55 or 4.50%. The stock hit an intraday high of Rs.172 and low of Rs.158.20. The total traded quantity was 4671155 compared to 2 week average of 4628331.
Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of India. The company forms part of the Tata Group's prescence in the Telecommunication Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL. TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services in India, specifically in the state of Andhra Pradesh. In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd. which was renamed Tata Teleservices (Maharashtra) Limited. In September 2007, Tata Indicom launched the Talk World plan, an International Long Distance Plan. Tata is the direct competitor with Reliance, both CDMA operators in India. The company provides unified telecommunication solutions including mobile, fixed wireless, fixed line and broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL providing GSM based mobile telephony.
The company was first in India to provide free intra network calling within city limits. They launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed wireless for a one time charge. Tata Teleservices (Maharashtra) Ltd (TTML), one of the fastest growing telecom service providers, today announced that it has crossed the 7-million-subscribers milestone across the Mumbai and Rest of Maharashtra (RoM) circles.
The achievement comes close on the heels of TTML crossing the half-a-million subscriber mark in its wireline segment last month. Commenting on the achievement, Mr Haridev Khosla, president, network and technology, TTML, said, "The 7-million milestone speaks volumes of the trust that our customers have evinced in Tata Indicom. This remarkable achievement stands testimony to our efforts to ensure seamless network and good consumer care. We will strive to continuously better our efforts and our offerings." Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Starting with the major acquisition of Hughes Tele.com (India) Limited now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.
Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their offering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive free incoming calls. Tata Teleservices today has India’s largest branded telecom retail chain and is the first service provider in the country to offer an online channel www.ichoose.in to offer postpaid mobile connections in the country. Tata Teleservices:
Tata Group is one of the leading business conglomerates in India and telecommunication is one of the heavily invested areas of the group. Tata’s telecommunication business is covered by four companies: Tata Teleservices Limited (TTSL) aka Tata Indicom and its associate, Tata Teleservices (Maharashtra) Limited (TTML), Tata Communication, formerly known as Videsh Sanchar Nigam Limited, and Tata Sky. TTSL is the leader in fixed wireless telephony market with a total subscriber base of 3.8 million. According to the data of fiscal year 2006, TTSL has an investment capital of $7.5 billion. Tata started its foray into the telecom sector in 1996. In December 2002, Tata Teleservices acquired Hughes Telecom (India) Limited and renamed it to Tata Teleservices (Maharashtra) Limited (TTML). The company aggressively expanded its network around India. Initially, it invested Rs. 199.24 billion. Tata Indicom operates in more than 5000 towns divided in twenty circles all over India. These circles are: Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi,Maharashtra, Mumbai, North East, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. In these areas, TTSL and TTML jointly have a customer base of 28 million and it is still expanding its areas inside the country. Tata Teleservices offers world-class technology and user-friendly services in 20 circles.
Tata Teleservices was the first Indian company to introduce CDMA 3G1x technology mobile network in India. It built this state-of-the-art CDMA network in partnership with Motorola, Ericsson and Lucent. Tata Indicom received license from the Telecom Regulatory Authority of India (TRAI) to launch GSM services in early 2009. Tata has 12,500 towers around the country. Out of them, 10,000 belongs to TTSL and the rest to TTML. TTSL offers a wide range of high quality user friendly services. They are:
Wireless Desktop Phones Public Booth Telephony and Wireline services Voice portal Roaming Post-paid Internet services 3-way conferencing Group calling Wi-Fi Internet USB Modem Data cards Calling card services Enterprise services Retail Business: At present, TTSL has the largest retail presence in India operating through more than 3000 retail outlets all over the country. Out of these, 600 outlets are owned by TTSL and the rest are in franchise format. With its Tata Indicom Exclusive Stores, Tata covers the top 700 towns in India.
Franchise with Virgin mobile: In order to attract the young generation, in March 2008, Tata Indicom and Virgin Mobile, a UK based youth oriented mobile phone company, started Virgin mobile. Initially, Virgin Mobile wanted to act as a Mobile Virtual Network Operator but Indian Telecom authority did not give out the MVNO license. Under MVNO system, a mobile company buys up necessary space from an existing wireless company and resells under their own brand. This system is not present in India. As a result, Virgin and Tata signed a franchise deal under which Virgin Mobile will be owned by
Tata Teleservices. Under the later agreement, Virgin Mobile will release its mobile phones through Tata Indicom. It will also use Tata Indicom’s telecom network to offer its services. The revenue will be split 50:50. Virgin Mobile phone service is targeted toward young people between 14 and 25 years of age. Virgin Mobile is a UK-based mobile company founded by Richard Branson. Initially, the service was offered in fifty Indian cities. By December 2008, the officials targeted to spread the service in 1000 cities. In the initial stage, Virgin mobile targeted million base subscribers and generate revenue in the next three years. The company offered mobile handsets ranging from $50 to $125. Trivia: • • • • • • In March 2008, Tata Indicom subscriber base reached a whopping 24.3 million in the wireless category and its overall subscriber base was more than 25 million. TTSL maintained a compound annual growth rate of 113% in the wireless segment. In Delhi NCR region, TTSL gained the second slot removing Vodafone with a subscriber base of 3 million. In November 2008, Tata Teleservices sold out 26% of its stake to Japanese telecom giant NTT DOCOMO for $2.7 billion. TTSL pioneered the VAS (Value Added Services) in India. Some of the major Bollywood stars endorsing Tata Indicom are: Kajol, Trisha, Irfan Pathan, Pooja Ruparel and Saurav Ganguly.
Tata Indicom’s Freedom Call Voucher television commercial was highly appreciated. The TV commercial stars Pooja Ruparel and Kajol. Pooja Ruparel sits in the locker-room holding a stop watch on one hand and talking to her friend over the phone non stop. She was worried about talk time. Then, Kajol enters and gives her Tata Indicom’s freedom call offer which ensures free unlimited talk time.
In 2007, Synovate, a leading market research firm, conducted a survey which revealed that Tata Indicom was voted number one by Television viewers in major Indian metropolitan areas in September.
Tata also gives services in remote villages in India at a very low cost. There are mobile vans that go to different villages and operates as customer touch points. Trained TTSL officials visit different villages on particular days of a week selling recharge vouchers and service equipments. Each person covers 200-300 people.
In 2007, Tata Indicom launched an online portal named ichoose. Through these webportals, users of Tata phones and interested people can buy phones and recharge their phones online.
In October 2007, Tata Zone, an infotainment service for Hindi speaking Indians. There are various applications such as Cricket, Faith and Prayers, Bollywood and Hollywood movies, News, Astrology, Funzone, and Games. Users can also download ringtones and wallpapers.
In March 2008, Tata Indicom launched a free-of-cost i-Help Emergency service. Available to all the pre-paid and post-paid phone users of TTSL, i-Help enables the user to connect with his/her family anytime. Under this facility, users would have access to three local numbers. In case of emergency, s/he would dial *44 and Tata will send SMS to his close ones.
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 with15.62 % market share as on December, 2008. 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, 2008. BSNL commanded a customer base of 31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for the quarter ending December 31, 2008 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. The company is planning an IPO with in 6 months to offload 10 % to public. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit 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 except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL serves its customers with its wide bouquet of telecom services. BSNL is numero uno operator of India in all services in its license area. The company offers vide ranging & most transparent tariff schemes designed to suite every customer. BSNL cellular service, CellOne, 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. BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband customers. 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.
Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US $ 9.67 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion). BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2008 and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three years. The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.
The foundation of Telecom Network in India was laid by the British sometime in 19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for almost entire 20th century, the Telecom in India was operated as a Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms.Subsequently in 1990s the telecom sector was opened up by the Government for Private investment, therefore it became necessary to separate the Government's policy wing from Operations wing. The Government of India corporatised the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence areas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India . Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence areas. OWNERSHIP: Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. On February 11, 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 May 8, 2007.
PREVIOUS BRANDS: In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007. The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government 29
approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007. On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times. Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile transition being unveiled today. Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. There are plans to launch co-branded handsets sourced from global vendors as well. A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world into India." While there is no revealing the prices of the low-cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666, undercutting Reliance Communications' much-hyped 'Rang Barse' with cheap handsets beginning at Rs 777. Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset offers -- rather handset-bundled schemes for customers.
Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.
GROWTH OF HUTCHISON ESSAR (1992-2005): In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas. In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide. In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta 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 Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal' 2005: Acquired BPL, another mobile service provider in India 2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle. 2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network. Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.
DATA ANALYSIS AND INTERPRETATION
DEMOGARPHIC FEATURES OF REPONDENTS
1. Sex ratio of the respondents
PARTICULARS MALE FEMALE NUMBER 175 65 %AGE 73.33% 26.66%
200 180 160 140 120 100 80 60 40 20 0 NUMBER %AGE MALE FEMALE
INTERPRETATION: The graphical representation of the table shows that out of 300
respondents 220 were male and 80 were female.
1. Do you have any mobile Connection?
PARTICULARS Yes No 33 NUMBER 218 22 %AGE 77% 23%
1. Mobile C onnections
C n c on e tion s
INTERPRETATION: In all the respondents 91% had mobile connection 9% were not
having mobile connections.
2. How many mobile connections do you have?
particulars 1 2 3 >3
No. of respondents 144 56 10 8
2. No. Of Mobile C onnections.
N .O C n e t n o f o n c io s
16 0 14 0 12 0 10 0 8 0 6 0 4 0 2 0 0 1 2 3 > 3 1 0 8 5 6 1 2 3 > 3 1 4 4
out of 218 respondents 144 says that they had 1 connection while 56 were having 2 connection and 10 were having 3connection and 8 were having more than 3 connections.
3. Which service are you using?
Particulars Prepaid postpaid % age respondents 80 20
3. S ervice Used.
S rv e U in e ic s g
Out of 218 respondents 80% were using prepaid connections while 20% respondents were using postpaid connections.
4. Which scheme you are using in postpaid?
4. Postpaid, S ervice Used.
S h eUs c em ed
Norm Monthly Plan al Y earlyPlan
Interpretation: - Out of 218 respondents 77% were using normal monthly plan while 23%
respondents were using yearly plan.
Why have you chosen that plan?
Why Postpaid ?
R s s T C oos P n ea on o h e la
20 18 16 14 12 10 8 6 4 2 0
14 4 1 R easons T Choose o Plan
Interpretation : - Out of 218 respondents 19% were using due to price (Call rate) while 15
were using due to easy billing, while 14% were using due to credit limit, while 4% were using long distance calling facility and 1% were using due to some other reasons.
4 (i) Which scheme you are using in prepaid?
Prepaid Which S chem e.
Sh m c e e
Life Tim e Mobile C pus Pack am Norm Monthaly Plan al All India Rs. 1 Plan
6% 20% 42%
Interpretation: - Out of 218 respondents 42% were using life time plan while 32% were
using normal monthly plan while 20% were using mobile campus pack and Airtel friend’s pack while 6% were using all India Rs. 1 plan.
5 (i) Why have you chosen prepaid service that plan?
Why Prepaid S ervice ?
C a T h rt itle
T otal C ost C ontrol 49% E asy S all R m echarg e E asy Plan C hang e Others
15% 3% S eries 1
Interpretation: - Out of 218 respondents 49% were using to control their total cost
plan easily and 3% were using for some other reasons.
33% were using due to availability of easy small recharge while 15% were using to change their
6. Which factors have you consider while selecting the mobile service.
F ctors electin S ice a -S g erv
C overage C larity S ervices 7% C ost Roam ing Internet Others 3% 8% 17% 16% 22% 27%
Interpretation: - Out of 218 respondents 27% chosen that plan for coverage
chosen for internet using and 3% chosen due to some other reasons.
chosen for services while 17% chosen for cost saving while 8% chosen for roaming while 7%
7. Which mobile connection are you currently using?
PARTICULARS AIRTEL VODAFONE 41 %age RESPONDENTS 46 13
BSNL Virgin RELIANCE TATA INDICOM Idea
8 1 13 4 15
7. Mobile C onnections - C urrently
10 % 0 90 % 8 % 0 7 0% 60 % Idea (1 % 5 ) T taIndicom(4% a ) R elia nce (1 % 3 ) Virg (1% in ) B NL (8 ) S % V oda fone (1 % 3 ) Airtel (4 % 6 )
e l t T s i x A
5 0% 40 % 30 % 20 % 1 0% 0 % A isT le x it
Out of 218 respondents 46% were using Airtel, while 15% were using Idea, while 13% were using Reliance & Vodafone, while 8% were using BSNL and only 1% were using Virgin.
8. Which facilities you are using frequently?
8. Facilities Frequently Used
160 140 120 100 80 60 40 20 0 141
67 44 16 23 33
Interpretation: - Out of 214 respondents 141 were frequently using SMS services while 67
were using night calling, while 44 were using roaming, while 33 were using other services like (song, radio etc) while 23 were using entertainment and 16 were using news services.
9. What do you feel about the call tariff linked with the connection you are currently using?
9. R eaction About C T all ariff.
C ll T riff a a
Econom ical Norm al 5% Ex pensive
Interpretation: - Out of 218
respondents 64% felt their call tarrif was normal while 31%
felt that it was economical, while 5% felt that it was expensive.
10. Which advertisement media puts more impact on your buying decision?
10. Advertisem ent Affecting Buying
B y gD c ion u in e is
61 34 20 T . .V Mag azines 28
Interpretation: - Out of all respondents 99 told that TV creates maximum impact on their
buying decision, while 61 told that newspaper, while 34 for magazine, 28 for others (banners, hoardings, pamphlets etc) and 20 said internet.
11. How much percentage of your monthly Pocket Money, you spend on mobile phones?
11. Monthly Pocket Money S pend.
>7% 6-7% 4-5% Less Than 3% 0% 23% 11%
Interpretation: - Out of 218 respondents 44 spend
more than 7% of their pocket money.
4-5% of their pocket money while 23
% less than 3% of their pocket money, while 22 % spend 6-7% of pocket money and 11% spend
12. From how long you are availing the services of this particular service provider?
12. Period Availing the S ervices.
P riodof S rv e e e ic
Less than 1 Y ear 2Y ear 3 years >3 Y ears
Interpretation: - Out of 218 respondents 42 were using their mobile from 2 years while
21% were using less than 1 year and 3 years while only 16 % were using from more than 3 years.
13 . How do you rate your service provider in terms of connectivity and area of network coverage?
13. Rating in The T erm Of s C onnectivity & Network C overag e.
Good Bad 10%
Interpretation: - Out of 218 respondents 90% felt good about their service provider and
10% felt bad about their service provider.
14. Do you receive unwanted calls and SMS advertisement?
Unwanted C alls & S MS Advertisem ents.
U wn n a ted C lls a .
Interpretation: - Out of 218 respondents 72% said they receive unwanted call and SMS
advertisements and 28 % said no.
15. What is the opinion about service of your service provider?
Opinion About S ervice Provider.
S rie 1 e s
38% 24% 3%
Interpretation: - Out of 218 respondents 38% has better opinion about their mobile service
provider, while 35% has good opinion, while 24% has average opinion and only 3% has unsatisfactory opinion about service provider.
16. How would you rate your satisfaction with the number of drop boxes/ recharge coupons denominations available of your mobile service?
Rating With Reg ards to Recharge Coupons.
C olum n1
105 74 19 Bad Neither Good Nor Bad Good 14 Very Good
4 Very Bad
Interpretation: - Out of 216 respondents 105 has good opinion about their mobile service
provider, while 74 has neither good nor bad, while 19 has bad opinion, while 14 has very good opinion and only 4% has very bad opinion.
17. Would you like to change your current service provider in future?
17.C hang in S e ervice Provider- Future.
Interpretation: - Out of 218 respondents 81% told they would not change their service
provider while only 19% said that they would change their service provider in near future.
• Few years back mobile connections were not common among the students. But with the mobile revolution now we can find almost every student with mobile phone.
Most of the students prefer prepaid connections than postpaid connections.
Most preferred cellular company amongst the students is airtel and the least preferred company is reliance.
Mostly the students are satisfied with the services provided by the different cellular companies.
Maximum numbers of respondents were attracted towards the coverage facility and the least like the roaming services.
T.V. and internet are the best media advertisements that put more impact on the students buying decisions.
The monthly expense of maximum students was ranging from 150-300.
Maximum number of students are loyal to there particular service providers and they were using there connections since 2 years.
• • • Marketing Research – G. C. Beri Research Methodology – C.R Kothari Principles of Marketing – Philip Kotler
• • • • • • • www.trai.gov.in www.wikipedia.org http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx http://www.airtel.in http://www.rcom.co.in http://www.ideacellular.com http://www.bsnl.co.in/about.htm
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