INDIAN TELECOM AT A GLANCE

4th largest economy in the world

It is now the second largest telephone network in the world, after China
India is 4th largest smartphone market globally.
With 111 million users, India ranks as the the fourth largest smartphone market
globally after China, the US and Brazil, global telecom body GSM Association on
Thursday said.
The mobile phone industry in India is likely to contribute about US$ 400 billion to
the countrys gross domestic product (GDP) and has the potential to generate
about 4.1 million additional jobs by 2020.

TELECOM INDUSTRY IN INDIA

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
1

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.
Private operators hold 89.01% of the wireless subscriber market share where as
BSNL and MTNL, the two PSU operators hold only 10.99% market share. The
graphical representations of market shares and shares in net additions of all the
service providers during the month of January, 2014 are given below:
A. Service Provider wise Market Share as on 31st January, 2014.

 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
B. service provider wise net subscriber addition during January,2014.

http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-reportfebruary-2014-trai-85888-50423.

Key players in the Telecommunication Industry

There are many telecommunication service provider in India. Major players in the
telecom service provide industry are:
BSNL
MTNL
Airtel
Reliance Communications
Aircel
Vodafone
Tata indicom
Idea cellular .
Virgin

 Uninor

http://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/LxomKgN7SU/s1600/india-mobile-networks.gif

MANUFACTURER DETAILS
Name of

Head Quarter

Established In

Manufacturers
Vodafone

Peninsula Corporate Park, Ganpatrao Kadam

21,February,1992

Airtel

Marg,Lower Parel, Mumbai,Maharashtra, India

Bharti Crescent, 1, Nelson Mandela Road,

July 7, 1955

Reliance

New Delhi, India

Mumbai, India

2002

New Delhi, India

15 September 200

Tata Indicom

Mumbai, Maharashtra, India

0
1996

Aircel

Chennai, Tamil Nadu, India

1999

Uninor

Gurgaon, India

2009

communication
s
BSNL

Basic Information
Idea Cellular Limited

Type

Public company
{{|532822}}
NSE: IDEA

Industry

Telecommunications

Founded

1995

Headquarters

Santacruz East, Mumbai,India

Key people

Kumar Mangalam Birla

(chairman)

Products

Mobile telephony, wireless broadband

Revenue

265 billion (US$4.3 billion) (201314)

Operating income

28.79 billion(US$470 million) (2011)

Net income

19.68 billion(US$320 million) (201314)

Total assets

US$5.334 billion (2010)

Employees

6,481 (2010)

Parent

Aditya Birla Group (49.05%)

Axiata Group Berhad (19.96%)
Providence Equity (10.6%)

Website

www.ideacellular.com

IDEA CELLULAR
An idea can change your life.
ABOUT US
Idea Cellular is an Aditya Birla Group Company, India's first truly multinational
corporation. Idea is a pan-India integrated GSM operator offering 2G and 3G
services, and has its own NLD and ILD operations, and ISP license. With
revenue in excess of $4 billion; revenue market share of nearly 15%; and
subscriber base of over 117 million in FY 2013, Idea is Indias 3rd largest
mobile operator. Idea ranks among the Top 10 country operators in the world
with a traffic of over 1.5 billion minutes a day.
Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE) in India. Idea has been ranked 1 in the Telecom sector in
Indias Best Companies to Work for Study 2013 and the "Best Place to Work"
at the Asia Communication Awards 2013.
VISION
To develop an integrated supply chain focusing on maximizing the return on our
spend and assets to efficient information systems supported processes, making
its supply chain a benchmark across industry.
MISSION
"We will Delight our Customers while meeting their individual communication
needs anytime anywhere"
STRATEGY
The Idea Cellular Limited falls in the question mark quadrant of BCG matrix and
in the High attractive and Strong Competitive strength category as per the GE
Matrix. Thus they need to formulate some strategies to try capturing some
market share, growing and building their brand image as well as brand value.
7

BRAND
The Idea brand stands for the companys innate philosophy of continuous
innovation. The brand values of innovate, stimulate and liberate forms the core of
Idea Cellulars business ethos. Idea Cellulars brand mission of being the most
customer-focused mobile service brand, continuously innovating to help liberate
customers from the shackles of time and space speaks volumes about the
companys vision.

DISTRIBUTION
The Company's growth in the telecom market in India is the result of an intrinsic
ability to increase reach in new geographies and growth markets. Idea cellular
extensive sales and service network now spans over to 117 million customer
touch points. These comprise a mix of authorized dealerships, service and
dealer-appointed outlets across the country.

FORMATION OF IDEA CELLULAR LTD.

The Company had acquired licenses, for a period of 20 years for different service
areas at different points in time, to offer 2G services. The recent directive of the
Honble Supreme Court has quashed the 7 operating licenses of the Company
acquired in year 2008. These licenses would be operative till September 07,
2012 and spectrum auction needs to be conducted by the Government/DoT by
August 31, 2012. Further, seven licenses of the Company followed by two
licenses, all with initial spectrum allocated in 900 MHz band, are due for renewal/
extension in December 2015 and April 2016 respectively. The remaining six
licenses with spectrum in 1800MHz band are due for renewal/extension between
FY 2022 to FY 2027. These renewals/extensions would be as per the applicable
policy, which is under formulation.
The Company runs a risk of renewals/extensions at unfavorable terms. However,
the Company is hopeful that the continuation of services on a level playing field

and protection of investment will be ensured by the Government in the interest of

all stakeholders like subscribers, employees and shareholders.

COMPANY PERFORMANCE
The company has sold over 117 million customers since its inception in 1995 till
March 2013.
Idea has consistently stayed ahead of the industry in VLR reporting, and has the
3rd highest base of active subscribers. Idea is a pan-India integrated GSM
operator and has its own NLD and ILD operations, and ISP license.
With traffic in excess of a billion minutes a day, Idea ranks among the Top 10
country operators in the world. Idea operates across all 22 service areas with 2G
services and 3G services spread in over 3,000 towns and 10,000 villages.
Ideas strong growth in the Indian telephony market comes from its deep
penetration in non-urban & rural markets.
It has the highest share of rural subscribers as a percentage of total subscribers,
amongst other GSM players. In fact, 2 out of every 3 new Idea subscribers come
from rural/ semi-urban India.
IDEA Cellular is an Aditya Birla Group Company, Indias first truly multinational
corporation. The group operates in 33 countries, and is anchored by more than
132,000 employees belonging to 42 nationalities.

HISTORY
2013

Became the 3rd largest mobile operator in subscriber terms as well

Received a USD 1 million Grant from US Trade and Development Agency for a
Green Telecom Project
2012

Won back spectrum for 7 circles for which licenses were quashed by the
Supreme Court.

Became a $4 Billion Company in revenue

2011

First operator to announce the launch of Mobile Number Portability, have been
the Top gainer ever since the service was launched.

Launched 3G in 10 circles Andhra Pradesh, Gujarat, Haryana, Himachal

Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh and Chhattisgarh, Maharashtra
and Goa, Uttar Pradesh (East), Uttar Pradesh (West).
2010

Idea won 3G Spectrum in 11 service areas in India. These markets account for
over 81% of the companys total revenue

Idea emerged as the 3rd largest mobile operator in India, in revenue terms.
2009

Idea becomes a pan-India operator

Emerging Company of the Year - fastest growing mobile operator in the worlds
fastest growing telecom market
2008
10

Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West
Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir

Acquired Spice Communications with the operating circles of Punjab and

Karnataka
2007

Won an award for the "CARE" service in the "Best Billing or Customer Care
Solution" at the GSM Association Awards in Barcelona, Spain

Reached the twenty million subscriber mark

2006

Restructuring of debt

Reached the 10 million subscriber mark

Received Letter of Intent from the DoT for a new UAS License for the Mumbai
Circle.
2005

Subscriber base as on December 31, 2005: 6,473,962

Reached the five million subscriber mark

Turned Profit Positive

Won an Award for the "Bill Flash" service at GSM Association Awards in
Barcelona, Spain

Sponsored the International Indian Film Academy Awards

2004

Completed debt restructuring for the then existing debt facilities and additional
funding for the Delhi Circle.

First operator in India to commercially launch EDGE services 2005

11

2003

Reached the two million subscriber mark

2002

Changed name to Idea Cellular Limited and launched "Idea" brand name

Commenced commercial operations in Delhi Circle

Reached the one million subscriber mark

2001

Acquired RPG Cellular Limited and consequently the license for the Madhya
Pradesh (including Chattisgarh) Circle

Changed name to Birla Tata AT&T Limited

2000

Merged with Tata Cellular Limited, thereby acquiring original license for the
Andhra Pradesh Circle
1999

Migrated to revenues share license fee regime under New Telecommunications

Policy ("NTP")
1997

Commenced operations in the Gujarat and Maharashtra Circle

1996

Changed name to Birla AT&T Communications Limited following joint venture

between Grasim Industries and AT&T Corporation

12

1995

Incorporated as Birla Communications Limited

Obtained licenses for providing GSM-based services in the Gujarat and

Maharashtra Circles following the original GSM license bidding process

13

Idea product and service

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Click here to learn more about our 2G services and tariff
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14

1.1. What is advertising?

Advertising is a form of communication that typically attempts to persuade
potential customers to purchase or to consume more of a particular brand of
product or service. While now central to the contemporary global economy and
the reproduction of global production networks, it is only quite recently that
advertising has been more than a marginal influence on patterns of sales and
production. The formation of modern advertising was intimately bound up with
the emergence of new forms of monopoly capitalism around the end of the 19th
and beginning of the 20th century as one element in corporate strategies to
create, organize and where possible control markets, especially for mass
produced consumer goods. Mass production necessitated mass consumption,
and this in turn required a certain homogenization of consumer tastes for final
products. At its limit, this involved seeking to create world cultural convergence,
to homogenize consumer tastes and engineer a convergence of lifestyle, culture
and behaviors among consumer segments across the world.

1.1.1. Definition:
Advertising is the promotion of goods, services, companies and ideas, most
often through paid messages. Marketers see advertising as part of an overall
promotional strategy. Other components of the promotional mix include publicity,
public relations, personal selling, and sales promotion.
Commercial messages have been found in the ruins of Pompeii, but the first
advertising agency was started by Volney Palmer in Philadelphia in 1843.

1.1.2.

Advertising Media:

Some commercial advertising media include: billboards, printed flyers, radio,

cinema and television ads, web banners, skywriting, bus stop benches,
magazines, newspapers, town criers, sides of buses, taxicab doors and roof
mounts, elastic bands on disposable diapers, the opening section of streaming
15

audio and video, and the backs of event tickets. Any place an "identified" sponsor
pays to deliver their message through a medium is advertising. Covert
advertising embedded in other entertainment media is known as product
placement.
The TV commercial is generally considered the most effective mass-market
advertising format and this is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual US Super Bowl football
game is known as much for its commercial advertisements as for the game itself,
and the average cost of a single thirty-second TV spot during this game has
reached $2.3 million (as of 2004).
Advertising on the World Wide Web is a recent phenomenon. Prices of Webbased advertising space are dependent on the "relevance" of the surrounding
Web content. E-mail advertising is another recent phenomenon. Unsolicited Email advertising is known as "spam".
Some companies have proposed to place messages or corporate logos on the
side of booster rockets and the International Space Station. Controversy exists
on the effectiveness of subliminal advertising (see mind control), and the
pervasiveness of mass messages (see propaganda).

1.1.3

Advertising Objectives:

Advertising ultimately seeks to establish what is called "mind share". Mind share
is the status a brand can achieve when it co-exists with deeper, more empirical
categories of objects. Kleenex, for example, can distinguish itself as a type of
tissue. But, because it has gained mind share amongst consumers, it is
frequently used as a term to identify any tissue, even if it is from an opposing
brand. One of the most successful firms to have achieved this is Hoover (as
mentioned above) whose name was for a very long time synonymous with
vacuum cleaner (and Dyson has subsequently managed to achieve similar

16

status, having moved into the Hoover market with a more sophisticated model of
vacuum cleaner).
Mind share can be established to a greater or lesser degree depending on
product and market. In Texas, for example, it is common to hear people refer to
any soft drink as a Coke, regardless of whether it is actually produced by CocaCola or not (the more accurate term would be 'cola').
A legal risk of mind share is that the name can become so widely accepted that it
becomes a generic term, and loses trademark protection. Examples include
"escalator", "aspirin" and "mimeograph".
Other objectives include short or long term increases in sales, market share,
awareness, product information, and image improvement.

1.1.4. Advertising Techniques:

Advertisers use several recognizable techniques in order to better convince the
public to buy a product. These may include:

Repetition: Some advertisers concentrate on making sure their product is widely

recognized. To that end, they simply attempt to make the name remembered
through repetition.

Bandwagon: By implying that the product is widely used, advertisers hope to

convince potential buyers to "get on the bandwagon."

Testimonials: Advertisers often attempt to promote the superior quality of their

product through the testimony of ordinary users, experts, or both. "Three out of
four dentists recommend..." This approach often involves an appeal to authority.

Pressure: By attempting to make people choose quickly and without long

consideration, some advertisers hope to make rapid sales: "Buy now, before
they're all gone!"

17

Association: Advertisers often attempt to associate their product with desirable

things, in order to make it seem equally desirable. The use of attractive models,
picturesque landscapes, and other similar imagery is common.

18

1.2

Sales-Effect:

Communication-effect advertising research helps advertisers assess advertisings

communication effects but reveals little about its sales impact. What sales a
regenerated by an advertisement that increases brand awareness by 20% and brand
preference by 10%? Advertisings sales effect is generally harder to measure than its
communication effect. Sales are influenced by many factors besides advertising, such
as the products features, price, availability and competitors' actions. The fewer or more
controllable these other factors are, the easier it is to measure advertising's effect on
sales. The sales impact is easiest to measure in direct-marketing's effect on sales.
The sales impact is easiest it is to measure in direct-marketing situations and hardest
measure in brand or corporate-image-building advertising.

1.3

PROGRESS TESTS

These assess the various stages of buyer awareness, preference, buying intention and
the actual purchase in relation to advertising Effort. They are called sales effect tests.
1.3.1 Measuring Sales Response to Advertising:
Though increase in sales in the true measure of advertising effectiveness, in reality its
difficult to measure the increase that is due to a particular advertisement. It is
rather difficult to correlate the response in sales with the advertising programme.
However, a few methods have been discarded in the following paragraphs which are
generally used to measure the sales response to advertising.
1.3.2 Sales Results Tests:
The additional sales generated by the advertisements are recorded, taking several
routes. Past Sales before the advertisement and sales after the advertisement are
noted. The difference is attributed toad impact. Controlled Experiment: In experimental
market, any one element of marketing mix is changed.

19

It is compared with the sales of another similar market. The element's presence
observance is a reason for difference in sales. Instead of two markets, the experiment
can be carried on the two groups of consumers. The inventory audit is dealers inventory
before and after the ad is run.
1.3.3 Attitude Tests:
This is an indirect measurement of the post-testing effects of advertisements
on attitudes towards the advertised product or brands. The change in attitude as a result
of advertising is assessed. The assumption is that favourable attitude towards
the product may lead to purchases. Most advertisements are designed to either
reinforce or change existing attitudes. An attitude is a favourable or unfavourable feeling
about a product.
1.3.4 Selecting the Media:
Media selection is an important since it costs time space and money various
factors influence this selection, the most fundamental being the nature of the target
market segment, the type of the product and the cost involved. The distinctive
characteristics of various media are also important. Therefore management should
focus its attention on media compatibility with advertising objectives.

20

INDOOR

OUTDOOR

DIRECT

1.Press

1. Poster

1.

(a) Newspapers

2. Painted displays

Postcards

(a) Window

(b) Magazines

3.Traveling Displays

2. Booklet

(b) Counter

1. Radio

4. Neon signs

3. Catalogs

2. Showroom

2. T.V.

5. Electric signs

4.Sales letters

3. Exhibitions

5. Samples

4. Trade fairs

3. Cinema

Envelop

DISPLAY
& 1. Displays

4. Video

1.4. Modern Advertising Techniques:

Include seven that you should consider:
1. Email Advertising
2. Video Advertising
3. Audio Advertising
4. Search Advertising
5. Onsite Advertising
6. Mobile Phone Advertising
I recently completed a series of posts on these modern advertising techniques. The
posts provide additional information on each technique so Ive linked to them when
relevant.
1. E-mail Advertising:

21

Email advertising tops this list of modern advertising techniques because it tops the lists
of new and growing advertising expenditures. From small Internet marketers to large
offline and online stores, email advertising is vital to modern advertising and marketing
campaigns.
2. Video Advertising:
Video Advertising can be done on and off line. Many local cable channels offer video
ads and infomercials on a search basis for viewers. So your ad is only seen by people
interested in what you sell. Video marketing is also big on the Internet. Most online
videos are more promotion than advertising, but they play an important role in online
success.
3. Audio Advertising:
Audio advertising, whether across the Internet or the airwaves enables you to target a
narrow market and to deliver relevant and timely messages that encourage an
immediate response.
Although second to video online, offline audio advertising (radio advertising) provides all
the benefits of online audio advertising. And if you advertise on highly targeted stations
and shows, it isnt that expensive.
4. Search Advertising:
Search advertising, like Googles Ad words, can provide much traffic for an online
business, but it can also cost far more than it returns in sales. To use search advertising
effectively, you need to constantly test your ads. Then rewrite and redesign them from
your test results. Theres both skill and science to search advertising. So before you
jump in, read some e books and study the search engines documents about their pay
per click programs.
5. Onsite Advertising:

22

Onsite advertising can be considerably less expensive than search advertising.

Generally a click from an ad on site costs less than the same click from a search. With
Googles new Ad Planner, it will be easy to target a market with ads across the Internet.
You can even pick the sites that you want to carry your ads and deny ones that you
dont.
6. Mobile Phone Advertising:
Mobile phone advertising is projected to grow from just under 500 million in 2006 to a
almost 5 billion by 2011.And why not. Its interactive, unobtrusive, and immediate. Most
people have their mobile phones with them all the time. So they can react instantly to
banner phone ads that catch their attention.

Ways of doing the advertisement of Idea cellular

LTD.:
Aditya Birla group have so many ways to doing advertisement of Idea Cellular ltd. The
advertising is being managed from the Idea cellular, and the ways and the kind of advertising
are being shown below:

Advertisement through Catalogs

Advertisement through Newspapers

Advertisement through Hoarding

Advertisement through packages

Advertisement through Media

Advertisement by making Loyalty programs

Advertisement by participating in Exhibitions show

Advertisement by Buses panels

Advertisement by Wall paintings

Advertisement by Counters

Advertisement by Distributors and Retailers boards

Advertisement by Facebook
23

Advertisement through web site

Anand (1999), in his article named India's economic policy reforms says that
India was embarked on economic reforms in July 1991, in the wake of a balance
of payments crisis. In this article, an attempt is made to review two books and a
set of World Bank reports concerning the progress of these reforms. Issues
concerning economic policy, impact of the reforms on poverty, sectoral issues
relating to agriculture, industry and infrastructure are briefly discussed. As
reforms enter a more difficult phase, several challenges remain. Some of this fall
under the economic agenda'' of measures needed to maintain economic growth;
others can be termed the development agenda'' - of improving human
development. Progress with regard to the former is not sufficient to produce
results concerning the latter.
Bhattacharya (2000) constructs a vision of the Indian telecommunication sector
for the year 2020. The paper aims at isolating agents of change based on
international experiences and situates India in the development continuum. The
agents of change have been broadly categorized into economic structure,
competition policy and technology.
Das (2000), in her paper described the Liberalisation of the Indian
telecommunications services which started in mid-nineties with no change in the
existing public monopoly structure, entirely controlled by Department of
Telecommunications (DoT). In order to evaluate any proposed industry structure,
it is essential to analyse the production technology of DoT so as to determine the
rationale of liberalisation and sustainability of competition. Accordingly, the

24

researcher estimates a frontier multi-product cost function for DoT, where the
cost function has been duly modified to account for the production technology of
a public monopoly. The study finds that although DoT displays high allocation
inefficiency, it is still a natural monopoly with very high degree of sub additively of
cost of production. This study implies that the choice of any reform policy should
consider the trade-off between the loss of scale and scope economies and cost
saving from the reduction in inefficiency of the incumbent monopoly in the event
of competition.
Rao (2000), in her article named Internet service providers in India, provides a
broad view of the role of an Internet service provider (ISP) and the factors to be
considered before entering the ISP market. Describes the Internet/ISP scene
within India and discusses the configuration of local, regional and national level
ISPs, and the supporting infrastructure. She also identifies the various success
factors. The global Internet scenario is discussed regarding the phases of the
Internet in India, i.e. pre and post commercialization. The main players are
described: ERNET, NICNET, STPI, VSNL, MTNL, Satyam Infoway and Bharti-BT.
The financial and legal implications are highlighted in the Indian context. Many
companies entered the nascent ISP business in Nikam, Ganesh, Tamizhchelvan
(2004), analyses that changing face of India in bridging the digital device.
Dey (2004), in her article talks about the discussions between the Federal
Communications Commission (FCC) and communications policy makers and
regulators in other countries and how they have gleaned several clusters of
issues where further research would directly benefit them. Recently, there have
been two notable shifts. First, as the acceptance of the competition model over
the monopoly model for telecommunications markets takes deep effect in
regulators all over the world, questions regarding process and procedure for
regulation are becoming ever more urgent. This paper discusses current
questions regarding decision making, enforcement, and understanding consumer
issues that arise often in the FCC's discussions with other regulators. Second,
technological change is potentially shifting market definitions. In the FCC's
25

discussion with other regulators over the last two years, the overlap of wireline
telecom, wireless telecom and cable television has become more pronounced.
Singh (2005), in his article The role of technology in the emergence of the
information

society in

India

describes

the

role

that

information

and

communication technologies are playing for Indian society to educate them

formally or informally which is ultimately helping India to emerge as an
information society. Though India has a huge population, the illiteracy rate is also
huge in this country. The paper has taken an approach to find the historical
situation and present the prevailing scenario as well as the change that are
taking place with the application of ICT to the advantage of the society in different
areas including daily life. India is making all out efforts to be counted among the
developed nations of the world. The article also describes the considerable
attention India is taking for application of technology.
Mr. Banka (2006) gives an overview of the mergers and acquisitions in the
telecommunication industry. According to him Governments decision to raise the
foreign investment limit to 74% is expected to spur fresh rounds of mergers and
takeovers in India. He foresees a sector that represents humongous opportunity
waiting to be tapped by Indian and foreign conglomerates.
Thomas

(2007),

in

his

article

describes

the

contribution

made

by

telecommunications in India by the state and civil society to public service, this
article

aims

to

identify

the

states

initial

reluctance

to

recognize

telecommunications provision as a basic need as against the robust tradition of

public service aligned to the postal services and finds hope in the renewal of
public service telecommunications via the Right to Information movement. The
article follows the methodology of studying the history of telecommunications
approach that is conversant with the political economy tradition. It uses archival
sources, personal correspondence, and published information as its research
material. The

findings of the

paper suggests that public service in

telecommunication is a relatively new concept in the annals of Indian

26

telecommunications and that a de- regulated environment along with the Right to
Information movement holds significant hope for making public service
telecommunications a real alternative. The article provides a reflexive, critical
account of public service telecommunications in India and suggests that it can be
strengthened by learning gained from the continual renewal of public service
ideals and action by the postal services.
http://www.ukessays.com/essays/marketing/impact-of-advertising-in-indian-telecomindustry-on-its-customer-marketing-essay.php#ixzz3FYJUz81php

STATEMENT OF THE PROBLEM

The research statement is
To study and analyze the effectiveness of the advertisement adopted by the Idea
cellular Ltd.
The problem statement quoted is not exactly a research that is to be performed
instead it is an analysis to find out whether the advertisement of idea cellular
were effective or not. This study will definitely benefit the company by suggesting
them if any future changes required in the present advertising strategies.

SCOPE OF THE STUDY

The objective of the project is an attempt to understand the consumer preference
for Idea company and how it is been affected by the advertisement done by the
idea industries main players.
It will be done through a comparative study of Idea telecom operators which are
available in surat; we want to understand the impact of advertisement on the
customers of all the segments in surat.

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OBJECTIVES
Primary objective:

The primary objective is to study on the effectiveness of the advertisement

strategies of Idea cellular in their current market.

Secondary objectives:

To understand the advertisement strategies of Idea Cellular Ltd.

A study on the effectiveness of recent advertisement campaign of Idea

cellular specially endorsement by IIN.

To find out the reason of liking the advertisement of Idea cellular.

To know how they survive in the cutthroat competition.

To know the promotional strategies of Idea cellular.

To know how they face their competitors strategies.

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 Research Design:
Descriptive Research Design
Research Instrument:
Questionnaire
Structured and closed ended questionnaire
Sample Unit:
Different customers of surat cities
Sample Size:
200 samples from surat cities
Sampling Technique:
Non-Probability technique
Convenience techniques
Type of data:
Primary Data and
Secondary Data
Source of Data Collected:
Primary Data: through Questionnaire
Secondary data: through Internet and Reference books

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RESEARCH LIMITATIONS
Response & Cooperation:
Some of the respondents were totally unresponsive and were not ready to
cooperate.
Cost:
It became more expensive due to primary survey done to know the preference
about the industry.
Biasness :
Biasness is the most serious limitation. Although measures have been taken to
reduce the biasness but complete elimination of biasness is impossible.
Reliability:
The reliability of the data to great extent is dependent on the honesty and
cooperation of the respondents in providing the information.
Thus reliability and validity of data collection through survey method is always
without doubt.
Time:
It is time consuming as it took nearly more time for data collection, primary
survey and analysis of its 200 sample size.
Sample Unit:
We have taken only 200 respondents which may or may not represent the whole
population.

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Questionnaire
Q1) Do you have a mobile phone?
o Yes
o No
Q2) Are you aware about all the telecommunications service?
o Yes
o No
o Not All
If yes, then which operators Service do you use?
o Vodafone
o Airtel
o Idea
o Reliance
o BSNL
o Tata Indicomm ( If not idea then go to Q13 )
Q3) Are you aware about idea services?
o Yes
o No

(If No, then go to Q12 )

Q4) from which source you came to know about idea?

o Advertisement

(Multi-choice)

o Hoardings
o Newspapers
o Mouth Publicity
Q5) while purchasing a connection do advertising plays any role?
o

To full extent
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o To some extent
o Not at all
o No opinion
Q6) From where did you watch the advertisement most?
o
o
o
o
o

Television
Radio
Newspaper
Magazines
Other media

Q7) Which telecommunication have good advertising?

o
o
o
o
o

Air Tel
Vodafone
Idea
Reliance
Others

Q8) How well did the advertisement of the Idea catch your attention?
o
o
o
o

Very well
somewhat well
Undecided
Not at all

Q9) Do you think that advertisement made by company informs you about their new
products?
o Yes
o No
o Undecided
Q10) Based on advertisements made by company, would you like to go for more
connection for you or your family in future?
o Yes.
o No.
o Not decided.
Q11) Since how long you are using Idea services?
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o Less than 1 month

o 2-6 months
o 6-12 months
o More than 1 year
Q12) what makes you unaware about idea?
o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)
Q13) why you are not using Idea services?
o Lack of awareness

(Multi-choice)

o High Prices
o Poor Services
o Poor network
Q14) Would you like to recommend Idea to others?
o Yes
o No
Q15) Give your suggestions to help in serve you better.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Name: ________________
Age: ___ years
Sex: Male/Female
Contact no.: ___________
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Date: __________

34

 www.ssrn.com
www.ijrcm-1-IJRCM-1_vol-4_2013_issue-11-art-04.pdf
http://www.ukessays.com/essays/marketing/impact-of-advertising-in-indiantelecom-industry-on-its-customer-marketing-essay.php#ixzz3FYJUz81php
http://www.ideacellular.com/
www.facebook.com/ideacellulaeltd/page.1
http://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/LxomKgN7SU/s1600/india-mobile-networks.gif
http://www.telecomlead.com/telecom-statistics/indian-telecom-market-sharereport-february-2014-trai-85888-50423.
http://www.coai.com/About-Us/Members/Core-Members/Idea-Cellular-Limited

http://en.wikipedia.org/wiki/Idea_Cellular

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