RESEARCH REPORT ON

SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION SUBMITTED TO: MR. NEERAJ SHUKLA ASST. MANAGER RETAIL- BIG TATATELE SERVICES, LUCKNOW SUBMITTED BY: AMIT KUMAR SINGH MBA3rd SEMESTER N.I.E.C., LUCKNOW

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Partial knowledge is an important suffix to theoretical knowledge; one can not merely rely upon the theoretical knowledge. Classroom make the fundamental concept clear, but practical study in a industry has significant role to play In a subject of business management to develop managerial skills, it is necessary that they combine their classroom learning with the knowledge of real business environment . I am extremely happy to present this research report before the esteemed teachers/ management entitled “STUDY OF RETAIL TCOMPETITION IN TELECOMMUNICATION SECTOR IN U.P. EAST CIRCLE” It has not only helped me to enhance my knowledge about Retail sector and responsibilities towards customer’s welfare but also gave new dimension to knowledge about psychology and attitude of customers towards the companies excusive retail units.

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“One who is learning to walk seeks assurance in the several hands that are there to hold him against faltering and several voices that cheer him on. I have drawn this analogy to script my gratitude towards several people who have facilitated my summer internship.” Firstly I would like to express my deepest sense of gratitude and sincere thanks to Mr. Neeraj Shukla (ASST. MANAGER-BRANDED RETAIL-BIG) for giving me a golden opportunity to do my summer training at Tata Indicom TATA TELESERVICES LTD. (TTSL) I am highly indebted to the whole staff of TTSL, Lucknow for their continuous support, guidance and encouragement in spite of his procurement. I would also like to express my special gratitude towards Prof. DR. C.R BHAROLE , N.I.E.C, and Lucknow. Whose guidance helped lay the foundation of this project AMIT KUMAR SINGH

Tata Teleservices

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Tata Teleservices is part of 98 co the Rs. 119,000 Crore (US$ 29 billion) Tata Group that has over mpanies, over 289,500 employees and more than 2.9 million shareholders. With a committed

investment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom value chain. 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 19 circles that include 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. Having pioneered the CDMA 2000 1x technology platform in India, Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. It has

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partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth

Telephony and Wire line services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as BREW games, Voice Portal, picture messaging,

polyphonic ring tones, interactive applications like news, cricket,astrologyetc. 5

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 http://www.i-choose.in/ to offer postpaid mobile connections in the country. Tata Teleservices has a strong workforce of 6000. In

addition, TTSL has created more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its

manpower needs. Today, Tata Teleservices Limited along with Tata

Teleservices (Maharashtra) Limited serves over 25 million customers in over 5000 towns. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices offers world-class technology and user-friendly

TELECOM INDUSTRY PROFILE

The telecommunications industry has made its mark in history. Telecom Industry is one of the fastest growing sectors in the country. Telecommunications has been zooming up the growth curve at a 6

feverish pace in the past few years. It is the transmission of signals over a distance for the purpose of communication. Today,

telecommunication is widespread and devices that assist the process, such as the television, radio and telephone, are common in many parts of the world. Indian telecommunication firms added 6.3 million new subscribers in February 2007, taking the total user base above 203 million. Wireless service providers continued to dominate user growth by adding 6.23 million subscribers in February, while 67,000 new fixedline users signed up.

The call rates of as low as 2-3 US cents a minute are luring customers in the world's fastest-growing wireless services market. Britain’s Vodafone paid more than US$ 11 billion for controlling a major chunk of the fourth-largest mobile operator Hutchison Essar. In March, Indian GSM mobile phone service providers signed up a record 6.1 million customers, taking total users to 121.4 million, The March increase was the highest-ever monthly rise and compared with 4.9 million new users in February.

The combined revenue of all operators from mobile businesses would be more than double to US$ 33.1 billion by 2010, from about US$ 12.8 billion in 2006. The total revenue of all telecom operators is also set to nearly double to US$ 43.6 billion in four years, from US$ 22.5 billion in 2006. The revenue share of mobile business would rise to 76 per cent in the same period, from 57 per cent currently. 7

India, which is adding over six million mobile subscribers every month, had recently surpassed Russia to become the third largest mobile market in the world after China and the US. The total mobile subscriber base in the country is likely to reach 425 million by March 2010 With Bharti Airtel (GSM) and Reliance (CDMA and GSM) emerging as the top two mobile operators in terms of number of subscribers the total mobile subscriber base in the country is likely to reach 425 million by March 2010. With the Government’s decision to increase the foreign direct investment (FDI) to 74% in this sector has generated interest among global investors. The share of telecom in FDI rose from 3-4 per cent to 12-15 per cent in the calendar year 2006. UK-based Intec Telecom Systems, which offers operational support, access billing and retail billing services for telecommunications operators worldwide, has lined up a US$ 12 million expansion plan for its Bangalore office. Cellular service provider Aircel has planned to expand its network to double its subscriber base of 5 million over 18-24 months. Swedish telecom equipment giant Ericsson announced an investment of US$ 100 million every year in India with an option to enhance it depending upon the growth. Cisco is starting a trial factory in Chennai for making Internet protocolbased phones, as part of its US$ 1.1-billion investment plan for the country. India offers an unprecedented opportunity for telecom service operators, services infrastructure companies. vendors, manufacturers operators and have associated lined up Indian cellular

investments of about US$ 20 billion over the next two years to bring over 80 per cent of the population under mobile coverage. The planned

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investment for the next couple of years is 50 per cent higher than what has been invested in the last 12 years. The total mobile subscriber base in the country is likely to reach 425 million by March 2010 with Bharti Airtel (GSM) and Reliance (CDMA and GSM) emerging as the top two mobile operators in terms of number of subscribers. Telecommunication network is the backbone of Communication sector. It is difficult to predict the future of telecommunications technologies, services, and applications that have not yet been invented. The monthly addition to the mobile phone network is shown in the Appendix (TABLE 1.1). Also Growth of the telecommunication network from April 2006- February 2007 is shown in the TABLE (1.2).

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LATEST NEWS ABOUT INDIAN TELECOM INDUSTRY
The telephone subscriber base in India has crossed 200 million. The GSM has more than half of this subscriber base - that is 115.3 million. Total subscriber base (mobile and fixed) of CDMA (code division multiple access) mobile group is has already crossed the 200-million-mark. The total phone subscriber base was more than 196 million. While Bharti Airtel continues to be the industry leader with 35.4 million users and a 30.74% of the GSM market share, the gap between the second and the third players is marginal. The state-run Bharat Sanchar Nigam Ltd (BSNL) as the second biggest GSM player has 25.4 million subscribers (22.07% share), and the third largest GSM player Hutchison Essar has 25.3 million users (21.98%). MTNL's GSM subscriber base in Delhi and Mumbai touched 2.578 million, while Spice Telecom has also over 2.5 million subscribers. Aircel's user base in February stood at 5.094 million, followed by Reliance Telecom's 4.11 million subscribers. The number of Internet subscribers grew at 25 per cent, while broadband users grew from 0.18 million to 1.32 million in 2005-06. The number of broadband and Internet subscribers in India is expected to reach 20 million and 40 million respectively by 2010. With the addition of nearly 70 million subscribers, the financial year witnessed the highest ever increase in subscribers base during a financial year after the opening up of telecom sector for competition, says the Telecom Regulatory Authority of India (TRAI). According to TRAI, the subscriber base for telephony services continues its growth during March 2007 with 3.93 million subscribers being added during the month. A total of 66.51 millions subscribers have been added during the financial year 20062007 as compared to 41.91 millions in 2005-06, registering an increase of 58% in annual growth. Wireless services subscriber base increased by 3.53 million in March 2007 as

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compared with 6.21 million in February 2007. This lower growth in the month of March 2007 can be attributed to insistence by the Government to ensure verification of subscribers. The total wireless subscribers at the end of March 2007 are 166.05 million as compared to 98.78 million in March 2006 registering an annual growth of around 68%. In the Wireline segment a total of 0.40 million subscribers were added during March 2007 as compared to a decline of 0.02 million in February 2007. With this the total subscriber base of wireline reached 40.78 million in March 2007 as compared to 41.54 million in March 2006 registering a decline 1.82%. The gross subscriber base reached 206.83 million at the end of March 2007. The teledensity is 18.31% at the end of March 2007 as compared to 12.80 at end of the March 2006 registering an increase of 43%. The Broadband connections (>256 Kbps download) in the country have touched 2.30 millions at the end of March 2007 as compared to 1.35 millions in March 2006 registering a growth of 70%. The broadband subscribers were 2.21 million in February 2007 and thus there is addition of 0.09 million broadband subscribers in March 2007.

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1. Preface 2. Acknowledgement 3. Executive Summary 4. Table of Content 5. Problem Definition 6. Research Objective 7. Company Profile (TATA Group) 8. Company Profile (TTSL) 9. TATA TELE SERVICE (TTSL) 7. Research Methodology 8. Data Analysis 9. Findings 10 Recommendations 11. Limitations of the Project 12. .Bibliography 13. Annexure 12

1 2 3 4 5 6 8 12 17 25 34 44 46 50 53

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This project report is on the topic “STUDY OF RETAIL COMPETITION IN TELECOMMUNICATION SECTOR IN U.P. EAST CIRCLE”

In this report, I have tried my best to find out the retail competition in U.P. East circle on the basis of survey in a clear and understandable manner.

I have taken a sample size of 75 each for exclusive retail showroom of company and retail mini stores of Lucknow city. Although this sample size is very small to represent the whole market but there was no choice because of time constraint, yet I have to cover every type of consumer.

I have demonstrated the data gathered through various charts. During my survey I visited the exclusive showrooms of all the telecom companies working in UP-East circle and analyzed Value Added Services (VAS) and their schemes with respect to its competitor’s.

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The purpose of research is to discover answers to question through the application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, I may think of research objectives as falling into a number of following broad groupings: 1 2. .To find-out the information about exclusive retail unit. To find-out the information about the frequency of customer walk- in in

each unit. 3. 4. 5 To find-out the no. of retail unit of different company. To find out retail space/ layout specification. .To analysis the respondents views about us Tata Indicom (RBU)

Research objective of my project is” study of retail competition in u.p. circle” TATA TELESERVICES (TTSL).

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Tata Group profile

“Leadership with trust” The Tata Group comprises 93 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Group's ethos to this day. The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2004-05 of $17.8 billion (Rs 799,118 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalization of $45.1 billion. Tata companies together employ some 215,000 people.

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The Group's 32 publicly listed enterprises — among them standout names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea — have a combined market capitalization that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 40 countries across six continents, and its companies export products and services to 140 nations.

The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility. These values, which have been part of the Group's beliefs and convictions from its earliest days, continue to guide and drive the business decisions of Tata companies. The Group and its enterprises have been steadfast and distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This is a legacy that has earned the Group the trust of many millions of stakeholders in a measure few business houses anywhere in the world can match.

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Tata Indicom
The Tata Group's commitment to building a substantial presence in India's telecom industry has seen it play a leading role in the development of the country's communications infrastructure. The telecom services of the Group are offered under the brand name Tata Indicom, and cover all segments, from retail and enterprise to wholesale and international. The objective is to make Tata Indicom the preferred telecommunications choice of customers across the country. The Tata Indicom Enterprise Business Unit (TIEBU) is the central, specialized enterprise sales and marketing unit for the Tata Group's telecom initiatives. The unit is the benchmark telecom player in the enterprise space and was formed with a view to providing customized, end-to-end voice and data solutions to customers across India. It delivers cost-effective, integrated solutions that are designed to fulfil the most complex communication needs.

The Tata Group's telecom initiatives are currently spread over four enterprises: Tata Teleservices and its subsidiaries, namely Tata Teleservices (Maharashtra), Tata Communications and Tata Power Broadband, a division of Tata Power. The vision is to ensure that the business operates seamlessly across these entities, while offering customers a one-stop solution.

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Tata Teleservices
Profile
Tata Teleservices (TTSL) was India's first provider of CDMA-based telecommunications services. The company provides the full range of telecom services spanning mobile, wireless, wireline, public booth telephony and internet services, including service portals and handsets. Incorporated in 1996, the company along with its subsidiary Tata Teleservices (Maharashtra) (TTML) serves 25 million customers in over 5,000 towns in India. It was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Today it has a panIndia presence across 19 circles that include 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. TTSL has a 3G-ready telecom infrastructure in partnership with Motorola, Ericsson, Lucent and ECI Telecom. The company, which heralded convergence technologies in the Indian telecom sector, is

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today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. Areas of business TTSL's bouquet of telephony services includes mobile services, wireless desktop phones, public booth telephony and wireline services. It also provides value added services such as a voice portal, roaming, post-paid internet services, three-way conferencing, group calling, wi-fi internet, USB modem, data cards, calling card services, enterprise services and new voice and data services such as BREW games, voice portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc. It has India’s largest branded telecom retail chain and is the first service provider in the country to offer an online channel http://www.i-choose.in/ to offer postpaid mobile connections in the country.

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Tata Teleservices is part of the Rs. 120,000 Crore (US$ 29 billion) Tata Group, that has over 87 companies, over 330,000 employees and more than 2.8 million shareholders. The Group has a formidable presence across the telecom value chain.

Tata Teleservices (Maharashtra) Limited (TTML) spearheads the Tata Group's presence in the Indian telecom sector by being the premier telecom service provider, licensed to provide services in Maharashtra (including Mumbai) and Goa.

Tata Comm. is India's leading international telecom service provider. It is today part of the Tata Group. It started as a successor to the erstwhile Overseas Communication Services, and went on to become the premier provider of international voice and data services.

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TATA TELISEVIES LTD (TTSL)
Business Unit Functions 1) Consumer Market Business Unit (C.M.B.U) Prepaid 2) High Network Individual Busi. Unit (H.N.I.B.U) Postpaid 3) Access Business Unit (A.B.U) Rural P.C.O & Tel. Booth 4) Retail business Unit (R.B.U) Circle Retail Head

1)

Finance

2) Supply Chain Management (S.C.M) 3) Human Resource (H.R) 4) Facility Management and Support Service (F.M.S.S) 5) Risk 6) Business Excellence (B.E) 7) Marketing Communication (Mar. Com) 8) Enterprise Business Solution (E.B.S)
9) Information Technology (IT) by (T.C.S)

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R etail B usiness U nit
Classification of retail business unit (R.B.U) of Tata TeleService limited-:
1) TRUE VALUE SHOP(i)Prepaid Town- prepaid RCV, Handsets, and Accessories.

Security- 55 +30 thousand

In 55 thousand 40 thousand is refundable and 15 thousand is no in refundable.
• • • •

Area- 130-132 sq feet Type- franchisee Prepaid RCV Commission- 4.5% Accessory- 30%

• Furniture with installation • Providing Glow Sine Board (G.S.B)

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(ii) High Network Individual (H.N.I) Town• • • • •

Prepaid & Postpaid only. SECURITY- 1.25 laks. 1 laks refundable and 25 thousand is nonrefundable. AREA- 150-250 sq feet. TYPE- Franchisee. COMMISSION – 4.5%

2) TRUE VALUE HUB- (T.V.H)

• •

Prepaid, postpaid & all. SECURITY- 3 lack 2.5 lack refundable,50 thousand nonrefundable.

• Furniture, 3-pc. 1 laptop. • COMMISSION – 4.5%. • Franchisee Retail Management System. (F.R.M.S)

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3) NEIGHBOUR HOOD STORES• Rural Area. • Glow sine Board Central Table. • 25 thousand 30 thousand extra as per demand. • Handset service centre support point. • AREA70-100 sq feet. • COMMISSION – 4.5%.

4) RETAIL MANAGEMENT SYSTEM(I) T.V.S.COCO-(Company On Company Store)- Headed
by company’s zonal executive.

AREA-

300 sq feet.

(ii)

T.V.H. COCO (Company On Company Store)Head by company’s manager.

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TTSL’s COMPETITORS

IDEA Company Information

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 26 million, IDEA Cellular's footprint currently covers approximately 60% of India's telecom population. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market.

Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking 26

innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an extraordinary force of over 100,000 employees belonging to 25 different nationalities, over 50% of its revenues flow from its overseas operations. The Group has been adjudged ‘The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007. The combined holding of the Aditya Birla Group companies in IDEA stands at around 57 per cent. With ambitious future plans, the company is poised for rapid growth across the whole country.

Our Service Areas The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metropolitan", Category "A", Category "B and Category "C "service areas by the Government of India. These classifications are based principally on a Service Area’s revenue generating potential.Our operational 11 Service Areas are broken up into Established and New Service Areas. Established Service Areas The established service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).

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Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited. In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002. In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004. New Service Areas The New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal Pradesh. Licenses for these New Service Areas were acquired through the acquisition of Escotel (Escorts Telecommunications Limited). Following significant investment in the roll-out of network in the New Service Areas, amounting to approximately Rs. 4,678 million upto September 30, 2006, a full commercial launch of mobile services was achieved in the New Service Areas between September and November 2006 in a manner which also met the network roll-out requirements of the licenses in 2007.

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Classification of retail business unit of IDEA Cellular ltd.
My Idea –

Type – Franchisee.

• 5 Franchisee units in Lucknow. • Average staff per unit- 3 employees. • Average monthly walk in per unit - 4 thousand.
• • •

AVARAGE PER DAY WALK IN- 35-45 . AREA- 300 sq feet. COMMISSION – 4.5%.

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Vodafone Essar Limited
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 49.1 million customers*. Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective Advertiser of the Year'. Vodafone is the world's leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 260 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market.

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The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and Construction.

Classification of retail business unit of Vodafone

(1)

Vodafone exclusive stores –

• Average man power-6 • Average walk in per day- 50 • Prepaid & postpaid • Total 3 results found in - "lucknow" Chintels Vodafone Store Shahnajaf Vodafone Store Waves Vodafone Store

(2) Mini stores-

Total 23 results found in - "lucknow" • Average man power-3 • Average retail space- 150sq feet.
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AIRTEL

Sunil Bharti Mittal or SBM as he is called, has at the age of 43 created a Telecom Giant in India. It has risen from humble

beginnings in 1970’s as a bicycle parts manufacturer, knitwear and stainless steel utensils in Ludhiana, Punjab state. Together with other foreign companies he has raised $ 1.5 billion of which $ 800 million is still in the bank. Bharti happens to be India’s premier telecom company in the field of telecom terminals and technology tie ups with world leaders like “Siemens, Goldstar, Tatacom and Casio. It is the first company in India to export telephones to U.S.A and has finalized plans to manufacture GSM terminals in India. The success story of Bharti Enterprises can be acknowledged from the fact that Bharti has acquired 44% of stake of British Telecom, which was up till now one of the partners with Bharti Enterprises for $140.2 joint venture. The transaction was worth 100 million pounds. Bharti Enterprises controls about 20 % of the Total Telecom market in India. As he puts it , it was a mixture of Vision , good luck and hard work by a team of about 10 –12 senior people. The early 32

beginnings in 1985 were in manufacturing telephone handsets. They did not have the expertise to do telephone exchanges, jelly -filled cables had become a commodity and their capital investment was high. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its

subsidiaries operate telecom services across India. Bharti TeleVentures is India's leading private sector provider of

telecommunications services based on a strong customer base consisting of approximately 11.50 million total customers which constitute, approximately 10.66 million mobile and approximately 836,000 fixed line customers, as of January 31, 2005. • Bharti Teletech

Bharti Teletech deals with telecom equipment manufacturing. Bharti teletech has 2 subsidiaries “Siemens Telecom and Bharti Duraline. Siemens Telecom is a joint venture between the global giants Siemens AG and Bharti Telecom. This alliance has brought to the Indian market the unmatched technology of Siemens and the manufacturing strength of Bharti Telecom. Siemens Telecom

markets its product under the brand names of “Siemens” and “ Beetel”. The Siemens range of telephones includes electronic push button phones, feature phones ans the latest GSM cellular phones.

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“Beetels commitment to quality, value and durability has made it the largest selling cordless phone in India. Bharti Duraline – Bharti Duraline is a translation of Bharti’s

commitment to serve the growing telecom market in India. This joint venture with Duraline Corp of U.S.A manufactures and markets high quality SILCORE TM HDPE telecom ducts. Duraline USA gas prestigious customers like AT&T, Lucent technologies, Sprint MCI, Ericsson, etc • Bharti Telecom

In the past few decades the telecom industry across the world has gone through a sea change and India has not been away from the technological revolution. Bharti Telecom the flagship company of Bharti Enterprises has continuously introduced world-class telecom products and services. From the introduction of push button telephones backing telephones to answering machines from cordless telephones to cellular services Bharti is breaking new grounds with host of new brands like Airtel and Beetel. Bharti Telecom has emerged as India’s finest Telecom Company. Incorporated in 1985 Bharti Telecom is one of the largest Telecom companies in the country. Bharti Telecom provides various basic /cellular services, Internet services and VSAT’s etc. through its several subsidiaries and joint 34

ventures.

The two subsidiaries of Bharti Telecom are “Bharti

Televenture” and “Bharti Telepatial”.

Bharti Televenture Bharti Televenture Ltd. was incorporated on 7th July 1995. BTVL

has been floated by Bharti Telecom Ltd. as Telecom operator to hold equity stake and to wide management services to cellular and fixed line Telecom Projects in India.Bharti Televenture is a holding company for Bharti Cellular and Bharti Telenet. Bharti Cellular Bharti Cellular Ltd offers cellular service under the brand name of Airtel. Bharti Telenet Bharti Telenet offers fixed line services in M.P. (Indore) and cellular services in H.P. the company the first private operator to provide fixed line services under the country. It launched its fixed lines

services on 4th June 1998 in Indore, and as developed the customer based of over 35,000. The company as a market share of 80% in

H.P. for its cellular services. Bharti Telespatial

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Bharti Telespatial provides Internet services and VSAT’s. gain two subsidiaries “Bharti BT” and “Bharti BT Internet”.

It has

Bharti BT Bharti BT has a licensed to provide VSAT services in India. The

company is second largest service provider in the shared hub and fastest growing VSAT service provider in the country. Identifying the core relevance of satellite communication, the joint venture is expanding the VSAT market through service leadership and product innovation, offering fast, secure and reliable telecom solutions for all times. BT helps its customers meet there short term goals and long term communications strategies.Taking advantage of its leading edge in technology, Bharti BT offers customized TDMA, VSAT solutions, PAMA services. The flexibility to integrate these

services also enables the company to provide hybrid V-SAT services to meet the diverse requirement of the customers. Bharti BT Internet:- Bharti BT Internet has a licensed to provide Internet services in Mumbai, Delhi and Bangalore. The service

became operational from May 99 under the brand name “Mantra On Line”.

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Classification of retail business unit of Airtel-

1) AIRTEL RELATIONSHIP CENTRE- (A.R.C)
• • • • •

NUMBER- In U.P. There are 52 ARC. AVERAGE WALK IN PER DAY- 40. STAFF30 Employee per A.R.C. AREA600 sq mt. COMMISSION – 4.5%.

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RELIANCE COMMUNICATION

Reliance Communications Ltd. is a part of the Reliance group founded by Shri Dhirubhai H. Ambani. Reliance Communications (formerly Reliance Infocomm) was originally incorporated on July 15, 2004, under the Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The status of the Company changed from private limited to public limited on July 25, 2005. Further the name of the Company changed to Reliance Communication Ventures Ltd with effect from August 3, 2005. The name has since been changed to its present name, viz. Reliance Communications Limited, under Fresh Certificate of Incorporation consequent on change of name dated June 7, 2006.

Reliance

Communications

is

one

of

India's

largest

integrated

communications service providers in the private sector. According to National Stock Exchange data, Anil Ambani controls 66.75per cent of the company, which accounts for more than 136 crore shares of the company. Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading

38

integrated customers.

telecommunication

company

with

over

25

million

The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private sector business houses on all major financial parameters, with a market capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6 billion).

All businesses today are dependent on telecom to continue their dayto-day operations. The range and quality of services that can be provisioned is determined by the quality of the network deployed. Today everything is digitalized for clearer and better transmission. Now the transmission of information happened much faster than we can imagine. This is what Reliance communication is offering to their customers. With fibre optic network it provides high quality

transmission and faster information flow.

The Reliance Communications network consists of 60,000 kilometers of optical fibre cables spanning the length and breadth of India. These cables can carry thousands of billions of bits per second and can instantly connect one part of the country with another. This physical network and its associated infrastructure will cover over 600 cities and towns in 18 of the country's 21 circles, 229 of the nation’s 323 Long

39

Distance Charging Areas (LDCAs) and broadband connectivity to over 190 cities. This infrastructure will be backed by state-of-the-art information organization. An interesting aspect of the network is the manner in which these fibres are interconnected and deployed. Reliance's architecture is so fault-tolerant that the chances of failure are virtually nil. Reliance's ring and mesh architecture topology is the most expensive component to implement, but assures the highest quality of uninterrupted service, even in the event of failure or breakage in any segment of the network. Reliance has 77 such rings across the country with at least three alternative paths available in metros. Connected on this topology, the service has virtually no chance of disruption in quality performance. Access networks determine the services that can finally be delivered to customer. Reliance Communications network has wireline access technologies based on fibre as well as copper. Fibre in the access network makes broadband services easy to deploy. The wireless access network deployed for CDMA 1X is spectrum efficient and provides better quality of voice than other networks and higher data rates. CDMA 1X also provides an up gradation path to future enhancements. management systems and a customer-focused

40

Classification of retail business unit of reliance communication-

1)

RELIANCE WEB WORLD-

There are four Reliance Web Worlds in Lucknow; these are Company on Company outlet. (Coco).
• • •

Retail space-

700 sq feet.

Man Power- customer care-8, broadband services-2. Other ser vices- customer care, sales, personnel finance services desk Bill payment, hand set assoriess,

2) RELIANCE EXPRESS-

There are many Retail outlets of Reliance Company named as Reliance express, these are franchisee its Retail business unit.
• 41

MAN POWER- Four employee.

• •

SECURITY- 1.25 LAKS, 25 Thousand Non Refundable. Average walk in- 35-45 per day.

BSNL
COMPANY PROFILE

When it comes to connecting the four corner of the nation and much beyond one solitary name lies embedded at the pinnacle. BSNL. A company that has gone past the number games and quest to attain the position of leader. It is working round the clock to take India into the future by providing world class Telecom service for the people of India. Driven by the very best of Telecom Technology from chosen global Leaders it connects each inch of the nation to the indefinite corners of the globe to enable you to step into tomorrow.

42

BSNL formed in Oct 2000 is worlds 7th largest Telecommunication company providing comprehensive range of Telecom Services in India: Wire line, CDMA Mobile, GSM Mobile, Internet, Broadband, Carrier Service, MPLS-VPN, VSAT, VoIP Service, IN Service etc. within a span of 5 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 ITC applications in villages and wining customer’s confidence. Today it has about 47.3 million basic Telephone capacities, 4 million WLL capacities, 20.1 million GSM capacity, more than 37,382 fixed exchanges, 18000 BTS, 287 satellite stations, 4, 80,196 RKM of OFC cable, 63,730 RKM of Microwave Network connecting 602 districts, 7330 cities/ town 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. Infact there is no Telecom operator in the country to beat
43

it’s reach with it’s wide network giving services in every nook and corner of the company and operates across India except Delhi and Mumbai. Whether it is inaccessible area of Siachen Glacier and North Eastern reason of the country. BSNL serves it’s customer with its wide bouquet of Telecom services. BSNL is numero uno operator of India in all services in its license area. The company offers wide ranging and most transparent tariff schemes designed to suite every customer. BSNL cellular service, Cellone has more than 17.8 million cellular customers, garnering 24% of all mobile user as it’s subscribers. That means that almost every 4 Mobile user in the country has a BSNL connection. In basic services BSNL is mile a head of its Rivals with 35.1 million basic phone subscribers i.e. 85% share of the subscriber base and 92% share in revenue terms. BSNL has more than 2.5 million WLL subscribers and 2.5 million internet customer who access internet through various modes i.e Dial up, Leased line, DIAS, Account less internet. BSNL has been adjudged as the number one ISP in the country. BSNL has set up a
44

world

class

multi-

gigabit,

multi-protocol

convergent

IP

infrastructure that provide convergent services like voice, data and video through the same back bone and broad band access network. At present there are 0.6 million data one broadband customer. The Company has vast experience in planning, installation, network, integration and maintenance of switching and

transmission networks and also has world class ISO-9000 certified Telecom Training Institute. Scaling new heights of success the present turn over of BSNL is more than Rs 3, 1,820 million with net profit to the tune of Rs 99,390 million for last financial year. The infrastructure asset on Telephone is worth about Rs 63, 0000 million. BSNL expanded it’s customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs 733 crores in the next 3 years. The turnover, nation wide coverage, reach, comprehensive range of Telecom services and the desire to excel has made BSNL number one Telecom Company of India.
45

value added services
 Voice Mail service  Short Message Service(SMS)  All India Roaming  Call Forwarding  Call Conferencing  Call Waiting and Call Holding Facility

Wireless Application Protocol: surf WAP enabled websites on internet using this service.

Unified Messaging Services: integrate your Mobile phone with the internet and access your E-mails, Faxes, and Voice Mail etc on your mobile phone.

46

Classification of Retail Business Unit of B.S.N.L

B.S.N.L has oniy single type of retail business unit in whole Lucknow city named as B.S.N.L SHOPEE.

There are only five B.S.N.L SHOPEE in lucknow city .
• •

AVARAGE STAFF MEMBER- 6 AVARAGE RETAIL SPACE- 500 SQ FEET. AVARAGE WALK-IN PER DAY- 5-6 AVERAGE SALE OF PRODUCTSa) Postpaid- 2-3 per month. b) Prepaid- 5-6 per day. OTHER SERVICES- BROAD BAND CONNECTION, DATA
CARD.

• •

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Ques: Number of exclusive showrooms of TTSL and its competitors.
3 0 2 5 2 0 1 5 1 0 5 0 REL NC IA E TTS L V ODAFONE BS NL IDEA A TEL IR

INFERENCE: Reliance communication is the market leader . • TTSL and Vodafone comes second and third respectively.

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Ques: Average staff members in each of the exclusive showrooms of TTSL and its competitors.
10 9 8 7 6 5 4 3 2 1 0

REL NC IA E

VODAFONE

BS NL

AIRTEL

IDEA

INFERENCE: • Reliance has the largest gang of staff in a particular city.

49

Ques: Average Retail outlet space of TTSL and its competitors.

500 400 300 200 100 0 R LIAN E CE TS TL VO AF N D O E B NL S ID A E

INFERENCE: • RELIANCE HAS THE LARGEST OUTLRT SPACE FOLLOWED BY TTSL

50

Ques: Average walk-in per day of TTSL and its competitors.
7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 TS TL VOD O AF NE R L E IANC E AIR E TL ID A E B NL S

INFERNCE: • TTSL has the largest waik-in but not in positive direction due to regular queries of customers for the problems in handsets and services. • In positive direction Vodafone and Reliance has the largest.

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Ques:Which company offers you the best value added services?

30% 25% 20% 15% 10% 5% 0% R LIAN E CE AIR E TL ID A E TS TL VO AF N D O E B NL S

INFERENCE: Reliance is leading in good value added services by 29% followed by airtel as 25% and IDEA as 18%.

Q 11. ABOUT TATA TELE SERVICES SERVICESES.

52

50 40

s a t is fa c t o r y , 48

3 0 ve ry g o o d , 22 20 good , 12 10 0 ve r y g o o d

e x e lle n t , 1 8

s a t is fa c t o ry

INFERENCE: There are many types of responses in which only 22% are in favor of very good service, 48% are in favors of

satisfactory ,18% excellent and 12% in favors good services.

53

1)

It was found that most of respondents of the RBU’s were not much keen to reveal the retail information. It was found that most of respondents have approximate data about our queries.

2)

3) Staff of franchisee units usually dirtects us to their regional offices.

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The company should increase its reach to all area’s of Lucknow.
1)

The company should see that the consumers are charged only by reasonable price with respect to it’s competitors.

2)

The company should go to the consumers by adopting different type of marketing strategy to attract them towards it’s services.

3) 4)

The company should provide more services. The company should take some measures related to increase its value added services.

5)

The company should have to increase its retail outlet space so that the customers may not feel congested and messy.

6) The customer queries should be met with some satisfactory solutions.
7)

The company should adopt differential price strategy for different markets so that company can achieve huge market share and able to increase it’s profit.

55

In my survey I found that consumer wants more attractive scheme and more facilities. Mostly they purchase on the basis of schemes, so the company should take the necessary steps and expand their network to rural market extensively.

I found that few services needs improvements and consumers wants best service from the company. They want better schemes. There are plus point for the company in the market. . The study indicates that the consumer of TTSL want a better connectivity and more attractive scheme. So the company should take proper and immediate action on it

56

Sample Size limitation: This report consists of the study conducted with the survey of a sample of 10 retail business unit only. This does not cover the entire market and the decision is taken on the surveyed sample only.

Geographic limitation: The survey was conducted in the Lucknow city so the results and suggestions have maximum reliability pertaining to this area only.

Time limitation: The project has the time constraint of 8 weeks. So, it was not possible to visit all the area under this time limit.

There was a problem encountered while collecting the data in the questionnaires. Most of the respondents were reluctant to answer the questions and who ever answered had to be cajoled. There was a lot of bias in the answers and there was a request from most of them not to reveal their identity.

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PHILIP KOTLER:

MARKETING MANAGEMENT

C.R. KOTHARI:

RESEARCH METHODOLOGY

G.C.BERI:

MARKETING REASERCH

Besides this I have used TATA websites and so many Business Magazines, which had helped me a lot.

www.tatateleservises.com www.google.com

Questionnaire
STUDY OF RETAIL COMPETITION IN TELECOMMUNICATION SECTOR IN

58

U.P. CIRCLE Dear Sir/ Madam, I am a Student, perusing MBA from NIEC. I AM doing a project on retail competition in telecom in u.p. east circle. I request you to provide me the relevant data as per the questionnaire:Ques.1:- How many exclusive showroom do you have: -------------------------

Ques.2: - Average staff members in each of the above given Exclusive showroom :-----------------------Ques 3: - What are the types of retail unit/showroom :(1) ----------------- (a) -------------- (b) -------------- (c) (2) ----------------- (a) ------------- (b) -------------- (c) (3) ----------------- (a) -------------- (b) -------------- (c) Ques 4:- what is the average retail space of the units/showroom:(1) ----------------- (a) -------------- (b) -------------- (c) (2) ----------------- (a) ------------- (b) -------------- (c) (3) ----------------- (a) -------------- (b) -------------- (c) Ques .5 :- What is average walk-in:(1) ----------------- (a) -------------- (b) -------------- (c) (2) ----------------- (a) ------------- (b) -------------- (c) (3) ----------------- (a) -------------- (b) -------------- (c)

Ques.6:- Average sale of products 59

:-

(a) (b) (c) (d) (e) (f) (g)

Postpaid ---------------------------Prepaid ---------------------------Handsets --------------------------Accessories ------------------------------------------------------------------------------------------------------------------------------------------

Ques.7:- Other services provided by the company to the customer:(a) (b) (c) (d) -------------------------------------------------------------------------------------------------------------------------------------

Ques.8:- VAS promotion (a) (b) (c) (d) --------------------------------------------------------------------------------------------------------------------------

Name:---------------------------Signature:----------------------------

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