CHAPTER 1

INTRODUCTION

INTRODUCTION
World telecom industry is an uprising industry, proceeding towards a goal of achieving
two third of the world's telecom connections. Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that
world telecom industry is going to be a booming industry. Substantial economic growth
and mounting population enable the rapid growth of this industry.
The world telecommunications market is expected to rise at an 11 percent compound
annual growth rate at the end of year 2010. The leading telecom companies like AT&T,
Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying
to take the advantage of this growth. These companies are working on telecommunication
fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution)
technologies, LAN-WAN inter networking, optical networking, voice over Internet
protocol, wireless data service etc.
Economical aspect of telecommunication industry: World telecom industry is taking a
crucial part of world economy. The total revenue earned from this industry is 3 percent of
the gross world products and is aiming at attaining more revenues. One statistical report
reveals that approximately 16.9% of the world population has access to the Internet.
Present market scenario of world telecom industry: Over the last couple of years, world
telecommunication industry has been consolidating by allowing private organizations the
opportunities to run their businesses with this industry. The Government monopolies are
now being privatized and consequently competition is developing. Among all, the
domestic and small business markets are the hardest.

GLOBAL SCENARIO
Until the 1980s the world telecommunications systems had a simply administrative
structure. The United States telephone service was supplied by a regulated monopoly,
American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by
the Western Union Corporation. In almost all other countries both services were the
monopolies of government agencies known as PTTs (for Post, Telephone, and Telegraph).
2

In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself
of the local operating companies that provided basic telephonic service. They remained
regulated local monopolies, grouped together into eight regional companies.
AT&T now offers long distance service in competition with half a dozen major and many
minor competitors while retaining ownership of a subsidiary that produces telephonic
equipment, computers and other electronic devices. During the same period Great
Britains national telephone company was sold to private investors as was Japans NTT
telephone monopoly. For telegraphy and data transmission, Western Union was joined by
other major companies, while many multinational firms formed their own
telecommunications services that link offices scattered throughout the world. New
technology also brought continuing changes in the providers of telecommunication.
Private companies such as Comsat in the United States were organized to provide satellite
communication links within the country.
Around the world we are witnessing remarkable changes to the telecoms environment.
After years of debate, structural separation is now taking place in many parts of the world
including Hong Kong, New Zealand, Singapore and some European markets. Structural
separation or at least full-blown operational separation is required to advance the entire
industry and to create new business opportunities and innovations which will benefit our
society, our economy and ultimately our industry.
The focus is also shifting away from broadband to what it can actually achieve. Next
Generation Telecommunications better describes this new environment and is essential
for the emerging digital economy. Important services that depend on NGT include tele
health, e-education, e-business, digital media, e-government and environmental
applications such as smart utility meters.
In order to meet this burgeoning consumer demand for NGT applications, we are seeing
increasing investment in All-IP Next Generation Networks and fiber networks. A proper
inventory of national infrastructure assets is required if we want to establish an efficient
and economically viable national broadband structure for these services. In the
developing markets, next generations telecoms will take the form of wireless NGNs (ie,
LTE/WiMAX).
3

These are some of the elements of the broader ICT revolution that is unfolding before our
very eyes. We are right in the midst of the transition from old communications structures
(mainly one-way streets) to new structures that are fully-interactive and video-based.
One of the drivers behind the industry changes are the declining revenues experienced by
the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators
have been affected by deregulation, a severe industry downturn, declining prices and
major inroads by mobile services. In addition, people are drifting to other forms of
communication, such as email, online chat, and mobile text messaging instead of the
traditional phone.
This has also led to an increased need for bandwidth, which in turn has revived the
submarine cable sector. In recent times there have been many cable build-out
announcements around the world, and some major systems are again being constructed.
Over 25 systems are expected to be built over the next two to three years and network
upgrades are also on the agenda for some existing systems.
It is clear that the mobile industry is also undergoing profound changes. The saturated
developed markets are forcing the industry to find new revenue streams and we are now
seeing other organizations such as media companies, content providers, Internet media
companies and private equity companies becoming involved in this market.
For the time being however, voice will remain the killer application for mobile with some
data services included as support services and niche market services. 4G (ie,
WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the
majority of mobile revenues will come from data.
With the Internet economy, digital media and other telecommunications activities
becoming further established, the need for modern and efficient infrastructure is
becoming more critical.

INDIAN OVERVIEW
Today the Indian telecommunications network with over 375 Million subscribers is
second largest network in the world after China. India is also the fastest growing telecom
market in the world with an addition of 9- 10 million monthly subscribers. The
teledensity of the Country has increased from 18% in 2006 to 33% in December 2008,
showing a stupendous annual growth of about 50%, one of the highest in any sector of
the Indian Economy. The Department of Telecommunications has been able to provide
state of the art world-class infrastructure at globally competitive tariffs and reduce the
digital divide by extending connectivity to the unconnected areas. India has emerged as a
major base for the telecom industry worldwide. Thus Indian telecom sector has come a
long way in achieving its dream of providing affordable and effective communication
facilities to Indian citizens. As a result common man today has access to this most needed
facility. The reform measures coupled with the proactive policies of the Department of
Telecommunications have resulted in an unprecedented growth of the telecom sector.
The thrust areas presently are:
1. Building a modern and efficient infrastructure ensuring greater competitive
environment.
2. With equal opportunities and level playing field for all stakeholders.
3. Strengthening research and development for manufacturing, value added services.
4. Efficient and transparent spectrum management
5. To accelerate broadband penetration
6. Universal service to all uncovered areas including rural areas.
7. Enabling Indian telecom companies to become global players.
Recent things to watch in Indian telecom sector are:
1. 3G and BWA auctions
2. MVNO
3. Mobile Number Portability
4. New Policy for Value Added Services
5. Market dynamics once the recently licensed new telecom operators start rolling out
6. Services.
7. Increased thrust on telecom equipment manufacturing and exports.
5

8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced
9. Due to technological advancement and increase in traffic.
India's telecom sector has shown massive upsurge in the recent years in all respects of
industrial growth. From the status of state monopoly with very limited growth, it has
grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an
essential necessity for the people of India. This changing phase was possible with the
economic development that followed the process of structuring the economy in the
capitalistic pattern. Removal of restrictions on foreign capital investment and industrial
de-licensing resulted in fast growth of this sector. At present the country's telecom
industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone
companies were present, fixed landlines were popular in most parts of the country, with
government of India setting up the Telecom Regulatory Authority of India, and measures
to allow new players country, the featured products in the segment came in to
prominence. Today the industry offers services such as fixed landlines, WLL, GSM
mobiles, CDMA and IP services to customers. Increasing competition among players
allowed the prices drastically down by making the mobile facility accessible to the urban
middle class population, and to a great extend in the rural areas. Even for small
shopkeepers and factory workers a phone connection is not an unreachable luxury. Major
players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL, Tata,
Idea, etc. With the growth of telecom services, telecom equipment and accessories
manufacturing has also grown in a big way.
Indian Telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic
systems in the 19th century, the field of telephonic communication has now expanded to
make use of advanced technologies like GSM, CDMA, and WLL to the great 3G
Technology in mobile phones. Day by day, both the Public Players and the Private
Players are putting in their resources and efforts to improve the telecommunication
technology so as to give the maximum to their customers.

SCOPE OF THE STUDY

The scope of the study is limited to the post paid services offered by Reliance
Communications. Study objective is to examine the various factors which play their part
in customer buying behavior and the major dissatisfaction areas for the customers. The
study considered the urban area of Lucknow city. The sample under consideration
consisted of the existing customers of Reliance Communications.

SIGNIFICANCE OF THE STUDY

The project I chose was a study on customer awareness and satisfaction for reliance post
paid products.
The title is very much significant considering the present global scenario. The awareness
level is the basic requirement for a company to sell its products in the market because if
the customers are not aware of the products, there would be no sale. Along with the
awareness, the companies have to keep a regular check on the satisfaction level of its
customers to retain them. The survey helps to find out the loopholes is the area of service
being offered by the company. Identifying those areas would help the company to
minimize them and then they can go for increasing customers.

OBJECTIVES OF THE STUDY

The following are the objectives of the study.
1. To study the problems faced by the respondents with Reliance Postpaid service.
2. To study customer satisfaction level on Reliance services.
3. To find out consumer preferences.
4. To analyze the level of awareness about Reliance products.
5. To make suggestions in the light of the findings of the study.

LITERATURE REVIEWED:

Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its Performance
Analysis of Companies (April-June 2008) has analyzed the Indian telecom industry
in the awake of recent global recession and its overall impact on the Indian economy.
With almost 5-6million subscribers are being added every month, and the country is
witnessing wild momentum in the telecom industry, the Indian telecom industry is
expected to maintain the same growth trajectory.

Internet service providers in India, Rao (2000), provide a broad view of the role of
an Internet service provider (ISP) in a nascent market of India. Building local content,
foreknowledge of new Internet technologies, connecting issues, competitiveness, etc.
would help in their sustainability.

The role of technology in the emergence of the information society in India,

Singh (2005), 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.

T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in India

has been bungled. Shaped by legislation dating back to the colonial era and post
Second World War socialist policies, by the mid-1980s India realized that its poor
telecommunications infrastructure and service needed reform. At the heart of the
problem lay the monopoly by the governments Department of Telecommunications
(DOT) in equipment, networks and services. The National Telecom Policy 1994 spelt
out decent objectives for reform but tragically its implementation was entrusted to the
DOT. This created an untenable situation in which the DOT became policymaker,
licenser, regulator, operator and also arbitrator in disputes between itself and licensed
competitors. He discusses the question: Why did India get it so wrong? and What
India should do now?

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

10

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
telecommunications and that a deregulated 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 and a people-based demand model linked to the
Right to Information Movement. All studies done by the researcher suggests that the
right to information movement has contributed to the revitalization of participatory
democracy in India and to a strengthening of public service telecommunications.

11

CHAPTER 2
INDUSTRY PROFILE

12

INDUSTRY PROFILE
The Indian telecommunications industry is one of the fastest growing in the world and
India is projected to become the second largest telecom market globally by 2010.
India added 113.26 million new customers in 2008, the largest globally. In fact, in April
2008, India had already overtaken the US as the second largest wireless market. To put
this growth into perspective, the countrys cellular base witnessed close to 50 per cent
growth in 2008, with an average 9.5 million customers added every month. According to
the Telecom Regulatory Authority of India (TRAI), the total number of telephone
connections (mobile as well as fixed) had touched 385 million as of December 2008,
taking the telecom penetration to over 33 per cent. This means that one out of every three
Indians has a telephone connection, and telecom companies expect this pace of growth to
continue in 2009 as well. "We are extremely bullish that the growth will continue in
2009. This year, the number of additions will be in excess of 130 million," according to
T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI),
an industry body that represents all Global System for Mobile communications (GSM)
players in India. According to CRISIL Research estimates, eight infrastructure sectors,
which include the telecom sector, are expected to draw more than US$ 345.28 billion
investment in India by 2012.
With the rural India growth story unfolding, the telecom sector is likely to see
tremendous growth in India's rural and semi-urban areas in the years to come. By 2012,
India is likely to have 200 million rural telecom connections at a penetration rate of 25
per cent. And according to a report jointly released by Confederation of Indian Industry
(CII) and Ernst & Young, by 2012, rural users will account for over 60 per cent of the
total telecom subscriber base.
According to Business Monitor International, India is currently adding 8-10 million
mobile subscribers every month. It is estimated that by mid 2012, around half the
country's population will own a mobile phone. This would translate into 612 million

13

mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. It is

projected that the industry will generate revenues worth US$ 43 billion in 2009-10.

GROWTH IN SEGMENTS
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are
expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in
India. Fixed line capex is projected to be US$ 3.2 billion, and mobile capex is likely to
touch US$ 9.4 billion.
Further, according to a report by Gartner Inc., India is likely to remain the world's second
largest wireless market after China in terms of mobile connections. According to recent
data released by the COAI, Indian telecom operators added a total of 10.66 million
wireless subscribers in December 2008. Further, the total wireless subscriber base stood
at 346.89 million at the end of December 2008.
The overall cellular services revenue in India is projected to grow at a CAGR of 18 per
cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to
60.7 per cent from 19.8 per cent in 2007.
The Indian telecommunications industry is on a growth trajectory with the GSM
operators adding a record 9.3 million new subscribers in January 2009, taking the total
user base to 267.5 million, according to the data released by COAI. However, this figure
does not include the number of subscribers added by Reliance Telecom.
In WiMax, India is slated to become the largest WiMAX market in the Asia-Pacific by
2013. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and
growing annually at nearly 130 per cent. And investments in WiMAX ventures are slated
to top US$ 500 million in India, according to a report by US-based research and
consulting firm, Strategy Analytics.

VALUE-ADDED SERVICES MARKET

14

A report by market research firm IMRB stated that the mobile value-added services
(MVAS) industry was valued at US$ 1.15 billion in June 2008, and is expected to grow
rapidly at 70 per cent to touch US$ 1.96 billion by June 2009.
Currently, MVAS in India accounts for 10 per cent of the operator's revenue, which is
expected to reach 18 per cent by 2010. According to a study by Stanford University and
consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010.
Mobile advertising, which is an important VAS segment, offers great potential to become
an important revenue source. Marketers are increasingly using MVAS as a step ahead of
SMS-based marketing to sell soaps and shampoos, banking, insurance products and also
entertainment services, and rural markets are proving to be very receptive for such
marketing.
Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson, Helion, and
Nexus India are also innovating with services like mobile payment options, advertising,
voice-based SMS and satellite video streaming.
According to Venture Intelligence, there were nine deals worth US$ 41 million in 2007 in
the mobile VAS space, and till August 2008, seven deals worth US$ 91 million had
already been finalized. Presently, mobile VAS has a US$ 700 million market with a 20
per cent y-o-y growth, which is likely to touch US$ 3 billion by 2012.

15

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 single-handedly built Indias 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 kilometers of a pan-India fiber optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhais 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 revolutionizing the way India communicates and
networks, truly bringing about a new way of life.

About Sh. Dhirubhai Ambani

16

Few men in history have made as dramatic a contribution to their countrys economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of Indias capital markets, the champion of shareholder
interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest
private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronized by a small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors
to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become Indias largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the

17

initial investors in the Reliance stock, and creating one of the worlds largest shareholder
families.

VISION
We will leverage our strengths to execute complex global-scale projects to facilitate
leading-edge information and communication services affordable to all individual
consumers and businesses in India.
We will offer unparalleled value to create customer delight and enhance business
productivity.
We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally.

INDIAS LEADING INTEGRATED TELECOM 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 Indias leading integrated telecommunication company with over 77
million customers.
Our business encompasses a complete range of telecom services covering mobile and
fixed line telephony. It includes broadband, national and international long distance
services and data services along with an exhaustive range of value-added services and
applications. Our constant endeavor is to achieve customer delight by enhancing the
productivity of the enterprises and individuals we serve.

18

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002,

coinciding with the joyous occasion of the late Dhirubhai Ambanis 70th birthday, was
among the initial initiatives of Reliance Communications. It marked the auspicious
beginning of Dhirubhais dream of ushering in a digital revolution in India. Today, we
can proudly claim that we were instrumental in harnessing the true power of information
and communication, by bestowing it in the hands of the common man at affordable rates.
We endeavor to further extend our efforts beyond the traditional value chain by
developing and deploying complete telecom solutions for the entire spectrum of society.

LOOKING BACK, LOOKING FORWARD

Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by
Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sector
business houses in terms of net worth. The group has business interests that range from
telecommunications (Reliance Communications Limited) to financial services (Reliance
Capital Ltd) and the generation and distribution of power (Reliance Infrastructure
Limited).
Reliance ADA Groups flagship company, Reliance Communications, is India's largest
private sector information and Communications Company, with over 77 million
subscribers. It has established a pan-India, high-capacity, integrated (wireless and
wireline), convergent (voice, data and video) digital network, to offer services spanning
the entire infocomm value chain.
Other major group companies Reliance Capital and Reliance Infrastructure are
widely acknowledged as the market leaders in their respective areas of operation.

19

CHAIRMAN'S PROFILE
Anil D. Ambani

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D.
Ambani,48, is the chairman of all the listed companies of the Reliance ADA Group,
namely Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources limited.
He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of
Information and Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director of Reliance
Industries Limited (RIL), Indias largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally
involved in every aspect of the companys management over the next 22 years. He is
credited with having pioneered a number of path-breaking financial innovations in the
Indian capital markets. He spearheaded the countrys first forays into the overseas capital
markets with international public offerings of global depositary receipts, convertibles and

20

bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2
billion. He also steered the 100-year Yankee bond issue for the company in January 1997.
He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya
Sabha, Upper House of Indias Parliament a position he chose to resign voluntarily on
March 25, 2006.
Awards and Achievements:

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards

Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the
Business Barons TNS Mode opinion poll, 2004

Conferred The Entrepreneur of the Decade Award by the Bombay Management

Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India Economic
Forum (WIEF) in recognition of his contribution to the establishment of Reliance
as a global leader in many of its business areas, December 2001

Selected by Asiaweek magazine for its list of Leaders of the Millennium in

Business and Finance and was introduced as the only new hero in Business and
Finance from India, June 1999.

CORPORATE GOVERNANCE
Organizations, like individuals, depend for their survival, sustenance and growth on the
support and goodwill of the communities of which they are an integral part, and must pay
back this generosity in every way they can

21

This ethical standpoint, derived from the vision of our founder, lies at the heart of the
CSR philosophy of the Reliance ADA Group.
While we strongly believe that our primary obligation or duty as corporate entities is to
our shareholders we are just as mindful of the fact that this imperative does not exist in
isolation; it is part of a much larger compact which we have with our entire body of
stakeholders: From employees, customers and vendors to business partners, eco-system,
local communities, and society at large.
We evaluate and assess each critical business decision or choice from the point of view of
diverse stakeholder interest, driven by the need to minimize risk and to pro-actively
address long-term social, economic and environmental costs and concerns.
For us, being socially responsible is not an occasional act of charity or that one-time
token financial contribution to the local school, hospital or environmental NGO. It is an
ongoing year-round commitment, which is integrated into the very core of our business
objectives and strategy.
Because we believe that there is no contradiction between doing well and doing right.
Indeed, doing right is a necessary condition for doing well.

22

DEPARTMENTAL STRUCTURE

23

24

CHAPTER 3
RESEARCH METHODOLOGY

25

RESEARCH METHODOLOGY
Methodology is an essential aspect of any project or research. It enables the researches
look at the problem in a systematic, meaningful and orderly way. Methodology comprises
the sources of data, selection of data, various designs and techniques used for analyzing
the data.
1. Collection of data
The primary data are collected through survey method. Survey method is undertaken to
find the customer satisfaction and opinion. A survey was conducted among the people of
Lucknow City by the aid of well structured questionnaire. The population for the study
consists of people who are using cell phones in Lucknow City.
The sampling unit for the study is 100, which includes the cell phone, fixed wireless
phones and internet users in Lucknow City. The sampling size includes male and female
users from different occupation, age. The sampling size was restricted to 100 because of
the time constrains. Here, convenient sampling technique has been adopted for collecting
the primary data.

2. Statistical tools
For analyzing the data, statistical tables and percentages were used.
3. Limitations

The study was restricted to only those clients who were related to Reliance
Communications products.

The study was confined within specific regions of Lucknow city only.

The sample size was limited so the results obtained from the study may not be
generalized for the whole population.

The time period of the study was not sufficient to measure the consumers response
effectively and reach to a more valid conclusion.

Many of the respondents may not have given the correct information due to personal
bias.

26

CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

27

ANALYSIS AND INTERPRETATION

Table: 1
Q. Age group of respondents

Age Group

Number of Respondents

Percentage

20-25

44

44%

25-35

32

32%

35-45

18

18%

Above 45

6%

Total

100

100%

Figure 1: Age group of the respondents

INTERPRETATION:

28

44% of the respondents are between the age group 20 25.

32% of the respondents are between the age group 25 35.

18% of the respondents are between the age group 35 45.

6% of the respondents are above 45 years of age.

Table: 2
Q. Occupation of the respondents.

Occupation

Number of Respondents

Percentage

Students

34

34%

Business

52

52%

Govt. Services

10

10%

Professionals

4%

Total

100

Figure 2 : Occupation of the respondents

INTERPRETATION:

29

34% of the respondents are Students.

52% of the respondents are Businessmen.

100%

10% of the respondents are from Govt. Services.

4% of the respondents are Professionals.

Table: 3
Q. Phone/internet is being used for

Usage

No. of Respondents

Percentage

Business

54

54%

Official

10

10%

Personal

36

36%

Total

100

100%

Figure 3 : Purpose of the use of phone/internet

INTERPRETATION:

30

54% of the respondents are using Phone/internet for business purpose.

10% of the respondents are using Phone/internet for official purpose.

36% of the respondents are using Phone/internet for personal purpose.

Table: 4
Q. Which of the reliance post paid products are customers aware of?

Products
RIM Post Paid
FWP
Broadband
HSDC
Total

No. of Respondents
92
60
74
47
100

Figure 4 : Awareness of the products

INTERPRETATION:

31

92% of the respondents are aware of RIM Post Paid.

60% of the respondents are aware of FWP.

74% of the respondents are aware of Broadband.

47% of the respondents are aware of HSDC.

Percentage
92%
60%
74%
47%
100%

Table: 5
Q. How do you come to know about the products?

Medium
Television
Print
Sales Executives
Friends and existing users
Total

No. of Respondents
52
34
5
9
100

Percentage
52%
34%
5%
9%
100%

Figure 5 : Medium through which customers came to know about the products

INTERPRETATION:

52% of the respondents came to know about the products through television.

34% of the respondents came to know about the products through print.

5% of the respondents came to know about the products through sales executives.

9% of the respondents came to know about the products through friends and
existing users.

32

Table: 6
Q. Which of the following products are you using?

Products

No. of Respondents

RIM Post Paid

FWP
Broadband
HSDC
Total

Percentage

13
41
20
26
100

Figure 6 : No. of respondents using the products

INTERPRETATION:

13% of the respondents were using RIM Post Paid.

41% of the respondents were using FWP.

20% of the respondents were using Broadband.

26% of the respondents were using HSDC.

Table: 7
33

13%
41%
20%
26%
100%

Q. Are you satisfied with the service provided by the company?

Level

No. of Respondents

Fully Satisfied
Partially Satisfied
Not Satisfied
Total

Percentage

38
51
11
100

Figure 7 : Satisfaction level of the respondents

INTERPRETATION:

38% of the respondents were fully satisfied with the services.

51% of the respondents were partially satisfied with the services.

11% of the respondents were not satisfied with the services.

Table: 8

34

38%
51%
11%
100%

Q. What are the major reasons for dissatisfaction?

Reasons

No. of Respondents

Percentage

Poor quality of
signals/network
Poor voice quality
Higher cost
Slow speed
Billing errors
Poor customer care service
Total

15
4
27
13
19
22
100

15%
27%
13%
19%
22%
100%

Figure 8 : Major reasons for dissatisfaction

INTERPRETATION:

15% of the respondents were dissatisfied by poor signals/network.

4% of the respondents were dissatisfied by poor voice quality.

27% of the respondents were dissatisfied by higher cost of services.

13% of the respondents were dissatisfied by slow speed.

19% of the respondents were dissatisfied by the billing errors.

22% of the respondents were dissatisfied by poor customer care service.

Table: 9
Q. Which of the following products does a sales executive tells you about when he
visits you?
35

Products

No. of Respondents

RIM Post Paid

FWP
Broadband
HSDC
Total

Percentage

73
59
41
46
100

73%
59%
41%
46%
100%

Figure 9 : Products told by sales executives to the respondents

INTERPRETATION:

73% of the respondents were told about the RIM Post Paid by the visiting sales
executives.

59% of the respondents were told about the FWP by the visiting sales executives.

41% of the respondents were told about the broadband by the visiting sales
executives.

46% of the respondents were told about the HSDC by the visiting sales
executives.

Table: 10
Q. What channel would you prefer to buy a telecom/internet service?

Channel
36

No. of respondents

Percentage

Home delivery
Customer care
Online
Franchisee & utility shops
Total

Franchisee &
Utility shops
16%
Online
9%

18
57
9
16
100

Home delivery
18%

18%
55%
9%
13%
100%

Home delivery
Customer care
Online

Customer care
57%

Franchisee & utility shops

Figure 10: Respondents preference of buying channels

INTERPRETATION:

18% of the respondents would prefer to buy the service through home delivery.

57% of the respondents would prefer to buy the service through customer care.

9% of the respondents would prefer to buy the service online.

16% of the respondents would prefer to buy the service through franchisee &
utility shops.

Table: 11
Q. Which of the following services you look before choosing the product?

Service
Price
Connectivity
37

No. of respondents
84
46

Percentage
84%
46%

Speed
Value added service
After sales service
Total

51
23
62
100

51%
23%
62%
100%

Figure 11: Features considered by the customers

INTERPRETATION:

84% of the respondents consider price before choosing the product.

46% of the respondents consider connectivity before choosing the product.

51% of the respondents consider speed before choosing the product.

23% of the respondents consider value added services before choosing the
product.

62% of the respondents consider after sales service before choosing the product.

Table: 12
Q. If price and mobility is not a concern, which of the following would a customer
buy?

Product

No. of respondents

Percentage

Land line phone

Fixed wireless phone
Mobile based on GSM

06
17

6%
17%

technology

77

77%

38

Mobile based on CDMA

technology
Total

0
100

0%
100%

Figure12: Customers' preferences

INTERPRETATION:

6% of the respondents would buy land line phone, if price and mobility is not a
concern.

17% of the respondents would buy fixed wireless phone, if price and mobility is
not a concern.

77% of the respondents would buy mobile based on GSM technology, if price and
mobility is not a concern.

0% of the respondents would buy mobile based on CDMA technology, if price

and mobility is not a concern.

Table: 13
Q. Would a customer like to recommend reliance services to others?

Opinion
Yes
No
Total

39

No. of respondents
63
37
100

Percentage
63%
37%
100%

Figure 13: Opinion on recommending to others

INTERPRETATION:

63% of the respondents would recommend reliance services to others.

37% of the respondents would not recommend reliance services to others.

Table: 14 (a)
Q. Rate the following services on the basis of your satisfaction.
1) Network:

Satisfaction Level
Excellent
Very good
Good
Average
40

No. of respondents
11
18
21
32

Percentage
11%
18%
21%
32%

Poor
Total

18
100

18%
100%

Figure14-a: Satisfaction level for network

INTERPRETATION:

11% of the respondents rated excellent for the network.

18% of the respondents rated very good for the network.

21% of the respondents rated good for the network.

32% of the respondents rated average for the network.

18% of the respondents rated poor for the network.

Table: 14 (b)
2) SMS Rates:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

41

No. of respondents
5
27
41
18
9
100

Percentage
5%
27%
41%
18%
9%
100%

Figure14-b: Satisfaction level for SMS rates

INTERPRETATION:

5% of the respondents rated excellent for SMS rates.

27% of the respondents rated very good for SMS rates.

41% of the respondents rated good for SMS rates.

18% of the respondents rated average for SMS rates.

9% of the respondents rated poor for SMS rates.

Table: 14 (c)
3) New schemes and offers:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

42

No. of respondents
6
20
27
34
13
100

Percentage
6%
20%
27%
34%
13%
100%

Figure 14-c: Satisfaction level for new schemes and offers

INTERPRETATION:

6% of the respondents rated excellent for new schemes and offers.

20% of the respondents rated very good for new schemes and offers.

27% of the respondents rated good for new schemes and offers.

34% of the respondents rated average for new schemes and offers.

13% of the respondents rated poor for new schemes and offers.

Table: 14 (d)
4) Internet speed:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

43

No. of respondents
4
7
21
8
6
46

Percentage
9%
15%
46%
17%
13%
100%

Figure 14-d: Satisfaction level for internet speed

INTERPRETATION:

9% of the respondents rated excellent for internet speed.

15% of the respondents rated very good for internet speed.

46% of the respondents rated good for internet speed.

17% of the respondents rated average for internet speed.

13% of the respondents rated poor for internet speed.

Table: 14 (e)
5) Cost:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

44

No. of respondents
2
14
16
63
5
100

Percentage
2%
12%
16%
63%
5%
100%

Figure14-e: Satisfaction level for cost

INTERPRETATION:

2% of the respondents rated excellent for cost.

14% of the respondents rated very good for cost.

16% of the respondents rated good for cost.

63% of the respondents rated average for cost.

5% of the respondents rated poor for cost.

Table: 14 (f)
6) Customer care:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

45

No. of respondents
0
14
23
31
32
100

Percentage
0%
14%
23%
31%
32%
100%

Figure14-f: Satisfaction level for customer care

INTERPRETATION:

0% of the respondents rated excellent for customer care.

14% of the respondents rated very good for customer care.

23% of the respondents rated good for customer care.

31% of the respondents rated average for customer care.

32% of the respondents rated poor for customer care.

Table: 14 (g)
7) Recharge outlets:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

46

No. of respondents
10
19
51
13
7
100

Percentage
10%
19%
51%
13%
7%
100%

Figure 14-g: satisfaction level for recharge outlets

INTERPRETATION:

10% of the respondents rated excellent for recharge outlets.

19% of the respondents rated very good for recharge outlets.

51% of the respondents rated good for recharge outlets.

13% of the respondents rated average for recharge outlets.

7% of the respondents rated poor for recharge outlets.

Table: 14 (h)
8) Call Rates:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

47

No. of respondents
7
11
59
33
0
100

Percentage
7%
11%
59%
33%
0%
100%

Figure14-h: Satisfaction level for call rates

INTERPRETATION:

7% of the respondents rated excellent for call rates.

11% of the respondents rated very good for call rates.

59% of the respondents rated good for call rates.

33% of the respondents rated average for call rates.

0% of the respondents rated poor for call rates.

Table: 14 (i)
9) Value added services:

Satisfaction Level
Excellent
Very good
Good
Average
Poor
Total

48

No. of respondents
43
39
11
7
0
100

Percentage
43%
39%
11%
7%
0%
100%

Figure 14-i: Satisfaction level for value added services

INTERPRETATION:

49

43% of the respondents rated excellent for value added services.

39% of the respondents rated very good for value added services.

11% of the respondents rated good for value added services.

7% of the respondents rated average for value added services.

0% of the respondents rated poor for value added services.

CHAPTER 5
FINDINGS AND
RECOMMENDATIONS

FINDINGS AND RECOMMENDATIONS:

The company should emphasize more on the spreading the awareness for their
products because the level of awareness of their FWP, Broadband, HSDC is very
low.

The sales executives should play a major part in spreading awareness because
only 5% of the people came to know about the products through sales executives.

50

Sales executives may also help the company generating prospects, hence sales for
the company.

The RIM post paid has seen a major decline in its users because of the tough
competition given by the prepaid services. Hence the company should now focus
more on the internet services as there is a huge market for them to cover.

Around 2/3rd of the people are dissatisfied and majority of them reasons are poor
customer care service, billing errors and higher cost. So the company should train
their employees properly so that they have sufficient knowledge about the
products and the bills should be made more transparent so that the customers
could easily understand them.

The sales executives are not properly trained as they could not explain the
schemes properly so they just try to tell to the customer about their RIM post paid
service and not about other three services. This is the main reason for the lack in
sales of their internet services.

A majority of the customers look for the price and after sales services before
choosing the products. So the company should plan accordingly to increase their
sales.

As seen from the survey results, more than 3/4 th of the population prefer to buy a
mobile based on GSM technology. So the newly launched GSM based mobile
phones should be promoted accordingly.

Half of the population interviewed rated either average or poor for the network.
So network can be improved by planting more towers in different parts of the city
where the company does not have the signals.

More than 3/4th of the population does not like the new schemes and offers
introduced by the company. So a proper survey should be conducted and more
attractive and useful schemes must be introduced.

The cost of the products is too high for the customer to buy them. Moreover the
major problem is that several packs are activated without any prior intimation and
their price is included in the bills later, which is the major reason for
dissatisfaction.

51

Around 2/3rd of the people gave average or poor ratings to the customer care and
said that their complaints are either not heard or they are dealt very late.

The company should emphasize more on reducing the call rates and introducing
attractive value added services which would help them improve their sales.

CONCLUSION:
As there is a healthy competition given by the existing players in the industry, lack or
degradation in any of the services may affect the company badly. With the excellent rural
awareness and rural market share in telecom services, the company should also try to
boost up their urban market share. This could only be done with the help of a team of

52

properly trained and dedicated employees. Moreover there is a huge market for the
internet sector which can be captured by giving the customer, the services according to
their needs.

BIBLIOGRAPHY

http://www.indiaonestop.com/fdi-telecom.htm

http://www.trai.gov.in/Default.asp

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

http://trak.in/Tags/Business/category/telecommunication/

53

ANNEXURE
QUESTIONNAIRE
PERSONAL DETAILS
54

1)
2)
3)
4)
5)
6)

Name:
Age:
Gender:
Address:
Contact Number:
Phone/Internet is used for following purpose:
a) Business
b) Official
c) Personal

Q1.
1).
2).
3).
4).

Which of the following Reliance post paid products are you aware of?
Reliance India Mobile (RIM Post Paid)
Fixed Wireless Phone (FWP)
Broadband
High Speed Data Card (HSDC)

Q2.
1).
2).
3).
4).
5).

How did you come to know about the products?

Television
Print
Sales Executives
Friends and Existing Users
Other (Please Specify)

Q3.
1).
2).
3).
4).

Which of the following products are you using?

Reliance India Mobile (RIM Post Paid)
Fixed Wireless Phone (FWP)
Broadband
High Speed Data Card (HSDC)

Q4.
1).
2).
3).

Are you satisfied with the service provided by the subscriber?

Fully Satisfied
Partially Satisfied
Not Satisfied

Q5. If your response to the above is partially satisfied or not satisfied, then what are
the reasons for your dissatisfaction?
1). Poor Quality of Signals/Network
2). Poor Voice Quality
3). Higher Cost
4). Slow Speed
5). Billing Errors
6). Poor Customer Care Service
7). Any Other (Please Specify)
Q6. When a sales executive comes to you, which of the following products does he
frequently tells about?
1). Reliance India Mobile (RIM Post Paid)
2). Fixed Wireless Phone (FWP)
55

3). Broadband
4). High Speed Data Card (HSDC)
Q7.
1).
2).
3).
4).

What channel would you prefer to buy a telecom/internet service?

Home Delivery
Customer Care
Online
Franchisee & Utility Shops

Q8.
1).
2).
3).
4).
5).
6).

Which of the following service you look before choosing the product?
Price
Connectivity
Speed
Value Added Services
After Sales Service
Any Other (Please Specify) ..

Q9. If Price and mobility is not a concern, which of the following would you prefer
to buy?
1). Land Line Phone
2). Fixed Wireless Phone
3). Mobile based on GSM Technology
4). Mobile based on CDMA Technology
Q10. Would you like to recommend reliance services to others?
1). Yes
2). No
11). Rate the following services on the basis of your satisfaction.
Services
Network
SMS Rates
New
Schemes &
Offers
Internet
Speed
Cost
Customer
Care
56

Excellent

Very Good

Good

Average

Poor

Recharge
Outlets
Call Rates
Value
Added
Services
12). Suggestions (If Any):

57