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“STUDY OF STUDENTS PREFERENCE TOWARDS VARIOUS MOBILE SERVICE PROVIDERS”
Rohit Arora 28123 (2008-2010)
Under the Guidance of Prof. Arun Kumar
NIILM Centre For Management Studies,
CERTIFICATE OF COMPLETION
This is to certify that the dissertation report on “STUDY OF STUDENTS PREFERENCE TOWARDS VARIOUS MOBILE SERVICE PROVIDERS” prepared by Mr. Rohit Arora, a student of Post Graduate Diploma in Business Management (PGDBM 2008-10) at NIILM-CMS has been completed under my guidance and supervision.
This Dissertation Report has the requisite standard for the partial fulfillment of the PGDBM. To the best of our knowledge, no part of this report has been reproduced from any other report and the contents are based on original research.
Prof. Arun Kumar (Faculty Guide)
Rohit Arora (Student)
It takes immense pleasure for me to express my sincere gratitude to all the helping hands who have guided me in the completion of this project. It was a great learning experience for me to work on my project.
I am deeply indebted to my faculty guide Prof. Arun Kumar who has supported me immensely throughout the project through discussions and by always showing me the right course to pursue. The information and suggestions provided by him proved to be most valuable.
Last but not the least, my effort will remain incomplete if I do not express my indebtedness to my teachers & friends whose assistance and support are instrumental in the successful completion of this project.
Rohit Arora PGDBM 2008-2010 NIILM-CMS, New Delhi
OBJECTIVES OF THE STUDY
The subject matter for this research Project is to study the INC Porvorim student’s preference towards the various mobile service providers. This project consists of different objectives. They are as follows:
To know about the student preference level associated with different mobile service providers.
To find out the students satisfaction towards the various service providers. To know which advertisement media puts more impact on the buying decision of students.
Table of Content
1. Indian Telecom Industry 1.1 1.2 1.3 1.4 1.5 1.6 1.7. 2. Facts Telecom Services Growth Avenues Industry Revenue Subscriber Growth Major Players Major Investment
India’s Competitive Advantage 2.1 2.2 2.3 2.4 Stable Economic Outlook Large Market Potential Large Talent Pools Low Labour Cost
The Road Ahead 3.1 3.2 3.3 3.4 3.5 Gradual Progression in Telecom Sector Acquiring New Subscribers Selling More to Existing Subscribers Govt. Initiatives Reason for the Increasing Importance of MVAS
Key Trends in Telecom Industry 4.1 4.2 4.3 Mobile Number Portability The Inhibitors Wimax v/s 3G
3 5.Telecom Industry 5. 10 FDI Investment in Telecom Sector in India Data Analysis and Interpretation Findings Limitations Suggestions 6 .4 Consolidation In Industry Idea Cellular’s Acquisitions Telenor-Unitech Deal TTSL-DoCoMo Deal 6. 9.1 5.2 5. Industry Updates 5. 8. 7.
Privatization was gradually introduced. Telecom industry in India started to set up in a phased approach. 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. Upcoming services such as 3G and WiMax will help to further augment the growth rate. In this report we have tried to capture most of the areas of Telecom Industry. followed by cellular and basic services. Telecom Regulatory Authority of India (TRAI). first in value-added services. accounting for a tele-density of around 51 per cent by 2012. Competitive advantages. This gradual and thoughtful reform process in India has favoured industry growth.Telecom Industry Executive Summary The rapid growth in Indian telecom industry has been contributing to India’s GDP at large. 7 .26 million new customers in 2008. This is evident from the facts of Telecom Industry for example. the largest globally. Current Industry Analysis. was established to regulate and deal with competition (the service providers). It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10. Latest Innovation. and Student Preferences towards different mobile service providers. and Growth Trends. This would translate into 612 million mobile subscribers. India added 113.5 million customers added every month. The country’s cellular base witnessed close to 50 per cent growth in 2008. Major highlights of the report are History of Telecom Industry. with an average 9.
Sample Size and Design: A sample of 150 people was taken on the basis of convenience. Data Collection: The data. 8 . which is collected for the purpose of study. dichotomous and offered multiple choices. is divided into 2 bases: Primary Source: The data has been collected directly from respondent with the help of structured questionnaires. Research Period: Research work is only carried for 3 to 4 weeks. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. Secondary Source: The secondary data was collected from internet and references from Library. Research Instrument: This work is carried out through self-administered questionnaires.Telecom Industry RESEARCH METHODOLOGY Survey Design: The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience. The actual retailers were contacted on the basis of random sampling. The technique that I have used is bar graphs. The questions included were open ended.
72 million (March 2009) 391.Telecom Industry 1.2 billion Total Telecom subscribers: Wireless subscribers: Wire line subscribers : Tele density: India's service providers revenue 9 . MTNL and VSNL formed Telecom policy 1994 Basic telephony service to private operators 49% FDI 8 licenses began operations in Aug 1995 Birth of regulator : TRAI NTP 1999 New Telecom Policy CAGR of around 85% since 1999 FDI 74% (2005) having the world's lowest call rates the fastest growth in the number of subscribers ( 45 million in 4 months) the fastest sales of million mobile phones ( in a week) the world's cheapest mobile handset the world's most affordable colour phones 1. Indian Telecom Industry 1851 1947 1980's: The Beginning Early to Mid 90's: A Messy Affair Late 90's 2000+ 2007-2009 Introduction of Telegraph services Foreign Telecom Companies nationalized to form PTT Tele-density in 1980-81 : 0.1 Facts 429.3% Introduction of public pay phones Private Sector allowed Dot.98% $8.98 million 36.76 million 37.
PMRTS (Public Mobile Radio Trunking Services).Telecom Industry 1. which are Fixed Service Provider (FSPs) and Cellular Services. Fixed Line and WLL(Wireless Local Loop ). Telecom Services Telecommunication sector in India is primarily subdivided into two segments. television and Internet. CDMA (Code Division Multiple Access). Telecom industry in India is specifically emphasizing on latest technologies like GSM (Global System for Mobile Communications). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast. Telecom industry in India constitutes some essential telecom services like telephone.2. Internet PMRTS VSATs Radio Paging GMPCS Basic Services Mobile Services 10 . radio.
many service providers are considering infrastructure sharing offers the following advantages: Improved service quality Increased affordability for customers Faster roll out of services in rural and remote areas Significant reduction in initial set up costs Increased environmental aesthetics Lower operating costs for service providers Enterprise Telecom Services includes key services. In such cases. On account of the rapidly growing subscriber base. IT infrastructure enabled 11 . To reduce their network deployment costs. they completely or partially outsource their infrastructure or network management operations.3 Growth Avenues Managed Services is another segment that is attracting telecom companies. such as voice over Internet protocol (VoIP). dedicated telecom communication systems.Telecom Industry 1. service providers find it difficult to manage their infrastructure and network management operations.
etc. the 3G spectrum is among the major investment opportunities and growth drivers of the telecom industry. WiMAX is expected to accelerate economic growth and assist in providing better education. WiMAX has been one of the most significant developments in wireless communication in the recent past. Virtual Private Network is a private data network that provides connectivity within closed user groups via public telecommunication infrastructure. value-added services and enterprise services. healthcare and entertainment services. Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian market. aims to connect 74. 3G The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as well as foreign players. Telecom service providers are increasingly targeting enterprises by providing dedicated services and is expected to witness major developments in near future. Value Added Services: The VAS industry was worth USD 632 million in 2006–07. The industry is estimated to grow by 60 percent in 2007–08 and become an USD 1.011 million opportunity. Thus. The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added Services. BSNL. Therefore. it will lead to the increased use of telecom services. 12 . and creating a competitive environment that offers better services to consumers. Reliance and VSNL have acquired licenses in the 3. Since this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps. Internet. The state-owned player. it is expected to be a major factor in driving telecom services in India. especially wireless services.3GHz range to 12tilize the opportunities offered by this domain. Bharti. Competition is likely to heat up in the VPN segment as DoT has relaxed the norms for private players.000 villages through WiMAX. It is estimated that India will have 13 million WiMAX subscribers by 2012. Aircel is the pioneer in WiMAX technology in India.Telecom Industry unified communication services. India expects to replicate its 2G growth in 3G services.
such as location information and mobile transactions. there is scope for growth in other avenues as utility-based services. such as the Indian film industry and cricket. rural telephony will require major investments. This segment will boost the demand for telecom services. however.Telecom Industry The VAS industry is currently focusing on the entertainment sector. equipment. Rural Telephony: As the government targets to increase rural teledensity from the current 2 percent to 25 percent by 2012. thereby. offering great market opportunities for telecom players. Internet services and other value-added services. 13 .
4 Industry Revenue (2002-2010) According to a Frost & Sullivan industry analyst.8 billion in India. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding nearly 9 million new subscribers in April 2009. The figures. fixed line revenues are expected to touch US$ 12. by 2012. do not include the GSM subscriber additions made by Reliance Telecom. a growth of 3. however.Telecom Industry 1.11 per cent over the additions made the previous month. India has become the second country in the world to have more than 100 million CDMA-based (code division multiple access) mobile phone subscribers after the US.2 billion while mobile revenues will reach US$ 39. which has 157 million CDMA users. Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010 (forecasted) Revenue (US $ billion) 9 10 11 15 20 32 36 43 2002-03 2003-04 2004-05 2005-06 2006-07 9 10 11 15 20 2007-08 2008-09 2009-2010 (forecasted) 0 5 10 15 20 25 30 32 36 43 35 40 45 50 Revenue (US $ billion) 14 . taking the total user base to 297 million.
Subscribers (in millions) 450 400 350 300 250 200 150 100 50 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 33.22 98. the total number of telephone connections reached 441. around half the country’s population will own a mobile phone.5 million customers added every month.76 15 . India is currently adding 8-10 million mobile subscribers every month.Telecom Industry 1. It is estimated that by mid 2012.5 Subscriber Growth India added 130 million new customers in 2008-09. the largest globally. This would translate into 612 million mobile subscribers. accounting for a tele-density of around 51 per cent by 2012.11 261.69 52. with an average 9. By April 2009.07 Subscriber (in millions) 391. With this growth. the overall tele-density reached 37. The country’s cellular base witnessed close to 50 per cent growth in 2008.77 165.94 at the end of April 2009. According to Business Monitor International.47 million.
16 . the private players accounted for more than 80 per cent. the public sector operators (BSNL and MTNL) accounted for the remaining share (20 per cent) Market Share of CDMA Service Providers Reliance Tata Indicom Others 8% 35% 57% Source: www.71 million. out of the total subscriber base of 212.coai. whereas.com Reliance Communications dominates the Indian CDMA mobile services segment with a subscriber base of 42.com Bharti Airtel has the largest market share in the GSM segment.coai. During 2008–09.51 million.Telecom Industry Market Share of GSM Service Providers Bharti Airtel Aircel Vodafone Essar Reliance BSNL MTNL !dea MTS 7% 13% 2% 4%0% 32% 18% 24% Source: www.
broadband & telephone services with national and international long distance services. In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. It offers its mobile services under the Airtel brand and is headed by Sunil Mittal.Telecom Industry 1. In August 2007. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology). The company complements its mobile.6. Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network. the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers. which connects the submarine cable connecting Chennai and Singapore. Long Distance Services and Enterprise Services (Telecommunications Consulting for corporate). VSATs. Internet Connectivity(DSL) and Leased Line). The company also provides telephone services and Internet access over DSL in 14 circles. Broadband & Telephone Services (Fixed line. With more than 60 million subscriptions as of 13th February 2008. Airtel is the largest cellular service provider in India in terms of number of subscribers. Major Players “Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications license. last mile connectivity in fixedline and mobile circles. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone. The company also has a submarine cable landing station at Chennai. 17 . ISP and international bandwidth access through the gateways and landing station. In July 2007.
It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain. Anil Ambani controls 66.36 billion shares of the company. Reliance Communications has a reliable. data and video) digital network. is part of Reliance Communications Ventures (RCoVL).75 per cent of the company. financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. and consulting. Reliance Communications (formerly Reliance Infocomm). Reliance Communications is revolutionising the way India communicates and networks. which accounts for more than 1. had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. applications. along with Reliance Telecom and Flag Telecom.000 route kilometres of a pan-India fibre optic backbone. who single-handedly built India’s largest private sector company virtually from scratch. comprising of power (Reliance Energy).” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani. integrated (both wireless and wireline) and convergent (voice. the auspicious occasion of Dhirubhai’s 70th birthday.Telecom Industry 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. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group. though sadly after his unexpected demise on 6 July 2002. This backbone was commissioned on 28 December 2002. According to National Stock Exchange data. truly bringing about a new way of life. high-capacity. They will overcome the handicaps of illiteracy and lack of mobility. Dhirubhai. including infrastructure and services — for enterprises as well as individuals. It uses CDMA2000 1x technology 18 .Reliance Infocomm is an Indian telecommunications company. Today.
Wireless EBITDA increased to Rs. 2002.000 km of fibre optic backbone in India. This network was commissioned on December 28. revenues of the Wireless business increased by 46% to Rs. This portal leverages the data capability of the CDMA 1X network. and EBITDA increased by more than 6 times.728 crore (US$ 2. 2. Margins expanded to 37% from 31%. from 15% in the corresponding period in the previous year. state wise. EBITDA of the Global business increased by 98% during the twelve months ended March 31. 10. FOOTPRINT At present. In the same period. 1. Reliance Telecom's GSM cellular services are available in 340 towns within its eight-circle footprint. 2007 to Rs. to Rs. 3.144 crore (US$ 265 million). The EBITDA margin crossed 45% in the twelve months ended March 31.Telecom Industry HISTORY Reliance Infocomm was founded by Dhirubhai Ambani. Reliance's CDMA services are available in 19 states and cover about 65% of the country. the Broadband business achieved revenue growth of 123% to Rs. mobile data services through its R-World mobile portal.489 million) from Rs.364 crore (US$ 1. 19 . EBITDA margins increased to 24% from 12% last year. Between 1999 to 2002 Reliance Infocomm built 60.250 crore (US$ 522 million). 519 crore (US$ 120 million).271 crore (US$ 295 million). Reliance Infocomm also offered for the first time in India. 2007. BUSINESS REVIEW During the twelve months ended March 31. 1. 2007. 7.709 million).984 crore (US$ 924 million) from Rs.
Rajasthan. data cards. Starting with the major acquisition of Hughes Tele. Himachal Pradesh. With a committed investment of INR 36. interactive applications like news. Punjab. cricket. etc. Wi-Fi Internet. Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. roaming. Kerala. new mobile handsets and new voice & data services such as BREW games. 2. The company. Tamil Nadu.000 Crore (US$ 7. Other services include value added services like voice portal.Telecom Industry Tata Teleservices is part of the INR Rs.com (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. calling card services and enterprise services. group calling. Incorporated in 1996. Maharashtra. It has partnered with Motorola. Bihar. Gujarat. Uttar Pradesh (W). Karnataka. Kolkata. that has over 80 companies. Some of the other products launched by the company include prepaid wireless desktop phones. post-paid Internet services. Madhya Pradesh and RoWB. Ericsson. technologically advanced network. Tata Teleservices has created a Pan India presence spread across 19 circles that include Andhra Pradesh. 20 . With the total Investment of Rs 19. Mumbai. Delhi.8 million. Wireless Desktop Phones. Haryana.5 billion) Tata Group. Having pioneered the CDMA 1X technology platform in India. 3-way conferencing. the Group has a formidable presence across the telecom value chain. Public Booth Telephony and Wire line ervices. public phone booths. Voice Portal. polyphonic ring tones. Tata Teleservices spearheads the Group’s presence in the telecom sector. USB Modem. Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. which heralded convergence technologies in the Indian telecom sector.000 employees and more than 3.30. Tata Teleservices’ bouquet of telephony services includes Mobile services. Uttar Pradesh (E). picture messaging. Orissa. astrology. Lucent and ECI Telecom for the deployment of a reliable.543 Crore (US$ 62.924 Crore.51. is today the market leader in the fixed wireless telephony market with a total customer base of over 3.2 million shareholders.5 billion) in Telecom (FY 2006). over 3.
Telecom Industry Tata Indicom redefined the existing prepaid mobile market in India.000 jobs. by unveiling their offering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive free incoming calls. Tata Teleservices has a strong workforce of 6000. Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 27 million customers in more than 6000 towns. TTSL has created more than 20. Tata Teleservices offers world-class technology and userfriendly services in 19 circles.000 indirect jobs through outsourcing of its manpower needs. In addition.i-choose. which will include 10.in to offer postpaid mobile connections in the country. 21 . 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. With an ambitious rollout plan both within existing circles and across new circles. Today.
90 billion).06b (US$ 1. VSAT.14% market share as on December 31. It is the India's largest telecommunication company with 25. expanding the network.3 million line basic telephone capacity. more than 37382 fixed exchanges.1 Million GSM Capacity. 2007. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL.15b (US$ 9. Broadband. 22 . BSNL is India's oldest and largest Communication Service Provider (CSP). 4. As on December 31. 7330 cities/towns and 5.67 b) with net profit of INR 78. it has about 47.5 million (Basic & Mobile telephony). GSM Mobile. New Delhi. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline. 2000. Janpath. India Communications Corporation Limited) is a public sector communications company in India. 20.a status assigned to reputed Public Sector companies in India. Within a span of five years it has become one of the largest public sector unit in India.7 million Wireline. 63730 Rkm of Microwave Network connecting 602 Districts.5 Lakhs villages. BSNL is India's largest Telco and one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. Today. BSNL's earnings for the Financial Year ending March 31. The company is planning an IPO with in 6 months to offload 10 % to public. Today. IN Services etc. 480196 Rkm of OFC Cable. 2007 BSNL commanded a customer base of 31. Carrier service. 2007 stood at INR 397. Bharat Sanchar Nigam Ltd. Harish Chandra Mathur Lane. BSNL has installed Quality Telecom Network in the country and now focusing on improving it.1 million CDMA-WLL and 32. VoIP services. 18000 BTS.Telecom Industry Bharat Sanchar Nigam Limited (known as BSNL. Internet. 4 million WLL capacity. Its headquarters are at Bharat Sanchar Bhawan. It has the status of Mini-ratna .7 million GSM Mobile subscribers. CDMA mobile. 287 Satellite Stations. introducing new telecom services with ICT applications in villages and wining customer's confidence. Currently BSNL has a customer base of 68. MPLS-VPN. formed in October.
The company offers vide ranging & most transparent tariff schemes designed to suite every customer. Dial-up. BSNL has set up a world class multi-gigabit. Installation. 85 per cent share of the subscriber base and 92 percent share in revenue terms. BSNL has been adjudged as the NUMBER ONE ISP in the country.6 million DataOne broadband customers. Scaling new heights of success.8 million cellular customers. garnering 24 percent of all mobile users as its subscribers.e. reach. In basic services.5 million WLL subscribers and 2.1 million Basic Phone subscribers i. 733 crores (US$ 16. BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs.99. That means that almost every fourth mobile user in the country has a BSNL connection.820 million (US $ 8 billion) with net profit to the tune of Rs. BSNL is miles ahead of its rivals. has more than 17. 23 . BSNL serves its customers with its wide bouquet of telecom services. The company has vast experience in Planning.37 billion). BSNL is numero uno operator of India in all services in its license area. making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. Account Less Internet(CLI).67 million) in the next three years. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country.390 million (US $ 2.000 million (US $ 14. DIAS. with 35.Telecom Industry BSNL is the only service provider. CellOne. network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. the present turnover of BSNL is more than Rs. The turnover. The infrastructure asset on telephone alone is worth about Rs. multi-protocol convergent IP infrastructure that provides convergent services like voice. At present there are 0. BSNL has more than 2.26 billion) for last financial year. Leased Line.630. comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India. BSNL cellular service. data and video through the same Backbone and Broadband Access Network.5 million Internet Customers who access Internet through various modes viz.351. nationwide coverage.
Idea also launched Global SMS for the first time in the country. Andhra Pradesh. Idea has launched a voice portal with 'Say IDEA'. Haryana. there are over 350 direct customer service outlets and a well-entrenched network of over 48. innovation is central to the VAS factory. Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh. Uttaranchal.Telecom Industry IDEA CELLULAR LIMITED Idea Cellular is a part of Aditya Birla Nuvo. Idea embarked upon an initiative to set up a VAS (value-added services) factory within the company. Idea is the market leader in the Maharashtra and Goa. Madhya Pradesh. Idea is a leading cellular operator. Uttar Pradesh (West). Gujarat. Goa. Having operations in four of the five largest cellular circles in India. It is a wireless telephony company operating in various states in India. Today. Idea covers over 1000 towns along with a total highway connectivity of over 10. Uttar Pradesh (West) and Madhya Pradesh and Chattisgarh circles in terms of number of subscribers. UP West. 24 . Idea offers roaming across 560 operators in India and across the world. distinct innovative and tremendously valuable services to the subscribers. Idea's footprint currently covers approximately 45 per cent of India's population and over 50 per cent of the potential telecom market. Idea was the first and only company to launch music messaging with 'Cellular Jockey' to all its subscribers. As a leader in value added services. TDMA and satellite phones.000 retailers and dealers across the country. Kerala and Delhi (inclusive of NCR). Chattisgarh. Idea's Delhi circle is also the fastest-growing fourth operator in the country. which allows the users to send and receive SMS from over 540 networks and 170 countries across technology platforms like GSM. It controls a portfolio of India's most attractive and mainly contiguous properties including the 11 states of Maharashtra (excluding Mumbai). which conceptualizes and provides tailor-made value-added services. with a subscriber base of over seven million across the country in its eight circle operation. which is an achievement in itself and showcases customer confidence of a high degree. Each circle with its own dedicated call centre and a single call resolution approach towards the customer is a unique effort provided by any operator. CDMA.000 kilometres. With a clear focus on providing unique. a flagship company of the Aditya Birla Group. Rajasthan and Tata Cellular as well as Birla AT&T Communications. It initially started in 1995 as a joint venture among the Tatas.
Idea has announced the. a once-in-a-lifetime opportunity to own a free dazzling real diamond pendant with every new postpaid connection on a plan of Rs. The latest feather in the Idea cap is winning the GSM Association Award for Bill Flash. high-speed video downloads. in July 2004. The award was presented for Idea's unique "Bill Flash" service in the "Best Billing or Customer Care Solution". subscribers can enjoy live television with a data download rate of over 160 kbps. Idea is the only operator in the world to launch this service. Idea was the first company in the country to launch GPRS in November 2002. web-infotainment. 'Lifetime Idea' is the first and only loyalty program. introduced by a cellular brand. Idea has the distinction of offering the most customer friendly and competitive pre-paid offerings. with 'Eco Talk'. 150 and above. In keeping with the promise of providing world class products and services to its customers.paid customers. multimedia messages with video attachments. The GSM Association Awards are recognized as the Oscars of the GSM mobile industry. Idea has added another first to its list by announcing the launch of its new VAS innovation — Background Tones. GPRS is available on all its networks.Telecom Industry A frontrunner in introducing revolutionary tariff plans. With EDGE (a 3G technology). In another revolutionary and unprecedented move. It showcased EDGE (Enhanced Data Rates for GSM Evolution) in Delhi. for pre. Idea subscribers also have a richer experience while watching movie previews. It is indeed with pleasure that we proudly announce that Bill Flash has been created by our in-house R&D Team. 'Super Power' and other segmented offerings. Idea is the only Indian operator to have won an award at this forum since the inception. It is also the only cellular operator which has launched a complete suite of mobile e-mail services. Idea has also introduced a convenient ambulance service for its customers of Indore. 'Pay Easy' is bill payment through the effective use of the pre-paid channel. Idea thus became the first cellular operator in India to win an award on an international platform. for both pre-paid and post-paid customers. 25 . for the first time in India. Customer service and innovation are the drivers of this cellular brand. java game downloads and other Internet-based multi-media experiences on their EDGE-enabled mobile phones. 'Flexi-charge'. "Idea Girls' Best Friend Offer".
managing director. but an acceleration into the future with Vodafone’s global expertise. energy. the world’s leading international mobile communications company.Telecom Industry Vodafone. has been named the Most Respected Telecom Company. About Vodafone Essar Limited: Vodafone Essar in India is a subsidiary of Vodafone Group plc and commenced operations in 1994 when its predecessor Hutchison tele Vodafone essar now has operations in 16 circles covering 86% of India’s mobile customer base. with over 34. has fully arrived in India brand will be lunched in India from 21st September onwards. Hutch. The popular and endearing brand. the world’s leading mobile telecommunication company. said “We have had a great innings as Hutch in India and today marks a new begin that created Hutch. the Best Mobile sender effective advertiser of the year. will be transitioned to Vodafone across India. It now has operation network with over 200 million customers worldwide. construction. Asim Ghosh. Over the year. This marks a significant chapter in the evolutic brand change over the next few weeks will be unveiled nationally through a high profile campaign covering all important media. Vodafone Essar.” the Vodafone mission is to be the communications leader in an increasingly connected world – enriching customers lives.1 million customers. The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like steel. completed the acquisition of Hutchison Essar in May 2007. under the hutch brand. The group has an asset base of over Rs. helping increased by delivering their total communication needs. Vodafone Essar. Vodafone has partnered with the Essar Group as its principal joint venture partner.400 billion and employer over 20.000 people.. Vodafone is the world’s leading international mobile communications company. Vodafone. GROWTH OF HUTCHISON ESSAR (1992-2005): In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai 26 .
it announced the acquisition of a company that held licence applications for the seven remaining license areas. By the time of Hutchison Telecom's Initial Public Offering in 2004. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. the company grew its business in the largest wireless markets in India . Andhra Pradesh and Chennai 2003: Acquired AirCel Digilink (ADIL . well known brand and large distribution network -all vital to longterm success in India. a strategic and well managed business plan is critical to success. Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs. 1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition 2001: Won auction for licenses to operate GSM services in Karnataka. Analjit Singh of Max still holds 12% in company. expenses and interests) of approximately US$11. Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 27 . In these densely populated urban areas it was able to establish a robust network. it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide. In a country growing as fast as India. Delhi and Kolkata. In February 2007. By adopting this focused growth plan. In 2006. Initially. Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16.Telecom Industry (formerly Bombay) and launched commercial service as Hutchison Max in November 1995.in cities like Mumbai.1 billion or HK$87 billion.Essar Subsidiary) which operated in Rajasthan.
'Uttar Pradesh West' and 'West Bengal' 2005: Acquired BPL. another mobile service provider in India 2008: Vodafone acquired Dishnet Wireless.Telecom Industry 2004: Launched in three additional telecom circles of India namely 'Punjab'. 2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network. 28 . a service provider in Orissa and has successfully launched its services in the following circle.
will put in about US$ 1. Buoyed by the rapid surge in the subscriber base. The Russian government is likely to pick up equity amounting to US$ 670 million-US$ 700 million in Sistema Shyam TeleServices Ltd (SSTL). Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million. Japanese telecom major NTT DoCoMo acquired a 27.7. huge investments are being made into this industry. for US$ 225 million. plans to invest US$ 220. Norway-based telecom operator Telenor has bought a 60 per cent stake in Unitech Wireless for US$ 1. 29 . by the end of this financial year. Telecom operator Aircel. Major Investments The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services.16 billion in its WiMax project. a GSM service provider. which launched GSM mobile services in Bangalore in February 2009.58 million over the next year to set up base stations across the state. BSNL. Bahrain's Batelco has signed a deal to buy 49 per cent in Chennai-based S-Tel. SSTL is also planning to invest US$ 5.31 per cent equity capital of Tata Teleservices for about US$ 2.Telecom Industry 1. a joint venture between Russiabased telecom major Sistema and Shyam Group in India.5 billion over the next 5 years in India.23 billion.6 billion in November 2008. India's leading telecom company in revenue terms.
The middle class population is also a significant market for any business entity. It has a mature and dynamic private sector.1 Stable Economic Outlook: A decade of reforms has opened the country to greater competition and spurred industries to become more efficient. India will even surpass the US and become the 30 . It is also expected to achieve the highest growth rate among the BRIC countries (Brazil. it has now revised its previous estimates and claims that by 2050. India’s Competitive Advantage An analysis of the Indian telecom industry under the Porter’s Diamond Model reveals that India offers a competitive advantage for firms operating in the country. India offers significant business opportunities to the services. and a market with enormous potential due to its large size and diversity. Goldman Sachs had earlier predicted that India will become the third-largest economy in the world. India’s huge domestic market and buoyant economic growth have always attracted foreign investors. rising foreign exchange reserves of over US$ 266. as well as the manufacturing sectors. Russia. India’s emergence as a leading destination for foreign investment is a result of positive indicators such as a stable 6 per cent annual growth. Some of the key advantages of investing in India are outlined below. AT Kearney ranked India as the second-most attractive democracy in its FDI confidence index. India is currently the fourth-largest economy on PPP basis and is well positioned on a continuously increasing growth curve. However. 2. India is the fastest growing free market democracy in the world.Telecom Industry 2.18 billion(July 24th 2009) and Foreign Direct Investment (FDI) of US$ 15 billion. India and China). The success of MNCs is a proof that India is an attractive investment destination. This is because India offers benefits such as cost advantage in product development and back-office processing and the large-scale availability of skilled English-speaking professionals. which accounts for 75 per cent of India’s GDP.
Due to rapid economic growth and rise in disposable income. another 200 million people will be joining the league. This large base of skilled manpower offers unparalleled advantages to the companies operating in India.100. which churn out approximately 200. India is one of the largest consumer markets in the world.3 Large Talent Pool The working age population is expected to rise by 83 per cent by 2026. thereby offering numerous opportunities to marketers around the globe. 300. As per this forecast. about 54 per cent of the country’s total population was below 25 years of age. The country’s economic growth has become more attractive due to the rising share of the services sector in the GDP. The country’s upper middle class spends 6 percent of its earnings on telecom services. The numerous BPOs and KPOs flourishing in India are a direct consequence of companies choosing the latter option. India has over 380 universities and about 1.000 other graduates and around 9.be it natural or man-made. Indians will purchase five times more cars and consume three times more crude oil than they do today. Approximately 33 per cent of India’s population will be residing in urban areas by 2026.500 research institutes. As a result.000 PhDs. 2.Telecom Industry second-largest economy after China. By 2013. India will become a large consumer of world resources .000 post graduates. or they have outsourced their work to a third party in India. 2. as against 28 per cent in 2001. the spending power of consumers is increasing rapidly.2 Large Market Potential Around 30-40 million people in India join the middle class every year. According to the 2001 census. 2. 31 . many multinational companies have either established operation hubs in India to leverage this sizeable talent pool. representing an exponential growth in the ‘consuming class’.000 engineers. It has been forecasted that 15 years down the line. Indians will be approximately four times richer than they are today.
It has pumped in US$ 150 million into its Chennai facility.4 Low Labour Cost CII estimates that manufactured product outsourcing accounted for US$ 10 billion in 2007. The Ministry of Commerce. India has one of the lowest labour costs among the developing countries. An apt example is Nokia. Government of India.Telecom Industry 2. which has set up its manufacturing operations in India considering the long term sustainable demand for mobile telephony. 32 . as compared to developed countries. The country has also emerged as a major R&D hub with more than hundred Fortune 500 companies based in India. The value will escalate to US$ 50 billion by 2015. which is the foremost factor for attracting multinational giants in every sector. The company believes that this initiative will help the company in reducing time to market and respond better to customer requirements. has estimated that off shoring operations to India can provide a cost benefit of up to 40 to 60 per cent.
Telecom Industry 33 .
In order to capitalize this opportunity of meeting the consumer needs in highly competitive market the operators have reduced the tariffs to attract consumers with low purchasing power primarily in semi urban and rural India. In fact.Telecom Industry 3. the real potential for telecom service growth is still lying untapped. Through these changing regulations and events.1 Gradual Progression in Telecom Sector : The progression chart below depicts the major regulations and events driving the extra ordinary growth of Telecom sector from year 1999 to 2008. Apart from the basic telephone service. revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012. the Industry players are aiming to achieve the following Acquiring new subscribers by expanding in Semi Urban and Rural India Selling more services to existing subscribers 34 . there is an enormous potential for various value-added services. In fact lucrative offers like being paid for incoming calls have transformed the scenario completely. 3. The Road Ahead The target for the 11th Plan period (2007-12) is 600 million phone connections with an investment of US$ 73 billion. as against US$ 31 billion in 2008. According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues'.
The USO fund was an initiative taken up by the government to increase rural teledensity. BSNL and two private operators will erect 427 towers in remote areas offering over four lakh mobile connections. In such a scenario mobile VAS sector is a potential long-term revenue stream as it will be easier to sell more to the existing customers.4 Government Initiatives Government also has supported the growth of this sector by coming out with a number of initiatives for the low end subscribers of rural India. 3. 3. and Universal Service Obligation (USO) fund was one such initiatives.2 Acquiring New Subscribers through expansion in Rural India Acquiring customers have always been a great challenge for companies. This would lead to increased focus on MVAS by mobile operators.3 Selling More to Existing Subscribers This is relatively easier as compared to acquiring new customers. Also since now the new subscriptions will largely happen at the bottom of the pyramid therefore the new subscriptions will further lower the average revenue per user. DoT aims at erecting 11. Under the second phase. 35 . All the towers are expected to be erected and commissioned by December 2008.Telecom Industry The recent TRAI recommendation permitting PC-to-phone calls where ISPs can offer cheaper STD calls and even free local calls. increasing subscriber base in urban market would be all the more challenging. 3. Given the current level of saturation in Metros and Urban Market and cut throat competition among operators . In recent developments. Telecom Regulatory Authority of India (TRAI) has recently given orders for the withdrawal of the ADC (Access Deficit Charge) and the subsequent passing of the benefit to the consumers by the telecom operators. Therefore a lot of operators with adequate support from Government are eyeing the rural market for future growth. This certainly explains the future penetration of these services in remotest of villages.000 towers throughout the country to offer over 11 million mobile connections ADC was levied by Telecom Regulatory Authority of India (TRAI) in 2003 to provide support for BSNL's rural telephone obligation. Big operators like Airtel have claimed that soon mobile connections and recharge vouchers etc will be available at all such places from where people buy match boxes. This would result in further reduction of voice tariffs.
Therefore it is very important for them to differentiate themselves from the others. The tariff in India is one of the lowest at Rs. 36 . Saturation in Metro and Urban Market: The metro/urban areas offer high level of penetration and have significant mobile subscribers. In such a highly saturated market with the entry of MVNO’s the competition will get fierce.Telecom Industry 3. Therefore there would be a greater need to differentiate oneself in order to attract new customers and retain the existing ones. and 37 cellular licenses) in the telecom space the average numbers of operators in many circles have increased to 5-6 operators offering more choices to the consumer. Therefore capitalizing on value added services will give operators opportunity to increase ARPU by providing premium services. 3G bidders who are non operators: The arrival of new technologies will give rise to greater competition as many non operators are also bidding for the 3G licenses. As ARPU declines and voice gets commoditized. Need for differentiation: There is a greater need among the telecom operators to differentiate themselves from each other. Decreasing Call Rates: In order to attract consumers with relatively low purchasing powers primarily from Semi Urban and Rural India the operators have drastically reduced the call rates making it affordable to even the lower segment of society. the challenge is to develop alternative revenue streams and retain customers by creating a basis for differentiation in high-churn markets.1 per minute as compared to the tariff in developed nations like USA and UK where the call rates are Rs. Thus the competition among the operators has increased tremendously.13 and Rs7-8 respectively. Number of Licensees: With increasing number of licensees (98 UASL. The reasons for the increasing importance of MVAS can be classified as: Decrease in ARPU despite increase in MOU: Though the subscriber base is growing at a rapid pace and has positively impacted industry revenues. Now that voice has got commoditized these operators are using MVAS for their differentiation and marketing these services heavily for creating awareness among the consumers. operator margins also have shrunk owing to competition and lower “Average Revenue per User” (ARPU) as the major growth is coming from bottom of the pyramid. Department of Telecom has planned to allow five 3G operators in each circle depending on the availability of spectrum.5.
Telecommunication has moved beyond providing just basic voice calls. after Cinema halls. Today most of the consumers are seeking more from their communication device apart from just mobility and desire to stay connected. 37 . The mobile phone has evolved from a mere communication device to an access mode with an ability to tap a plethora of information and services available in the ecosystem.Telecom Industry Increasing need and demand from consumers: In addition to the above supply side reasons the ‘pull effect’ from consumers asking for more than just basic telephony is also a key driver for MVAS services. This is the reason why it is now being referred to as the ‘fourth screen’. As we have seen. Television and PC.
1 Huge Costs: One of the most common barriers in MNP implementation. has been the implementation cost. In short. Referring to the recent example of the US. but simple.Telecom Industry 4. Examples of critical systems and processes that would be affected are: billing. customer service. home location registers (HLRs). and visiting location registers (VLRs).2." Why mobile number portability (MNP)? When fully implemented nationwide by both wireline and wireless providers. from their respective governments. Especially any system that relies on mobile identity numbers (MINs) or mobile directory numbers (MDNs) will be affected. short messages service center. 4. In addition. Key trends in telecom industry 4.2 The Inhibitors 4. invoices and other materials for businesses. calling name presentation. based on the cost factor. roamer registration and support. stationery. this is a deceptively simple and very welcome change. being able to ‘port’ a number from one provider to another eliminates the hassle and expenses of changing business cards.1 Mobile Number portability (MNP) One of the most frequent definitions that prevail in the telecom circles for number portability is: "Number portability is a circuit-switch telecommunications network feature that enables end users to retain their telephone numbers when changing service providers. switches. service types. From the wireless carrier’s perspective the change is anything. thereby ensuring better services in all respects. within any country. family and business contacts that their wireless number is changing. Service Providers have been constantly bargaining for time. Virtually all of wireless carriers’ systems are affected. this is the best method to increase the efficiency of the service provider by increasing the competition. caller ID. providing unprecedented convenience for consumers and encouraging unrestrained competition in the telecommunications industry. call delivery. order activation. and or locations. directory assistance. maintenance and CSC systems. where each of the large carriers would need to spend $50–60 million to 38 . portability will remove one of the most significant deterrents to changing service. because they can change wireless service providers without worrying about notifying friends. From the subscribers’ perspective.
a company has to upgrade both its hardware and software capabilities. 3G scores for voice. The cost estimate for the implementation of WNP in developed nations like the US can be very helpful for the other countries. Infrastructure Upgrade: To support WNP. albeit with the same number.2 Customer Retention/Increased Competition: Every subscriber in a race to retain its customer would like to offer its customers best services so as to save them from porting. which they need to recover before the subscriber moves to the new service provider (NSP). Wimax may lead to increased broadband penetration. With the Department of Telecommunications gearing up for simultaneous release of 3G and WiMax spectrum. WiMAX or Worldwide Interoperability for Microwave Access is a telecom technology that enables wireless transmission of data. which has its portability compatible would be expected to attract maximum customers and will emerge the winner.2. The experience of developed countries exhibits that local number portability for fixed wireline was introduced within two to three years of introduction of competition to incumbent state telcos. who wish to think on the lines of number portability. 4. The technology is available as IEEE 802. and then aggressively pursue the customers of other carriers thereafter. 4.3 Wimax v/s 3G The WiMAX vs. To add on increased marketing costs are to be realized as the carriers look to lock up their current base before number portability is implemented.Telecom Industry institute the service and an equivalent sum to maintain it. and the user experience of the Internet will be irreversibly changed in the process. The FCC on this plea gave wireless carriers in the US another year. the old service provider (OSP) has to perform a query to identify if there are any billing amounts pending. The carriers need to upgrade their networks to handle portability requests. It offers downloads of up to 70 Mbps as compared to the 15 Mbps that 39 . The provider. Softwares need to be upgraded to provide proper routing of calls. 4.16E (mobile).2. as they would get better service irrespective of the carrier.. Fortunes will be made and lost in this battle.e. analysts expect the two emerging wireless technologies to battle it out for supremacy.16D (fixed) and IEEE 802. till November 2003. for resolving implementation issues. which will amount to some cost. i. 3G cellular showdown is poised to become one of the next great market battles in the telecom industry.3 Cost Recovery and Bill Reconciliation/Query Processing: When a customer plans to shift. It’s like a blessing in disguise for the customers.
Some companies have commercially launched fixed WiMax services in certain cities. as providing the last mile over the conventional digital subscriber lines would be time-consuming and costly. WiMax makes huge sense for companies as it enables them to provide cheaper mobile internet and broadband services. The Telecom Regulatory Authority of India has set a target of 20 million broadband connections by 2010 from the current 4.Telecom Industry 3G provides. However. in turn. Bharti Airtel and Reliance Communications are the proponents of WiMax. Most of the companies have had beta-runs of the technology. even though they might stick with 3G or 2G spectrum for voice. While opponents of WiMax say currently it cannot be used for mobile applications. Intel. this will adversely impact services like GPRS and e-mail on mobile asusers might move over to WiMax-enabled devices for data. Another reason for the industry pinning its hopes on WiMax is its ability to increase the broadband penetration.3 million. According to a top official with a service provider. telecom service providers are in various stages of WiMax implementation. Mobile WiMax offers download speeds of around 20 Mbps. the first mobile WiMax network was introduced in Italy this July. According to a consultant of Ernst & Young service providers would mainly use the technology for gaining traction with the customers. In India. companies like Tata Communications Internet Services. increasing the internet penetration. 40 . Bharat Sanchar Nigam Ltd. The industry expects WiMax to bridge the gap.
With respect to shares. In the first phase.716 crore. Also there’s restriction by TRAI with respect to number of operators per telecom circle.900 crore. Industry Updates 5. by increasing its stake in Unitech Wireless. An additional Rs 544 crore was paid to the promoters of Spice group as 'non-compete fee'. 5. they got 33. Telenor will infuse cash in four stages and at each phase.8% stake of Spice Communications at Rs 77. Small players like Spice Telecom operating at only a few circles(Karnataka and Punjab) will find difficult to compete with the nationwide players in the long run. Idea Cellular’s Acquisition of Spice Telecom There were three transactions as part of this acquisition. New license holders will continue to look to sell their stake at a premium.1 Consolidation in Industry. a noncompete fee and a capital infusion of about Rs 7300 crores received from TM International Bhd (TMI). Telenor-Unitech Deal Norwegian Telecom major Telenor is in the process of acquiring controlling stake of 67. 3G and WiMax license will spur M&A and partnership activity. Telecom players are looking to tap into global funds to finance their aggressive growth plans. So it was a win-win deal for both companies. The spectrum auctioned by GoI is a scarce resource nowadays and cost a premium.2. As per the deal.3.Telecom Industry 5.25% in Unitech wireless via equity infusion. Idea acquired 40. New policies will seek to curb this license arbitrage. There was a share swap in which Spice shareholders got 49 Idea shares for every 100 Spice shares held. In the second phase they completed the acquisition for a 49 per cent stake in 41 .5% ownership in Unitech Wireless. acquisition of shares of Spice. The industry may see consolidation with these smaller operators being acquired by the larger ones. 5. The deal was strategically important for Idea Cellular as it was looking forward to transfer itself into a pan-India telecom service provider. “Unbundling of the corporation” will continue as companies will seek f or economies of scale and lower startup cost by infrastructure sharing. Smaller players with operations in only a few circles will find in difficult to compete with the nationwide players. The enterprise valuation of Unitech Wirelsss is about Rs 10. This will result in partnerships joint ventures and equity sellout to foreign players. So it makes sense to acquire a small telecom operator.30 a share for Rs 2.
DoCoMo’s international expansion plans have not always proven successful. The Tata DoCoMo-branded GSM service has already started in Southern India and gradually will be expanded nationwide. value-added services.130 crore for a further 15. The difficulties faced by the firm in spreading its domestically successful i-mode service internationally typify the obstacles it has faced overseas. with the firm historically preferring to take small stakes in firms and then try to influence their strategy. 5. as other leading carriers have chosen to do.” 42 . DoCoMo had said “participating proactively in TTSL’s management by providing human resources and technical assistance to help realise improved network quality and the possible introduction of leadingedge. With Tata.5 per cent stake in the company.Telecom Industry Unitech Wireless by paying Rs 1.4 TTSL – DoCoMo Deal. The acquisition is expected to be completed by end of this quarter. It has been less prepared to take majority stakes and impose its will. Japanese carrier NTT DoCoMo acquired 26 per cent stake in Tata Teleservices (TTSL).
FDI Investments in the Telecom Sector in India The Indian telecom industry has always allured foreign investors. the Middle East and Africa. It will pump in an additional US$ 150 million to this set up.513. The company has already produced 25 million handsets in its Chennai facility. the Indian telecom handset manufacturing market is likely touch US$ 7 billion by 2010. thereby further reducing the cost. in the telecommunication sector amounted to US$ 7. The company exports around 20 per cent of its volume to South-east Asia. The investment was majorly in handset manufacturing and telecom service provider.5 billion in the past two and a half years in the Indian telecom sector.22 million. FDI in Telecommunication Sector (US $ million) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 521 1275. the cumulative FDI inflow. Excited by the record-breaking industry growth. India has the potential to become the electronics manufacturing hub of the world. In fact. An example is Nokia. India will receive an additional US$ 2 billion investment in the next one year.65 2345. This makes telecommunication the third-largest sector to attract FDI in India in the post liberalization era. 43 . from August 1991 to March 2007.Telecom Industry 6. Local manufacturing allows companies to avoid 4 per cent countervailing duties on imported handsets. With the world now recognising India’s manufacturing potential. investors have outlaid US$ 1.38 116 129 680 With stable macroeconomic impetus and numerous other advantages.
Telecom Industry 7.33 80 70 60 50 40 30 20 10 0 Male Female 1. Do you have any Mobile Connection? PARTICULARS NUMBER Yes 150 No 0 160 140 %AGE 100% 0% 120 100 80 60 40 20 0 Yes No 44 . Data Analysis & Interpretation DEMOGARPHIC FEATURES OF REPONDENTS Particulars Numbers Male 85 Female 65 90 %age 56.67 43.
Telecom Industry INTERPRETATION: All the respondents had mobile connections. of respondents 103 45 2 %age 68.66 30 1. This shows the increase in usage and popularity of mobile phones in students. 3. of respondents 132 18 %age 88 12 45 .33 120 100 80 60 40 20 0 1 2 more than 2 INTERPRETATION: Out of 150 respondents 69% says that they had 1 connection while 30% were having 2 or more connections. Which service are you using? Particulars Prepaid Postpaid No. 2 How many mobile connections do you have? Particulars 1 2 more than 2 No.
00 16.Telecom Industry 140 120 100 80 60 40 20 0 Prepaid Postpaid INTERPRETATION: Out of 150 respondents 88% were using prepaid connections while only 12% of respondents were using postpaid connections. Which Mobile connection are you currently using? PARTICULARS AIRTEL VODAFONE IDEA RELIANCE MTNL TATA INDICOM AIRCEL MTS NO.00 14.OF RESPONDENTS 30 21 18 15 3 30 24 9 %AGE 20.00 46 .00 10.00 20.00 6. 4.00 2.00 12.
and share of Aircel is increasing due to its charges and facilities like internet etc.Telecom Industry 35 30 25 20 15 10 5 0 AIRTEL VODAFONE IDEA RELIANCE MTNL TATA INDICOM AIRCEL MTS INTERPRETATION: Out of 150 respondents 20 % were using Airtel & another 20% were using Tata Indicom due to its coverage and call charges.33 47 . Are you satisfied with the services? PARTICULARS Yes No NUMBER 112 38 %AGE 74.67 25. 5. Share of Vodafone and Idea is decreasing due to its highest call charges and most of the student prefer those who provides low call charges and more value added services.
00 OTHERS 7 4. of respondents %age COVERAGE 31 20. Which facility attracts you most? PARTICULARS No.S.Telecom Industry 120 100 80 60 40 20 0 Yes No 6.P.67 CALL CHARGES ROAMING CHARGES G.R.33 5 3. 74 49.67 48 .33 33 22.
OTHERS INTERPRETATION: Out 150 respondents 50% of respondents were attracted by the call charges.P.S.00 OTHERS 10 6. and 20% of students prefer coverage facility.R. Which advertisement media puts more impact on your buying decision? NO. RESPONDENTS 82 OF PARTICULARS %AGE T.S.67 49 .R.67 NEWSPAPERS 23 15. 22% by G.33 INTERNET 30 20.P.Telecom Industry 80 70 60 50 40 30 20 10 0 COVERAGE CALL CHARGES ROAMING CHARGES G. 54. 7.33 MAGAZINES 5 3.V.
RESPONDENTS 75 OF PARTICULARS %AGE 1 year 50. NEWSPAPERS MAGAZINES INTERNET OTHERS INTERPRETATION: Through this we can infer that T.00 3 years More years than 3 20 13.67 50 .Telecom Industry 90 80 70 60 50 40 30 20 10 0 T. 8.V.33 10 6.00 2 years 45 30.V advertising have great impact on the students rather than other mode of communication media. From how long you are availing the services of this particular service provider? NO.
9.67 51 . due to increase in competition every day companies launches new schemes so that students prefer to shift from one service provider to other according to their need and requirements.Telecom Industry 80 70 60 50 40 30 20 10 0 1 year 2 years 3 years More than 3 years INTERPRETATION: Out of 150 respondents 50% were availing the services of those particular service providers since 1.33 No 88 58. RESPONDENTS 62 OF PARTICULARS %AGE Yes 41. Would you like to change your current service provider in future? No.
because due to high competitive market every service provider provides the same type of services to its customer. 52 .Telecom Industry 100 90 80 70 60 50 40 30 20 10 0 Yes No INTERPRETATION: Out of 150 respondents 60% did not want to change their current service providers.
Most of the students prefer prepaid connections than postpaid connections. FINDINGS Few years back mobile connections were not common among the students. Maximum number of respondents were attracted towards the Call Charges and Coverage and the least like the roaming services. Newspaper and Internet are the best media advertisements that put more impact on the students buying decisions. Most preferred cellular company amongst the students is Airtel and Tata Indicom and the least preferred company is MTS and MTNL. 53 .V.Telecom Industry 8. T. But with the mobile revolution now we can find almost every student with mobile phone.. Mostly the students are satisfied with the services provided by their cellular companies.
54 . Sample Size is very small i. technology. So. This study is based on the prevailing customer’s preference. etc. The respondents at most times are not available The respondents before knowing about the survey refuses. fashion. LIMITATIONS This study is restricted only to the South Delhi. It was not possible to complete survey on all the mobile service providers. It was difficult to cover the entire market and know the behavior of the respondents. 150 only. development. But the customer’s preference may change according to time. the results may not be applicable to other areas.e.Telecom Industry 9.
Conducting better marketing research for understanding the needs of the customers. Idea should try to expand their customer’s network. Vodafone. Idea and MTNL should give periodical offers to attract the students. 55 . Better communication channels for proper coordination and feedback from the customers. SUGGESTIONS MTNL.Telecom Industry 10 . Hire better and capable employees with better understanding of the market for effective performance. MTS. Adopting better promotion strategies. All the service providers are try to increase post paid users. Need to properly segment the market based on the needs and fulfill the needs of the customers accordingly.
So. the students get maximum benefit from their service provider. 56 . Conclusion The Indian Telecom Service provider industry is gearing for a revolution. So. It leads to adding new features. schemes. service providers are increasing in more level. This study attempts to find out the perception of students regarding cell phone service providers. The customer is driving this revolution and will see more unique and sophisticated offerings coming his way.Telecom Industry 7. periodical offers to their service. This decade. most of the students using cell phones. Service provider should over come another one’s competition.
Malhotra 57 . World Bank Report: Spectrum auctions in India: lessons from experience Search Engines: www. Cellular Statistics – Cellular Operator Association of India 2. References 1.com: Idea Spice deal 6.prowess.MARKET & OPPORTUNITIES. Moneycontrol.Poaching with Portability. 5.com Books: Marketing Research by N. IBEF report 2007-08 : Telecommunication . 4. 3.Telecom Industry 8.google. Business India : Telecom Takeover.com www. Voice and Data(May 2009): Mobile Number Portability .K.
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