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Summer Training Project

on

“COMPARATIVE STUDY OF TELECOM SECTOR”

Submitted to:
Mr. Tribhuvan Pratap Singh
Project Supervisor

Submitted by:
Himanshu Kumar
Roll No. 0908170045
MBA- III Sem.
September 2010

to

U.P. TECHNICAL UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES


INSTITUTE OF FORIEGN TRADE & MANAGEMENT
LODHIPUR RAJPUT, DELHI ROAD,MORADABAD(U.P.)
“COMPARATIVE STUDY OF TELECOM SECTOR”

by
HIMANSHU KUMAR
MBA III SEMESTER
SUBMITTED TO DEPARTMENT OF MANAGEMENT STUDIES IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION


AT THE
INSITUTE OF FORIEGN TRADE AND MANAGEMENT

SEPTEMBER 2010

The author hereby grants IFTM, MORADABAD reproduce and to distribute publicly, paper
and electronic copies of the project report in whole or in part.

Signature of student
Department of Management studies
September 2010

Certified by
Mr. Tribhuvan Pratap Singh
Project Supervisor

Accepted by
Dr. Manjula Jain
Professor and Director
Department of Management studies
ACKNOWLEDGEMENT

I express my heartfelt gratitude toward Mr.Tribhuvan Pratap Singh (Project

Supervisor) for giving me the opportunity to do the Project Work and for providing me

this learning experience in this esteemed organization.

I would like to thanks all the customers whom I met and they gave their valuable time to

answer my queries.

Heartiest thanks to Dr. Manjula Jain (Director of Management Studies , IFTM,

Moradabad) and other faculty members, librarian and all other staffs of my esteemed

institute for their time to time assistance.

Lastly I would express my sincere thanks to all respondents for their cooperation. I am

extremely obliged and highly thankful all those who have contributed to completion of this

project.

Himanshu Kumar
MBA IIIrd Semester
CONTENTS

Acknowledgement

1. Introduction

2. Scope of The Study

3. Industry Profile

4. Company Profile

5. Product Profile

6. Research Methodology

7. Findings & Analysis

8. Conclusions

9. Suggestions

10. Limitations

Bibliography

Annexure
INTRODUCTION

The telecommunications system in India was thrown open to private players in the

1990s. The country is divided into multiple zones, called circles (roughly along state

boundaries) and the four largest cities (Delhi, Mumbai, Kolkata and Chennai) are circles in

their own right. The government owned BSNL runs local, mobile and long distance

telephone services all over the country (except in the Delhi and Mumbai circles). Several

private companies give competition to BSNL/MTNL in different circles.

Landlines: Landline service in India is primarily run by BSNL (MTNL in Delhi and

Mumbai). There are other companies too, such as Touchtel and Tata Teleservices which do

not have a pan-Indian presence. Reliance Infocomm has licences to provide services all

over the country, but have started off only with CDMA mobile and fixed mobile services

(where the phone is not wired to the exchange, but is used like a fixed line at home or

office).

Landlines are now facing competition from mobile telephones (GSM and CDMA

based). Mobile phone connections are readily available from private companies for

relatively low prices. The competition has forced the government owned monopoly BSNL

(MTNL in Delhi and Mumbai) to become more efficient. The landline network quality has

improved and landline connections are now usually available on demand, even in high

density urban areas. In addition to the government monopoly, there are several private
landline telephone companies, notably Reliance and Tata Teleservices and Bharti (which

runs the landline company Touchtel and the mobile company Airtel).

Long distance service is now more comprehensive and cheaper, carried primarily on fiber

optic cable. There are several private long distance companies, the government owned

BSNL continues to use its monopoly against them. However, the competition has caused

prices to drop and calls across India are now comparable in price to calls across the

continental United States

Government landline provider:

Most of the people in the country are using the landline telephones which is mainly

provided by the government company. BSNL is the largest telecom operator in India and

is known to everybody for Basic Telephony Services for over 100 years. Presently the

Plain old, Countrywide telephone service is being provided through 32,000 electronic

exchanges, 326 Digital Trunk Automatic Exchanges(TAX), Digitalized Public Switched

Telephone Network (PSTN) all interlinked by over 2.4 lakh km of Optical Fiber Cable,

with a host of Phone Plus value additions to our valued Customers. BSNL's telephony

network expands throughout the vast expanses of the country reaching to the remotest part

of the country.
Private landline provider:

1.Reliance Infocomm : Reliance Infocomm network is a pan India, high capacity,

integrated (wireless and wireline) and convergent (voice, data and video) digital network,

designed to offer services that span the entire Infocomm value chain - infrastructure,

services for enterprises and individuals, applications and consulting. The network is

designed to deliver services that will foster a new way of life for a New India.

2. Tata Teleservices : Tata Teleservices is part of the INR 54,000/- crore (US$11.2

billion) Tata Group, that has over 90 companies, over 210,000 employees and more than

2.16 million shareholders. With an investment of over INR 9,000 crore (US$ 2 billion) in

Telecom, the Group has a formidable presence across the telecom value chain. The Tata

Group plans an additional investment of around INR 9000/- crore (US$ 2 billion) in this

sector in the next two years.Tata Teleservices spearheads the Group's presence in the

telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA

mobile services in India with the Andhra Pradesh circle. According to the study of this

field, I can say that consumers are very keen to observe the every opportunity provided by

the various players in the field of landline telephones. Consumers showed the very

effective attitude towards my study.


SCOPE OF THE STUDY

According to the study the telecom sector is emerging sector in Indian industry. Landline

and mobile services are comprise under the telecom sector. An efficient and rapid of the

information is the catalyst for economic and social development. vision 2020 conceives of

India as evolving into an information society knowledge economy. Where IT and

telecommunication will be the springboard of growth. Already telecom sector is improving

opportunities for the people across different social strata. A whole range of information

based industries and application has come up. Creating new sources of employment and

earning.

Social attention must be focused on strengthening the regulatory framework and further

improving teledensity, broadband connectivity and providing telecom companies with the

right environment for infrastructure development.

My study concentrating over the following points.

1. income effect show that middle income people are very interested to purchase the

landline so it is good area for concentrating by various companies.

2. satisfaction level is very crucial for companies my study put light on this aspects.

3. comparative study also help many companies to judge the place.

• To know about the pre-purchase behavior of consumer under the following points:

a. Income effect on their consumption.

b. Source of information.
c. Occupational effect.

d. Purpose of purchasing landline phone.

• To know about the factor which influence the customer at a time purchasing a

landline phone.

• To study the comparative market of various company.

• To know the satisfaction level of consumer.


INDSUTRY PROFILE

The world is waiting at our doorsteps, waiting for us to open the gates to an economy bubbling

with opportunities. The India growth story has already got the world to sit up and take a note of

the changing economic scenario. The Indian government is doing everything that is possible to

ensure that this story remains intact. Factors, like the liberalization in the government stance and

the daring entrepreneurs of the Indian soils, have helped the sectors achieve the highs like never

before. And currently, the flavour of the month seems to be the telecom industry.

TELECOM SECTOR IN INDIA

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million

telephone lines making it the third largest network in the world after China and USA, with a

growth rate of 45%. Indian telecom industry has the highest growth rate in the world. A record 5.9

Million new mobile phone subscribers were drawn by the Telecom sector in India in the month of

August 2006, according to the COAI (Cellular Operators Association of India).

India, which is seeing over 8 million wireless subscribers being added every month (8.62 million

in May 2008), is the fastest growing telephone market in the world. No wonder the whole world

has set its eyes on India, a glimpse of which can seen from the recent acquisition of Hutch by

Vodafone and consolidation phase which has just begun. The government has reiterated the target

of 500 million telecom subscribers and 20 million broadband connections by 2010. Undoubtedly,

the Indian telecom industry is at an inflexion point and everyone wants to have a slice of this

lucrative market, given the under-penetrated market and untapped potential.


From a monopolistic market in 1995 to more than 10 operators now… India has come a long way

The August of 1995 saw the launch of the first mobile service in India, ‘Modi Telstra’ in Calcutta.

However, the call rate structure; with an outgoing call rate of Rs.16 a minute, incoming call rate of

Rs.8 a minute and cell phones costing around Rs.15,000 were the prime reasons why the cellular

communication did not get the desired popularity. The New Telecom Policy in 1999 introduced

several consumer-friendly initiatives. Only after the entry of private operators like Bharti Airtel,

Hutch, Reliance, Tata, BPL, Idea, etc., who created a competitive market which further reduced

operational costs, did the upward trend in the number of mobile subscribers started. The tariffs

have come down substantially with Indian Mobile rates being the lowest in the world. The number

of wireless subscribers rose from 16 million in 2003 to 317 million at the end of May 2008. With

this, India has become one of the fastest growing mobile markets in the world. Already, The

Indian market leader, Bharti Airtel has already crossed the 50 million customer mark to become

one of the world’s top 10 operators and has become the fastest private telecom company in the

world to achieve this milestone.

HISTORY OF INDIAN TELECOMMUNICATION

History of Indian Telecommunications started in 1851 when the first operational land lines were

laid by the government near Calcutta (seat of British power). Telephone services were introduced

in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio

Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign

telecommunication companies were nationalized to form the Posts, Telephone and Telegraph

(PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was
considered as a strategic service and the government considered it best to bring under state's

control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private

sector was allowed in telecommunications equipment manufacturing. In 1985, Department of

Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-

distance service that would be its own regulator (separate from the postal system). In 1986, two

wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL)

for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for

service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also,

examples of telecom revolution in many other countries, which resulted in better quality of service

and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening

up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the

first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997,

Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a

regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted

in 1999 and cellular services were also launched in the same year.
Indian Telecom Industry is one of the fastest growing telecom markets in the world with the

telecom subscriber base standing at ~ 300.48 million as of 31st March 2008.

TELECOM SERVICE AVAILABLE IN INDIA

The telecom services available in India include-

1. Basic Fixed Line Services

2. Mobile Services (GSM & CDMA)

3. Internet Services

4. International Long Distance Services

5. National Long Distance Service

6. Pager Services
The telecom subscriber base as of 31st March 2008 was 300.48 million compared to 6.4 million and

3.6 million at the end of the March of 2002 and 2001 respectively.

Telecom subscriber as on 31st march 2008-

1. Wireline subs 39.42 mn

2. Wireless subs 261.07 mn

- GSM 192.7mn

- CDMA 68.37mn

GSM vs. CDMA

GSM and CDMA are the two main competing network technologies deployed by cellular service

provider’s world over.

GSM (Global System for Mobile Communications) originated in Europe in 1990. The GSM

Association is an international organization founded in 1987, dedicated to developing, providing

and overseeing the worldwide wireless standard of GSM

While CDMA (Code Division Multiple Access) is a proprietary standard designed by Qualcomm

Inc in United States and has been the dominant network standard for North America and parts of

Asia. It became an international standard in 1995.

However now, GSM networks have penetrated the United States and the CDMA networks have

spread in other parts of the world. People of both the camps claim that their architecture is

superior to the other.


RESTRAINTS ON TELECOM SECTOR

 Sluggish pace of reform process

 Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make

inroads into this market segment

 Limited Spectrum availability

India is huge market and none of service providers can dare to ignore its potential. That’s why

Indian mobile service provider industry is growing leap and bounce for the last decade. This

journey of 1 million to 50 million will keep it pace until each citizen in India will have his own

mobile. Industry has many phases in its growth. Now mobile doesn’t mean a only a medium of

communication. Services providers are now willing to provide varies facilities like entertainment

(music, video etc.) and even banking also. We can say that business is transforming in e-

commerce to m-commerce (mobile-commerce). In short we can say drastic change has came in

the industry along with expanding its base in subscribers, they are keeping eye not only to offer

new facilities but also to be the first to provide it.

Progress of reforms

a. Private Participation in Telecom - For the provision of basic services, the entire country

was divided into 21 telecom circles, excluding Delhi and Mumbai (Singh et. al. 1999).

With telecom markets opened to competition, DoT and MTNL were joined by private

operators but not in all parts of the country. After a recent licensing exercise in 2002, there

exists competition in most service areas. However, the market is still dominated by the

incumbent. In December 2002, the private sector provided approximately 10 million

telephones in fixed, WLL (Wireless Local Loop) and cellular lines compared to 0.88
million cellular lines in March 1998 (DoT Annual Report, 2002). 72 per cent of the total

private investment in telecom has been in cellular mobile services followed by 22 per cent

in basic services. After the recent changes, the stage is now set for greater competition in

most service areas for cellular mobile Over time, the rise in coverage of cellular mobile

will imply increased competition even for the basic service market because of competition

among basic and cellular mobile services.

b. Teledensity and Village Public Phones (VPTs) - India's rapid population increase

coupled with its progress in telecom provision has landed India's telephone network in the

sixth position in the world and second in Asia (ITU). The much publicized statistic about

telecom development in India is that in the last five years, the lines added for basic

services is 1.5 times those added in the last five decades! The annual growth rate for basic

services has been 22 percent and over 100 percent for internet and cellular services. As

Dossani (2002) argues, the comparison of teledensity of India with other regions of the

world should be made keeping in mind the affordability issues. Assuming households have

a per capita income of $350 and are willing to spend 7 percent of that total income on

communications, then only about 1.6 percent of households will be able to afford $30 (for

a $1000 investment per line).

Teledensity has risen to 4.9 phones per 100 persons in India compared to the average 7.3

mainlines per 100 people around the world. Figure 2 shows the growth rate of fixed and

cellular mobile subscription between 1998 and 2002. Although, the coverage is still much

higher in urban areas - 13.7 in urban areas compared to1.4 in rural areas, the government

has made efforts to connect villages through village public telephones (VPT) and Direct

Exchange Lines (DEL). This coverage increased from 4.6 lakhs in March 2002 to 5.10

lakhs in December 2002 for VPT and from 90.1 lakhs in March to 106.6 lakhs in
December 2002 for DELs. BSNL has been mainly responsible for providing VPTs; more

than 84 percent of the villages were connected by 503610 VPTs with private sector also

providing 7123 VPTs .

The overall telecom growth rate is likely to be high for some years, given the increase in

demand as income levels rise and as the share of services in overall GDP increases. The

growth rate will be even higher due to the price decrease resulting from a reduction in cost

of providing telecom services. A noteworthy feature of the growth rate is the rapid rate at

which the subscriber base for cellular mobile has increased in the last few years of the

1990s, which is not surprising in view of the relatively lower subscriber base for cellular

mobile.

c. Foreign Participation – India has opened its telecom sector to foreign investors up to 100

percent holding in manufacturing of telecom equipment, internet services, and

infrastructure providers (e-mail and voice mail), 74 percent in radio-paging services,

internet (international gateways) and 49 percent in national long distance, basic telephone,

cellular mobile, and other value added services (FICCI, 2003). Since 1991, foreign direct

investment (FDI) in the telecom sector is second only to power and oil - 858 FDI proposals

were received during 1991-2002 totaling Rs. 56,279 crores (Figure 4) (DoT Annual

Report, 2002). Foreign investors have been active participants in telecom reforms even

though there was some frustration due to initial dithering by the government. Until now,

most of the FDI has come in the cellular mobile sector partly due to the fact that there have

been more cellular mobile operators than fixed service operators. For instance, during the

period 1991-2001, about 44 percent of the FDI was in cellular mobile and about 8 percent

in basic service segment. This total FDI includes the categories of manufacturing and

consultancy and holding companies


d. Tariff-setting - An essential ingredient of the transition from a protected market to

competition is the alignment of tariffs to cost-recovery prices. In basic telecom for

example, pricing of the kind that prevailed in India prior to the reforms, led to a high

degree of cross-subsidization and introduced inefficient decision-making by both

consumers and service-providers. Traditionally, DoT tariffs cross-subsidized the costs of

access (as reflected by rentals) with domestic and international long distance usage charges

(Singh et. al. 1999). Therefore, re-balancing of tariffs - reducing tariffs that are above costs

and increasing those below costs - was an essential pre-condition to promoting competition

among different service providers and efficiency in general.

TRAI issued its first directive regarding tariff-setting following NTP 99 aimed at re-

balancing tariffs and to usher in an era of competitive service provision. Subsequently, it

conducted periodic reviews and made changes in the tariff levels, if necessary. Table 4

shows the current level of telephone charges in India effective from January, 2003. Re-

balancing led to a reduction in cross-subsidization in the fixed service sector. Cost based

pricing, a major departure from the pre-reform scenario, also provides a basis for making

subsidies more transparent and better targeted to specific social objectives, e.g. achieving

the USO.

e. Service Quality - One of the main reasons for encouraging private participation in the

provision of infrastructure rests on its ability to provide superior quality of service. In

India, as in many developing countries, low teledensity resulted in great emphasis being

laid on rapid expansion often at the cost of quality of service. One of the benefits expected

from the private sector's entry into telecom is an improvement in the quality of service to

international standards. Armed with financial and technical resources, and greater

incentive to make profits, private operators are expected to provide consumers value for
their money. Telephone faults per 100 main lines came down to 10.32 and 19.14 in

Mumbai and Delhi respectively in 2002-03 compared to 11.72 and 26.6 in 1997-98

(Figures 6 and 7). Quality of service was identified as an important reform agenda and

TRAI has devised QOS (Quality of Service) norms that are applicable across the board to

all operators (Singh et. al. 1999).

Pre reform period and Telecommunication in India

Before 1990's Telecommunication services in India were complete government Monopoly

- the Department of Telecommunication (DoT). Government also retained the rights for

manufacturing of Telecommunication equipments. MTNL and VSNL were created in the

year 1986.Early 1990's saw initial attempts to attract private investment.

Telecommunication equipment manufacturing was deli censed in the year 1991.

A notable revolution has occurred in the telecom sector. In the pre reforms era, this was

entirely in the hands of the central government and due to lack of competition, the call

charges were quite high. Further, due to lack of funds with the government, the

government could never meet the demand for telephones. In fact, a person seeking a

telephone connection had to wait for years before he could get a telephone connection. The

service rendered by the government monopoly was also very poor. Wrong billing,

telephones lying dead for many days continuously due to slackness on the part of the

telecom staff to attend to complaints, cross connections due to faulty / ill maintained

telephone lines, obsolete instruments and machinery in the telephone department were the

order of the day in the pre reforms era.

Today, there are many players in the telecom sector. The ultimate beneficiary has been the

consumer. Prices of services in this sector have fallen drastically.


Telephone connections are today affordable to everyone and are also easily available.

Gone are the days, when one had to wait for years to get a telephone connection. The

number of telephone connections which was only 2.15 million (fixed lines) in 1981

increased to 5.07 million(fixed lines) in 1991. Today (as in 2003), there are 54.62 million

telephone connections of which 41.33 million are fixed line telephone connections, 12.69

million are cellular mobiles and the remaining 0.60 million are WLL telephones1.

Wireless in Local Loop (WLL) telephones and cellular mobile telephones were unknown

in India a few years ago. Cell phones charges have come down so much that today one can

see even a common man going around with a cell phone in his hand. The private

companies are giving various incentives to attract customers, a situation which is entirely

opposite to the conditions prevailing in the pre reforms era when one had to wait for years

to get a telephone connection.

The first step toward deregulation and beginning of liberalization and private sector

participation was the announcement of National Telecom Policy 1994.NTP 1994 , for the

first time, allowed private/foreign players to enter the 'basic' and the 'new cellular mobile

section. FDI up to 49% of total equity was also allowed in these sectors. The policy

allowed one private service provider to compete in basic services with the incumbent DoT

in each DoT internal circle. It allowed duopoly in cellular mobile services in each circle.

As part of the implementation of the NTP 94, licenses were issued against license fees

through a bidding process. This policy initiated the setting up of an independent regulator–

the Telecom Regulatory Authority of India (TRAI), which was established in 1997. The

main objective of TRAI is to provide an effective regulatory framework to ensure fair

competition while, at the same time, protect the interest of the consumers.
Liberalization and reforms in Telecom sector since early 1990's till date are briefed

below:

1991-92:

1. On 24th July 1991, Government announced the New Economic Policy.

2. Telecom Manufacturing Equipment license was delicensed in 1991.

3. Automatic foreign collaboration was permitted with 51 per cent equity by the

collaborator.

1992-93:

Value added services were opened for private and foreign players on franchise or license

basis. These included cellular mobile phones, radio paging, electronic mail, voice mail,

audiotex services, videotex services, data services using VSAT's, and video conferencing.

1994-95:

1. The Government announced a National Telecom Policy 1994 in September 1994. It

opened basic telecom services to private participation including foreign investments.

2. Foreign equity participation up to 49 per cent was allowed in basic telecom services,

radio paging and cellular mobile. For value added services the foreign equity cap was fixed

at 51 per cent.

3. Eight cellular licensees for four metros were finalized.

1996-97:

1. TRAI was set up as an autonomous body to separate the regulatory functions from

policy formulations and operational functions.


2. Coverage of the term "infrastructure" expanded to include telecom to enable the sector

to avail of fiscal incentives such as tax holiday and concessional duties.

3. An agreement between Department of Telecommunication (DoT) and financial

institutions to facilitate funding of cellular and basic telecom projects.

4. External Commercial Borrowing (ECB) limits on telecom projects made flexible with

an increased share from 35 per cent to 50 per cent of total project cost.

5. Internet Policy was finalized.

1998-99:

FDI up to 49 per cent of total equity, subject to license, permitted in companies providing

Global Mobile Personal Communication (GMPC) by satellite services.

1999-00

1. National Telecom Policy 1999 was announced which allowed multiple fixed Services

operators and opened long distance services to private operators.

2. TRAI reconstituted: clear distinction was made between the recommendatory and

regulatory functions of the Authority.

3. DOT/MTNL was permitted to start cellular mobile telephone service.

4. To separate service providing functions from policy and licensing functions, Department

of Telecom Services was set up.

5. A package for migration from fixed license fee to revenue sharing offered to existing

cellular and basic service providers.


6. First phase of re-balancing of tariff structure started. STD and ISD charges were

reduced by 23 per cent on an average.

7. Voice and data segment was opened to full competition and foreign ownership increased

to 100 per cent from 49 per cent previously.

2000-01:

1. TRAI Act was amended. The Amendment clarified and strengthened the

recommendatory power of TRAI, especially with respect to the need and timing of

introduction of new services provider, and in terms of licenses to a services provider.

2. Department of Telecom Services and Department of Telecom operations corporatized

by creating Bharat Sanchar Nigam Limited.

3. Domestic long distance services opened up without any restriction on the number of

operators.

4. Second phase of tariff rationalization started with further reductions in the long distance

STD rates by an average of 13 per cent for different distance slabs and ISD rates by 17 per

cent.

5. Internet Service Providers were given approval for setting up of International Gateways

for Internet using satellite as a medium in March 2000.

6. In August 2000, private players were allowed to set up international gateways via the

submarine cable route.

7. The termination of monopoly of VSNL in International Long Distance services was

antedated to March 31, 2002 from March 31, 2004.


2001-02:

1. Communication Convergence Bill, 2001 was introduced in August 2001.

2. Competition was introduced in all services segments. TRAI recommended opening up

of market to full competition and introduction of new services in the telecom sector. The

licensing terms and conditions for Cellular Mobile were simplified to encourage entry for

operators in areas without effective competition.

3. Usage of Voice over Internet Protocol permitted for international telephony service.

4. The five-year tax holiday and 30 per cent deduction for the next five years available to

the telecommunication sector till 31st March 2000 was reintroduced for the units

commencing their operations on or before 31st March 2003. These concessions were also

extended to internet services providers and broadband networks.

5. Thirteen ISP's were given clearance for commissioning of international gateways for

Internet using satellite medium for 29 gateways.

6. License conditions for Global Mobile Personal Communications by Satellite finalized in

November 2001.

7. National Long Distance Service was opened up for unrestricted entry with the

announcement of guidelines for licensing NLD operators. Four companies were issued

Letter of Intent (LOI) for National Long Distance Service of which three licenses have

been signed.

8. The basic services were also opened up for competition. 33 Basic Service licenses (31

private and one each to MTNL and BSNL) were issued up to 31stDecember 2001.

9. Four cellular operators, one each in four metros and thirteen were permitted with 17

fresh licenses issued to private companies in September/October 2001. The cell phone
providers were given freedom to provide, within their area of operation, all types of mobile

services equipment, including circuit and/or package switches that meet the relevant

International Telecommunication Union (ITU)/ Telecom Engineering Centre (TEC)

standards.

10. Wireless in Local Loop (WLL) was introduced for providing telephone connection in

urban, semi-urban and rural areas.

11. Disinvestment of PSU's in the telecom sector was also undertaken during the year. In

February 2002, the disinvestment of VSNL was completed by bringing down the

government equity to 26 per cent and the management of the company was transferred to

Tata Group, a strategic partner. During the year, HTL was also disinvested.

12. Government allowed CDMA technology to enter the Indian market.

13. Reliance, MTNL and Tata were issued licenses to provide the CDMA based services in

the country.

14. TRAI recommended deregulating regulatory intervention in cellular tariffs, which

meant that operators need no longer have prior approval of the regulator for implementing

tariff plans except under certain conditions.

2002-03

1. International long distance business opened for unrestricted entry.

2. Telephony on internet permitted in April 2002.

3. TRAI finalized the System of Accounting Separation (SAS) providing detailed

accounting and financial system to be maintained by telecom service providers.


2003-04

1. Unified Access Service Licenses regime for basic and cellular services was introduced

in October 2003. This regime enabled services providers to offer fixed and mobile services

under one license. Consequently 27 licenses out of 31 licenses converted to Unified

Access Service Licenses.

2. Interconnection Usage Charge regime was introduced with the view of providing

termination charge for cellular services and enable introduction of Calling Party Pays

regime in voice telephony segment.

3. The Telecommunication Interconnection Usage Charges Regulation 2003 was

introduced on 29th October 2003 which covered arrangements among service providers for

payment of Interconnection Usage Charges for Telecommunication Services and covered

Basic Service that includes WLL (M) services, Cellular Mobile Services, and Long

Distance Services (STD/ISD) throughout the territory of India

4. The Universal Service Obligation fund was introduced as a mechanism for transparent

cross subsidization of universal access in telecom sector. The fund was to be collected

through a 5 per cent levy on the adjusted gross revenue of all telecom operators.

5. Broadcasting notified as Telecommunication services under Section 2(i)(k) of TRAI

Act.

2004-05:

1. Budget 2004-05 proposed to lift the ceiling from the existing 49 per cent to 74 per cent

as an incentive to the cellular operators to fall in line with the new unified licensing norm.

2. 'Last Mile' linkages permitted in April 2004 within the local area for ISP's for

establishing their own last mile to their customers.


3. Indoor use of low power equipments in 2.4 GHz band de-licensed from August 2004.

4. Broadband Policy announced on 14th October 2004. In this policy, broadband had been

defined as an "always-on" data connection supporting interactive services including

internet access with minimum download speed of 256 kbps per subscriber.

5. The Telecommunications (Broadcasting and Cable Services) Interconnection Regulation

2004 was introduced on 10th December 2004.

6. BSNL and MTNL launched broadband services on 14th January 2005.

7. TRAI announced the reduction of Access Deficit Charge (ADC) by 41 per cent on ISD

calls and by 61 per cent on STD calls which were applicable from 1st February 2005.

2005-2006

1. Budget 2005-2006 cleared a hike in FDI ceiling to 74 per cent from the earlier limit of

49 per cent. 100 per cent FDI was permitted in the area of telecom equipment

manufacturing and provision of IT enabled services.

2. Annual license fee for National Long Distance (NLD) as well as International Long

Distance (ILD) licenses reduced to 6 per cent of Adjusted Gross Revenue (AGR) with

effect from 1st January 2006.

3. BSNL and MTNL launched the 'One-India Plan' with effect from 1st March 2006 which

enable the customers of BSNL and MTNL to call from one end of India to other at the cost

of Rs. 1 per minute, any time of the day to phone.

4. TRAI fixed Ceiling Tariff for International Bandwidth, Ceiling Tariff for higher

capacities reduced by about 70 per cent and for lower capacity by 35 per cent.
5. Regulation on Quality of Service of Basic and Cellular Mobile Telephone Services

2005 introduced on 1st July 2005.

6. BSNL announced 33 per cent reduction in call charges for all the countries for

international calls.

7. Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulation

2006 introduced on 21st March 2006.

11th plan (2007-20012)

FDI in Telecom sector has increased in recent years with value of 81.62 billion with share

of 10% in total inflow during January 2000 to June 2005. This is mainly in telecom

services and not in telecom manufacturing sector. Therefore, it is essential to enhance the

prospect for inflow of increased funds. The NTP 1999 sought to promote exports of

telecom equipments and services. But till date export of telecom equipment remains

minimal. Most of the state-of-the-art telecom equipments including mobile phones are

imported from abroad. There is thus immense potential for indigenous manufacturing in

India. Certain measures like financial packages, formation of a telecom export promotion

council, creation of integrated facilities for telecom equipment through SEZ and

encouraging overseas vendors to set up facilities in India, are required for making India a

hub for telecom equipment manufacturing and attract FDI. The telecom sector has shown

robust growth during the past few years. It has also undergone a substantial change in

terms of mobile versus fixed phones and public versus private participation. The following

table and discussions from the report of the working report on the telecom sector for the

11th plan (2007-2012)will show the growth of telecom sector since 2003:
COMPANY’S PROFILE

BSNL is the largest telecom operator in India and is known to everybody for Basic

Telephony Services for over 100 years. Presently the Plain old, Countrywide telephone

service is being provided through 32,000 electronic exchanges, 326 Digital Trunk

Automatic Exchanges(TAX), Digitalized Public Switched Telephone Network (PSTN) all

inter linked by over 2.4 lakh km of Optical Fiber Cable, with a host of Phone Plus value

additions to our valued Customers. BSNL' stelephony network expands throughout the

vast expanses of the country reaching to there motets part of the country.

On October 1, 2000 the Department of Telecom Operations, Government of India

became a corporation and was christened Bharat Sanchar Nigam Limited(BSNL).

Today, BSNL is the No. 1 Telecommunications Company and the largest Public Sector

Undertaking of India with authorized share capital of $ 3600 million and net worth of $

13.85 billion. It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections.

With latest digital switching technology like OCB,EWSD,AXE-10,FETEX,NEC etc. and

widespread transmission network including SDH system up to 2.5 gbps, DWDM system

up to 80 gbps, web telephony, DIAS, VPN, Broadband and more than 400,000 data

customers , BSNL continues to serve this great nation .Its responsibilities include

improvement of the already impeccable quality of telecom services, expansion of telecom


network, introduction of new telecom services in all villages and instilling confidence

among its customers.

BSNL has managed to shoulder these responsibilities remarkably and deftly.

Today with over 45 million line capacity, 99.9% of its exchanges digital, nation wide

Network management & surveillance system (NMSS) to control telecom traffic and over

4,00,000 route kms of OFC network, Bharat Sanchar Nigam Ltd is a name to reckon with

in the world of connectivity.

The telephone infrastructure alone is worth about Rs. 1,00,000 crore(US $ 21.2 billion).

Turnover of Rs. 25,000 crore ( US $ 5.2 billion)

Add to which, BSNL's nationwide coverage and reach, comprehensive range of telecom

services and a penchant for excellence; and you have the ingredients for restructuring India

for a bright future.

VISION

To become the largest telecom Service Provider in Asia.

MISSION

To provide world class State-of-art technology telecom services to its customers on

demand at competitive prices.

To Provide world class telecom infrastructure in its area of operation and to contribute to

the growth of the country's economy.

OBJECTIVES

• To be the Lead Telecom Services Provider.


• To provide quality and reliable fixed telecom service to our customer and there by

increase customer's confidence.

• To provide mobile telephone service of high quality and become no. 1 GSM operator

in its area of operation.

• To provide point of interconnection to other service provider as per their requirement

promptly.

• To facilitate R & D activity in the country.

• Contribute towards:

i. National Plan Target of 500 million subscriber base for India by

2010.

ii. Broadband customers base of 20 million in India by 2010 as per

Broadband Policy 2004.

iii. Providing telephone connection in villages as per government

policy.

Implementation of Triple play as a regular commercial proposition.


Hierarchy Table
Bharat Sanchar Nigam Limited

BSNL

Type Communication Service Provider


Availability Countrywide except Delhi & Mumbai
Revenue US$ 9.04 billion (2006)
Owner The Government of India
Key people S.D. Saxena (CFO); Kuldeep Goyal(CEO)
Founded 19th century, incorporated 2000
Website www.bsnl.co.in
Bharat Sanchar Nigam Limited (known as BSNL) is a public sector communications

company in India. It is the largest telecommunication company in India and the sixth

largest in the world. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra

Mathur Lane, Janpath, New Delhi. It has the status of Mini-ratana - a status assigned to

reputed Public Sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently

BSNL has a customer base of 65.3 million (Basic & Mobile telephony). It has footprints

throughout India except for the metropolitan cities of Mumbai and New Delhi which are

managed by MTNL. As on July 31, 2007 BSNL commanded a customer base of 32.7

million Wireline, 3.7 million CDMA-WLL and 28.9 million GSM Mobile subscribers.

BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b

(US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's

largest Telco and one of the largest Public Sector Undertaking of the country with

authorized share capital of US$ 4.26 billion (INR 17,500 Crores) and assets of US$ 14.74

billion.

The foundation of Telecom Network in India was laid by the British sometime in

19th century. The history of BSNL is linked with the beginning of Telecom in India. In
19th century and for almost entire 20th century, the Telecom in India was operated as a

Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department

(P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was

responsible for running of Telecom services in entire country until 1985 when Mahanagar

Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of

Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of

Telecom to provide level playing field to private telecoms. Subsequently in 1990s the

telecom sector was opened up by the Government for Private investment, therefore it

became necessary to separate the Government's policy wing from Operations wing. The

Government of India corporatized the operations wing of DoT on October 01, 2000 and

named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.

Main Services being provided by BSNL

BSNL fixed services

BSNL provides almost every telecom service, however following are the main Telecom

Services being provided by BSNL in India:-

1. Universal Telecom Services : Fixed wire line services & Wireless in Local loop (WLL)

using CDMA Technology called bfone and Tarang respectively. BSNL is dominant

operator in fixed line. As on March 31, 2007 (end of financial year) BSNL had 76% share

of fixed and WLL phones.

BSNL Mobile
Pre-paid Mobile

1. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile

Telephone services using GSM platform under brandname Cellone. Pre-paid Cellular

services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17% share of

mobile telephony in the country.

BSNL Broadband

2. Internet: BSNL is providing internet as dial-up connection (Sancharnet) and ADSL-

Broadband Dataone. BSNL has around 50% marketshare in broadband in India. BSNL

has planned aggressive rollout in broadband for current financial year.

3. Intelligent Network (IN):

BSNL is providing IN services like tele-voting, toll free calling, premium calling

etc.

BSNL Units

BSNL is divided into a number of administrative units, termed as telecom circles,

metro districts, project circles and specialized units, as mentioned below:-

Telecom Circles:

Telecom Circles & Metro districts are responsible for providing service to the

customers. There are 24 Telecom Circles and 2 Metro districts.

1. Andaman & Nicobar Telecom Circle

2. Andhra Pradesh Telecom Circle


3. Assam Telecom Circle

4. Bihar Telecom Circle

5. Chhatisgarh Telecom Circle

6. Gujarat Telecom Circle

7. Haryana Telecom Circle

8. Himachal Pradesh Telecom Circle

9. Jammu & Kashmir Telecom Circle

10. Jharkhand Telecom Circle

11. Karnataka Telecom Circle

12. Kerala Telecom Circle

13. Madhya Pradesh Telecom Circle

14. Maharashtra Telecom Circle

15. North East-I Telecom Circle for Meghalaya, Mizoram and Tripura

16. North East-II Telecom Circle for Arunachal Pradesh, Manipur and

Nagaland.

17. Orissa Telecom Circle

18. Punjab Telecom Circle

19. Rajasthan Telecom Circle

20. Tamil Nadu Telecom Circle

21. Uttar Pradesh (East) Telecom Circle

22. Uttar Pradesh (West) Telecom Circle

23. Uttranchal Telecom Circle

24. West Bengal Telecom Circle

Metro Districts
1. Kolkata Telecom District

2. Chennai Telecom District

Project Circles

1. Eastern Telecom Project Circle

2. Western Telecom Project Circle

3. Northern Telecom Project Circle

4. Southern Telecom Project Circle

5. IT Project Circle, Pune

Maintenance Regions

1. Eastern Telecom Maintenance Region

2. Western Telecom Maintenance Region

3. Northern Telecom Maintenance Region

4. Southern Telecom Maintenance Region

Specialized Telecom Units

1. Data Networks

2. National Centre For Electronic Switching

3. Technical & Development Circle

4. Quality Assurance

Manufacturing Units

1. Telecom Factory, Mumbai

2. Telecom Factory, Jabalpur

3. Telecom Factory, Richhai

4. Telecom Factory, Kolkata

Training Institutions
1. Advanced Level Telecom Training Centre(ALTTC)

2. Bharat Ratna Bhim Rao Ambedkar Institute Of Telecom Training

3. National Academy of Telecom Finance and Management

Other Units

1. Telecom Stores

2. Telecom Electrical Wing

3. Telecom Civil Wing

BSNL Present & Future

Since its corporatisation in October 2000, BSNL has been actively providing connections

in both Urban and Rural areas and the efficiency of the company has drastically improved

from the days when one had to wait for years to get a phone connection to now when one

can get a connection in even hours. Pre-activated Mobile connections are available at

many places across India. BSNL has also unveiled very cost-effective Broadband internet

access plans (DataOne) targeted at homes and small businesses. At present BSNL enjoys

around 45% of market share of ISP services.

Year of Broadband 2007

2007 has been declared as "Year of Broadband" in India and BSNL is in the process of

providing 5 million Broadband connectivity by the end of 2007. BSNL has upgraded

existing Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra

cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 5.5

per month. Further, BSNL is rolling out new Broadband services as Triple play

(telecommunications).
BSNL is planning to increase its customer base to 108 million customers by 2010. With

the frantic activity in the communication sector in India, the target appears achievable,

however due to intense competition in Indian Telecom sector in recent past BSNL's

growth has slowed down.

BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$ 580

m (INR 2,500 crores) Rural Telephony project of Government of India.

During Financial Year 2006-2007 (From April 01, 2006 to March 31, 2007) BSNL

has added 9.6 million new customers in various telephone services taking its customer

base to 64.8 million. BSNL's nearest competitor Bharti Airtel is standing at a customer

base of 39 million. However, despite impressive growth shown by BSNL in recent times,

the Fixed line customer base of BSNL is declining. In order to woo back its fixed-line

customers BSNL has brought down long distance calling rate under OneIndia plan,

however, the success of the scheme is not known. However, BSNL faces bleak fiscal

2006-2007 as users flee, which has been accepted by the CMD BSNL.

Presently there is an intense competition in Indian Telecom sector and various Telcos are

rolling out attractive schemes and are providing good customer services. However, BSNL

being legacy operator and its conversion from a Government Department, earns lot of

criticism for its poor customer service. Although in recent past there have been tremendous

improvement in working of BSNL but still it is much below the Industry's Expectations. A

large aging (average age 49 years(appx)) workforce (300,000 strong), which is mostly

semi-illetrate or illeterate is the main reason for the poor customer service. Further, the

Top management of BSNL is still working in BSNL on deputation basis holding

Government employee status thus having little commitment to the organisation. Although

in coming years the retirement profile of the workforce is very fast and around 25% of
existing workforce will retire by 2010, however, still the workforce will be quite large by

the industry standards. Quality of the workforce will also remain an issue.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for

provide service in non-lucarative areas especially rural areas) has been slashed by 37% by

TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL.

Finance

Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation,

is certainly on a financial ground that's sound.

The Company has a net worth of Rs. 84,948 crores (US$ 19.49 billion), authorized

equity capital of Rs. 10,000 crores (US $ 2.29 billion), Paid up Equity Share Capital

of Rs. 5,000 crores (US $ 1.15 billion) and Revenues is Rs. 39,715 crores (US $ 9.11

billion) in 2006-07.

(Note: INR 1 = USD 0.022941 as on 31-03-2007)

Gross Investment in Fixed Assets

The BSNL is making substantial investment year to year for its network expansion and

modernization. During the current financial year BSNL has made the gross investment of

Rs. 8153 crore ( US $ 1.87 billion) in Fixed Assets. These investments have been financed

by the internal accruals.


According to Kuldeep Goyal
I have taken over as CMD BSNL on 1st of August, 2007. On assuming my new

assignment, I would like to reiterate our commitment to provide services to the satisfaction

of our esteemed customers. BSNL is a total telecom solutions provider, offering landline,

fixed wireless, mobile and internet services all over the country except for metro cities of

Delhi and Mumbai. BSNL's broadband services are also presently available in 1077 cities .

As you are aware of, Year 2007 has been declared as "Year of Broadband". We plan to

extend broadband coverage to 1500 cities/towns and 20000 villages during the current

year. The existing broadband capacity of 1 million ports is planned to be augmented by 5

million ports. BSNL.s thrust is to extend broadband connectivity to rural areas. An

ambitious project is being taken up to deploy 1.8 million ports for providing broadband

connectivity to rural areas through wireline as well as wireless techniques. Multiplay

services over broadband connections have already been launched in cities like Pune,

Bangalore and Kolkatta and we plan to roll out these services in a number of important

cities progressively. Through a single connection, the customers will have the freedom to

talk, surf internet and watch cable TV or video simultaneously. Facilities like online

gaming etc. are also available over broadband.

BSNL has planned to expand its fixed wireless (WLL) network to provide telephone

connections on demand. Expansion of WLL network would also help faster rollout of

services in rural areas. We also have an ambitious plan to expand the mobile network with

special emphasis to serve rural populace. Of late there was a capacity constraint in our

mobile network but the constraint would be overcome shortly and we will roll out

additional capacity aggressively.

BSNL is also providing host of IVRS and SMS based value added services on wireline and

wireless connections such as cricket score, opinion polls, poll results, jokes, astrology,

information services, contests, games, chat, ringtones, logos, wall papers etc. BSNL has
also introduced Location Based Services for GSM customers. Customers can avail of these

services at affordable rates. It has been our endeavor to keep our tariff structure most

affordable and transparent.

BSNL has formulated new schemes to provide free Centrex facility to Corporate

Customers/Commercially Important Customers/Multi-storey complexes/Residential

Housing Societies etc. where customers do not have to pay for the cost of the equipment.

Details of these schemes are available on our website.

BSNL is striving hard to provide quality service to its valued customers. In this endeavor

our executives at customer service centers are being empowered to facilitate Single

Window Service at the counter itself where most of the routine business can be transacted

without hassles of going to different places. We have also launched Customer Care Portal

to accept online registration of customers. request for various services and lodging

complaints. The Portal has already been launched in A.P, Rajasthan, Kerala, Karnataka

and Punjab Circles. In remaining Circles, portal will be launched progressively by Dec,

2007

I thank our all esteemed customers for the faith reposed in our services. We reaffirm our

commitment to empower our customers with world class state-of-the art services at

affordable rates. We look forward to your continued patronage with us.


BSNL PRODUCT PROFILE

Gone are the days when basic telephones was used only to make and receive calls. With

the aid of state-of-the-art digital exchanges, BSNL offers you a host of phone plus

services, converting your old basic telephones to a sophisticated tool which can be used for

a variety of applications.

Basic Telephone Services

The Plain old, Countrywide telephone Service through 32,000 electronic exchanges.

Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus value

additions.

BSNL launched DataOne broadband service in January 2005 which shall be extended to

198 cities very shortly. The service is being provided on existing copper infrastructure on

ADSL2 technology. The minimum speed offered to the customer is 256 Kbps at Rs. 500/-

per month only. Subsequently, other services such as VPN, Multicasting, Video

Conferencing, Video-on-Demand, Broadcast application etc will be added.

Internet

Keeping the global network of Networks networked, the countrywide Internet Services of

BSNL under the brand name includes Internet dial up/ Leased line
access, CLI based access (no account is required) and DIAS service, for web browsing and

E-mail applications. You can use your dialup sancharnet account from any place in India

using the same access no '172233' , the facility which no other ISP has. BSNL has

customer base of more than 1.7 million for sancharnet

Internet Telephony service is also started under the brand name , using this

you can make calls to a person in UK, USA, Canada and many more countries for as

cheap as Rs. 4.50/- per minute only. BSNL also offers Web hosting and co-location

services at very cheap rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a unique digital network

providing high speed and high quality voice, data and image transfer over the same line. It

can also facilitate both desktop video and high quality video conferencing

Intelligent Network

Intelligent Network Service (In Service) offers value-added services.

I-Net

India’s x.25 based packet Switched Public Data Network is operational in104 cities of the

country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay

services.
Leased Lines & Datacom

BSNL provides leased lines for voice and data communication for various application on

point to point basis. It offers a choice of high, medium and low speed leased data circuits

as well as dial-up lines. Bandwidth is available on demand in most cities. Managed

Leased Line Network (MLLN) offers flexibility of providing circuits with speeds of nx64

kbps up to 2mbps, useful for Internet leased lines and International Principle Leased

Circuits (IPLCs).

Cellular Mobile Service

BSNL’s GSM cellular mobile service Cellone has a customer base of over 5.2 million.

CellOne provides all the services like MMS, GPRS, Voice Mail, E-mail, Short Message

Service (SMS) both national and international, unified messaging service (send and

receive e-mails) etc. You can use CellOne in over 160 countries worldwide and in 270

cellular networks and over 1000 cities/towns across India. It has got

coverage in all National and State Highways and train routes.

Wireless in Local Loop

This is a communication system that connects customers to the Public Switched Telephone

Network (PSTN) using radio frequency signals as a substitute for conventional wires for

all or part of the connection between the subscribers and the telephone exchange.
Telephone

Basic Telephone (Bfone)


Total Number of connections as on 10.07.2008 3,31,49,457
WLL (Tarang)
Total Number of connections as on 10.07.2008 35,99,544
Village Public Telephones
Total Number of Telephones as on 10.07.2008 5,53,484
Public Telephones (Local, STD and Highway)
Total Number of Public Telephones as on 10.07.2008 20,82,824
STD Stations
Number of STD Stations as on 10.05.2008 32,011
Transmission Systems as on 10.07.2007
Transmission Systems
Digital

(Route kms) (Route kms)


Coaxial 6,024
Microwave 50,199
UHF 45,130
Optical Fiber 5,17,354
Satellite Based Services (as on 10.07.2008)
MCPC-VSATs 113
IDR Systems (2 Mb/ 8 Mb) 99/24
COMPANY PROFILE

TATA INDICOM

Tata Teleservices is part of the INR 64,350 Crore (US$14.3 billion) Tata Group, that has

over 90 companies, over 210,000 employees and more than 2.16 million shareholders.

With an investment of over INR 9,000 Crore (US$ 2 billion) in Telecom, the Group has a

formidable presence across the telecom value chain. The Tata Group plans an additional

investment of around INR 9000/- Crore (US$ 2 billion) in this sector in the next two years.

Tata Teleservices spearheads the Group's presence in the telecom sector. Incorporated in

1996, Tata Teleservices was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed

Tata Teleservices (Maharashtra) Limited] in December 2002, the company has swung into

expansion mode. Tata Teleservices operates in 20 circles i.e. Andhra Pradesh, Chennai,

Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan,

Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,

Kolkata, Madhya Pradesh and West Bengal. The company has a customer base of over 3

million. The investment in the company as of March 2004 totals INR 5995 Crore (US$

1200 million).

The company, which heralded convergence technologies in the Indian telecom sector, is

today the market leader in the fixed wireless telephony market with a customer base of 1.8
million.

Tata Teleservices has recently, marked its entry into the Prepaid segment by launching 100

% Sacchai True Paid, across all its existing 20 circles. With the latest initiative, Tata

Indicom has opened up new frontiers for the Indian prepaid customers by offering 1-

second pulse and 100 % talk time on True Paid.

Today, the company serves more than 3 million customers in over 824 towns. With an

ambitious rollout plan both within existing circles and across new circles, Tata

Teleservices will offer world-class technology and user-friendly services to over 1000

cities in 20 circles by March 2005.


TATA INDICOM PHONE

Tata Indicom offers you almost instant phone connections. Get yourself the Tata

Indicom Landline Services based on the state of the art Optical Fiber Cable-based

backbone.

Superior Voice Clarity

Instant and hassle-free connection

Accurate billing

Secure and tamper-proof lines

Responsive and friendly services

24*7 friendly customer service

If you take a wireline connection, your telephone is connected to the Tata Indicom

exchange by a combination of high technology fiber-optic cables and copper cables.

Global standard today, fiber-optic cables enable our network to handle higher capacities

of load as compared to ordinary cables and at much higher transmission speeds. This

gives you trouble-free and faster connectivity.


Phone Connection

1.For Your home

Tata Indicom offers you almost instant phone connections. Get yourself the Tata Indicom

Landline Services based on the state of the art Optical Fiber Cable-based backbone.

Tata Indicome Phone Connection Advantage:

Superior Voice Clearity

Instant and hassle-free connection

Accurate billing

Secure and tamper-proof lines

Responsive and friendly services

24*7 friendly customer service

Cables and copper cables. A global standard today, fiber-optic cables enable our network

to handle higher capacities of load as compared to ordinary cables and at much higher

transmission speeds. This gives you trouble-free and faster connectivity. If you take a

wireline connection, your telephone is connected to the Tata Indicom exchange by a

combination of high technology Fiber-optic


2.For Small Medium Business

Get a phone connection almost instantly. Get Tata Indicom Land Line connection based on

the state of the art Optical Fiber Cable-based backbone. Enjoy greater voice clarity and say

goodbye to excessive billing.

Wire-line telephones are connected to the Tata Indicom exchange by a combination of

high technology fiber-optic cables and copper cables. A global standard today, fiber-optic

cables enable our network to handle higher capacities of load as compared to ordinary

cables, and at much higher transmission speeds. This gives you trouble-free and faster

connectivity.

3.For Enterprises

Tata Indicom offers you almost instant phone connections. Get Tata Indicom Landline

Phone services based on the state of the art Optical Fiber Cable-based backbone. Enjoy

greater voice clarity and say goodbye to excessive billing.

If you take a wire-line connection, your telephone is connected to the Tata Indicom

exchange by a combination of high technology fiber-optic and copper cables. A global

standard today, fiber-optic cables enable our network to handle higher capacities of load as

compared to ordinary cables and at much higher transmission speeds. This gives you

trouble-free and faster connectivity


TATA INDICOM PRODUCTS AND SERVICES

Tata Indicom offers a complete range of affordable telecom solutions for your home and

business needs. Be it Tata Indicom mobile, Smart Wireless Service, Public Phone booths,

Broadband services or Centrex, we are present in every sphere of the telecommunications

market, endeavoring to make your life comfortable and hassle free.

We have a wide-range of product and service offerings to meet every need of yours:

Voice

Tata Indicom Mobile

Tata Indicom Push-To-Talk Service

Tata Indicom Walky

Tata Indicom Fixed Wire Phone Connection

Tata Indicom ISDN Services

Tata Indicom Centrex

Tata Indicom E1 Links

Tata Indicom Basic/Primary Rate ISDN

Tata Indicom Managed Leased Lines

Tata Indicom Direct Inward Dialling (DID)

Tata Indicom Public Phone Booth

Tata Indicom Voice Reminder Services


Data

Tata Indicom Shared and Dedicated Internet Bandwidth

Tata Indicom Virtual Private Networks (VPN)

Tata Indicom Hosting Services

Tata Indicom Internet Access Solutions

Tata Indicom ADSL & DSL

Internet

Tata Indicom Post-Paid Internet connection

Tata Indicom Broadband Internet Services

Tata Indicom Corporate Dial Up

Tata Indicom Corporate Internet ISDN

Tata Indicom Internet Private Leased Circuits(IPLC)

Tata Indicom Internet leased lines (ILL)

Tata Indicom Managed Data Network Services (MDNS)

Tata Indicom INMARSAT

Tata Indicom TV Uplink

Tata Indicom Internet Data Centers

Tata Indicom NLD leased line

Tata Indicom Conference Services

Tata Indicom Conference Call Service

Tata Indicom Web Conference Service


RELIANCE INFOCOM COMPANY PROFILE

Reliance Infocomm is the outcome of the late visionary Dhirubhai Ambani's (1932-2002)

dream to herald a digital revolution in India by bringing affordable means of information

and communication to the doorsteps of India's vast population.

"Make the tools of infocomm available to people at an affordable cost, they will overcome

the handicaps of illiteracy and lack of mobility", Dhirubhai Ambani charted out the

mission for Reliance Infocomm in late 1999. He saw in the potential of information and

communication technology a once-in-a-lifetime opportunity for India to leapfrog over its

historical legacy of backwardness and underdevelopment.

Working at breakneck speed, from late 1999 to 2002 Reliance Infocomm built the

backbone for a digital India - 60,000 kilometers of fiber optic backbone, crisscrossing the

entire country. The Reliance Infocomm pan-India network was commissioned on

December 28, 2002, the 70th - birth anniversary of Dhirubhai. This day also marked his

first birth anniversary after his demise July - 6, 2002.

Reliance Infocomm network is a pan India, high capacity, integrated (wireless and wire

line) and convergent (voice, data and video) digital network, designed to offer services that

span the entire Infocomm value chain - infrastructure, services for enterprises and

individuals, applications and consulting. The network is designed to deliver services that

will foster a new way of life for a New India.


DHIRUBHAI'S DREAM

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place in

the Global Fortune 500 list. This achievement is even more significant due to the fact, that

the entire growth was achieved in an organic manner and in a span of just 25 years.

The corporate philosophy he followed was short simple and succinct - "Think big. Think

differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team to

do better than the best - not only in India but also in the world.

Dhirubhai Ambani, Founder Chairman of the Reliance Group, had an acute sense that

education alone empowers people. He was a great communicator. He communicated to

inspire, to guide, to educate and to motivate.

power of information and communications. He would often say: "make the tools of

infocomm available to people at an affordable cost, they will overcome the handicaps of

illiteracy and lack of mobility".

He wanted a telephone call to be cheaper than a post card. This, he believed, would

transform every home, empower every Indian, remove the roadblocks to opportunity and

demolish the barriers that divide our society.

Dhirubhai Ambani was of the conviction that infocomm would energies enterprises,

galvanize governance, make livelihood an enjoyment, learning an experience, and living

an excitement.
Reliance Infocomm is a fascinating outcome of this powerful conviction. It is a major

initiative to translate his inspiring dream into reality

Vision

"We will leverage our strengths in executing complex global-scale projects to make

leading edge information and communication services affordable by 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 while enabling millions of India's knowledge workers to deliver

their services globally".

Business

Reliance Infocomm will offer a complete range of telecom services, covering mobile and

fixed line telephony including broadband, national and international long distance services,

data services and a wide range of value added services and applications that will enhance

productivity of enterprises and individuals.

Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28,

2002, the 70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani.

This marks the beginning of Reliance's dream of ushering in a digital revolution in India

by becoming a major catalyst in improving quality of life and changing the face of India. It

aims to achieve this by putting the power of information and


communication in the hands of the people of India at affordable costs.

Reliance Infocomm will extend its efforts beyond the traditional value chain to develop

and deploy telecom solutions for India's farmers, businesses, hospitals, government and

public sector organizations.

Reliance Group

The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest

business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit

of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200 crore (US$ 1.4 billion) and

exports of Rs 15,900 crore (US$ 3.6 billion).

The Group's activities span exploration and production (E&P) of oil and gas, refining and

marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial

services and insurance, power, telecom and infocom initiatives. The Group exports its

products to more than 100 countries the world over. Reliance emerged as India's Most

Admired Business House, for the third successive year in a TNS Mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group

contributes nearly 10% of the country's indirect tax revenues and over 6% of India's

exports. Reliance is trusted by an investor family of over 3.1 million - India's largest.
RELIANCE PRODUCT PROFILE

1.Fixed Line Phone (FLP)

Telephony gets a new dimension when experienced on the Fixed Line Phone (FLP). This

has been made possible through 'Intelligent FSK' signaling, a first time in India, that makes

a host of intelligent features possible on our fixed line phones.

Moreover the single touch intelligent menu driven interface lets you use all the Reliance

FLP features without having to remember the feature activation codes. What's available as

a result is 'NextGen Phone with unique features'

Benefits

1..Zero Effective Rentals:

2.Feature Packed Service at No Extra Cost:

3.Competitive Call Rates:

4.Enhanced convenience:

Fixed Line Phone (FLP) - Features

NextGen Caller ID

Speaker Phone

3-way Conferencing

Delayed Hotline

Call Forwarding

Call Transfer

Direct Internet Access

Alarm Call
2.Fixed Wireless Phone (FWP)

1.No Wires Attached

2.Wireless Internet (R Connect)

3.Mobile Phone's Features

4.Zero effective Rentals

Fixed Wireless Terminal (FWT)

1.Great Savings

2.Zero Effective Rentals

3.Parallel Connection Facility

4.No Wires Attached

FWT – Features

Connect to standard telephone/cordless

Connect to PBX

Connect to PC Internet access

Parallel connection facility

Secure tap proof connection

3 way call conference

Speed dialing

Voice mail Facility

Hotline

Call wait / call hold

Call divert

Alarm

4.ISDN BRI
ISDN BRI is a hi-tech yet hassle free digital telephony service. It empowers you with

communication solutions encompassing voice, data and Internet over a single line at

speeds up to 128 Kbps. You can choose to either have one data channel of 128 Kbps, or

have two seperate channels of 64 Kbps each for voice and data.

BENEFITS

1.One line, two channels

2.Quick call set up, High speeds

3.Speeds up to 128 Kbps

4.Digital security

5.Smart Office

Your office can now get the digital PBX functionality without having to invest in and

maintain any equipment. Introducing the Reliance Smart Office - a Business-class Centrex

- which offers carrier grade reliability and scalability coupled with the benefits of

outsourcing.

Benefits of Reliance Smart Office

1.Digital PBX functionality

2.Carrier grade Reliability & scalability

3.Multi-Office solution

4.Outsourcing benefits

Smart Office – Features


Call Management features

• Call Forward on Busy

• Call Forward on No reply, or

• Forward all incoming calls

Voice Mail

Absentee Subscriber Service

10-party conference

Manager- Secretary Working

PC based Attendant Console

NextGen Caller ID

Speakerphone

Delayed Hotline
6.Analog Trunk Solutions

Do you have three or more lines terminating on your KTS/ PBX? Do your callers struggle

to remember multiple telephone numbers of your office? Do the free calls on some of your

phone lines remain unused?

If any of these problems are bothering you then Reliance Analog Trunk Solutions is

perfect for you.

Benefits of Reliance Analog Trunk Solutions

1.Optimise Spends

2.Single Hunting Number

3.Shared Commitment Plan

4.Better call rates at lesser commitment

5.Single bill option

7.Community Phone

Benefits of Reliance Community Phone

1. Intercom and Landline on a single telephone

2. Zero effective rentals

3. Feature-packed service at no extra costs

4. Competitive call rates


Community Phone - Features

NextGen Caller ID

Speakerphone.

3-way Conference

Mobile Phone Features

Quick Dialing

8.E1 DID

digital channels over a 4-wire system. Each channel can be configured as incoming,

outgoing or two-way, allowing effective management of voice traffic.

BENEFITS

1.Direct Line for every user

2.Digital quality

3.Saving on recurring costs

4.Direct Line Number Display (DLND)

5.Enhanced service Availability

6.No congestion or busy signals


RESEARCH METHODOLOGY

What is Research?

Research refers to a search for knowledge. Research is a scientific search and systematic

search for pertinent information on a specific topic. In fact, research is an art of scientific

investigation. The Advanced Learner’s Dictionary of Current English lays down that “A

Research is a careful investigation or inquiry, especially through search for new facts in

any branch of knowledge. It is a systematized effort to gain more knowledge”. It simply

means answers to questions and solutions to problems. It is a purposive investigation. It is

an “organized inquiry.” It seeks to find explanations to unexplained phenomenon, to

clarify the doubtful propositions and to correct the misconceived facts.

Research is, thus, an original contribution to existing stock of knowledge making for its

advancement. “Research methodology is a way to systematically solve the research

problem. It includes not only the research methods, but also the logic behind using the

methods. Its shows the type of sample design used, its size and the procedure used to draw

the sample”. In short, the search for knowledge through objective and systematic method

of finding solution to a problem is research.

Significance of Research:

“All progress is born of inquiry.” Research inculcates scientific and inductive thinking and

it promotes the development of logical habits of thinking and organization. Research is

equally important for social scientists in studying social relationships and in seeking

answers to various social problems.


METHODOLOGY

Research methodology involves the process to systematically solve the research problem

or research objectives of the research. It not only includes research methods uses in

conduction the research but also consider the logic behind the methods we adopt in the

context of our research study and explain why we are using a particular method of

technique and why are not using others so the research results are capable of being

evaluated either by the researcher himself or by others.

Research Methodology of a research includes these major aspects of a research:-

 Research design

 Sampling Design

 Data Collection Methods

 Processing and Analysis of Data

 Interpretation and conclusion

OBJECTIVE OF THE PROJECT

 To study the concept of promotional strategies.

 To study the various objectives of promotional strategies of BSNL.

 To study the importance of promotional strategies in BSNL.

 To aware about the product and services of the BSNL.

 To provide the full and accurate information about the plan of the company.

 To judge the position of BSNL in Moradabad.


 To find out the constraints in promotional strategies.

 To suggest improvements in the promotional strategies used by company.

RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to research purpose with economy in

procedure. In fact, the research design is the conceptual structure with in which research is

conducted. It constitutes the blueprint for collection, measurement and analysis of data.

More explicitly, we can say that research design decisions happen to be in respect of:-

i. Exploratory Research

ii. Conclusive or Descriptive Research.

iii. Casual Research.

Exploratory research:

It is usually a small-scale study undertaken to define the exact nature of a problem

and to gain a better understanding of the environment within which the problem has

occurred. It is the initial research, before more conclusive research is under taken.

Descriptive research:

It is to provide an accurate picture of some aspects of market environment.

Descriptive research is used when the objective is to provide a systematic description that

is as factual and accurate as possible. It provides the number of time something occurs, or

frequency, lends itself to satisfied calculations such as determining average number of

occurrences.
Casual research:

If the objective is too determined which variable might be causing a certain

behavior that is whether there is a cause and effect relationship between variable, casual

research must be undertaken. In order to determine causality, it is important to hold the

variable that is assumed to cause the change in the other variable constant and than

measure the changes in the variable. This type of research is very complex and the

researcher can never be completely certain that there are no other factors influencing the

casual relationship, especially when dealing with people’s attitudes and motivation.

SAMPLING DESIGN TECHNIQUES

There are various types of sampling design techniques. All the sampling design

techniques are divided into two categories:-

(A) Non-Random Sampling Technology.

(B) Random Sampling Techniques.

(A) Non Random Sampling Technology are:-

1. The Connivance Sampling

2. Judgment Sampling

3. Quota Sampling, and

4. Penal Sampling.

(B) Random Sampling Techniques are:

1. Sample Random Sampling

2. Systematic Random Sampling


3. Stratified Sampling

4. Cluster Sampling

5. Multi Stage Sampling, and

6. Purposeful Sampling.

SAMPLE SIZE

Every researcher has to determine to sample size of the population for which the

study is to be conducted. For example All senior citizens residing in national capital

region. Then the next step is to determine the samples size that is to be selected from the

population. Determination of the precise size of a sample that has to be selected from the

population is a difficult task.

It depends on a host of factor. We can say that sample size is depends upon:-

1. Nature of research and analysis.

2. The desire precision of the inferences.

3. The kind and number of comparisons.

4. The number of variable to be measured and analysis.

5. The variance one expects to find in the population.

6. The statistical level of confidence used, etc.

The sample size in the project report is 100 taken from the various departments,

employees having different status such as Managers, HOD’s, Executives, Assistance

Managers, Engineers and Workers etc.


DATA COLLECTION METHODS

There are two types of data:

1. Primary Data, and

2. Secondary Data

Primary Data: - The data which are used in this summer training report are the primary

data and these collect from the following methods:-

1. Survey method

2. Questionnaire method

3. Interview method

4. Observation method, and

4. Document review.

Secondary Data: - The data was collected from Pamphlets, Broachers, Websites,
Annual reports of the respective organization.

HYPOTHESIS

The investigator has classified, tabulated and interpreted the data information, so

collected in a scientific manner and has drawn some fruitful results. One of the most useful

in by source. Data not originally collected for use in the research project under

consideration, but rather for use by some other person or for use some other project is term

secondary data. There are several ways by which secondary data can be classified. Which

immediately suggests the classification of internal and external source.


BSNL’s SWOT ANALYSIS

STRENTHS:-

• Pan-India reach

• Experienced telecom service provider

• Total telecom service provider

• Huge Resources (financial & technical pool)

• Huge customer base

• Most trusted telecom brand

• Transparency in billing

• Easy deployment of new services

• Copper in last mile can be used for easy broadband deployment

• Huge Optical Fibre network and associated bandwidth

WEAKNESSES:-

• Non-optimization of network capabilities

• Poor marketing strategy

• Bureaucratic organizational set up

• Inflexibility in mindset (DOT period legacies)

• Limited number of value added services

• Poor franchisee network

• Legacy of poor service image


• Huge and aged manpower

• Procedural delays

• Lack of strategic alliances

• Problems associated with incumbency like outdated technologies,

unproductive rural assets, social obligations, political interference,

• Poor IT penetration within organization

• Poor knowledge Management

OPPORTUNITIES:-

• Tremendous market growing at 20 lac customers per month

• Untapped broadband services

• Untouched international market

• Can capitalize on public sector image to grab government’s ICT initiatives

• ITEB service markets

• Diversification of business to turn-key projects

• Leveraging the brand image to source funds

• Almost un-invaded VSAT market

• Fuller utilization of slack resources

• Can make a kill through deep penetration and low cost advantage

• Broaden market expected from convergence of broadcasting, telecom and

entertainment industry
THREATS:-

• Competition from private operators

• Keeping pace with fast technological changes

• Market maturity in basic telephone segment

• Manpower churning

• Multinational eyeing Indian telecom market

• Private operators demand for sharing last mile

• Decreasing per line revenues due to competitive pricing

• Private operators demand to do away with ADC can seriously effect revenues

• Populist policies of government like “One India” rates


FINDING & ANALYSIS

Availability of land line Phone

Q.1. Do you have a landline Phone?

Ans.

Percentage
Yes 82
No 18
Total 100

% Respondent

100 82
80
60
%
40
18
20
0
yes no

Interpretation:

Out of 100 respondents 82% Respondent have landline Phone & 18% Respondent have not

landline Phone.

Q.2. Which Landline Provider do you have ?


Ans.

Landline Connection Percentage


BSNL 42
Reliance 30
Tata 28
Total 100

% Respondent

80 70

60

40 %
22
20 8
0
BSNL Reliance Tata

Interpretations:

Out of 100 Respondents 70% Respondent have BSNL landline Phone., 22% Respondent

have Reliance landline Phone. & 8% Respondent have Tata landline Phone.
Q.3. Are you aware about Private landline provider?

Ans.

Private Landline Phone Percentage


Aware 42
Unaware 30
Undeciding 28
Total 100

% Respondent

50 42
40
30 28
30
%
20
10
0
Aware Unaware Undecinding

Interpretation:

Out of 100 Respondents 42% Respondents are aware about private landline Phone provider, 30%

Respondents are unaware about private landline Phone provider & Out of 100 Respondents 28%

Respondents are undeceiving about private landline Phone provider.

Q.4. Why do you consider that landline phone is better than the mobile phone?
Ans.
Better Landline Phone Percentage
Economic 54
Service has new improved 06
Easy in reach 16
No. fear of theft/loss 16
Evan layman operate it 10
Total 100

% Respondent
Economic
60 54
50 Service has new
40 improved
30 Easy in reach
20 14 16
10
10 6 No fear of
theft/loss
0
% Even layman
operate it

Interpretation:

Out of 100 Respondents 54% Respondent consider landline better than mobile for economic

purpose, 6% Respondent consider landline better than mobile because service has now improved,

14% Respondent consider landline better than mobile because it is easy in reach, 16%

Respondent consider landline better than mobile there is no fear of theft/loss & 10% Respondent

consider landline better than mobile because even layman can operate it.

Q.5. By which medium, you come to know about this connection (Phone).

Ans.

Mediam Percentage
Advertising 16
Friends 48
Family members 24
Others 12
Total 100
% Respondent

60 48
50
40
30 24 %
16 12
20
10
0
Advertising Family Friends Others
member

Interpretation:

Out of 100 Respondents 16% Respondents are aware about existing landline Phone provider

through advertising, 24% Respondents are aware about existing landline Phone provider through

family member, 48% Respondents are aware about existing landline Phone provider through

friends & 12% Respondents are aware about existing landline Phone provider through others.
Q.6. What is your purpose to purchase this connection?

Ans.

Purpose Percentage
Official use 34
Home 46
Status symbol 20
Total 100

% Respondent

50 46

40 34
30
20 %
20
10
0
Official use Home use Status symbol

Interpretation:

Out of 100 Respondents 34% Respondents have the purpose to purchase to landline Phone for

official use, 46% Respondents have the purpose to purchase to landline Phone for off home use &

34% Respondents have the purpose to purchase to landline Phone for status symbol.
Q.7. What are the factors, which influence most at the purchasing of landline

connection?

Ans.

Factors Percentage
Economic call rate 38
Good connectivity 46
Tones 04
ID caller 12
Colors 00
Total 100

% Respondent
Economic call
rate
50 46
Good connectivity
38
40
30 Tones
20 12
ID caller
10 4
0
0 Colors
%

Interpretation:

Out of 100 Respondents 38% Respondents are influenced most by the Economic call rate, 46%

Respondents are influenced most by the Good connectivity, 04% Respondents are influenced most

by the Tones, 12% Respondents are influenced most by the ID caller & 0% Respondents are

influenced most by the Colors.

Q.8. What type of problem you are facing with your landline phone?
Ans.
Problem Percentage
Disturbance in lines during calls 34
Cross connection 14
Errors in bill 18
Complaints are attended very late 26
Instrument problem 8
Total 100
Disturbance in line
% Respondent during call

40 34 Problem of cross
35
connectivity
30 26
25
18 Errors in bills send
20 14
15 to the customer
8
10
5 Complaints are
0 attended very late
% by telephone dept.
Problem in the
instrument
Interpretation:

Out of 100 Respondents 34% Respondents are facing the problem of disturbance in line during

call, 14% Respondents are facing the problem of cross connectivity, 18% Respondents are facing

the problem of errors in bill send to customer, 26% Respondents are facing the problem of

complaints are attended very late & 08% Respondents are facing the problem in instrument.
Q.9. Are you satisfied with your landline?
Ans.
Satisfaction Percentage
BSNL 54
Reliance 30
Tata 16
Total 100

% Respondent

60 54

40 30
%
16
20

0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 54% Respondents are satisfied with BSNL, 22% Respondents are

satisfied with Reliance & 24% Respondents are satisfied with Tata.

Q.10. Are you aware about the different scheme provided by BSNL and Private
landline provider?
Ans.
Different scheme Percentage
BSNL 70
Reliance 22
Tata 08
Total 100

% Respondent

80 70
60
40 22 %
20 8
0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 70% Respondents are aware about different scheme provided BSNL,

22% Respondents are aware about different scheme provided by Reliance & 08% Respondents are

aware about different scheme provided by Tata.


Q.11. If you have a chance to purchase a new connection of landline phone which
will you prefer?
Ans.
New Landline Connection Percentage
BSNL 62
Reliance 24
Tata 14
Total 100

% Respondent

80
62
60

40 %
24
20 14

0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 62% Respondent are in favour of adopting BSNL connection if

they gets a chance to get new connection, 24% Respondent are in favour of adopting

Reliance connection if they gets a chance to get new connection & 14% Respondent are in

favour of adopting Tata connection if they gets a chance to get new connection.

Q.12. Which landline service provider are providing better after sale services?
Ans.
After sale service Percentage
BSNL 70
Reliance 22
Tata 08
Total 100

% Respondent

80 70

60

40 %
22
20 8
0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 70% Respondent of this opinion that BSNL provide better after

sale service, 22% Respondent of this opinion that Reliance provide better after sale service

& 08% Respondent of this opinion that Tata provide better after sale service.
Q.13. Are you satisfied with your landline service provider in case of after sale
service?
Ans.

Satisfied sale service Percentage


Yes 30
No 70
Total 100

% Respondent

80 70

60

40 30 %

20

0
Yes No

Interpretation:

Out of 100 Respondents 30% Respondents are satisfied with their existing landline phone & 70%

Respondents are unsatisfied with their existing landline phone.


Q.14. According to you which is better option.
Ans.
Better option of landline Percentage
BSNL 48
Reliance 32
Tata 20
Total 100
% Respondent

60
48
50
40 32
30 20 %
20
10
0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 48% Respondent have opted BSNL as a better landline phone

option, 32%espondent have opted Reliance better landline phone option & 20%

Respondent have opted Tata as a better landline phone option.


Q.15. Would you like to tell me your Expectation towards the attributes of land
line?
Ans.

Expectation Percentage
Portable 08
Economic 30
Good connectivity 26
Call rate 36
Total 100

% Respondent

40 36
30
30 26 Portable
Economic
20
Good connectivity
8
10 Call rate
0
%

Interpretation:

Out of 100 Respondents 08% Respondents want their landline to be Portable, 30% Respondents

want their landline to be Economic, 26% Respondents want their landline to be Good connectivity

& 36% Respondents want their landline to be Call rate.


Q.16. Do you think that private landline co. can offer you better services as
compared to BSNL?
Ans.

Better Private service Percentage


Yes 74
No 26
Total 100

% Respondent

80 74

60

40 26 %

20

0
Yes No

Interpretation:

Out of 100 Respondents 74% Respondents are of this opinion that private landline co. provide

better service as compared BSNL & 26% Respondents are of this opinion that private landline co.

do not provide better service as compared BSNL.


Q.18. Are you aware of the amount charged by the private landline provider?
Ans.

Amount awareness Percentage


Yes 24
No 74
Total 100

% Respondent

80 74

60

40 26 %

20

0
Yes No

Interpretation:

Out of 100 Respondents 26% Respondents are aware about the charged by private landline

provider & 26% Respondents are unaware about the charged by private landline provider.
Q.21. How will you rate to different landline provider?
Ans.

Better option of landline Percentage


BSNL 70
Reliance 22
Tata 08
Total 100

% Respondent

80 70
60
40 22 %
20 8
0
BSNL Reliance Tata

Interpretation:

Out of 100 Respondents 70% Respondents are give rating to BSNL, 22% Respondents are

give rating to Reliance & 08% Respondents are give rating to Tata.
Q.21. How do you consider the future of landline in India?
Ans.

Future of landline in India Percentage


Good 22
Excellent 60
Bad 10
Worst 08
Total 100

% Respondent

80
60
60

40 %
22
20 8 10

0
Good Excellent Worst Bad

Interpretation:

Out of 100 Respondents 22% Respondents considered the future of landline in India as

good, 60% Respondents considered the future of landline in India as excellent, 08%

Respondents considered the future of landline in India as worst & 10% Respondents

considered the future of landline in India as bad.

CONCLUSION
The result of the study can be useful for the telephone provider companies. The factors

affection consumer buying behavior is change according to their income effect . I have

segmented the survey in three categories i.e. student , self employed & serviceman.

Student are much attracting by the mobile phone. They wants to purchase on financed

influence by cash sales promotion schemes students are using their mobile for fun & joy.

Serviceman & self employed are giving preference to average low maintenance & price in

comparison to looks colors & brand image. Serviceman wants to purchase a landline

phone for home use.

Telecommunications is one of the fastest-growing areas of technology in the world.

Because of its rapid growth, businesses and individuals can access information at

electronic speed from almost anywhere in the world. By including telecommunications in

their operations, businesses can provide better services and products to their customers.

For individuals, telecommunications provides access to worldwide information and

services.
SUGGESTIONS & RECOMMENDATIONS

• Brand promotion scheme must be made more attractive than the offer given in

campaign.

• Educating the customer regarding the usage of phone.

• To increase the percentage of reach, the frequency of advertisement of private

landline has to be increase.

• Landline phone provider should try to give better services.

• The private landline provider should create awareness among the customer.

• The private landline company should make attractive advertising campaign.

• Type of Internet connection you have: DSL/Cable/Dial-up/Satellite

• Name of your Internet Service Provider

• Make and model of your router (if you are using one)

• Make and model of your telephone

• Brief description of your home network (computers, routers, hubs, switches,

firewall software)

• Detailed description of the issue you are having

• Call-back number and the best time to call you. We will try our best to

accommodate you.
LIMITATION

Despite the fact that the questionnaire method is widely used in marketing research it has

several important limitations.

• Unwillingness of respondent to provide information.

• Inability of respondent to provide.

• Questionnaire can be administered to respondents who has considerable amount

of education.

• Success and effectiveness mainly depends on the co-operation of the

respondents.

• In many situations researcher is not in a positions to detect the respondents is

bias.

• Unintelligent answers or misinterpretation of any questions by the respondents

could not be corrected.

• Non-response rate is very high.

• Cost constraint

• Time consumption.
BIBLIOGRAPHY

BOOKS:

• Kothari C. R. “ Research Methodology” Second Edition, Wishwa Prakashan.

• Donald S. Tull , Dell I. Hawkins “ Marketing Research” Sixth Edition,

Published by Ashok k. Ghosh , Prentice-Hall Of India Pvt. Ltd.

JOURNALS:

• Indian Journal of Marketing – Volume xxxiv Oct 2006

• IBAT Journal of Management – Volume III Number 1 Jan 2007.

• Journal of Indian Management & Strategy – Volume 20, No.3, July, September

2007

MAGAZINES:

• IIMB Management Review – Volume 16 No.3 September 2007

• Business Today “ Depression In landline phone Sector” Page 25 March 2007.

• Business Today, November 21, 2007 issue

• Business Today, November 21, 2007 issue

WEBSITE

• www.bsnl.co.in

• www.tataindicom.com

• www.relianceinfocom.com
ANNEXURE
QUESTIONNAIRE

Name:

Occupation:

Address:

Q.1. Do you have a landline Phone?

Yes No

Q.2. Which Landline Provider do you have ?

BSNL Tata Indicom

Reliance

Q.3. Are you aware about Private landline provider?

Awareness Unawareness

Undeceiving

Q.4. Why do you consider that landline phone is better than the mobile phone?

Economy No fear of theft/loss

Service has new improved Even layman pirate it

Easy in reach as it is installed

Q.5. By which medium, you come to know about this connection (Phone).

Advertising Friends

Family members Others

Q.6. What is your purpose to purchase this connection?

For official use For fun

This is a status symbol


Q.7. What are the factors, which influence most at the purchasing of landline

connection?

Economic call rate. Tones

Good connectivity Caller ID

Colors

Q.8. What type of problem you are facing with your landline phone?

Disturbance in lines during calls

Problem in the instrument

Problem of cross connectivity

Errors in bills send to the customer

Complaints are attended very late

By telephone deptt.

Q.9. Are you satisfied with your landline?

BSNL Tata Indicom

Reliance

Q.10. Are you aware about the different scheme provided by BSNL and Private landline

provider?

Awareness Unawareness

Undeceiving

Q.11. If you have a chance to purchase a new connection of landline phone which will

you prefer?

BSNL Tata Indicom

Reliance
Q.12. Which landline service provider are providing better after sale services?

BSNL Tata Indicom

Reliance

Q.13. Are you satisfied with your landline service provider in case of after sale service?

Yes No

Q.14. According to you which is better option.

BSNL Tata Indicom

Reliance

Q.15. Would you like to tell me your Expectation towards the attributes of land line?

Portable Economic

Good connectivity Call rate

Caller ID

Q.16. Do you think that private landline co. can offer you better services as compared to

BSNL?

Yes No

Q.17.If yes/no please mention the reason?

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Q.18. Are you aware of the amount charged by the private landline provider?

Yes No

Q.19. If yes please mention the amount?

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Q.20. Does your pocket allow to afford the private landline connection?

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Q.21. How will you rate to different landline provider?

BSNL Reliance

Tata

Q.22. How do you consider the future of landline in India?

Good Excellent

Bad Worst

Q.23.Would you like to tell me your recommendation.

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