Management Thesis-1

Final Report

On

“Measurement of customer satisfaction on STD/PCO

services offered by Bharti televenture with respect to
BSNL”

Submitted to: Mr. Prashant Dupate INC Nagpur

Submitted by: Anant Parate (8NBNG100) INC Nagpur

 ACKNOWLEDGEMENT

The interim report of management thesis has been completed under the guidance of

my management thesis guide Mr. Prashant Dupate. I would like to take this

opportunity to thank him for guiding me at every step and without whose support

this report would not have been possible. I would also like to thanks various other

people who have given their valuable inputs at every step to make this report

successful.

Mr. Anant Parate (8NBNG100)

SEM III
Sec B
 DECLARATION

I, Anant Parate, here by declaring that the project entitled “Measurement of

customer satisfaction on STD/PCO Services offered by Bharti Televentures with
respect to BSNL ” has been personally done by me under the guidance of Mr.
Prashant Dupate.

All the data represented in this dissertation is true & correct to the best of my
knowledge & belief. This work has not been submitted for any other
degree/diploma exam elsewhere.

Place: Name:

Nagpur Anant Parate

 ABBREVIATIONS

BSNL Bharat Sanchar Nigam Limited

BSE The Stock Exchange, Mumbai

NSE National Stock Exchange of India Limited

IPO Initial public offering

SMS Short Messaging Service

GPRS Geniuq Pocket Radio System

CDMA Code Division Multiple Access

GSM Global system for mobile communication

STD Subscriber Trunk Dialing

ISD International Trunk Dialing

PCO Public call office

 CONTENTS

 Overview of topic

 Objective of Research

 History of India Telecommunications

 Telecom Sector in India

 Companies Involved

 Top Players

 About Airtel and BSNL

 Market Share

 Services of Airtel and BSNL

 Research Methodology

 Data and Data Interpretation

 Finding

 Conclusion

 References
 Overview of topic

Title of the thesis is the “Measurement of customer satisfaction on STD/PCO

Services offered by Bharti Televentures with respect to BSNL” it is a very broad
aspect in itself. Acquiring of the customer is what every Business prime motive; it
is the only thing on which any Company can make its existence in the market. The
existence of the company is detrained by the total market share the company is
holding as compared to its competitors, which in turn is the total number of the
customer the Company is having. Fruitful customers are the way of profitability for
the Business in future. Telecom sector is a field in which a direct interaction with
the people is a part of the daily work schedule. Hence a proper systematic and
impressive way of handling the customer is required in this field. Any person who
is working in this field need to identify the requirement of the customer, he/she
should be able to read the mind of the person sitting in front should be able to
judge whether the person in front can be our customer or not. Hence a good unique
way of convincing them, making them see things our way and being good enough
in reading the needs and wants of the customer, is what which is required in this
thesis.

As my project is basically acquiring the home potential customer and selling the
product to them so the main idea behind these is that customer can utilize his
money more efficiently and properly without any wastage, So their needs should
be provoked and this way they can be converted into customers for the Pri- Paid
plans.
 Objective of Research

The purpose of research is to discover answers to questions through the application

of scientific procedures. The main aim of research is to find out the truth which is
hidden and which has not been discovered as yet. Nagpur segment will survey to
attain certain results. The survey will conduct to analyze the customer Satisfaction
for Airtel STD/PCO, find out the factors which would influence the buying
decision of the customer and to highlight the awareness about various facts
regarding Airtel.

History of Indian Telecommunications

Year
1851 First operational land lines were laid by the government near Calcutta (seat
of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the

Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
2000 DoT becomes a corporation, BSNL

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. 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.
Telecommunication sector in India can be divided into two segments: Fixed
Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic
services, national or domestic long distance and international long distance
services. The state operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are presently available in
selective urban areas, and collectively account for less than 5 per cent of
subscriptions. However, private services focus on the business/corporate sector,
and offer reliable, high- end services, such as leased lines, ISDN, closed user group
and videoconferencing.
Cellular services can be further divided into two categories: Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while
the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset prices has driven demand.

Revenue from Telecom Sector in India to cross $30 billion by 2013

According to Gartner, a global information technology research and advisory firm, the revenue
from India’s Telecom Sector will cross $30 billion by 2013.
The total mobile services revenue is projected to grow at a compound annual growth rate
(CAGR) of 12.5 percent during 2009-2013 to exceed $30 billion. At the same time the telecom
subscriber base is expected to cross 770 million connections by 2013, growing at a CAGR of
14.3 percent from 452 million in 2009.
The factors supporting this increase are:

• increased focus of operators on rural areas

• increased adoption of value Added Services
• availability of cheaper handsets
• entry of consumer durable and electronic companies into the mobile handset segment
The number of prepaid subscribers is expected to cross 740 million ( about 96 percent) by
2013. At the same time the postpaid subscriber base will exceed 29 million subscribers by
2013, growing 2.5 percent from 2008. Gartner also predicted that the churn rate (the rate at
which a subscriber switches from one operator to another) will cross 59 percent in 2013 from
53 percent currently.

Indian Mobile user base crosses 400 million marks

After an addition of around 11.90 million subscribers in April, the total number of mobile
subscribers in India has increased to 403.66 million. This makes India the world’s fastest
growing mobile market. According to a TRAI report, India might reach the target of 500
million customers by next year. In order to increase the subscriber base, the telecom minister A.
Raja is planning to lower the existing mobile call

Companies Involved
When it comes to the involvement of the companies in Telecom sector it can be
divided in 2 parts

i) Public Sector Undertaking (PSU)

ii) Private Sector.

I. Public Sector Undertaking (PSU)

Its a term used for a government-owned corporation. The term is used to refer to
companies in which the government (either the Union Government or state or
territorial governments, or both) owned a majority (51 percent or more) of the
company equity. There are about 260 PSUs all over India. But there is only one
company in Telecom sector that is

1) Bharat Sanchar Nigam L$imited (BSNL)

 2) Mahanagar Telephone Nigam Limited (MTNL)

II. Private Sector

In economics, the private sector is that part of the economy which is both run for
private profit and is not controlled by the state. By contrast, enterprises that are
part of the state are part of the public sector. private, non-profit organizations are
regarded as part of the voluntary sector. There are many companies involved in
India in Telecom sector.

1) Reliance Communications Limited

2) Bharti Airtel Limited
3) Vodafone Essar
4) Idea Cellular Limited
5) Tata Teleservices

6) Spice

7) Aircel

Market Share
Top Players
As there is no PSU company listed in the stock market. So I have selected the
Private Players on the basis of large market share which consist of two CDMA and
three GSM Telecom companies and they are as follows.

1) Reliance Communications Limited

2) Bharti Airtel Limited
3) Idea Cellular Limited
4) Tata Teleservices

5) BSNL

6) MTNL

7) Vodafone

Bharti Airtel Limited

Company’s Detail
 Established in 1985 by Sunil Mittal as a Public Limited Company, Airtel is the
largest telecom service provider in Indian telecom sector. With market
capitalization of over Rs. 1,360 billion, Airtel has 31% of total market share of
GSM service providers. Providing GSM services in all the 23 circles, Airtel was
the first private player in telecom sector to connect all states of India. Also, Airtel
is the first mobile service provider to introduce the lifetime prepaid services and
electronic recharge systems.

After establishing itself in the domestic market, Airtel is now spreading its wings
in US by providing its mobile service under the name 'CALLHOME' to the NRIs.
Having achieved huge success in mobile services- postpaid and prepaid- Airtel
has now
Entered fixed-line telephony providing broadband services in 92 cities across
India.
The company has an optical fiber network of 35,016 km and a customer base of
The total is 101,114,971 or 24.2% of the total 375,742,592 GSM + CDMA and
1,819,083 broadband subscribers. Airtel is listed on The Stock Exchange,
Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).

Products

1. GSM CARDS
2. FIXED LANDLINE
3. BROADBAND

Market Share

Revenue Market Share(%) - Dec Mar Jun

Sep 2008
2007/2008[41] 2007 2008 2008

Bharti Airtel 29.8 29.9 31.2 32.7

Vodafone Essar 18.5 19.1 19.7 19.6

Year Sales (000s)
Reliance Communications 15.0 13.9 13.5 12.4
Options March 07 Numbers of Respondents
39,013
BSNL Call Rates 14.1 54
14.5 11.7 11.4
March 08 64,268
Network coverage 25
Idea March 09 8.1 8.6
96,649 9.5 10.0
Grievance Redressal 10
Others 14.4
June 09of vouchers
Availability/denomination 14.0
105,196
11 14.4 13.8