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“Consumer Preference for mobile phone services in the city

of Lucknow”
Study Conducted At



Mohit Chandra
MBA (Marketing & Sales)
Mr H.L. Rai Prof. Manoj Joshi
Divisional Engineer, ABS, Lucknow
Bharat Sanchar Nigam Ltd.
A Project report
Submitted to Amity University In partial fulfilment of the requirement for the degree of




Certified that this report is prepared based on the summer internship project undertaken by me in BHARAT

SANCHAR NIGAM LTD. from 31st May 2010 to 10th July 2010, under the able guidance of Professor

Manoj Joshi in partial fulfilment of the requirement for award of degree of Master of Business Administration

(MBA-M&S) from Amity University, Uttar Pradesh.


Signature Signature Signature

Mohit Chandra Professor M Joshi R P Singh

Student Faculty Guide Director (ABS)

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Certificate by Faculty Guide

Forwarded here with a summer internship report on “Consumer preference for mobile phone services in

the city of Lucknow” of BHARAT SANCHAR NIGAM LIMITED submitted by MOHIT CHANDRA

Enrolment No. A7002209007, student of MBA (M & S) 3rd Semester (2009-2011). This project work is

partial fulfilment of the requirement for the degree of Master in Business Administration from Amity

University Lucknow Campus, Uttar Pradesh.



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I wish to acknowledge my indebtedness to my Project guide Mr H.L. Rai and my Faculty

guide Prof. Manoj Joshi. The project could not have been a success without their able
support and guidance. Thanking them is a small gesture for the generosity shown. I am
grateful to my project guide, for providing me the chance to do my SIP in a reputed
organization like „Bharat Sanchar Nigam Limited‟. I will always be obliged to my
Company guide Mr H.L. Rai and faculty guide Prof. Manoj Joshi, who had given their
precious support and guidance in every step of the project otherwise it would have been
difficult on my part to bring this project work to completion. I am sure the knowledge
imparted will go in a long way in enriching my career.

DATE: 10th July, 2010 Mohit Chandra

MBA (Marketing & Sales)

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I. Chapter – I Page No.


i) Abstract 1
ii) Introduction Of Topic 2
iii) Consumer Buying Behaviour 3-4
iv) Consumer Buying Process 5-7
v) Marketing Research Process 8-24
II. Chapter – II
i) Background of the Company 25-26
ii) Position of BSNL in Telecom sector 27
iii) SWOT Analysis 28
iv) Balance Sheet Of Telecom Industry- Service Providers 29-30
v) History of the BSNL 31-32
vi) Organisational Chart 33
vii) Products Offered 34-35
viii) Marketing Strategies 36-44
ix) Present & Future Of BSNL 44-46
x) Competitors 46-60
III. Chapter – III
i) Research Methodology 61-62
ii) Tools and techniques of analysis 63
iii) Limitations of the Study 63
iv) Data Analysis & Interpretation 64-78
IV. Chapter – IV
i) Findings 79
ii) Suggestions 80
iii) Conclusion 81
i) Questionnaire 1 82-83
ii) Questionnaire 2 84-86
iii) Bibliography 87

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i. Consumer preference towards service providers

ii. On the basis of marital status

iii. On the basis of Educational Qualification

iv. On the basis of Occupation of the respondents

v. Influencing factors of purchasing mobile connection

vi. On the basis of purpose for purchase of mobile connection

vii. On the basis of influencing factors for purchasing mobile

viii. Consumer‟s attitude towards importance of having mobile

ix. On the basis of income (per month)

x. Consumer‟s satisfaction on the performance of the service providers

xi. On the basis of usefulness of mobile connection

xii. On the basis of periodical offers given by the service providers

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Objectives of the study:

1. To ascertain the attributes which influenced the customer‟s in selecting a particular cell phone services


2. To study the consumer‟s satisfaction towards different cellular service providers.

3. To assess the general problems faced by the cellular service users.

4. To offer valuable suggestions to improve the customer base of BSNL.

Need of the study:

Exchange of information becomes the necessity of life to a common man.

In the modern world an individual tends to communicate anything to everything right from the place where

he/she stands. Even while riding a vehicle he / she wants to communicate within a fraction of second at

quick speed with clear voice, without any disturbance like line crossing, out of order, etc. ; most of which

lack in the connectivity given by the department of telecommunication.

Cellular service providers emerge as a boon quench such a thirst, thus by providing facilities, which a

common man cannot imagine. Though the telecom industry has its origin in the recent past and the growth

has been excellent. Day by day many new competitors enter the market with new attractive schemes,

provide additional facilities, add new features to existing ones, reduce the charges of incoming and outgoing

calls, introduce varieties of handsets, models a healthy competition that benefits the subscribers. Hence in

this context, it is important to study the various attributes or factors which shape the consumers mind during

taking or switching over to new mobile connections.

In terms of value- addition to the organization, this study will definitely help the Company to grow in future.

As, we all are aware of the fact that a fierce competition is going on, in order to stay alive in the market

place. In this situation, one competitor tries to penetrate through the loop holes of the other competitor. This

project will visualize all sorts of loop holes which the BSNL possesses right now and will also give a

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complete insight to all types of problems such as, whether the products & services are competent enough to

fight back their competitor‟s products & services or not.

Scope of this study:

The present study is contained to Lucknow and it is decided to consider

Airtel, BSNL and other cell phone service rendered to the customers.

In Lucknow there are nine cellular services available - Airtel, Aircel, BSNL, Tata Indicom, Vodafone,

Reliance, Idea, Virgin and Uninor. The main objectives of this study is to analyse the customer behaviour

during taking new mobile connections and consumers of different cellular service providers of Lucknow city

has been taken for the current research work.

Statement of problem:

In our country the growth of service marketing especially telecom industry is still in its infancy stage, as

compared to the industrially advanced countries. It is for the fact that the economy of our country has been

in the developing stage. There are various cellular service services providers in our country and they are

playing an essential role in fulfilling the needs of the customers. Now-a-days, the customers are more

dynamic. Their taste, needs and preference can be changing as per current scenario. Hence the development

of cellular industry mainly depends on the customer satisfaction. However the following questions may arise

regarding customer satisfaction

1. Does the cell industry satisfy the social responsibility?

2. What are the expectations by the customer‟s regarding service provided by the cell phone service


3. Whether the service provided by cell phone industry is satisfying the customers?

4. Are the facilities available adequate to satisfy the customers?

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Consumer behaviour during taking new mobile connections is a vast topic to study. In order to analyse the

subject minutely the topic is being divided into three parts. First part of my project is all about designing a

suitable questionnaire so that the various variable factors that the consumer behaviour and their effectiveness

in moulding the same can be studied.

The next part is dedicated to selection a suitable sample size of consumers using mobile connections and

taking their feedback through the questionnaire. Well in the last part of my study is devoted on doing the

analysis and interpretation from the feedback collected from the respondents. Then application of suitable

statistical tool is decided on to arrive at some results. Based on these results, a conclusion will be drawn

thereafter which will stand as an ultimate result of my study in the concerned field so called



The services structure can be renewed based on the provide suggestions and recommendations which can

help to increase the client base and increase the market share in the concerned field as the findings will

basically revolve around the most favoured services by the investors and locate the core areas where the

services can be improved further according to the market demand.

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As the title of my project is “Consumer Preference for the mobile phone services in the city of

Lucknow” first of all we need to understand that “What is consumer buying behaviour?”

Before business can develop marketing strategies, they must understand what factors influence buyer‟s

behaviour and how they make purchase decisions to satisfy their needs and wants. Buyers are moved by a

complex set of deep and subtle emotions. Their behaviour result from deeply held values and attitudes; their

perception of the world and their place in it, from common sense, impulse or just plain whimsy. There are

also several stages through which the consumer exhibit before deciding to purchase goods or services. These

include 5 steps which are: problem or need recognition, information search, alternative evaluation,

purchase and post-purchase evaluation.


The needs to satisfy customer for success in any commercial enterprise is very obvious. The income of all

commercial enterprise is derived from the payments received for the products and services supplied to its

customers. If there is no customer there is no income and there is no business. Then the core activity of any

company is to attract and retain customers. It is therefore no surprise that Peter F Drucker the renowned

management Guru, has said “to satisfy the customers is the mission and purpose of every business”.

Satisfaction of customer is essential for retention of customer‟s and for continuous sales of the products and

services of the company to customers. This establishes the needs for and the importance of customer

satisfaction. The satisfaction of consumers is different from one to another. Became, each consumer has the

different behaviour in their life. So, the marketer satisfies the consumer, he must very well know the

behaviour of consumer.

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“Consumer behaviour refers to the mental and emotional process and the observable behaviour of

consumers during searching, purchasing and post consumption of a product or service.”

Consumer behaviour involves study of how people buy, what they buy, when they buy and why they buy. It

blends the elements from psychology, sociology, socio-psychology, anthropology and economics. It also

tries to assess the influence on the consumer from groups such as family, friends, reference groups and

society in general.

Buyer behaviour has two aspects: the final purchase activity visible to any observer and the detailed or

short decision process that may involve the interplay of a number of complex variables not visible to



Consumer buying behaviour is influenced by the major three factors:

1. Social Factors
2. Psychological Factors
3. Personal Factors.


Social factors refer to forces that other people exert and which affect consumers‟ purchase behaviour. These

social factors can include culture and subculture, roles and family, social class and reference groups.


By taking into consideration Reference group, these can influence/ affect the consumer buying behaviour.

Reference group refers to a group with whom an individual identifies herself/ himself and the extent to

which that person assumes many values, attitudes or behaviour of group members. Reference groups can be

family, school or college, work group, club membership, citizenship etc.

Reference groups serve as one of the primary agents of consumer socialization and learning and can be

influential enough to induce not only socially acceptable consumer behaviour but also socially unacceptable

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and even personal destructive behaviour. For example, if fresher student joins a college / university, he/she

will meet different people and form a group, in that group there can be behaviour patterns of values, for

example style of clothing, handsets which most of group member prefer or even destructive behaviour such

as excessive consumption of alcohol, use of harmful and addictive drugs etc. So, according to how an

individual references him / her to that particular reference group, this will influence and change his/her

buying behaviour.


These are internal to an individual and generate forces within that influence her/his purchase behaviour. The

major forces include motives, perception, learning, attitude and personality.


Attitude is an enduring organization of motivational, emotional, perceptual and cognitive processes with

respect to some aspect of our environment. Consumer form attitude towards a brand on the basis of their

beliefs about the brand.

For example, consumers of Sony products might have the belief that the products offered by Sony are

durable; this will influence those customers to buy Sony products due to this attitude towards the brand.


These include those aspects that are unique to a person and influence purchase behaviour. These factors

include demographic factors, lifestyle, and situational factors.

Example: Lifestyle is an indicator of how people live and express themselves on the basis of their activities,

interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their

time the importance of things in their surroundings and their beliefs on broad issues associated with life and

living and themselves. This is influenced by demographic factors and personality.

Example: A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less

informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and

profession, the buying behaviour of people differs from one another.

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Consumer buying decision process is the processes undertaken by consumer in regard to a potential
market transaction before, during and after the purchase of a product or service.

Consumer decision making process generally involves five stages-:

Problem Information Alternative Purchase Post Purchase

Recognition Search Evaluation Action Action

Problem Recognition

Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem.

This is the vital stage in buying decision process, because without recognizing the need or want, an

individual would not seek to buy goods or service.

There are several situations that can cause problem recognition, these include:

Depletion of stock

Dissatisfaction with goods in stock

Environmental Changes

Change in Financial Situation

Marketer Initiated Activities


It‟s when a person recognizes that she cannot make a call from her mobile phone that‟s when she recognizes

that her phone has been damaged i.e. the phone has hardware problems and needs to be repaired or buying a

new piece.

Information Search

After the consumer has recognized the need, he / she will try to find the means to solve that need. First he

will recall how he used to solve such kind of a problem in the past, this is called nominal decision making.

Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice

for which product will best serve his need, this is called limited decision making.

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Sources of information include:

Personal sources

Commercial Sources

Public sources

Personal experience

Example: (continuing from previous…)

The user of the phone after recognizing that his phone is damaged, he will eventually try to find out how she

can repair her phone. If he cannot repair it himself he will ask a friend to help out, if the friend cannot solve

the problem he will go to mobile repair shop, if they also cannot repair it then he will try to find which

mobile phone is good and that can serve his need. In this process of information collection it will yield

awareness of set of brands of mobile connections he can buy.

Alternatives evaluation

Consumers‟ evaluates criteria refer to various dimension; features, characteristics and benefits that a

consumer desires to solve a certain problem. Product features and its benefit is what influence consumer

to prefer that particular product. The consumer will decide which product to buy from a set of alternative

products depending on each unique feature that the product offers and the benefit he / she can get out of that


Example: (continuing from previous…)

When that user got enough information concerning the different brands of mobile connections available in

the market, she will decide which kind of a mobile phone and brand she‟s going to buy depending upon her

need for that particular mobile, either a mobile for multimedia and entertainment, Smartphone or classic


Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image

and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they

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can willingly go to a far away store when they purchase items which are of higher values and which involve

higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes

the final step of transaction by either cash or credit.

Example: (continuing from previous)

After selecting brand of the phone and model from different alternatives of mobile connections, she will

make a final decision of where to buying that phone and make the final transaction procedures.

Post-purchase Actions

Consumer favourable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is

basically a function of the initial performance level expectation and perceived performance relative to

those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product.

This can result to consumer experiencing post purchase dissatisfaction. If the consumer‟s perceived

performance level is below expectation and fail to meet satisfaction this will eventually cause

dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future

purchases. This might cause the consumer to initiate complaint behaviour and spread negative word-of-

mouth concerning that particular product.

Example: (continuing from previous)

If she decided to buy a multimedia phone she will try to compare the quality of music it provides and

pictures taken if they meet her expectations. If she will find that her expectation are meeting she will be

satisfied, if she found that there are more additional features that she did not expect this mobile phone to

have, she will be delighted, otherwise, she will be dissatisfied. Since my title is “Consumer behaviour

during taking new mobile connections”, I need to do the survey of existing/new consumers of the service

of different cellular service providers. Hence, my project is totally based on comparative analysis of

different attributes shaping the consumer behaviour during taking new mobile connections. Till date I have

completed the survey of 150 consumers of different cellular service providers and I got many Suggestions &

Recommendations from the customers.

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1. Define the problem

2. Determine research design

3. Identify data types and sources

4. Design data collection forms and questionnaires

5. Determine sample plan and size

6. Collect the data

7. Analyse and interpret the data

8. Prepare the research report

Problem Definition

The decision problem faced by management must be translated into a market research problem in the form

of questions that define the information that is required to make the decision and how this information can

be obtained. Thus, the decision problem is translated into a research problem. For example, a decision

problem may be whether to launch a new product. The corresponding research problem might be to assess

whether the market would accept the new product.

The objective of the research should be defined clearly. To ensure that the true decision problem is

addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the

decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that

the purpose of the research is agreed upon before it commences.

Research Design

Marketing research can be classified in one of three categories:

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Exploratory research

Descriptive research

Causal research

These classifications are made according to the objective of the research. In some cases the research will fall

into one of these categories, but in other cases different phases of the same research project will fall into

different categories.

Exploratory research has the goal of formulating problems more precisely, clarifying concepts,

gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.

Exploratory research can be performed using a literature search, surveying certain people about their

experiences, focus groups, and case studies. When surveying people, exploratory research studies

would not try to acquire a representative sample, but rather, seek to interview those who are

knowledgeable and who might be able to provide insight concerning the relationship among

variables. Case studies can include contrasting situations or benchmarking against an organization

known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test

them. Exploratory research is characterized by its flexibility.

Descriptive research is more rigid than exploratory research and seeks to describe users of a product,

determine the proportion of the population that uses a product, or predict future demand for a

product. As opposed to exploratory research, descriptive research should define questions, people

surveyed, and the method of analysis prior to beginning data collection. In other words, the who,

what, where, when, why, and how aspects of the research should be defined. Such preparation allows

one the opportunity to make any required changes before the costly process of data collection has


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There are two basic types of descriptive research: longitudinal studies and cross-sectional studies.

Longitudinal studies are time series analyses that make repeated measurements of the same

individuals, thus allowing one to monitor behaviour such as brand-switching. However, longitudinal

studies are not necessarily representative since many people may refuse to participate because of the

commitment required. Cross-sectional studies sample the population to make measurements at a

specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an

aggregate of individuals who experience the same event within the same time interval over time.

Cohort analyses are useful for long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between variables. It accomplishes this

goal through laboratory and field experiments.

Data Types and Sources

Secondary Data

Before going through the time and expense of collecting primary data, one should check for secondary data

that previously may have been collected for other purposes but that can be used in the immediate study.

Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to

the firm such as published data or commercially available data. The government census is a valuable source

of secondary data.

Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are

that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for

secondary data than for primary data. Some secondary data is republished by organizations other than the

original source. Because errors can occur and important explanations may be missing in republished data,

one should obtain secondary data directly from its source. One also should consider who the source is and

whether the results may be biased.

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There are several criteria that one should use to evaluate secondary data.

Whether the data is useful in the research study.

How current the data is and whether it applies to time period of interest.

Errors and accuracy - whether the data is dependable and can be verified.

Presence of bias in the data.

Specifications and methodologies used, including data collection method, response rate, quality and

analysis of the data, sample size and sampling technique, and questionnaire design.

Objective of the original data collection.

Nature of the data, including definition of variables, units of measure, categories used, and

relationships examined.

Primary Data

Often, secondary data must be supplemented by primary data originated specifically for the study at hand.

Some common types of primary data are:

Demographic and socioeconomic characteristics

Psychological and lifestyle characteristics

Attitudes and opinions

Awareness and knowledge - for example, brand awareness

Intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of

actual future behaviour.

Motivation - a person's motives are more stable than his/her behaviour, so motive is a better predictor

of future behaviour than is past behaviour.

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Primary data can be obtained by communication or by observation. Communication involves

questioning respondents either verbally or in writing. This method is versatile, since one needs only

to ask for the information; however, the response may not be accurate. Communication usually is

quicker and cheaper than observation. Observation involves the recording of actions and is

performed by either a person or some mechanical or electronic device. Observation is less versatile

than communication since some attributes of a person may not be readily observable, such as

attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer

since observers may have to wait for appropriate events to occur, though observation using scanner

data might be quicker and more cost effective. Observation typically is more accurate than


Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in

a personal interview the respondent's perception of the interviewer may affect the responses.

Questionnaire Design

The questionnaire is an important tool for gathering primary data. Poorly constructed questions can result in

large errors and invalidate the research data, so significant effort should be put into the questionnaire design.

The questionnaire should be tested thoroughly prior to conducting the survey.

Measurement Scales

Attributes can be measured on nominal, ordinal, interval, and ratio scales:

Nominal numbers are simply identifiers, with the only permissible mathematical use being for

counting. Example: social security numbers.

Ordinal scales are used for ranking. The interval between the numbers conveys no meaning. Median

and mode calculations can be performed on ordinal numbers. Example: class ranking

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Interval scales maintain an equal interval between numbers. These scales can be used for ranking

and for measuring the interval between two numbers. Since the zero point is arbitrary, ratios cannot

be taken between numbers on an interval scale; however, mean, median, and mode are all valid.

Example: temperature scale

Ratio scales are referenced to an absolute zero value, so ratios between numbers on the scale are

meaningful. In addition to mean, median, and mode, geometric averages also are valid. Example:


Validity and Reliability

The validity of a test is the extent to which differences in scores reflect differences in the measured

characteristic. Predictive validity is a measure of the usefulness of a measuring instrument as a predictor.

Proof of predictive validity is determined by the correlation between results and actual behaviour. Construct

validity is the extent to which a measuring instrument measures what it intends to measure.

Reliability is the extent to which a measurement is repeatable with the same results. A measurement may be

reliable and not valid. However, if a measurement is valid, then it also is reliable and if it is not reliable, then

it cannot be valid. One way to show reliability is to show stability by repeating the test with the same results.

Attitude Measurement

Many of the questions in a marketing research survey are designed to measure attitudes. Attitudes are a

person's general evaluation of something. Customer attitude is an important factor for the following reasons:

Attitude helps to explain how ready one is to do something.

Attitudes do not change much over time.

Attitudes produce consistency in behaviour.

Attitudes can be related to preferences.

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Attitudes can be measured using the following procedures:

Self-reporting - subjects are asked directly about their attitudes. Self-reporting is the most common

technique used to measure attitude.

Observation of behaviour - assuming that one's behaviour is a result of one's attitudes, attitudes can

be inferred by observing behaviour. For example, one's attitude about an issue can be inferred by

whether he/she signs a petition related to it.

Indirect techniques - use unstructured stimuli such as word association tests.

Performance of objective tasks - assumes that one's performance depends on attitude. For example,

the subject can be asked to memorize the arguments of both sides of an issue. He/she is more likely

to do a better job on the arguments that favor his/her stance.

Physiological reactions - subject's response to a stimuli is measured using electronic or mechanical

means. While the intensity can be measured, it is difficult to know if the attitude is positive or


Multiple measures - a mixture of techniques can be used to validate the findings, especially

worthwhile when self-reporting is used.

There are several types of attitude rating scales:

Equal-appearing interval scaling - a set of statements are assembled. These statements are selected

according to their position on an interval scale of favorableness. Statements are chosen that has a

small degree of dispersion. Respondents then are asked to indicate with which statements they agree.

Likert method of summated ratings - a statement is made and the respondents indicate their degree of

agreement or disagreement on a five point scale (Strongly Disagree, Disagree, Neither Agree Nor

Disagree, Agree, Strongly Agree).

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Semantic differential scale - a scale is constructed using phrases describing attributes of the product

to anchor each end. For example, the left end may state, "Hours are inconvenient" and the right end

may state, "Hours are convenient". The respondent then marks one of the seven blanks between the

statements to indicate his/her opinion about the attribute.

Stapel Scale - similar to the semantic differential scale except that 1) points on the scale are

identified by numbers, 2) only one statement is used and if the respondent disagrees a negative

number should marked, and 3) there are 10 positions instead of seven. This scale does not require

that bipolar adjectives be developed and it can be administered by telephone.

Q-sort technique - the respondent if forced to construct a normal distribution by placing a specified

number of cards in one of 11 stacks according to how desirable he/she finds the characteristics

written on the cards.

Sampling Plan
The sampling frame is the pool from which the interviewees are chosen. The telephone book is often used as

a sampling frame, but has some shortcomings. Telephone books exclude those households that do not have

telephones and those households with unlisted numbers. Since a certain percentage of the numbers listed in a

phone book are out of service, there are many people who have just moved who are not sampled. Such

sampling biases can be overcome by using random digit dialling. Mall intercepts represent another sampling

frame, though there are many people who do not shop at malls and those who shop more often will be over-

represented unless their answers are weighted in inverse proportion to their frequency of mall shopping.

In designing the research study, one should consider the potential errors. Two sources of errors are random

sampling error and non-sampling error. Sampling errors are those due to the fact that there is a non-zero

confidence interval of the results because of the sample size being less than the population being studied.

Non-sampling errors are those caused by faulty coding, untruthful responses, respondent fatigue, etc.

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There is a trade off between sample size and cost. The larger the sample size, the smaller the sampling error

but the higher the cost. After a certain point the smaller sampling error cannot be justified by the additional


While a larger sample size may reduce sampling error, it actually may increase the total error. There are two

reasons for this effect. First, a larger sample size may reduce the ability to follow up on non-responses.

Second, even if there is a sufficient number of interviewers for follow-ups, a larger number of interviewers

may result in a less uniform interview process.

Data Collection

In addition to the intrinsic sampling error, the actual data collection process will introduce additional errors.

These errors are called non-sampling errors. Some non-sampling errors may be intentional on the part of the

interviewer, who may introduce a bias by leading the respondent to provide a certain response. The

interviewer also may introduce unintentional errors, for example, due to not having a clear understanding of

the interview process or due to fatigue.

Respondents also may introduce errors. A respondent may introduce intentional errors by lying or simply by

not responding to a question. A respondent may introduce unintentional errors by not understanding the

question, guessing, not paying close attention, and being fatigued or distracted.

Such non-sampling errors can be reduced through quality control techniques.

Data Analysis - Preliminary Steps

Before analysis can be performed, raw data must be transformed into the right format. First, it must be
edited so that errors can be corrected or omitted. The data must then be coded; this procedure converts the

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edited raw data into numbers or symbols. A codebook is created to document how the data was coded.
Finally, the data is tabulated to count the number of samples falling into various categories. Simple
tabulations count the occurrences of each variable independently of the other variables. Cross tabulations,
also known as contingency tables or cross tabs, treats two or more variables simultaneously. However, since
the variables are in a two-dimensional table, cross tabbing more than two variables is difficult to visualize
since more than two dimensions would be required. Cross tabulation can be performed for nominal and
ordinal variables.

Cross tabulation is the most commonly utilized data analysis method in marketing research. Many studies
take the analysis no further than cross tabulation. This technique divides the sample into sub-groups to show
how the dependent variable varies from one subgroup to another. A third variable can be introduced to
uncover a relationship that initially was not evident.

Conjoint Analysis

The conjoint analysis is a powerful technique for determining consumer preferences for product attributes.

Hypothesis testing

A basic fact about testing hypotheses is that a hypothesis may be rejected but that the hypothesis never can

be unconditionally accepted until all possible evidence is evaluated. In the case of sampled data, the

information set cannot be complete. So if a test using such data does not reject a hypothesis, the conclusion

is not necessarily that the hypothesis should be accepted.

The null hypothesis in an experiment is the hypothesis that the independent variable has no effect on the

dependent variable. The null hypothesis is expressed as H0. This hypothesis is assumed to be true unless

proven otherwise. The alternative to the null hypothesis is the hypothesis that the independent variable does

have an effect on the dependent variable. This hypothesis is known as the alternative, research, or

experimental hypothesis and is expressed as H1. This alternative hypothesis states that the relationship

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observed between the variables cannot be explained by chance alone.

There are two types of errors in evaluating a hypothesis:

Type I error: occurs when one rejects the null hypothesis and accepts the alternative, when in fact the

null hypothesis is true.

Type II error: occurs when one accepts the null hypothesis when in fact the null hypothesis is false.

Because their names are not very descriptive, these types of errors sometimes are confused. Some people

jokingly define a Type III error to occur when one confuses Type I and Type II. To illustrate the difference,

it is useful to consider a trial by jury in which the null hypothesis is that the defendant is innocent. If the jury

convicts a truly innocent defendant, a Type I error has occurred. If, on the other hand, the jury declares a

truly guilty defendant to be innocent, a Type II error has occurred.

Hypothesis testing involves the following steps:

Formulate the null and alternative hypotheses.

Choose the appropriate test.

Choose a level of significance (alpha) - determine the rejection region.

Gather the data and calculate the test statistic.

Determine the probability of the observed value of the test statistic under the null hypothesis given

the sampling distribution that applies to the chosen test.

Compare the value of the test statistic to the rejection threshold.

Based on the comparison, reject or do not reject the null hypothesis.

Make the marketing research conclusion.

Page | 27
In order to analyse whether research results are statistically significant or simply by chance, a test of

statistical significance can be run.

Tests of Statistical Significance

The chi-square ( 2 ) goodness-of-fit test is used to determine whether a set of proportions have specified

numerical values. It often is used to analyze bivariate cross-tabulated data. Some examples of situations that

are well-suited for this test are:

A manufacturer of packaged products test markets a new product and wants to know if sales of the

new product will be in the same relative proportion of package sizes as sales of existing products.

A company's sales revenue comes from Product A (50%), Product B (30%), and Product C (20%).

The firm wants to know whether recent fluctuations in these proportions are random or whether they

represent a real shift in sales.

The chi-square test is performed by defining k categories and observing the number of cases falling into

each category. Knowing the expected number of cases falling in each category, one can define chi-squared


2 = ( Oi - Ei )2 / Ei


Oi = the number of observed cases in category i,

Ei = the number of expected cases in category i,

k = the number of categories,

the summation runs from i = 1 to i = k.

Before calculating the chi-square value, one needs to determine the expected frequency for each cell. This is
Page | 28
done by dividing the number of samples by the number of cells in the table.

To use the output of the chi-square function, one uses a chi-square table. To do so, one needs to know the

number of degrees of freedom (df). For chi-square applied to cross-tabulated data, the number of degrees of

freedom is equal to

( number of columns - 1 ) ( number of rows - 1 )

This is equal to the number of categories minus one. The conventional critical level of 0.05 normally is used.

If the calculated output value from the function is greater than the chi-square look-up table value, the null

hypothesis is rejected.


Another test of significance is the Analysis of Variance (ANOVA) test. The primary purpose of ANOVA is

to test for differences between multiple means. Whereas the t-test can be used to compare two means,

ANOVA is needed to compare three or more means. If multiple t-tests were applied, the probability of a

TYPE I error (rejecting a true null hypothesis) increases as the number of comparisons increases. One-way

ANOVA examines whether multiple means differ. The test is called an F-test. ANOVA calculates the ratio

of the variation between groups to the variation within groups (the F ratio). While ANOVA was designed for

comparing several means, it also can be used to compare two means. Two-way ANOVA allows for a second

independent variable and addresses interaction.

To run a one-way ANOVA, use the following steps:

1. Identify the independent and dependent variables.

2. Describe the variation by breaking it into three parts - the total variation, the portion that is within

groups, and the portion that is between groups (or among groups for more than two groups). The

total variation (SStotal) is the sum of the squares of the differences between each value and the grand

mean of all the values in all the groups. The in-group variation (SSwithin) is the sum of the squares of

Page | 29
the differences in each element's value and the group mean. The variation between group means

(SSbetween) is the total variation minus the in-group variation (SStotal - SSwithin).

3. Measure the difference between each group's mean and the grand mean.

4. Perform a significance test on the differences.

5. Interpret the results.

This F-test assumes that the group variances are approximately equal and that the observations are

independent. It also assumes normally distributed data; however, since this is a test on means the Central

Limit Theorem holds as long as the sample size is not too small.

ANOVA is efficient for analysing data using relatively few observations and can be used with categorical

variables. Note that regression can perform a similar analysis to that of ANOVA.

Discriminant Analysis

Analysis of the difference in means between groups provides information about individual variables, it is not

useful for determine their individual impacts when the variables are used in combination. Since some

variables will not be independent from one another, one needs a test that can consider them simultaneously

in order to take into account their interrelationship. One such test is to construct a linear combination,

essentially a weighted sum of the variables. To determine which variables discriminate between two or more

naturally occurring groups, discriminant analysis is used. Discriminant analysis can determine which

variables are the best predictors of group membership. It determines which groups differ with respect to the

mean of a variable, and then uses that variable to predict new cases of group membership. Essentially, the

discriminant function problem is a one-way ANOVA problem in that one can determine whether multiple

Page | 30
groups are significantly different from one another with respect to the mean of a particular variable.

A discriminant analysis consists of the following steps:

1. Formulate the problem.

2. Determine the discriminant function coefficients that result in the highest ratio of between-group

variation to within-group variation.

3. Test the significance of the discriminant function.

4. Interpret the results.

5. Determine the validity of the analysis.

Discriminant analysis analyses the dependency relationship, whereas factor analysis and cluster analysis

address the interdependency among variables.

Factor Analysis

Factor analysis is a very popular technique to analyse interdependence. Factor analysis studies the entire set

of interrelationships without defining variables to be dependent or independent. Factor analysis combines

variables to create a smaller set of factors. Mathematically, a factor is a linear combination of variables. A

factor is not directly observable; it is inferred from the variables. The technique identifies underlying

structure among the variables, reducing the number of variables to a more manageable set. Factor analysis

groups variables according to their correlation.

The factor loading can be defined as the correlations between the factors and their underlying variables. A

factor loading matrix is a key output of the factor analysis. An example matrix is shown below.

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Factor 1 Factor 2 Factor 3

Variable 1

Variable 2

Variable 3

Column's Sum of Squares:

Each cell in the matrix represents correlation between the variable and the factor associated with that cell.

The square of this correlation represents the proportion of the variation in the variable explained by the

factor. The sum of the squares of the factor loadings in each column is called an eigenvalue. An eigenvalue

represents the amount of variance in the original variables that is associated with that factor. The

communality is the amount of the variable variance explained by common factors.

A rule of thumb for deciding on the number of factors is that each included factor must explain at least as

much variance as does an average variable. In other words, only factors for which the eigenvalue is greater

than one are used. Other criteria for determining the number of factors include the Scree plot criteria and the

percentage of variance criteria.

To facilitate interpretation, the axis can be rotated. Rotation of the axis is equivalent to forming linear

combinations of the factors. A commonly used rotation strategy is the varimax rotation. Varimax attempts to

force the column entries to be either close to zero or one.

Cluster Analysis

Market segmentation usually is based not on one factor but on multiple factors. Initially, each variable

represents its own cluster. The challenge is to find a way to combine variables so that relatively homogenous

clusters can be formed. Such clusters should be internally homogenous and externally heterogeneous.

Cluster analysis is one way to accomplish this goal. Rather than being a statistical test, it is more of a

Page | 32
Collection of algorithms for grouping objects, or in the case of marketing research, grouping people. Cluster

analysis is useful in the exploratory phase of research when there are no a-priori hypotheses.

Cluster analysis steps:

1. Formulate the problem, collecting data and choosing the variables to analyse.

2. Choose a distance measure. The most common is the Euclidean distance. Other possibilities include

the squared Euclidean distance, city-block (Manhattan) distance, Chebychev distance, power

distance, and percent disagreement.

3. Choose a clustering procedure (linkage, nodal, or factor procedures).

4. Determine the number of clusters. They should be well separated and ideally they should be distinct

enough to give them descriptive names such as professionals, buffs, etc.

5. Profile the clusters.

6. Assess the validity of the clustering.

Marketing Research Report

The format of the marketing research report varies with the needs of the organization. The report often

contains the following sections:

Authorization letter for the research

Table of Contents
List of illustrations
Executive summary
Research objectives
Conclusions and recommendations
Appendices containing copies of the questionnaires, etc.

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Page | 34
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company
providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile,
Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one
of the largest & leading public sector units in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding
the network, introducing new telecom services with ICT applications in villages and wining customer's
confidence. Today, it has about 46 million line basic telephone capacity, 8 million WLL capacity, 52
Million GSM Capacity, more than 38302 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287
Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5.6 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban
Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide
network giving services in every nook & corner of country and operates across India except Delhi &
Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL
serves its customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company offers vide ranging &
most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3G customers as on
30.11.2009. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers
i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet
through various modes viz. Dial-up, Leased Line, DIAS, and Account Less Internet (CLI). BSNL has been
adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides
convergent services like voice, data and video through the same Backbone and Broadband Access Network.
At present there are 0.6 million Data One broadband customers.
The company has vast experience in Planning, Installation, network integration and Maintenance of
Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training

Scaling new heights of success, the present turnover of BSNL is more than Rs.351, 820 million (US $ 8
billion) with net profit to the tune of Rs.99, 390 million (US $ 2.26 billion) for last financial year. The
infrastructure asset on telephone alone is worth about Rs.630, 000 million (US $ 14.37 billion).

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel
has made BSNL the No. 1 Telecom Company of India.

Page | 35
Particulars of organisation
Date of incorporation: Incorporated on 15.9.2000, vide Registration No.55-107739, dated the 15th
September, 2000 and became entitled to commence business with effect from 19th September, 2000. The
Company (BSNL) took over the .business of providing telecom services and network management
throughout the country except the metro cities of Delhi and Mumbai of the erstwhile service providing
departments of the Govt. of India, i.e., the Departments of Telecom Services and Telecom Operations w.e.f.
1.10.2000 pursuant to a MoU signed between the BSNL and the Govt. of India.

Type of Company: - Government Company under Section 617 of the Companies Act, 1956.

Administrative Ministry: - Govt. of India, Ministry of Communication and Information Technology,

Department of Telecommunications.
Details of Disinvestments: - The entire share capital of the Company is held by the Govt. of India.

Shareholding pattern: - Government of India is holding 100% of the share capital of the Company.

Listing with Stock Exchanges: - Not applicable, as the BSNL is an unlisted company.

Share Capital: -Authorised Capital – Rs.17, 500 crores, divided into 1, 000, 00, 00,000[One Thousand
Crores] Equity Shares of Rs.10/- each; and 750, 00, 00,000 [Seven Hundred and Fifty Crores]
Preference Shares of Rs.10/- each.
Paid Up Share Capital - Rs.5, 000/- crores of Equity Shares and Rs.7, 500/- crores of
Preference Share Capital

Objectives of the Company: - As set out in the objects clause of the Company‟s Memorandum of


To become the largest telecom Service Provider


i. To provide world class State-of-art technology telecom services on demand at affordable price.

ii. To Provide world class telecom infrastructure to develop country's economy.

Page | 36

To understand and suggest – how strategic management can help BSNL – the first thing is to
understand the Telecom industry environment and the stakeholders involved. Apart from having to cope
with the change in structure and culture (government to corporate), BSNL has had to gear itself to meet
competition in various segments – basic services, long distance (LD), and International Long Distance
(ILD), and Internet Service Provision (ISP), and Mobile services. With the advent of competition the
private operators have been impacting the strategic matrix by influencing regulatory bodies, adopting
intelligent media strategies, and by targeting the creamy layer of customers. While, political control over
the public sector remains a contentious strategic issue in the country; with the formation of a company,
the internal strategy of the BSNL board will be of gaining considerable autonomy. Labour unions are
powerful internal stakeholders, as are the middle managers/ other staff that have the primary
responsibility for customer care. The following stakeholders diagram gives an insight about the changing
telecom industry environment for BSNL


Page | 37

The changing external environment for BSNL can be well captured by the Potter‟s model diagram
which shows that the industry structure has become bit unfavourable.

In such an environment BSNL definitely requires to redefine its strategies. What is required is to identify the
potential opportunities and threats implied by this changing environment for the BSNL. In changing
trends, situations, and events gaining an accurate understanding of BSNL‟s strengths and limitations will
help in better strategic management of organization. The SWOT analysis for BSNL is as follows –


Pan-India reach Non-optimization of network capabilities
Experienced telecom service provider Poor marketing strategy
Total telecom service provider Bureaucratic organizational set up
Huge Resources (financial & technical pool) Inflexibility in mind set (DOT period legacies)
Huge customer base Limited number of value added services
Most trusted telecom brand Poor franchisee network
Transparency in billing Legacy of poor service image
Easy deployment of new services Huge and aged manpower
Copper in last mile can be used for easy Procedural delays
broadband deployment Lack of strategic alliances
Huge Optical Fibre network and associated Problems associated with incumbency like out-
bandwidth dated technologies, unproductive rural assets,
social obligations, political interference,
Poor IT penetration within organization
Poor knowledge Management

Tremendous market growing at 20 lac customers Competition from private operators
per month Keeping pace with fast technological changes
Untapped broadband services Market maturity in basic telephone segment
Untouched international market Manpower churning
Can capitalize on public sector image to grab Multinational eyeing Indian telecom market
government‟s ICT initiatives Private operators demand for sharing last mile
ITEB service markets Decreasing per line revenues due to competitive
Diversification of business to turn-key projects pricing
Leveraging the brand image to source funds Private operators demand to do away with ADC
Almost un-invaded VSAT market can seriously effect revenues
Fuller utilization of slack resources Populist policies of government like “One India”
Can make a kill through deep penetration and low rates
cost advantage
Broaden market expected from convergence of
broadcasting, telecom and entertainment industry

Page | 38
Telecommunications Industry - Service Provider
Year Latest 2004 2003 2002 2001


Share Capital 28,439.74 12,827.82 25,278.10 22,704.22 11,673.74

Reserves Total 52,774.07 10,906.21 54,166.95 55,092.90 47,627.92

Total Shareholders Funds 81,213.81 23,734.03 79,445.05 77,797.12 59,301.66

Secured Loans 14,451.92 10,143.80 10,426.83 7,967.86 4,914.03

Unsecured Loans 17,678.43 7,744.99 15,082.31 17,931.40 15,814.61

Total Debt 32,130.35 17,888.79 25,509.14 25,899.26 20,728.64

Total Liabilities 113,344.16 41,622.82 104,954.19 103,696.38 80,030.30


Gross Block 126,924.93 35,713.57 120,233.14 98,262.45 87,396.07

Less : Accumulated
Depreciation 34,116.63 10,405.60 33,282.86 21,432.09 11,688.11

Net Block 92,808.30 25,307.97 86,950.28 76,830.36 75,707.96

Lease Adjustment -6.26 0 -6.26 -21.89 -20.34

Capital Work in Progress 10,917.34 1,563.64 11,138.97 13,068.44 1,878.94

Investments 7,608.10 6,168.32 5,364.25 3,734.98 2,312.91

Current Assets, Loans &


Inventories 3,476.73 151.58 3,523.81 4,512.36 3,636.18

Sundry Debtors 9,289.00 3,216.05 8,646.62 8,720.12 7,029.97

Cash and Bank 8,473.25 4,331.90 8,427.12 8,015.88 9,747.61

Loans and Advances 23,830.81 17,187.46 22,253.10 21,530.38 17,870.28

Total Current Assets 45,069.79 24,886.99 42,850.65 42,778.74 38,284.04

Less : Current Liabilities and


Current Liabilities 30,234.56 10,475.96 28,810.57 27,691.88 34,629.79

Provisions 10,180.26 5,836.69 9,162.93 6,996.58 5,441.99

Total Current Liabilities 40,414.82 16,312.65 37,973.50 34,688.46 40,071.78

Net Current Assets 4,654.97 8,574.34 4,877.15 8,090.28 -1,787.74

Page | 39
Miscellaneous Expenses not
written off 1,437.77 366.69 1,134.39 2,367.83 1,936.63

Deferred Tax Assets 3,228.79 1,315.16 2,542.44 780.56 1.94

Deferred Tax Liability 7,304.85 1,673.30 7,047.03 1,154.18 0

Net Deferred Tax -4,076.06 -358.14 -4,504.59 -373.62 1.94

Total Assets 113,344.16 41,622.82 104,954.19 103,696.38 80,030.30


Telecommunication is one of the most important infrastructures required for the modern life. Telephone
instrument, which has the capability of practical use, has been introduced in 1876. The first telephone
exchange was established at New Haven, in 1878.

After that, two telephone companies arose and they are: The Oriental Telephone Company Limited
and the Anglo-Indian Telephone Company. By 1881, Government of India granted original oriental
Telephone Company, the license to open Telephone exchanges at Calcutta, Bombay, Madras, Karachi and
Ahmedabad. The first telephone exchange with 17 connections was commissioned on 19/08/1881 at
Chennai. By the end of the year 1881 the telephone exchange expanded to 24 lines with 40 subscribers.

The direct exchange lines moved from 24 in 1882 to only 350 in 1910. At the time of renewal of
license in 1922, the Government laid three conditions:-
1. The business should pass in to local company.
2. The system should be modernized.
3. The rates have to be raised.

Under the first objective a “RUPEE” Company was formed in 1923 in the name of “MADRAS
Since then, the direct exchange line rose to 1244 lines, apart from 1224 subscribers, public call
offices were also opened at five places namely, Central station, Egmore station, Madras Harbor,
Salt Cotars.
To overcome the problem of overhead lines, underground cable network were laid up to Guindy in
1923 and extended to Perambur, Royapuram and Harbour in 1932 and the exchange lines also raised to
1832. Due to the automation of telephone services and its use for business promotion, the demand for
telephone connection spread over the South Madras area. In 1929, a satellite automatic exchange of 200
lines capacity was commissioned at Mount Road exchange In 1932 the exchange was further expanded

Page | 40
Perceiving a galloping growth in future, the Madras Telephone Company conceived a “New Mount
Road” with 1500 lines in 1933 that was commissioned only in 1947.
Due to the increase in the demand for more telephones in South Madras area, the company decided
to open one satellite exchange in the Mambalam area. A Satellite exchange of 500 lines capacity was
commissioned during 1937. In 1944, a 100 lines satellite exchange was commissioned at St. Thomas
Mount. The Chennai Telephones organization consisting of 115 telephone exchanges with a total equipped
capacity of 9, 68,243 lines are spread over an area of 1,105 sq. km. The management responsibility is vested
with the Chief General Manager, Telephones. He is assisted by 6 General Managers: G.M. (Development,
GM (North), GM (South), G.M. (Central), G.M (Telephone Exchanges) and G.M. (Finance) 33 Deputy
General Managers in the common functions and 5 directors in the area of Financial Advice and Accounting.
The Exchanges and the external plants are maintained by specially trained Divisional Engineers, Sub
Divisional Engineers, Junior Telecom Officers and Technical Staff, who receive purpose oriented training in
Telecom training centers situated in different parts of the country. They are also given refresher training
from time to time to update their knowledge and skills in the changing technologies increasingly brought
into the Telecom Services.
Telephone systems in Calcutta, Madras, and Bombay were taken over directly by the Indian Posts
and TeleCHARTs department. The exchange at Calcutta has been named as „Central Exchange‟. On
30.6.1882 it had 93 numbers of subscribers. In 1985, Indian P&T was bifurcated and the control of
telephone has been transferred to Department Of Telecom. Now recently in 1999, DOT was further
bifurcated into DOT and DTS service provider, which was incorporated as BSNL from 1.10.2000.
Role of these two departments:-

Government‟s policymaking, Licensing and co-ordination of matters relating to telephone service,

international relations, promotion of private investment in telecom. Frequency management in radio
communication, Nodal department for TRAI, control of ITI and HTL etc


DTS is the part of the old DOT, which is responsible for providing telecom services in India. The main
function include: - Planning, Engineering, Installation, Maintenance Management, and Operation of voice
and Non-voice Telecommunication Services all over the country.

Page | 41

DOT is committed to provide latest in telecommunication technology and the best of the services to its
esteemed customers.
Madras Telephones covers an extensive area of approximately 1,105 sq. kms. The total area is served by
115 telephone exchanges with a total equipped capacity of 9,68,243 lines of the capacity of EIOB, 15395
lines of EWSD, 133480 lines of AXE-10, 340484 lines of OBC, 25000 lines of FITEX and 78992 of 5ESS.
DOT/BSNL is the biggest telecom service provider of the country. It is having a vast telecom
network, spread throughout the country. All the cities (300) and Towns (4689) in the country as per 1991
census have access to the telephone network through telephone exchanges. STD connectivity is provided to
all the District Headquarters and it is planned to extend the same to cover all the Sub-Divisional
headquarters/Tehsil Head Quarters. About 19000 places in the country have STD codes/access. The
network is equipped with the state of the art technologies. Now all the exchange in urban and rural areas of
country is of Electronic Digital type. In rural area almost all telephone exchanges are of Electronics Digital
The Network of BSNL can be segmented in to following networks:

Telephone Network or Public Switched Telephone Network (PSTN)

Telex and TeleCHART Network
Transmission Network
Leased Line Network
Data Network
Satellite Based Network

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The Organizational hierarchy with respect to the Department of Telecommunication BSNL is shown in
figure 1.2

Page | 43


BSNL is the leading service provider in the country in the Basic Telephone Services. As of now more than
35 million Direct Exchange Lines & more than 2.2.Million telephones in the Limited Mobile telephone
Services are existing. BSNL has provides a number of attractive tariff packages & Plans which shall further
strengthen its subscriber base.


BSNL‟s GSM Technology based Cellular Network reached a long way, covering 20,836 cities/towns with a
subscriber base of over 4.67 Crores as on 31st March 2009 out of which 4.31 crores cellular telephone are in
pre-paid segment


BSNL offers Dialup Internet services to the customers by Post-paid service with the brand name „Netone‟,
and pre-paid service with the brand name „Sancharnet‟. The post-paid service is a CLI based access service,
currently operational in 100 cities. Sancharnet is available on local call basis throughout India to ISDN and
PSTN subscribers. The Internet Dhaba scheme of the Company aims to further promote Internet usage in
rural and semi urban areas. To keep pace with the latest and varied value added services to its customers,
BSNL uses IP/MPLS based core to offer world class IP VPN services. MPLS based VPNs is a very useful
service for Corporates, as it reduces the cost involved as well as the complexity in setting up VPNs for
customers networking. As on 31.03.2005, your Company‟s total Internet customer base was 17,98,089 and
total Internet Dhabas were 4143. A total of 708594 dial up Internet connections have been given during
2004-2005, against a target of 7 lakhs. BSNL plans to give 1215980 more dial up connections during the
year 2005-06. As on 31.1.2006, there were 2367404 internet subscribers working in BSNL net work.

4. Intelligent Network

Intelligent Network Services is a service that incorporates several value added facilities, thoroughly
designed to save time and money, and enhance productivity. At present, your company offers Free Phone
(FPH), Premium Rate Service (PRM), India Telephone Card (ITC), Account Card Calling (ACC), Virtual
Private Network (VPN), Universal Access Number (UAN) and Tele voting IN services. With the
commissioning of five numbers of new technology IN Platforms (Four General purpose and One Mass
Calling) at Kolkata, Bangalore, Ahmedabad and Hyderabad, the India Telephone Card facility and new
value added services are being provided throughout the country. Activation of these new IN platforms had
increased the sale of ITC Cards taking the figure to Rs.265 crores in 2004-05 alone.


BSNL has launched its broadband services under brand name “BSNL BROADBAND” on 14-01-05. This
offers High Speed Internet Access with speed ranging from 256 Kbps to 8 Mbps. Ever since its inception
Page | 44
BSNL is continuously expanding its broadband network in response to ever growing demand of broadband
service throughout India Present customer base is 3.56 million, with equipped capacity of 6.1 million. BSNL
Broadband service is available in more than 3800 cities & 83000 villages.

The services provided are: -

High Speed Internet Connectivity (up to 8 Mbps)
Band width on Demand (planned)
Virtual Private Network (VPN) service over broadband
Dial VPN services to MPLS VPN customers
 IPTV services (at present available in 66 cities)
Games on Demand Service
Video tutoring service
Video Surveillance service
Entertainment portal.


Page | 45
Marketing strategies of BSNL

Our visions begin with our desires.

- Audre Lorde

We all have some visions of ourselves and our future, and that vision creates consequences. More than any

other factor, vision affects the choices we make and the way we spend our time.

Visions drive consequences.

Principles drive results.

Key is to base vision on principles.

- Stephen R Covey.

It is true for individuals as well as organizations. The strongest form of vision / motivation is to base vision

on “What Legacy we want to leave.” And to achieve it we must take a principled centered path. History is

full of examples that many organizations have vanished grown and vanished overnight as their path to

achieve vision was not based on principled way.

Vision of the organization can only be translated into reality, if it is shared by one and all. The best way to

implement is to involve them in formulation. But even if it is conceived by higher management then it has to

be explained to each and every individual of the organization, otherwise it may remain as a showpiece.

Page | 46
Marketing vision of the BSNL has to be based on overall mission and vision of the organization. The

mission of BSNL is

i. To provide world class State-of-art technology telecom services on demand at affordable price.

ii. To provide world class telecom infrastructure to develop country's economy.

And the vision of BSNL is: -

i. To become the largest telecom Service Provider in Southeast Asia.

In dynamic environment anything permanent is “CHANGE”. So we must revise and review so that focus is

never lost.

Strong lives are motivated by dynamic purposes. - Kenneth Hildebrand.

Marketing Objective
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e.

„delighting‟ the customers, for which customers are offered something beyond their expectations from the

service or the product. The objective being to acquire and retain the customers, who should continually feel

that they are getting more value of the money, they are departing with.

Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable

relationships between consumers and organisation. Successful Marketing focuses on understanding the

needs and desires of the customers and is achieved by placing these needs at the heart of business by

integrating them with the organisation strategy, people, technology and business processes. At its most

basic, Marketing involves customers, organisations and relationships and the combination creates the need

for the management.

Page | 47
Marketing is about creating a competitive advantage by being the best at understanding, communicating, and

delivering and developing existing customer relationships in addition to creating and keeping new

customers. The concept of the product life cycle is giving way to customer life cycle, focusing on

developing products that anticipate the future needs of existing customers and creating services that extend

the existing customer relationship beyond the mere transaction. The customer life cycle will focus on

lengthening the life span of the customer with the organisation rather than the endurance of a particular

product. Customers have changing needs as their life styles alter- the development and provision of products

and/or services that continuously seek to satisfy those needs is good Marketing. The Marketing will focus

greater attention on how to deliver customer satisfaction and organisation will begin to structure itself

around customer segments and not product lines. A good Marketing Strategy will take the business vision

and apply it to the customer base.

According to the Dictionary of Marketing Terms, 2nd edition, published by the American Marketing

Association, c1995,

“Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of

ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Once marketing is understood, we can define marketing management process as analysing marketing

opportunities, researching and selecting target markets, designing marketing strategies, planning marketing

programs, and organizing, implementing, and controlling the marketing efforts.

In simple words it implies a buyer, a seller, bonded by the mutual need, satisfying offer and a

medium/process to exchange the offer.

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Marketing Process
We often talk of marketing & Sales and often use it interchangeably without understanding the difference in

it. Marketing is everything we do to get and leverage a client relationship. Marketing process is broad and

includes all of the following: -

 Discovering what product, service or idea customers want.

 Producing a product with the appropriate features and quality.

 Pricing the product correctly.

 Promoting the product; spreading the word about why customers should buy it.

 Selling and delivering the product into the hands of the customer.

Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a

customer to buy (actually exchange something of value for) a product or service.

Marketing activities support sales efforts.

Contrasting the Sales Concept with the Marketing Concept:-

We Sell Confidence.

The concepts surrounding both selling and marketing also differ. There is a need for both selling and

marketing approaches in different situations. One approach is not always right and the other always wrong -

it depends upon the particular situation.

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In a marketing approach, more listening to and eventual accommodation of the target market occurs. Two-

way communication (sometimes between a salesperson and a customer) is emphasized in marketing so

learning can take place and product offerings can be improved.

A salesperson using the sales concept, on the other hand, sometimes has the ability to individualize

components of a sale, but the emphasis is ordinarily upon helping the customer determine if they want the

product, or a variation on it, that is already being offered by the company. In the sales approach, not much

time is spent learning what the customer's ideal product would be because the salesperson has little say in

seeing that their company's product is modified. Furthermore, they aren't rewarded for spending time

listening to the customer's desires unless they have a product to match their desires that will result in a sale.

The 7Ps for service marketing (Product, price, place, promotion, physical evidence, people & process) are

the means to attain, nurture, & retain the customers and not the end.

Mission & Vision

Your mission on earth is finished:

Most of the big companies have a Vision & Mission statement so as to guide their all energy, efforts to

realize it. BSNL also has a vision „To become the largest Telecom Service provider in South East

Asia‟. Firstly we need to understand the parameter for being the largest. Is it revenue, ARPU, profit,

subscribers, Network (no of exchanges, BTS etc)? From monopoly to multi operator scenario, BSNL‟s

market share is bound to reduce. But how much down we will let it? There are lot of similarities

between British Telecom & us. One must keep watch on market share in monthly growth and take timely

action. To improve our share, we need to acquire more than 50% of new acquisitions while maintaining

earlier. This is quite challenging in this dynamic environment. Today landline base is reducing across globe,

but why? Europe defines an operator with 25% or more market share as Significant market Power

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(SMP), while they intend to increase it to 40%. BSNL has been the largest operator and we must strive

not only to maintain but enhance it. We need to act fast. Timely action is an essence.

What should be our marketing Vision, will it help us in inspiring to achieve higher. Can it be something

such as “To retain the highest market share, build highest brand equity and maximizing the profits?”

Brand Equity
We may think what is Brand equity? In simple words it is how far people are willing to pay if we increase

our prices i.e. premium for our services. We may feel happy to say there is lot of black marketing of our

SIM cards. Is it a healthy sign? We reduce prices when competitors launch new schemes. Does it imply

poor brand equity? Brand Equity can be built with good equity of quality of services at the affordable

price. Continuous innovation in product and delivery of services with the appropriate pricing is the

key strategy for developing the trust in customer so that he keeps his loyalty with BSNL. We have to be

first mover in our efforts for product and price differentiation. Presently the market is in growth phase and

price could be a differentiating factor, but how long? Is any scope left for further cuts? Ultimately it is the

quality, customer care, and timely availability apart from price, which will matter. Quality depends on

many parameters such as tangibles (like physical facilities, Appearance of personnel, Tools or equipment

used to provide service, Physical appearance of service, Other customers in the service facility), Reliability,

Responsiveness, Competence, Courtesy, Credibility, Security, Access, and Communications with customer,

Understanding etc. Quality definitely commands premium. Why are people willing to pay more for

Raymonds or Adidas or Sony when comparable offers exist in market? One may say that customer

perception of quality is not built overnight; it may require a brand and brand building investments apart from

a quality product. How many brands do we have? Our investments get diluted with more number of

brands. Even Airtel merged the Touchtel brand with more popular one. Can‟t we have just one brand i.e.

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BSNL? Have we ever tried to examine our revenue breakup? While majority of the revenue comes from

landline (DELs plus PCOs), how many people know of Bfone? CellOne happens to be more popular.

So where should our marketing & sales effort be more? Wholesale, retail or corporate! What means do we

need to use to promote our products and in what proportion? Advertising, PR, Franchisees, 24x7 customer

care, business development etc. What activities should be taken up by Corporate Office, Circles and SSAs?

In advertising there is need to synergize our activities at Corporate, Circle and SSA level. In this regard

Corporate office has issued division of work guidelines. There is also a need to have good relation with our

advertising agencies and simultaneously their performance need to be monitored for taking quality

output from them.

What is USP (Unique Selling Proposition) for BSNL? A Government company which delivers. A

government company which gives service better than private could be a deadly combination, which no

competitor can copy.

Social Responsibility
We were the most trusted telecom brand in year 2003 & 2004. We have been given Golden Peacock

award for Best Corporate Social responsibility. How can we leverage these distinctions? These

achievements need to be highlighted through public relation exercise like press meet. This will help us in

building our marketing image. In sales and distribution front though we have over one-lakh retailers,

1000 franchisees, 3300 CSCs, 36000 exchanges why are we not visible like others? Why can‟t we utilize

all possible space? Can‟t we leverage our franchisee and STD-PCO strengths? Can we make these

outlets as our core strength? Why our recharge coupons, India Telephone Cards are in shortage when

there is no capacity constraint? Does it imply that our planning for printing, inventory management,

logistics, and supply chain and of course franchisee management is inefficient? Do we have targets for

these just like DELs & CellOne? Why can‟t we leverage this huge network for better customer care and

improve collection efficiency? We must realize that with waiver of security deposits, no OYT schemes,

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no advance rentals, adjustment of landline security for CellOne, we don‟t get fixed deposits to meet our

funds requirements. Everything has to be met from Operating revenues. We need to improve collections,

realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture

in our organization, though we have been providing operation and maintenance on 24X7 basis in the past

and we will continue to provide in future too, but what about provisioning customer care and marketing

on 24X7 basis?

Business Development
Business development units have been given the task to develop and nurture long-term relations with

corporate houses. Many MoUs have been signed. Bulk bills are being issued. One-point payments are being

realized for multiple service locations. Key Account Manager concept has been introduced. All this requires

change of mindset in addition to the skills of marketing & sales. Do we have skilled manpower? Is our

organization setup apt for better results? The staff expense to revenue ratio could be a good indicator.

No doubt our revenues are up. Profit has increased. But consider the marketing budget we have in

comparison to others. Even with this little budget many circles are unable to utilize it. We need to probe

ourselves. Corporate office has permitted delegation of upto 70% of Circle budget to SSAs. Does it mean

that our budget planning is wrong? How should we allocate marketing budget and which parameter to


•Per DEL/Mobile

•Acquisition cost

•Life time value

•Competitor spend

•Growth targets

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Life Time Value
You can‟t give people pride, but you can provide the kind of understanding that makes people look to their

inner strength and find their own sense of pride.

- Charleszetta Waddles.

Let us understand what is the lifetime value of our customers? Paying commission of Rs 100-200 to

franchisee is not a cost considering the future flow of revenue from the customer. How many of our

decisions are based on scientific analysis of the precious customer data we already have such as calling

pattern, payment habits, usage profile etc.? How many surveys we do how much customer research we carry

out? Net growth in mobile is high but what about churn? Can‟t we analyse & reduce it? Acquisition cost is

usually said to be 5-8 times the retention cost.

It is high time we learn fast, groom ourselves, improve our mind-set and act fast. Business perspective is

equally important as excellence in Telecom operations, maintenance, and installations & planning. Our core

competence should be telecom business acumen and not just traditional expertise developed over the years.

It is usually much easier to sell additional things to existing customers than to add new customer. Let us try

to upgrade each customer by RS 20 – RS 50 by offering them more add on relevant services.


BSNL (then known as Department of Telecom) had been a near monopoly during the socialist period of the

Indian economy. During this period, BSNL was the only telecom service provider in the country (MTNL

was present only in Mumbai and New Delhi). During this period BSNL operated as a typical state-run

organization, inefficient, slow, bureaucratic, and heavily unionised. As a result subscribers had to wait for as

long as five years to get a telephone connection.The corporation tasted competition for the first time after the

liberalisation of Indian economy in 1991. Faced with stiff competition from the private telecom service

providers, BSNL has subsequently tried to increase efficiencies itself. DoT veterans, however, put the onus

for the sorry state of affairs on the Government policies, where in all state-owned service providers were
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required to function as mediums for achieving egalitarian growth across all segments of the society. The

corporation (then DoT), however, failed miserably to achieve this and India languished among the most

poorly connected countries in the world. BSNL was born in 2000 after the corporatisation of DoT. The

efficiency of the company has since improved. However, the performance level is nowhere near the private

players. The corporation remains heavily unionised and is comparatively slow in decision making and

implementation. Management has been reactive to the schemes of private telecom players. Over the past five

years BSNL's management is not able to absorb Group A(ITS) officers, who are working in BSNL as

borrowed staff. This has considerably reduced the ability of management to take risks and get rewarded in

open telecom field. Though it offers services at lowest tariffs, the private players continue to notch up better

numbers in all areas, years after year. BSNL has been providing connections in both urban and rural areas.

Pre-activated Mobile connections are available at many places across India. BSNL has also unveiled cost-

effective broadband internet access plans (DataOne) targeted at homes and small businesses. At present

BSNL enjoy's around 60% of market share of ISP services.

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$ 11.7 per month (as of 21/07/2008 and at a limit of 2.5GB monthly limit with

0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadband services such as triple


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.

BSNL is a 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.

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On the 20th of March, 2009, BSNL advertised the launch of BlackBerry services across its Telecom circles

in India. The corporation has also launched 3G services in select cities across the country. Presently, BSNL

and MTNL are the only players to provide 3G services, as the Government of India has completed auction

of 3G services for private players.BSNL shall get 3G bandwidth at lowest bidder prices of Rs 18,500

crore,which includes Rs 10,186 crore for 3G and Rs 8313crore for BWA.[One crore is 10 million.]BSNL

management has paid this money under protest seeking refund.

BSNL has also launched an Entertainment Portal called BSNL Hungama Portal from where subscribers

could download contents like music, music videos for free and also download or play various games online.

Only Tamil, Kannada, Telugu & Hindi are provided at present. Hopes are there that the database could be

expanded. BSNL charges a fixed monthly subscription fee for this function.



Formerly known as Bharti Tele-Ventures LTD (BTVL) is an Indian company offering telecommunication

services in 18 countries. It the largest cellular service provider in India, with more than 135 million

subscriptions as of May 2010. Bharti Airtel is the world's third largest, single-country mobile operator and

fifth largest telecom operator in the world in terms of subscriber base. It also offers fixed line services and

broadband services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti

Mittal. The company also provides telephone services and broadband Internet access (DSL) in over 89 cities

in India. It also acts as a carrier for national and international long distance communication services. The

company has a submarine cable landing station at Chennai, which connects the submarine cable connecting

Chennai and Singapore.

It is known for being the first mobile phone company in the world to outsource everything except marketing

and sales. Its network (base stations, microwave links, etc.) is maintained by Ericsson and Nokia Siemens

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Network, business support by IBM and transmission towers by another company Ericsson agreed for the

first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid

up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute).

The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV.

The mobile business offers services in 18 countries across the Indian Subcontinent and Africa. The

Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Digital TV

business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end

telecom solutions to corporate customers and national and international long distance services to telcos.[6]

Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China

Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market,

followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar. In January 2010, company

anonced that Manoj Kohli, Joint Managing Director and current Chief Executive Officer of Indian and South

Asian operations, will become the Chief Executive Officer of the International Business Group from 1 April

2010. He will be overseeing Bharti's overseas business. Current Dy. CEO, Sanjay Kapoor, will replace

Manoj Kohli and will be the CEO, effective from 1 April 2010.

Worldwide presence

Airtel is the 5th largest mobile operator in the world in terms of subscriber base and has a commercial

presence in 18 countries. Its area of operations includes:

3 countries in the Indian Subcontinent: - Bangladesh, India and Sri Lanka

15 countries in Africa: - Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the

Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,

Uganda and Zambia.

Airtel owns 70 % of Warid Telecom in Bangladesh through a joint venture. Bharti Airtel Limited will take

management control of the company and its board, and will re-launch the company's services under its own
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Airtel brand. The Bangladesh Telecommunication Regulatory Commission approved the deal on January 4,


Mobile Services

Airtel is the name of the company's mobile services brand. It operates in 18 countries providing. It is the 5th

largest mobile operator in the world in terms of subscriber base. Airtel's network consists of 3G and 2G

services depending on the country of operation.

In India, the company's mobile service is branded as Airtel. It has nationwide presence covers 71% of the

current population (as of Financial Year 2007). On 19 October 2004, Airtel announced the launch of a

BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures

Limited and Research In Motion (RIM). The Apple iPhone 3G was rolled out in India on 22 August 2008

via Airtel & [[Vodafone Essar]. Both the cellular service providers rolled out their Apple iPhone 3GS in the

first quarter of 2010. However, high price and contract boundation again made it nearly impossible for both

the service providers to make it a success as much as the iPhone is successful in other markets of the world.

As of May 18, 2010, 3G spectrum auction has ended and will pay the Indian government Rs. 12,295 crores

for spectrum in 13 circles, the most amount spent by an operator in this auction. Airtel won 3G licences in

13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West),

Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir. It plans to

launch 3G services in the October 2010.

Subscriber Base in India

The Airtel subscriber base according to COAI - Cellular Operators Association of India as of January 2010


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Chennai - 4,656,675

Delhi - 1,822,208

Mumbai - 3,003,201

Kolkata - 2,746,100

Madhya Pradesh - 6,212,992

Gujarat - 5,112,601

Andhra Pradesh - 12,425,791

Karnataka - 12,153,094

Tamil Nadu - 8,033,771

Kerala - 3,076,728

Punjab - 4,581,187

Maharashtra - 6,518,134

Uttar Pradesh - 3,653,016

Uttar Pradesh East - 8,462,726

Rajasthan - 9,925,141

West Bengal & Andaman and Nicobar Islands - 5,070,213

Himachal Pradesh - 1,273,922

Bihar - 10,338,828

Orissa - 3,836,091

Assam - 2,194,310

North East. States - 1,357,383

Jammu and Kashmir - 1,804,047

The total is 131,714,243 or 32.86% of the total 404,349,733 GSM mobile connections in India till December

2009; and presently the Number 1 operator in India.

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Vodafone, the world‟s leading international mobile communications company, has fully arrived in India

brand will be lunched in India from 21st September onwards. The popular and endearing brand, Hutch, will

be transitioned to Vodafone across India. This marks a significant chapter in the evolutic brand change over

the next few weeks will be unveiled nationally through a high profile campaign covering all important

media. Vodafone, the world‟s leading mobile telecommunication company, completed the acquisition of

Hutchison Essar in May 2007. Asim Ghosh, managing director, Vodafone Essar, said “We have had a great

innings as Hutch in India and today marks a new begin that created Hutch, but an acceleration into the future

with Vodafone‟s global expertise..” the Vodafone mission is to be the communications leader in an

increasingly connected world – enriching customers lives, helping increased by delivering their total

communication needs.

About Vodafone Essar Limited:

Vodafone Essar in India is a subsidiary of Vodafone Group plc and commenced operations in 1994 when its

predecessor Hutchison tele Vodafone Essar now has operations in 16 circles covering 86% of India‟s mobile

customer base, with over 34.1 million customers. Over the year, Vodafone Essar, under the hutch brand, has

been named the Most Respected Telecom Company, the Best Mobile sender effective advertiser of the year.

Vodafone is the world‟s leading international mobile communications company. It now has operation

network with over 200 million customers worldwide. Vodafone has partnered with the Essar Group as its

principal joint venture partner. The Essar Group is a diversified business corporation with interests spanning

the manufacturing and service sectors like steel, energy, construction. The group has an asset base of over

Rs.400 billion and employer over 20,000 people.

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Idea Cellular is a wireless telephony company operating in all the 22 telecom circles in India based in

Mumbai. It is the 3rd largest GSM company in India behind Airtel and Vodafone and ahead of state run

player BSNL.

The company has its retail outlets under the "My Idea" banner. The company has also been the first to offer

flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. Idea Cellular won the

GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA

Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom sector, at the

prestigious Avaya Global Connect Customer Responsiveness Awards 2010.


Initially the Birla‟s, the Tata‟s and AT&T Wireless each held one-third equity in the company. But

following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake

in Idea. This stake was bought by both the Tata‟s and Birla‟s at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider,

cropped differences between the Tata‟s and the Birla‟s. This dual holding by the Tata‟s also became a major

reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per

Department of Telecommunications (DOT) license norms, one promoter could not have more than 10%

stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai

when Idea filed for its license.

The Birla‟s thus approached the DOT and sought its intervention, and the Tata‟s replied by saying that they

would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla Group announced its

acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While

15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new

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business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla

family owned company. Currently, Aditya Birla Group holds 49.1% of the total shares of the company.

Malaysia based Axiata controls a 14.99% stake in the company.

Subscriber base

Idea's subscriber base as at the end of May 2010 according to this as follows

Maharashtra and Goa - 9,754,424

Madhya Pradesh and Chhattisgarh - 7,800,385

Andhra Pradesh - 6,497,952

Kerala - 5,588,865

Kolkata - 604,650

Gujarat - 5,527,480

Uttar Pradesh (West) & Uttarakhand - 6,019,347

Delhi - 2,751,588

Haryana - 2,236,132

Uttar Pradesh (East) - 3,985,584

Rajasthan - 2,404,693

Himachal Pradesh - 267,763

Mumbai - 1,562,675

Bihar & Jharkhand - 3,237,896

Tamil Nadu & Chennai - 800,053

Odisha - 604,876

Punjab (Spice) - 3,406,761

Karnataka (Spice) - 2,802,370

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Rest of Bengal - 664,427

Assam - 96,542

Jammu & Kashmir - 71,874

North East except Assam - 40,465

Totaling to 66,726,802 or 15.02% (Approx.) of the total 444,295,711 mobile connections in India.


Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular phone

coverage throughout India. Aircel is a joint venture between Maxis Communications of Malaysia and

Apollo Hospital Enterprise Ltd of India. UTSB has a 74% stake in Aircel and the remaining 26% is with

Apollo Hospitals. It is India‟s fifth largest GSM mobile service provider with a subscriber base of over 27.7

million, as of October 31, 2009. It has a market share of 12.8% among the GSM operators in the country. As

on date, Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh, Assam, Bihar &

Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata,

Mumbai, North East, Orissa, Rest of Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal, Uttar

Pradesh East, Uttar Pradesh West) and with licences secured for the remaining 5 telecom circles, the

company plans to become a pan-India operator by 2010. Additionally, Aircel has also obtained permission

from Department of Telecommunications (DoT) to provide International Long Distance (ILD) and National

Long Distance (NLD) telephony services. It is also a category A ISP. It is also having the largest service in

Tamil Nadu.

Aircel Business Solutions (ABS), part of Aircel, is an ISO 9000 certified company. ABS is a registered

member of Wi-MAX forum – both in the Indian and International Chapters. ABS‟ product range includes

enterprise solutions such as Multiprotocol Label Switching Virtual Private Networks (MPLS VPNs), Voice

over Internet Protocol (VoIP) and Managed Video Services on wireless platform including Wi-MAX.

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Aircel has won many awards for its services. Aircel was honored at the World Brand Congress 2009 with

three awards, Brand Leadership in Telecom, and Marketing Campaign & Marketing Professional of the

Year. Aircel was honored by CMAI INFOCOM National Telecom Award 2009 for, „Excellence in

Marketing of New Telecom Service‟. Aircel had been selected as the best regional operator in 2008 by Aircel was rated as the top mid-size utility company in Business World‟s „List of Best Mid-Size

Companies‟ in 2007. Aircel got the highest rating for overall customer satisfaction and network quality in

2006 by Voice and Data.

Aircel is one of the sponsors of the Indian Premier League Cricket Team Chennai Super Kings, which is

captained by Mahendra Singh Dhoni. It is also the major sponsors for Chennai Open (the only ATP tennis

tournament in India), and Professional Golf Tour of India.

Maxis, Aircel's majority stake holder at that time, raised RM11.2 billions (USD 3.36 billions)for its

shareholders(UTSB), making it the largest IPO in Malaysia and Southeast Asia.

Aircel boat. Aircel, placed an actual dinghy lifeboat to a downtown billboard. A rope with a sign reading,

“In case of emergency, cut rope”, held up the branded raft. July 15, 2009 the monsoon arrived and so did

Aircel customer service. The dinghy was cut down and pedestrians were safely transported. What Aircel

calls “Corporate Social Responsibility – A Solution”. The company was able to generate positive publicity

and show consumers that they care.


Reliance Communications , formerly known as Reliance Infocomm., along with Reliance Telecom and

Flag Telecom, is part of Reliance Communications Ventures (RCoVL).Reliance Communications Limited

founded by the late Shri Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil

Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess

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of Rs. 64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs.

8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited

and National Stock Exchange Limited. The Global Depository Receipts and Foreign Currency Convertible

Bonds are listed on Luxembourg Stock Exchange and Singapore Stock Exchange respectively. Reliance

Communications is India's truly integrated telecommunications service provider. The Company has a customer base of

105 million including over 2.5 million individual overseas retail customers. It ranks among the Top 5 Telecom

companies in the world by number of customers in a single country. Reliance Communications corporate clientele

includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. A pan-

India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is

capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000

towns and 600,000 villages has been established by Reliance Communications. Reliance Communications owns and

operates the next generation IP enabled connectivity infrastructure "The world's largest next generation IP enabled

connectivity infrastructure". Retrieved 2010-04-14. comprising over 190,000 kilometers of fiber optic cable systems in

India, USA, Europe, Middle East and the Asia Pacific region.

Main Subsidiaries

Reliance Telecommunication Limited (RTL)

In July 2007, the company announced it is buying US-based managed ethernet and application delivery

services company Yipes Enterprise Services for a cash amount of Rs. 1200 crore rupees (equivalent of USD

300 million). The deal was announced of the overseas acquisition, the Reliance group has amalgamated the

United States-based Flag Telecom for $210 million [roughly Rs 950 crore (Rs 9.50 billion)].RTL operates in

Madhya Pradesh, West Bengal, Himachal Pradesh, Orissa, Bihar, Assam, Kolkata and Northeast offering

GSM services.

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Reliance Globalcom

RGL owns the worlds largest private undersea cable system spanning 65,000 kms seamlessly integrated with

Reliance Communications over 110,000 kms of domestic optic fiber provides a robust Global Service

Delivery Platform connecting 40 key business markets in India, the Middle East, Asia, Europe, and the U.S.

Reliance Communications Infrastructure Limited (RCIL)

RCIL provide Internet Data Centre (IDC) services located in Mumbai and Bangalore. RCIL currently has

IDC capacity of 304,000 sq ft with the market share close to 60%.

Reliance Big TV Limited

Reliance Big Tv launched in August 2008 and thereafter acquired 1 million subscribers within 90 days of

launch, the fastest ramp-up ever achieved by any DTH operator in the world. Reliance Big TV offers its 1.7

million customers DVD quality pictures across a bouquet of over 200 channels using the latest, state-of-the-

art MPEG 4 technology.

Reliance Infratel Limited (RITL)

RITL‟s business is to build, own and operate telecommunication towers, optic fiber cable assets and related

assets at designated sites and to provide these passive telecommunication infrastructure assets on a shared

basis to wireless service providers and other communications service providers under long-term contracts.


On March 1, 2008, Virgin launched the Mobile brand in India through a franchise arrangement with Tata

Teleservices. This is Virgin‟s seventh launch globally and its largest. However on March 29, 2008, the

Department of Telecom (DoT) cleared the deal after clarification from Tata Teleservices indicated that

Virgin had not entered India as an MVNO.

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Virgin Mobile India “Virgin Mobile” brand is India‟s „first‟ national youth-focused mobile service. “Virgin

Mobile” branded services are being offered to the Indian consumers by Tata Teleservices through a brand

franchise with Virgin Mobile. Virgin Mobile India will provide Tata Teleservices with experience and

expertise in designing, marketing and servicing of “Virgin Mobile” branded products for the youth segment.

The Virgin Mobile Revolution Evolution Virgin Mobile, a leading branded venture capital organization, is

one of the world's most recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the

Virgin Mobile Group has gone on to grow very successful businesses in sectors ranging from mobile

telephony, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing.

Virgin Mobile has created more than 200 branded companies worldwide, employing approximately 50,000

people, in 29 countries. Its revenues around the world in 2006 exceeded £10 billion (approx. US$20 billion).

Tata Teleservices Limited

Tata Teleservices Limited spearheads the Tata Group‟s presence in the telecom sector. The Tata Group had

revenues of around US $62.5 billion in Financial Year 2007-08, and includes over 90 companies, over

350,000 employees worldwide and more than 3.2 million shareholders.

Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth

path since the acquisition of Hughes (India) Ltd [renamed Tata Teleservices (Maharashtra)

Limited] by the Tata Group in 2002. It launched mobile operations in January 2005 and today enjoys a pan-

India presence through existing operations in all of India‟s 22 telecom Circles. The company is also the

market leader in the fixed wireless telephony market. The company‟s network has been rated as the „Least

Congested‟ in India for last five consecutive quarters by the Telecom Regulatory Authority of India through

independent surveys.

Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT

DOCOMO of Japan, and offers differentiated products and services under the TATA DOCOMO brand

name. TATA DOCOMO arises out of the Tata Group‟s strategic alliance with Japanese telecom major NTT

DOCOMO in November 2008.

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Tata Teleservices is part of the Tata Group. 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.

The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra)

Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a

Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, J & K,

Karnataka, Delhi, Maharashtra, Mumbai, North East, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,

Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya

Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established 3G

ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent and ECI Telecom for the

deployment of its telecom network.

The company is the market leader in the fixed wireless telephony market with a total customer base of over

3.8 million. Tata Teleservices‟ bouquet of telephony services includes Mobile services, Wireless Desktop

Phones, Public Booth Telephony and Wireline services. Other services include value added services like

voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB

Modem, data cards, calling card services and enterprise services. Some of the other products launched by the

company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice

& data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive

applications like news, cricket, astrology, etc.

Tata Indicom "Non Stop Mobile" allows a pre-paid cellular customer to receive free incoming calls. Tata

Teleservices Limited along with Tata Teleservices (Maharashtra) Limited have a subscriber base of 36

Page | 68
million customers (as of April 2009) in more than 5,000 towns. Tata Teleservices has also acquired GSM

licenses for specific circles in India.

Tata Telelservices is an unlisted entity. Tata Group and group firms own the majority of the company, NTT

docomo holds 26% while investor C. Sivasankaran holds 8%.

Tata Teleservices Provides mobile services under 3 Brand names:

Tata Indicom (CDMA Mobile operator)

Tata DoCoMo (GSM Mobile operator)

Virgin Mobile (CDMA Mobile operator)

Virgin Mobile (GSM Mobile operator)

Tata Sky (DTH Satellite TV provider)

The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a wireless services

licence for all 22 Indian telecom circles since 2008. In early 2009, Unitech Group and Telenor agreed on a

majority take-over by Telenor of Unitech's wireless business, including Unitech Wireless' national-wide

mobile licence. By March, May and November, Telenor acquired a 33%, 49% and 60% stake in Unitech

Wireless, respectively. In September, the mobile operation changed its name to Uninor. On October 19 the

Indian Cabinet Committee of Economic Affairs (CCEA) announced that it has approved Telenor's acquisition

of up to 74% in Unitech Wireless, and the shareholder's agreement sets a 67.25% Telenor ownership in


The uninor service is currently available in 13 circles out of 22 as of 7 June 2010:

1. Uttar Pardesh (West) and Uttrakhand

2. Uttar Pradesh (East)

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3. Bihar and Jharkhand

4. Karnataka

5. Andhra Pradesh

6. Tamil Nadu

7. Kerala

8. Orissa

9. Kolkata

10. Rest Of Bengal

11. Gujarat

12. Mumbai

13. Maharashtra and Goa

Uninor is India's eighth nation-wide mobile operator, in a competitive landscape of 13 nation-wide or

regional mobile operators. The company is targeting an 8 % pan-Indian market share, and the opening of

one million retail points and breaking even on EBITDA within three years. It will provide mobile

communication and Value Added Services.

In order to reduce time-to-market, Uninor will outsource infrastructure and back-end services to partner

organizations with established core competencies. The operational model is low-cost with a gradual

network-build up, infrastructure sharing, GSM equipment at competitive cost, full-scale IT-outsourcing and

a long term cost and capex efficiency.

To quickly launch mobile services only nine months after the foundation of the new company, Uninor has

entered into network and base station service agreements with partners. Tower sharing agreements are

concluded with Wireless-TT Info Service Limited and Quippo Telecom Infrastructure Limited.

Telecommunications, network and radio equipment is to be supplied by Alcatel-Lucent, Huawei

Technologies India, Nokia Siemens Networks and Ericsson. The company's IT services and infrastructure is

to be shared with Wipro Technologies.

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Research is a systematic effort to gain new knowledge.

Research methods:

Those methods which are used by the researcher during the course of studying are research problem are

termed as research methods.

Research methodology:

The research methodology, not only the research methods are but also consider the logic behind the

methods. They are in the contest of our research studied. And explain why we are using a particular method

or techniques and we are not using others.

Descriptive research design:

In includes surveys, and facts finding enquires of different kinds. The major purpose of descriptive research

is description of state of affairs as it exists at present. The main character of this method is that the

researcher has no control over the variables. He can report what has happened? Or what is happening?

Nature of data:

In this study primary data are used.

Collection of data:

The data were collected from the respondents through the distribution of questionnaire.

Area of the study- This study covers Lucknow city only.

Sample size - The sample size covered for the purpose of this study is 180.

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The following four questions need to be answered in designing an effective set of questions or a
1) Will the respondent have the information/knowledge needed to answer the questions?
2) Will the respondent understand the questions?
3) Will the respondent likely to give a true answer?
4) Will the formulation of the question bias the response
Basically in the beginning some sample questionnaires were developed and where administered directly on
the clients. This was the trail method included for pilot testing and the final questionnaires were prepared
thereafter assessing the feedback and result of the test.

In the initial phase of my survey I developed a questionnaire, but later I realized that a single
questionnaire is not sufficient to judge all the variable factors governing consumer behaviour during
taking new connections, so for this purpose I framed another questionnaire.

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Tools for analysis:




Limitations of the study –

Though the detailed investigation is made in the present study, still there are following limitations.

This study is restricted only to Lucknow. So, the results may not be applicable to other areas.

This study is based on the prevailing customer‟s satisfaction. But the customer‟s satisfaction may

change according to time, fashion, technology, development, etc.

As per the population of the study is huge, a sample size of 180 sample respondents is only covered

till now.

Lack of awareness about the Company‟s products & services among the customers may hamper the

primary data collection.

Data collection of exact data for the research is not possible because there is a gap between what

respondent say and what they actually do.

Information provided by the customers may not be accurate. They may hide some of the information

at the time of filling up the questionnaires.

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1. Airtel 38 21.11%

2. BSNL 34 18.89%

3. Vodafone 23 12.78%

4. Reliance 28 15.56%

5. Idea 16 8.89%

6. Aircel 12 6.67%

7. Tata Indicom 18 10.00%

8. Uninor 6 3.33%

9. Virgin 5 2.78%

Total 180 100

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S.NO Marital Status No. Of Respondents Percentage Of

1. Married 86 47.78%
2. Unmarried 94 52.22%
Total 180 100

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1. Undergraduate 42 23.33%
2. Graduate 77 42.78%
3. Post Graduate 33 18.33%
4. Professional 28 15.56%
Total 180 100

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1. PROFESSIONAL 42 23.33%

2. BUSINESS 25 13.88%

3. STUDENT 53 29.44%

4. EMPLOYEE 60 33.35%

TOTAL 180 100

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1. FAMILY 35 19.45%
2. RELATIONS 25 13.89%
3. FRIENDS 60 33.33%
4. ADVERTISEMENT 33 18.33%
5. NEIGHBOURS 17 9.44%
6. DEALERS 10 5.56%
TOTAL 180 100

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1. FOR PERSONAL 125 69.44%
2. FOR BUSINESS 55 30.56%
TOTAL 180 100

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1. BRAND IMAGE 65 36.11%
2. AVAILABILITY 23 12.78%
3. CUSTOMER CARE 20 11.11%
4. SERVICE CHARGES 40 22.22%
5. PRICE 32 17.78%
TOTAL 180 100

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1. NECESSITY 110 61.11%
2. STATUS 20 11.11%
3. LUXURY 9 5.00%
4. COMPULSION 41 22.78%
TOTAL 180 100

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1. BELOW 5000 25 13.89%
2. 5000-10000 37 20.55%
3. 10000-15000 40 22.22%
4. 15000-20000 55 30.56%
5. ABOVE 20000 23 12.78%
TOTAL 180 100

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AIRTEL 21 33.33% 10 14.49% 7 14.58% 38 21.11%

BSNL 9 14.29% 15 21.74% 10 20.83% 34 18.89%

VODAFON 9 14.29% 10 14.49% 4 8.33% 23 12.78%


RELIANCE 11 17.46% 9 13.04% 8 16.66% 28 15.56%

IDEA 4 6.35% 7 10.14% 5 10.42% 16 8.89%

AIRCEL 3 4.76% 4 5.80% 5 10.42% 12 6.67%

TATA 5 7.94% 8 11.60% 5 10.42% 18 10.00%


UNINOR 1 1.58% 3 4.35% 2 4.17% 6 3.33%

VIRGIN 0 0 3 4.35% 2 4.17% 5 2.78%

TOTAL 63 100 69 100 48 100 180 100

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1. INCOMING 10 5.56%
2. OUTGOING 9 5.00%
3. BOTH 156 86.67%
4. SMS 5 2.78%
TOTAL 180 100

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AIRTEL 13 24.52% 17 21.52% 8 16.66% 38 21.11%

BSNL 10 18.87% 15 18.98% 9 18.75% 34 18.89%

VODAFON 8 15.09% 10 12.65% 5 10.41% 23 12.78%


RELIANCE 9 16.98% 11 13.92% 8 16.66% 28 15.56%

IDEA 3 5.66% 8 10.12% 5 10.41% 16 8.89%

AIRCEL 3 5.66% 5 6.32% 4 8.33% 12 6.67%

TATA 4 7.54% 8 10.12% 6 12.50% 18 10.00%


UNINOR 2 3.77% 3 3.79% 1 2.08% 6 3.33%

VIRGIN 1 1.88% 2 2.53% 2 4.16% 5 2.78%

TOTAL 53 100 79 100 48 100 180 100

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This chapter is allocated to express the findings and conclusions in this study. Statistical tools are applied to
analyze the data. It includes the result of each and every tables, charts and tests.


 On the basis of consumer preference, majority of the consumers prefer Airtel (21.11%).
On the basis of marital status mostly unmarried respondents are using mobile connections than married

On the basis of educational qualification, most of the graduates are using mobile connections.

On the basis of occupation, the employees are only who use mobile connections in more level. And
students are next in the list.

On the basis of family income, 13.89% of the respondents are using cell connections, which get the
income of less than Rs.5, 000. And on the income basis 30.56% of the respondents are using mobile, which
get the income of 15000-20000.

Majority of the peoples buy the cell connections by influencing their friends.

5.56% of respondents are only influenced by the dealers.

Majority of the respondents are using cell connections for personal usage.

Majority of the respondents are using cell connections for both incoming and outgoing.

Majority of the respondents are seeking brand image, for their service provider. And then service charges
are next in list.

On the basis of performance, only two and three people are highly satisfied with Aircel and Uninor

Only 4 respondents are dissatisfied about the performance of Vodafone service provider.

On the basis of periodical offers, majority of the peoples highly satisfied in Airtel. And 18.87% of
customers are highly satisfied with BSNL
On the basis of consumer‟s attitude, majority of the people are states that mobile connections are
necessity to all.
5.00% of the respondents are only states that cell connections are luxury.

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BSNL and Vodafone should try to expand their customer‟s network.

Vodafone and BSNL should try to attract the young people. (Up to

All the service providers are made good advertisements for their service. Because, advertisements
are take little part for influencing the consumers.

The service providers should try to increase post paid users.

75% of the peoples are unaware about the various services rendered by their service provider. So the
service providers should try to make awareness of their customer services to their customers.

BSNL should attract the customers by reducing their price.

BSNL customers are highly dissatisfied about the performance of the service provider.
So they should try to add some advanced features towards their services.

BSNL and Vodafone should give periodical offers to their customers. So that more customers are
attracted towards the service providers.

BSNL should decrease their outgoing call charges.

BSNL should improve their network and the connectivity problem with other service providers as
there is several number of competitors in the market.

The signal strength is weaker in interior places: service provider should increase the signal strength.
As the competitors are more in this town the company can formulate appropriate marketing strategy
to retrain existing customers and to attract new customers.

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This is an information era significance of information cannot be over emphasized. This study attempts to

find out the factors effecting consumer behavior and the satisfaction of consumer regarding cell phone

service providers.

This decade, most of the peoples using cell connections. So, service providers are increasing in more level.

So service provider are should over come another one‟s competition. So, it leads to adding new features,

schemes, periodical offers to their service. So, the consumers get maximum benefit from their service


Now-a-days, cell connections are a necessity to all. Because, along with bridging the communication gap it

has given a sense of safety to the men and women also. And only few persons feel that cell connections are

luxury one. India is rapidly evolving on the lines of other developed countries in the sphere of telecom

service, so if BSNL wants to leverage this opportunity it should give due attention on increasing its customer

base rapidly. By introducing new plan at less cost and reduced call rates.

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Dear Sir/Madam,
I am conducting a survey on consumer (existing/new) behaviour during taking new mobile-
Kindly spare some of your valuable time to go through the questionnaire & give your view on this
The information provided by you would be kept confidential & only be used for improving customer

1) Please name the cellular service/connection you are currently using.

a) Airtel b) B.S.N.L c) Vodafone d) Tata Indicom e) Reliance Comm. f) Aircel
g) Idea h) Virgin i) Uninor

2) What factors influenced you in purchasing the cellular brand you are currently using. Rate the
factors on a scale of 1-4.
a) Price/Tariff plan/ Offers
b) Brand name
c) Availability in store
d) Signal Strength

3) While purchasing your preferred brand of cellular connection what sort of features you look
forward in your cellular service brand?
a) Network coverage
b) Tariff
c) Price-Validity ratio
d) Value added services

4) What is your preference?

a) Post-paid b) Pre-paid

5) For what reasons you opted for the above plan

a) Convenience/Handset
b) Cost control
c) Value added services
d) Discounts/Attractive schemes

6) How satisfied are you with the cellular service brand you own.
Please tick the appropriate option s given below.
a) Extremely satisfied
b) Somewhat satisfied
c) Somewhat dissatisfied
d) Dissatisfied

7) Did you experience any problem with your preferred cellular service brand?
a) Yes
b) No
If yes please specify ______________________________________

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8) If yes was the problem effectively taken care off immediately?
a) Yes
b) No

9) Did you switched over to any other network .if please specify the number of times.

a) 1 □ b) 2 □ c) 3 □ d) 4 □ e) more than 4 □

10) How likely you are to recommend your preferred cellular service brand to your friends and

a) Very Likely
b) Somewhat Likely
c) Somewhat Unlikely
d) Very Unlikely

11) If you are a existing customer of BSNL then which type of value added services do you want to
incorporate in BSNL?

12) As per your opinion how can you improve the existing brand you are using? Any
recommendations for BSNL if any?

13) Personal details (Put tick mark (√) in appropriate box.)

a) Name _____________________ ________________________________ ______
b) Age □ 0-25yrs □ 25-35yrs □ 35-55yrs □ > 55yr.
c) Gender: □ Male □ Female
d) Occupation: _____________________
e) Qualification:
Undergraduate □ Graduate □ Post-graduate □ Professional degree (Specify) __
f) Income group Monthly income
i) Below 5000
ii) Between 5000-10000
iii) Between 10000-15000
iv) Between 15000-20000
v) Above -20000

Thanking You

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Dear Sir/Madam,
I am conducting a survey on consumer (existing/new) behaviour during taking new mobile-
Kindly spare some of your valuable time to go through the questionnaire & give your view on this
The information provided by you would be kept confidential & only be used for improving customer

1. Please name the cellular service/connection you are currently using

a) Airtel □ b) Aircel □ c) B.S.N.L □ d) Virgin □ e) Vodafone □

f) Idea □ g) Reliance □ h) Tata Indicom □ i) Uninor □

2. Who influenced you to by the particular cell phone service provider?

a) Family Member □ b) Neighbours □ c) Relations □ d) Friends □

e) Advertisement □ f) Dealers □

3. Why do you buy the mobile connection?

a) For business □ b) For personal □

4. Which type of scheme is most preferable by you?

a) Prepaid □ b) Post-paid □

5. If you have post-paid / prepaid connection mention Scheme, Name & Monthly rental charges.

6. For which purpose are you using your mobile connection (Service Provider) mainly for?

a) Incoming □ b) Outgoing □
c) Both □ d) SMS Messaging □

7. Are you aware of the following details relating in your mobile connection
(Pre / Post-paid connection)
S. No Aware Neutral Unaware
a) Scheme □ □ □
b) Balance of Talk charges □ □ □
c) Periodical offers □ □ □

8. Are you influenced by the following factors relating in your connection?

S. No Aware Neutral Unaware
a) Monthly rental charges □ □ □
b) Charges for cell connections to land lines □ □ □
c) Signal of tower networking □ □ □
d) Cost of scheme □ □ □

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e) Incoming (in days) □ □ □
f) Number of outgoing calls □ □ □
g) Outgoings call charges □ □ □

9. What factor influenced you to decide your Cellular service provider?

a) Brand Image □
b) Availability □
c) Customer care service □
d) Service charges □

10. Satisfaction level about your cell phone service provider?

S. No Highly Satisfied Non-Satisfied

a) Price □ □ □
b) Performance □ □ □
c) Schemes □ □ □
d) Periodical Offers □ □ □
e) Out going call Charges □ □ □

11. Do you face any difficulty in your cell phone connection?

a) Yes □
b) No □

12. If yes, please point out the problem?

a) Coverage □
b) Service □
c) Clarity □
d) Busy network □
e) Others □

13. You consider owing a mobile connection as a -

a) Necessity □
b) Status □
c) Luxury □
d) Compulsion □

14. What is your valuable suggestion / opinion about your cell

phone service provider ?


15. Personal details (Put tick mark (√) in appropriate box.)

Name _____________________ ________________________________ ______

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Age □ 0-25yrs □ 25-35yrs □ 35-55yrs □ > 55yr.

Gender: □ Male □ Female

Marital status: married □ unmarried □

Occupation: _____________________

Undergraduate □ Graduate □ Post-graduate □ Professional degree (Specify)

Income group Monthly income

i. Below 5000
ii. Between 5000-10000
iii. Between 10000-15000
iv. Between 15000-20000

Thanking You

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