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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

maitra.indra@gmail.com

Wg Cdr Indranil Maitra Sem III / Roll No. 76 Marketing-Finance

Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

CERTIFICATE
This is to certify that the project titled

Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

is a bonafide work carried out by Wg Cdr Indranil Maitra

In partial fulfillment of the requirements for the award of M.B.A. Marketing & Finance under the guidance of

MR. ANAND AGRAWAL SR. MANAGER MARKETING MAHARASHTRA & GOA CIRCLE IDEA CELLULAR LTD.

MR. MANISH KUMAR HEAD MARKETING MAHARASHTRA & GOA CIRCLE IDEA CELLULAR LTD. 2

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Acknowledgements
I express my sincere thanks to Brig. H Chakerbuti (Retd.), Director SIMS, Deputy Director Prof. B.S. Kadam & the management of my college for giving me this opportunity to avail a Corporate experience with one of the countrys most professional companies as a part of my training program. I am extremely thankful to Mr. Manish Kumar, Head Marketing, Maharashtra & Goa Circle for entrusting me with a project of such enriching experience. I credit the completion of this project to my mentor Mr. Anand Agrawal, Sr. Manager Marketing, Maharashtra & Goa Circle. His guidance & professionalism were vital during each stage of the project. I also take this opportunity to thank Mr. Lakshminarayana, COO, Maharashtra & Goa Circle & his entire team of IDEA Cellular Ltd. for the excellent work environment made available, which was a very big motivating factor. I would also like to thank Mr. Sambaran Dutta & Miss Tulsi Daultani, Assistant Managers, HR, Mr. Ashwin Kashyap, Manager Marketing & Mr. Dhanuk Kohli, Assistant Manager, Marketing, & the entire team of Marketing & Sales Dept. of IDEA Cellular Ltd. for extending their co-operation at all times.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

EXECUTIVE SUMMARY

Introduction. India has gone wireless. Telecommunications in India has experienced unprecedented growth since the introduction of new players in 1995. The annual growth of last year outpaced the total combined growth from the beginning of telephony in India through to March 2004. As India's fifth largest Mobile Services operator, Idea Cellular Ltd. has licenses to operate in 11 circles. With a customer base of over 17 million, Idea Cellular Ltd. has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. There are 6 Wireless operators in Maharashtra & Goa circle, viz. Idea, Project background. Airtel, Vodafone, BSNL, Reliance & the Tata-Virgin combine. These operators sell a total of approximately 12 lakh new pre-paid connections every month. But at the same time, approximately 3.5 lakh customers get churned (i.e. leave one network to join another). The project was a market research to carry out a quantitative & qualitative analysis of the churn that takes place in the pre-paid customer base of each GSM operator in Maharashtra & Goa circle. A total of 1206 samples to responses to a questionnaire were collected across various zones of Maharashtra & Goa circle covering the following locations: Pune, Lonavla, Baramati, Daund, Sinnar, Sangamner, Nasik, Satara, Karad, Chandrapur, Shegaon & Buldana. This data was collated & analysed; also taken into account were the various inputs received from the respondents based on their experiences. This analysis & inputs have been included in the findings, & action areas have been recommended. Top-line findings. Following are the circle-level findings of the Market research.

1. The survey brought out the following Market shares of the 4 GSM operators in Maharashtra & Goa circle.
Operator Airtel BSNL Idea Vodafone Grand Total Samples 301 247 499 159 1206 % Market share 25 20 42 13 100

Idea thus has an undisputable leadership in Market Share, leading the No.2 brand by 17%. 2. The circle-wise breakdown of Competition & Rotational churn, Additional connections & Category new entrants is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 36 38 71 22 167 Rotational churn 6 7 9 3 25 Additional Connection 14 10 21 7 52 New Entrants 245 192 398 127 962 Total Samples 301 247 499 159 1206

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Operator Airtel BSNL Idea Vodafone All

Competitions churn % 11.96% 15.38% 14.23% 13.84% 13.85%

Rotational churn % 1.99% 2.83% 1.80% 1.89% 2.07%

Additional Connection % 4.65% 4.05% 4.21% 4.40% 4.31%

New Entrants % 81.40% 77.73% 79.76% 79.87% 79.77%

Total samples 301 247 499 159 1206

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competitions churn % 21.56% 22.75% 42.51% 13.17% Rotational churn % 24.00% 28.00% 36.00% 12.00% Additional Connection % 26.92% 19.23% 40.38% 13.46% New Entrants % 25.47% 19.96% 41.37% 13.20%

3. The Competition churn of each operator is as follows.


Previous operator A B I V R T Total Count of Competition churn 32 46 34 18 21 16 167 % of Competition churn 19.16% 27.54% 20.36% 10.78% 12.57% 9.58%

Ideas Competition churn % in the circle is 2nd highest among all operators & a little above Industry norms. Rotational churn of all the operators is negligible. Maharashtra & Goa circle is not a saturated telecom market & Idea has a very high acquisition % of Category new entrants. Action areas. The following recommendations are made. 1. Idea has an undisputable leadership in Market Share, leading the No.2 brand by 17%. This leadership must be maintained by improving the acquisition rate from other operators, keeping the Competition churn to the minimum, & ever improving its share of category entrants. 2. Ideas churn has primarily been due to Better offer from competitors, viz. cheaper calling rates, like BSNLs 10 paise calling schemes, Airtels popular product Friends, perception of BSNL & Vodafone connections being cheaper than Ideas etc. Therefore Ideas My Gang product may be popularized to effectively compete with Airtels Friends. The students & trader community maybe specifically targeted like the way Reliance covers the travel agencies. Non-local students of all towns maybe targeted since they ought to find the new STD rates attractive. Idea STD rates & generally their calling rates are perceived costlier than those of other operators. This perception, especially regarding the STD rates, has improved since the introduction of the new flat STD rates. But the message needs to reach all. 5
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

3. Locations/Pockets where competitors do not have a strong network coverage vis--vis Ideas maybe specifically targeted to drive home the difference in quality of coverage in the minds of the consumer. Network coverage maybe improved in villages & urban pockets where Idea does not have a satisfactory coverage. 4. The Zabardast network is a reality & the message maybe driven home using TV advertisement. 5. There are a significant number of loyal Idea customers in the Circle with greater than 5 years of association, & lot many with 10 years of association. This loyal customer base was found to be much greater than those of other operators. Customer loyalty maybe rewarded & promoted. 6. Subject to policy regulations, users beyond a certain age in the circle (say 1 year) & needing to move out of the circle permanently maybe offered a new Idea connection/ the same number in the new circle immediately upon crossing over. Customer churn is therefore expected to reduce significantly by providing this service. 7. Idea may choose to tie-up with Corporates to offer Idea Pre-paid Top-up cards to corporate employees on the lines of Sodexho Meal passes.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Table of Contents
Page 1. 1.1 1.2 1.3 The Indian Telecom Industry Introduction 8 8

1.4
1.5

State of the Telecom Industry Lessons from Success in Mobile Telephony Fostering Future Growth Cellular Mobile

8 8 9 10
11 13 13 14 14 14

2. Idea Cellular Ltd.: Company Profile 3. Research Design 3.1 Research problem formulation 3.2 Project objective 3.3 Sampling technique 3.4 Data collection 3.5 Data analysis, findings & recommendations 4. Findings 4.1 Findings Pune 4.2 Findings Nasik 4.3 Findings Ahmednagar 4.4 Findings Chandrapur 4.5 Findings Buldana 4.6 Findings Satara 4. Recommendations 5. Questionnaire 10. References 11. Glossary

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15 16 23 30 35 42 50 55 56 58 59

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

1.
1.1 Introduction.

THE INDIAN TELECOM INDUSTRY

India has gone wireless. Whether it is the headlines of newspapers screaming about India racing ahead on the worlds telecom stage, growing faster than every other country, defining how business is going to be done in a world where emerging economies dictate their own terms rather than follow those of the developed ones or its the sight of new cellular towers being built everyday to serve everyone from roadside vendors to corporate head honchos Looking around, we can clearly see that what was unimaginable a decade ago has indeed happened. Progress has been remarkable, but past success and astronomical growth figures should not lead to complacency, and the loss of what has brought us here in the first place the urgency to ensure a growth environment continues with a clear path ahead. 1.2 State of the Telecom Industry

Telecommunications in India has experienced unprecedented growth since the introduction of new players in 1995. Annual growth in the past fiscal year outpaced total combined growth from the beginning of telephony in India through to March 2004. Mobile subscriber growth has been the main factor behind the remarkable increase in telephone subscribers, having witnessed unparallel growth in the world and surpassing all expectations. The same cannot be said for Internet and broadband growth. The current situation is well short of the targets set by the DOT, and recent patterns do not seem to be yielding any significant acceleration. Furthermore, achieving the targets will be a daunting task given that the country has already missed the targets for broadband subscriber set for 2007. 1.3 Lessons from Success in Mobile Telephony

Explosive growth in voice service in India has shown us that the demographics and economic characteristics of the country are ideal to fuel the current hockey stick growth. Three main areas that have contributed to widespread mobile adoption are falling tariffs, lifestyle marketing to all consumer segments, and low perceived entry cost. 1.3.1 Competition is the Key

The competition amongst 4, 5, 6 and at times 7 operators per region resulted in prices reaching the lowest per minute tariffs worldwide. This has led to an innovative customer orientation-encouraging introduction of new services, subscription schemes and in some cases advanced technologies and usage capabilities. The competition has also driven general knowledge and awareness of features and benefits, which has further helped adoption.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

1.3.2

Utility Derived from End Services

The next focus area was the positioning of mobile services across all segments of customers. Initially, the emphasis was on driving customer adoption from those who could afford tariffs of INR 16 (USD 0.35) per minute for both outgoing and incoming calls. Over time, new messages tailored to the masses accompanied the increasing affordability of the services. Telecom operators successfully positioned the mobile phone as a necessity, which improved quality of life and increased the earning capability of even laborers. 1.3.3 Affordability and Access for All

The last piece of the puzzle was to ignite growth by dramatically lowering entry costs by introducing phones in the sub-USD 50 segment. These ultra low cost handsets (ULCH) accounted for 50% of all handset shipments nationwide last year. This allowed a sophisticated customer segmentation to occur, catering to high end users, aspirational consumers, mass market as well as the low end. A mature second-hand market for refurbished handsets also helped further decrease entry costs. Added to this increased affordability is further expansion of network coverage across category B and C Circles, which are growing at rates much higher than Metros and category A Circles, albeit from a lower base. DOT target is for 500 million subscribers by the end of 2010, and if the current pattern continues, BDA believes that this is achievable. Therefore, when thinking about how to move forward and promote growth in Indias telecom landscape, these lessons must be closely followed. Any new service will only be successful when: 1.4 Robust competition is promoted to induce innovation and tariff rationalization. New services can deliver social and economic values to the users. Services are structured in such a fashion that they are affordable and accessible for all segments. Fostering Future Growth

Before one becomes complacent about growth in the Indian telecom sector with the assumption that all is well, some major hurdles stand in the way of achieving widespread high speed voice and data connectivity. Today, quality of service (QoS) in existing cellular networks is deteriorating in a number of areas due to a dire lack of spectrum, while voice average revenue per user (ARPU) continues to fall at a rapid pace and challenge operator margins. Additionally, an environment to foster value-added services has not been promoted, and thus content and applications for mobile and Internet are still relatively in their infancy. Observing the current state of broadband, major initiatives need to be taken to boost growth. These steps need to be across a variety of areas, from infrastructure, through to access devices, and including content, to promote adoption. Finally, while the industry must consider how to accelerate broadband penetration, it must also ensure that this is not at the cost of continued growth in existing platforms.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

1.5

Cellular Mobile

A lack of spectrum capacity and related deteriorating QoS are straining the cellular telephone market and putting the entire industry at risk of stalling. These are the biggest factors impacting the consumer experience of not only cellular telephony, but also of those using the internet for the first time via mobile handsets, and of others attempting to experience more advanced mobile data solutions. Operators nationwide have crossed the benchmarks established by the DOT for the number of subscribers and correlated spectrum quantity. GSM operators have surpassed the benchmark in each of the twelve circles from varying categories. CDMA operators are also in a critical situation in some circles. While it is true that spectrum shortage is primarily being felt in cities where there is a proportionately higher density of users, the regions feeling these problems will continue to increase as subscriber base grows and spectrum remains unavailable. TRAI has described the problems faced by the industry in QOS as a crisis. The anomaly of the situation is that while the technical data submitted by operators demonstrates fairly high levels of compliance, the consumer survey data shows that in the most recent survey only one operator nation-wide passed the required benchmarks. The historical subscriber-based criteria for spectrum allocation has also lead to a situation which favors subscriber base inflation, and thus reduces the priority of data based and value added services. Another major challenge that India faces is the situation of low ARPU in mobile services, which is amongst the lowest globally due to the worlds lowest per minute tariffs. Though operators are in general, financially healthy due to high volumes and cost efficiencies, investments in expensive assets remain a challenge due to long ROI cycles. Delivery platforms have to be optimized to allow customers to cost effectively access a variety of services and applications over the same network. The industry has reached a critical point. Further mobile growth will depend on whether operators have access to an enabling environment to deploy the technologies and services of their choice. Most important in this equation is appropriate spectrum management, which will have a direct bearing on how far the operators can expand existing 2G services and deploy more powerful data applications. Additionally, appropriate promotion of rural coverage will also help in widening reach Source: TRAI April 2007, BDA Report June 2007

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

IDEA Cellular Limited: Company Profile

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. As Indias leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 26 million, IDEA Cellulars footprint currently covers approximately 60% of Indias telecom population. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for Best Billing and Customer Care Solution for 2 consecutive years. IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an extraordinary force of over 100,000 employees belonging to 25 different nationalities, over 50% of its revenues flow from its overseas operations. The Group has been adjudged The Best Employer in India and among the Top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The combined holding of the Aditya Birla Group companies in IDEA stands at around 57 per cent. With ambitious future plans, the company is poised for rapid growth across the whole country. The Indian telecommunications market for mobile services is divided into 22 Service Areas classified into Metropolitan, Category A, Category B and Category C service areas by the Government of India. These classifications are based principally on a Service Areas revenue generating potential. Its operational 11 Service Areas are broken up into Established and New Service Areas. The established service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West). Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited. In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002. In January 2004, Escotel Mobile Communications Private Limited (Escotel), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these 11
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Service Areas were re-branded and integrated with IDEA in June 2004. The company has recently acquired Spice Telecom on 26 Jun 2008 to enter the big league of Telecom players in India. The New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal Pradesh. Licenses for these New Service Areas were acquired through the acquisition of Escotel (Escorts Telecommunications Limited). Following significant investment in the roll-out of network in the New Service Areas, amounting to approximately Rs. 4,678 million upto September 30, 2006, a full commercial launch of mobile services was achieved in the New Service Areas between September and November 2006 in a manner which also met the network roll-out requirements of the licenses in 2007.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

RESEARCH DESIGN: IDEA PRE-PAID SERVICE

There are 13 zones in Maharashtra & Goa telecom circle. A Primary research was carried out across various towns of the Circle, covering a large cross-section of Pre-paid customers of all the 4 GSM operators. The research process was as follows. 3.1 Research problem formulation.

3.1.1 Background. There are 6 Wireless operators in Maharashtra & Goa circle, viz. Idea, Airtel, Vodafone, BSNL, Reliance & the Tata-Virgin combine. These operators sell a total of approximately 12 lakh new pre-paid connections every month. But at the same time, approximately 3.5 lakh customers get churned (i.e. leave one network to join another). Thus, (A) = Gross addition = (B) = Churn = (C) = (A) (B) = Net addition = 12 3.5 8.5 lakh/month lakh/month lakh/month

------- ( I )

Equation I amplifies the need to know the actual or real market size (i.e. monthly gross addition) & the Churn/month. Net addition I can be maximized by maximizing the gross addition (A), while keeping Churn (B) to the minimum. While every operator reports its Net addition / month, its Gross addition/month & Churn/month are not reported. In order to reduce to the Churn, it is necessary to identify the scenarios in which the Churn happens, & the factors that are responsible for the Churn. 3.1.2 S1: S2: S3: S4: 3.1.3 R1: R2: R3: R4: R5: R6: Scenarios Customer moves to another operator. (Competition Churn). Customer drops existing connection & buys another connection from the same operator. (Rotational Churn). Customer moves out of circle. Customer ceases to be a mobile user. Possible factors for Churn Better offer from competitor. Dissatisfied with current operator. Gets a new connection from his organization. New offer from current operator not available to existing customers. Retailer induced rotational churn to earn commission. To avoid roaming charges. 13
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

R7: R8: R9: R10:

Discontinues extra connection. Opts for a fixed line / WLL /Broadband connection instead. Is not able to afford usage. Benefit : Price = Low.

The above scenarios & factors are more or less all encompassing, & get mapped as follows. Sl. No. 1 2 3 4 3.2 Scenarios S1 S2 S3 S4 Factors (&/or combination) R1, R2, R3 R3, R4, R5 R6 R7, R8, R9, R10

Project objective

The following were the broad objectives of the project. What are the stimuli (reasons) specific to each operator for the churn? What are the Competition & Rotational churn percentages for each operator? What is the contribution of each factor to its Scenario? What is the percentage of category entrant users for each operator? What is the satisfaction rating of users for each operator? What actions can be recommended to arrest the churn? Compare these results for all the 4 GSM operators.

Since churn is not a reported entity, a primary research was required to be carried out across the various zones of Maharashtra & Goa circle. A questionnaire covering the above-defined objectives was prepared. 3.3 Sampling technique

Random area sampling was employed across the following locations of Maharashtra & Goa circle: Pune, Lonavla, Baramati, Daund, Sinnar, Sangamner, Nasik, Satara, Karad, Chandrapur, Shegaon & Buldana. 3.4 Data collection

A questionnaire was formulated based on the objectives defined above, & I involved myself with the respondents to get their unbiased opinion. A total of 1206 samples across the above locations were collected. 3.5 Data analysis, findings & recommendations

The data so collected was collated & analysed operator-wise. It enabled arrival at quantitative & qualitative findings; also taken into account were the various inputs received from the respondents based on their experiences. This analysis & inputs have been included in the findings, & action areas have been recommended. 14
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

FINDINGS

Primary research was carried out across the following locations of Maharashtra & Goa circle: Pune Zone Pune Lonavla Baramati Daund Ahmednagar Zone Sangamner Nasik Zone Nasik Sinnar Satara Zone Satara Karad Chandrapur Zone Chandrapur Buldana Zone Buldana Shegaon The findings are brought out in the subsequent pages, zone-wise.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.1

FINDINGS: PUNE

A total of 590 respondents were interviewed across various areas in & around Pune & their responses to the Questionnaire taken. The following broad locations in Pune zone were surveyed.
Zone Pune Place Baramati Daund Lonavla Pune & neighbourhood Pune Total Total 62 56 50 422 590

4.1.1

Operator Market Share

The survey brought out the following Market share of each operator in Pune zone.

Zone Pune

Operator Airtel BSNL Idea Vodafone Pune Total Grand Total

Total 173 76 236 105 590 590

Pune Vodaf one 18% Pune Airt el 29% Pune Airt el Pune BSNL Pune Idea Pune BSNL 13% Pune Vodaf one

Pune Idea 40%

Thus Idea has the leadership in Market share in Pune zone, leading the second-placed operator by 11%. 4.1.2 Acquisition % from other operators in Pune zone

The survey brought out the following acquisition % by operators from other operators.
Zone Pune Operator Idea Airtel BSNL Vodafone Count of users 236 173 76 105 Count of Previous operator 39 19 4 11 Acquisition % 39*100/236=16.53% 10.98% 5.26% 10.47%

Zone Pune

Operator Idea

Previous operator A B R T V

Idea Total Pune Total

Total 19 13 3 1 3 39 39

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

IDEA'S ACQUISITION % IN PUNE ZONE

Count of Previous operator 8% 3% 8%

48%

Zone Operator Previous operator Pune Idea A Pune Idea B Pune Idea R Pune Idea T Pune Idea V

33%

The survey brings out that there have been 16.53 % (=39*100/236) acquisitions in Pune zone by Idea from other operators out of the Gross additions of 590. This is the highest among all GSM operators. 4.1.3 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Pune The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Pune is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 16 2 31 9 58 Competitions churn % 9.25% =16*100/173 2.63% 13.14% 8.57% 9.83% Rotational churn 3 2 2 1 8 Rotational churn % 1.73% 2.63% 0.85% 0.95% 1.36% Additional Connection 7 3 12 3 25 Additional Connection % 4.05% 3.95% 5.08% 2.86% 4.24% New Entrants 147 69 191 92 499 New Entrants % 84.97% 90.79% 80.93% 87.62% 84.58% Total 173 76 236 105 590

Operator Airtel BSNL Idea Vodafone All

Total 173 76 236 105 590

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competitions churn % 27.59%=16*100/58 3.45% 53.45% 15.52% Rotational churn % 37.50% 25.00% 25.00% 12.50% Additional Connection % 28.00% 12.00% 48.00% 12.00% New Entrants % 29.46% 13.83% 38.28% 18.44%

4.1.4 Reasons for Competition churn of operators in Pune


REASONS FOR COMPETITION CHURN Better offer from existing operator Dissatisfied with previous operator Previous connection lapsed SIM lost/stolen/damaged Additional connection Others Previous operator A CODE A B C D E F % of competition churn

Zone Pune

Reasons for competition churn A = Better offer from existing operator B = Dissatisfied with previous operator B+C C = Previous connection lapsed D = SIM lost/stolen/damaged F = Others

Total 4 8 1 2 1 2 18 2 16 18 2 2 2 1 7 6 6 1 2 3 6 58

A Count B B Count V

18*100/58 = 31.03%

A B A B D F A C D

31.03%

V Count I I Count R R Count T Pune Total

12.07% 10.34%

5.17% 10.43%

4.1.5 Rotational churn of operators in Pune The number of samples of rotational churns is quite small, & the Rotational churn % of all operators is very small & hence not significant. 18
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4.1.6

Category entrant users in Pune


% OF CATEGORY ENTRANT USERS:OPERATOR-WISE

Pune Vodafone (blank) 18% Pune Airtel (blank) 29%

Pune Airtel (blank) Pune BSNL (blank) Pune Idea (blank) Pune Vodafone (blank)

Pune Idea (blank) 39%

Pune BSNL (blank) 14%

The total churn in Pune is 58 out of the total universe of 590 samples. This equals a churn of 9.83%, which is well within the industry norm. Ideas Competition churn % in Pune is the lowest among GSM operators at 10.34%. It can focus on churning Airtel & BSNL users, as these operators have a high Competition churn of 31.03%. The only reason for Ideas Competition churn is Better offer from existing operator,viz. cheaper calling rates, like BSNLs 10 paise calling schemes, Airtels popular product Friends, perception of BSNL & Vodafone connections being cheaper than Ideas etc. (that too a small quantity of 4 out of 8). There has been no competition churn in Idea in Pune zone due to reasons attributable to dissatisfactory service. Rotational churn of all the operators is negligible. Pune is not a saturated telecom market & Idea has an 80.93% acquisition of Category new entrants. BSNL has the highest acquisition % of Category new entrants in its universe, but on a customer base of just 76 samples. The number of Category entrant users in Idea is the highest by a healthy margin of 10% than the second-best operator. This is also a barometer indicating that Idea has the largest number of loyal category entrants. This inference was also qualitatively made during the Market Research when Idea users as well as users of other operators in most of the different places surveyed in Pune zone strongly advocated about Ideas Zabardast network.

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4.1.7

Overall satisfaction rating

Overall satisfaction rating given by users about their respective operators is as follows.
Zone Pune Operator Idea Rating Below Average -2 Average -3 Above Average -4 Excellent -5 Total 1 26 60 149 236 236 Total 9 23 71 69 172 172 Zone Pune Rating 3 4 5 Vodafone Total Pune Total Operator Vodafone Total 13 34 58 105 105

Idea Total Pune Total Zone Pune Operator Airtel Rating 2 3 4 5 Airtel Total

Zone Pune

Pune Total

Rating 2 3 4 5 BSNL Total Pune Total

Operator BSNL

Total 1 24 38 13 76 76

4.1.8 Overall satisfaction rating of Idea in Pune

Count of Rating

Pune Idea 2 0%

Pune Idea 3 11%

Pune Idea 4 25%

Pune Idea 5 64%

Zone Operator Rating Pune Idea Pune Idea Pune Idea Pune Idea

2 3 4 5

89% of Idea users out of the Idea universe of 236 users rated it as providing better than Average satisfaction, out of which a healthy number of 64% respondents rated it as providing Excellent satisfaction. No users rated Idea as a Poor service provider, & only 1 user rated it Below Average. Thus Idea stands out as an operator providing very high satisfaction to its users in the Zone. This was also corroborated qualitatively by an extremely large number of Idea users who were its very strong advocators. Such a strong positive response was not forthcoming from respondents of any other operator. 20
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.1.9 Qualitative findings Some insights & experiences gained during the survey of Pune revealed the following. Pune Vodafone customer care is perceived as more customer friendly. Idea STD rates & generally their calling rates are perceived costlier than those of other operators. This perception, especially regarding the STD rates, has improved since the introduction of the new flat STD rates. sms @ Rs.1/- is perceived high by many users. Airtel has coverage problems in some pockets of FC road, Keshav Nagar (Chinchwad), Kothrud, & in & around SIMS, Kirkee on Thursdays. A user cited instances of call drops & international SMSes not going through despite being charged; the call center was also not responsive to his complaints. Users expected their call center staff to be better trained to handle calls. BSNL has nil coverage in Hinjewadi, & poor coverage in Range Hills, Kirkee Cantt, Pimpri & in Bhonsale Nagar. Its users also reported poor coverage in Beed & Jalna of Ahmednagar district. Idea has a considerable base of loyal customers with greater than 5 years of association, & lot many with 10 years of association. This loyal customer base was found to be much greater than those of other operators. Airtel Friends is a popular product, especially among students. Idea My Gang is a comparatively much lesser known product. A significant number of budget customers switch from Post-paid to pre-paid products in order to control costs. Post-paid connection is widely perceived as costlier than a Pre-paid one. A student in Pune migrated from Idea Post-paid to Airtel citing billing problems & that Post-paid was costly, & that Airtel Friends made local calls cheaper @ 10p per min. All Travel agencies of Pune & Nasik use Reliance connections, since they can make free Reliance-to-Reliance local calls. In Pimpri, a section of small businessmen originally from U.P. were found to prefer Vodafone since it had a good coverage in their region back home in U.P. Their perception was that calls would therefore get established much better! A Vodafone user complained of poor coverage in Bhosari. An erstwhile Idea user migrated to Airtel because he experienced a poor roaming network of Idea in Bihar & W. Bengal. Another Idea post-paid user had no service upon crossing Maharashtra, although the Customer Care in Hyderabad informed him that roaming gets automatically activated upon crossing the circle. He reported that the Customer Care executive appeared in a hurry to complete the call rather than in trying to solve the problem. Users often do a competition churn when their connections are locked & they are informed after a year of usage that their documents are not complete.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Baramati Although the number of samples of Airtel users was more in Baramati, people are largely not happy with Airtel there. Airtel coverage is widely considered as bad in Baramati. Frequent network congestion is also reported in its network there. Reliance distributor in Baramati is reportedly not very efficient. Recharges take place the next day, & never within a few hours. There was once an instance of no Reliance Top-up cards being available in Baramati for an entire fortnight. A few businessmen reported infrequent network problems in their Idea connection in Baramati. Some users in Baramati perceive roaming charges as more in Idea. A SIM card vendor in Baramati recounted good sales of Idea & Vodafone connections & recharge coupons. Some users do a competition churn when asked to submit fresh documents even after a year of usage. Vodafone has a good coverage in Sirsufkar, a village 20 Km. From Baramati. Reliance network is considered good in Baramati. Airtel has good network coverage in Shirsubhal, a village 22 Km. From Baramati. Students prefer the night packages of Airtel, being budget users. Daund Airtel has a very bad network in Daund. Network is reportedly busy in the evenings there. Tata has a good network & a strong base in Daund. Most Auto drivers use Idea & hold a very good perception about Idea. BSNL occasionally has network congestion in Daund. Lonavla Idea network is the most popular. Most INS Shivaji & Air Force residents are Idea customers. Reliance has a better coverage there than Tatas. Because of the hilly terrain, there are pockets where some or the other operator does not have adequate coverage.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.2

FINDINGS: NASIK

A total of 590 respondents were interviewed across various areas in & around Nasik & their responses to the Questionnaire taken. The following broad locations in Nasik zone were surveyed.
Zone Nasik Place Nasik Sinnar Nasik Total Total 101 58 159

4.2.1 Operator Market Share The survey brought out the following Market share of each operator in Nasik zone.
Zone Nasik Place Nasik Operator Airtel BSNL Idea Vodafone Airtel BSNL Idea Vodafone Total 21 17 49 14 101 22 5 29 2 58 159

Nasik Total Sinnar

Sinnar Total Nasik Total Zone Nasik Operator Airtel BSNL Idea Vodafone Total

43 22 78 16 159

Nasik Total
Nasik Vodafone 10%

Nasik Airtel 27%

Nasik Airtel Nasik BSNL Nasik Idea Nasik Vodafone

Nasik Idea 49%

Nasik BSNL 14%

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Thus Idea has the leadership in Market share in Nasik zone, leading the second-placed operator by a huge margin of 22%. 4.2.2 Acquisition % from other operators in Nasik zone

The survey brought the following acquisition % by operators from other operators.
Previous operator I Acquisition % from other operators

Zone Nasik

Operator Airtel

R T V Airtel Total BSNL

Reasons for competition churn A = Better offer from existing operator C = Previous connection lapsed D = SIM lost/stolen/damaged F B = Dissatisfied with previous operator B = Dissatisfied with previous operator C = Previous connection lapsed

Total 1 2 1 1 1 2 1 9 1 1 1 1 1 5 1 1 1 1 1 1 1 1 1 1 10 1 2 3 27

9*100/43 20.93%

Nasik

I R T V

A = Better offer from existing operator A = Better offer from existing operator D = SIM lost/stolen/damaged F = Others A = Better offer from existing operator

Nasik

BSNL Total Idea

5*100/22 22.72%

A B T

C = Previous connection lapsed D = SIM lost/stolen/damaged D = SIM lost/stolen/damaged A = Better offer from existing operator B = Dissatisfied with previous operator D = SIM lost/stolen/damaged A = Better offer from existing operator C = Previous connection lapsed D = SIM lost/stolen/damaged F = Others

Nasik

Idea Total Vodafone

10*100/78 12.82%

A I

A = Better offer from existing operator A = Better offer from existing operator

Vodafone Total Nasik Total

3*100/16 18.75%

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Breakdown of Previous operators of Idea in Nasik zone is as follows.


Zone Nasik Operator Idea Previous operator A B T V Total 2 1 3 4 10 10

Idea Total Nasik Total

Previous Operators of Idea Users in Nasik

Nasik Idea A 17%

Nasik Idea V 42%

Nasik Idea B 8% Nasik Nasik Nasik Nasik Idea Idea Idea Idea A B T V

Nasik Idea T 33%

The survey brings out that there have been 12.82% acquisitions in Nasik zone by Idea from other operators out of the Gross additions of 159. The acquisition is the highest among all GSM operators, although BSNL has a higher % of acquisition (22.72%) but that is an acquisition of 5 out of a much smaller customer base of 22. 4.2.3 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Nasik The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Nasik is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 9 5 10 3 27 Rotational churn 2 0 2 2 6 Additional Connection 1 1 3 1 6 New Entrants 30 17 63 10 120 Total samples 42 23 78 16 159

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Operator Airtel BSNL Idea Vodafone All

Competitions churn % 21.43% 21.74% 12.82% 18.75% 16.98%

Rotational churn % 4.76% 0.00% 2.56% 12.50% 3.77%

Additional Connection % 2.38% 4.35% 3.85% 6.25% 3.77%

New Entrants % 71.43% 73.91% 80.77% 62.50% 75.47%

Total samples 42 23 78 16 159

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competition churn % 33.33% 18.52% 37.04% 11.11% Rotational churn % 33.33% 0.00% 33.33% 33.33% Additional Connection % 16.67% 16.67% 50.00% 16.67% New Entrants % 25.00% 14.17% 52.50% 8.33%

4.2.4

Rotational churn in Nasik

The survey brought out Nil Rotational churn in Nasik. 4.2.5 Category entrant users in Nasik
% OF CATEGORY ENTRANT USERS:OPERATOR-WISE

Nasik Vodafone (blank) 8% Nasik Airtel (blank) 25%

Nasik Nasik Nasik Nasik Nasik BSNL (blank) 14%

Airtel (blank) BSNL (blank) Idea (blank) Vodafone (blank)

Nasik Idea (blank) 53%

4.2.6 Reasons for Competition churn in Nasik


REASONS FOR COMPETITION CHURN Better offer from existing operator Dissatisfied with previous operator Previous connection lapsed SIM lost/stolen/damaged Additional connection Others CODE A B C D E F

Reasons for Competition churn operator-wise are as follows. 26


Symbiosis Institute of Management Studies

Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Reasons Zone Previous operator A B Nasik A 1 B V 2 I 4 R 1 1 T 1 3 Nasik Total 9 4 Grand Total 9 4 Previous operator A

C 1 2 2

5 5

D 1 1 1 1 1 1 6 6

1 1 1 3 3

Grand Total 3 1 6 8 3 6 27 27 Reasons for Competition churn % 33.33% 33.33% 33.33% 3*100/27=11.11% 100.00% 3.7% 50.00% 25.00% 12.50% 12.50% 29.63% 33.33% 33.33% 16.67% 16.67% 22.22% 33.33% 33.33% 33.33% 11.11% 16.67% 50% 16.67% 16.67% 22.22%

Zone Nasik

Reasons for competition churn A = Better offer from existing operator C = Previous connection lapsed D = SIM lost/stolen/damaged D A C D F = Others A C D F A B D A B D F

A Total B B Total I

I Total V

V Total R

R Total T

T Total Nasik Total Grand Total

Total 1 1 1 3 1 1 4 2 1 1 8 2 2 1 1 6 1 1 1 3 1 3 1 1 6 27 27

The total churn in Nasik is 33 out of the total universe of 159 samples. This equals a churn % of 20.75%, which is well within the industry norm. Ideas acquisition due to Competitions churn % in the circle is the lowest at 12.82%. Idea can focus on increasing this share. Ideas Competition churn is the highest at 29.63%. Idea can focus on decreasing this churn; else it can be vulnerable to poaching from other operators. 27
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

The quantum of each reason for Competitive churn is not a significant number. However, it can be seen that the major cause of Competitive churn for Idea in Nasik is due to Reason A, i.e. Better offer from existing operator, viz. cheaper calling rates, like BSNLs 10 paise calling schemes, Airtels popular product Friends, perception of BSNL & Vodafone connections being cheaper than Ideas etc. (quantity 4 out of 8). There has been no competition churn in Idea in Nasik zone due to reasons attributable to dissatisfactory service. Rotational churn of Idea is negligible. Idea can focus on acquiring Vodafone customers whose Rotational churn is high. Nasik is not a saturated telecom market & Idea has the highest of 80.77% acquisition % of Category new entrants. The number of Category entrant users in Idea is the highest at 52.50%, leading the second-best operator by a healthy margin of 28%. This is also a barometer indicating that Idea has the largest number of loyal category entrants. This inference was also qualitatively made during the Market Research when Idea users as well as users of other operators in most of the different places surveyed in Nasik zone strongly advocated about Ideas Zabardast network. Idea can focus on maintaining Market Share through maintaining this leadership in acquisition of Category New Entrants. Overall satisfaction rating

4.2.7

Overall satisfaction rating given by users about their respective operators is as follows.
Zone Nasik Operator Airtel Rating 2 3 4 5 1 4 5 2 3 4 5 Total 2 3 19 19 43 1 12 9 22 3 4 33 38 78 10 6 16 159 159 % of each reason 4.65% 6.98% 44.19% 44.19% 27.04% 4.55% 54.55% 40.91% 13.84% 3.85% 5.13% 42.31% 48.72% 49.06% 62.50% 37.50% 10.06%

Airtel Total BSNL

BSNL Total Idea

4 5 Vodafone Total Nasik Total Grand Total

Idea Total Vodafone

91% of Idea users out of the Idea universe of 159 users of Nasik rated it as providing better than Average satisfaction, out of which a healthy number of 48.72% respondents rated it as providing Excellent satisfaction. There were no users who rated Idea as a Poor service provider, & only 3 users rated it Below Average. Thus Idea stands out as an operator providing very high satisfaction to its users in the Zone. This was also corroborated qualitatively by an extremely large number of 28
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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Idea users who were its very strong advocators. Such a strong positive response was not forthcoming from respondents of any other operator. 4.2.8 Qualitative findings

Some insights & experiences gained during the survey of Nasik revealed the following. Sinnar A Vodafone user reported poor coverage in Deopur, a village near Sinnar. A BSNL user reported bad network in Thanapada, a village 55Km. from Nasik. A few Tata Indicom users reported poor coverage in Sinnar. Airtel does not have a good coverage near Sinnar Bus-stand. An Idea user reported poor coverage in Deopur & Limgaon, villages near Sinnar. Quite a few businessmen hold Tata connection in Sinnar; they say that it is because Tata tower came earlier & so they became early adopters. Airtel Friends is popular in Sinnar. Nil/poor coverage was reported by an Airtel user in the villages of Lonarwadi & Thandgaon near Sinnar. Nasik Tatas coverage was cited as inadequate in Nasik. General perception of Idea is one that has a good-to-best coverage all around, especially in Pune, Nasik, Baramati etc. Complaints in general were the least encountered in Ideas case. There were ample number of cases where people vouched & advocated very strongly about the Idea network. Market research indicated that BSNL has the most number of dissatisfied customers. BSNL users are generally persons above 30 years of age, frequently with an income within Rs.15, 000/- per month. They are generally cost conscious budget customers, who perceive BSNL as the cheapest being a govt. entity & hence continue with it despite agreeing that it has coverage inadequacies & frequent network congestion problems. Vodafone call rates are perceived as cheaper than those of other private operators. In Nasik & Baramati, there were some complaints of Idea Customer Care being always busy. BSNL subscribers generally reported a good coverage in the villages outside Nasik, although there was a complaint of bad coverage in Nandgaon, a village near Nasik. Airtel users reported a good coverage in Nasik, but also spoke of poor coverage in Aurangabad, along with instances of call dropping & network congestion during the night. Airtel users reported bad coverage in Vaijapur, in Aurangabad.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.3

FINDINGS: SANGAMNER (AHMEDNAGAR ZONE)

A total of 62 respondents were interviewed in Sangamner & their responses to the Questionnaire taken. 4.3.1 Operator Market Share

The survey brought out the following Market share of each operator in Sangamner. .
Zone Ahmednagar Operator Airtel BSNL Idea Vodafone Sangamner Total Ahmednagar Total
Ahmednagar Sangamner Vodafone 8% Ahmednagar Sangamner Airtel 34% Ahmednagar Sangamner Airtel Ahmednagar Sangamner BSNL Ahmednagar Sangamner Idea Ahmednagar Sangamner Vodafone Ahmednagar Sangamner Idea 52%

Place Sangamner

Total 21 4 32 5 62 62

Ahmednagar Sangamner BSNL 6%

Thus Idea has the leadership in Market share in Sangamner, leading the second-placed operator by a huge margin of 18%.

4.3.2

Acquisition % from other operators in Sangamner 30


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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

The survey brought out the following acquisition % by operators from other operators.
Acquisition % Previous operator I R V (blank) (blank) A I (blank) % of Acquisitions from other operators 33.33% 33.33% 33.33%

Zone Ahmednagar

Place Sangamner

Operator Airtel

Airtel Total BSNL BSNL Total Idea

Idea Total Vodafone (blank) Vodafone Total Sangamner Total Ahmednagar Total

Total 2 2 2 15 21 4 4 3 2 27 32 5 5 62 62

9.52% 9.52% 9.52% 71.43% 33.87% 100.00% 6.45% 9.38% 6.25% 84.38% 51.61% 100.00% 8.06%

60.00% 40.00%

Idea has the highest % of acquisition of users from other operators in Sangamner, much greater than second placed Airtel. But the sample size of such acquisitions is small, & the 3 acquisitions in the survey have only been from Airtel. BSNL & Vodafone do not have any such acquisitions in the survey. 4.3.3 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Sangamner The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Sangamner is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 3 0 2 0 5 Competitions churn % 14.29% 0.00% 6.25% 0.00% 7.94% Rotational churn 0 0 1 0 1 Rotational churn % 0.00% 0.00% 3.13% 0.00% 1.59% Additional Connection 3 0 2 1 6 Additional Connection % 14.29% 0.00% 6.25% 16.67% 9.52% New Entrants 15 4 27 5 51 New Entrants % 71.43% 100.00% 84.38% 83.33% 80.95% Total samples 21 4 32 6 63 Total samples 21 4 32 6 63

Operator Airtel BSNL Idea Vodafone All

The share of each operator in the above customer Mix is as follows. 31


Symbiosis Institute of Management Studies

Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Operator Airtel BSNL Idea Vodafone

Competition churn % 60.00% 0.00% 40.00% 0.00%

Rotational churn % 0.00% 0.00% 100.00% 0.00%

Additional Connection % 50.00% 0.00% 33.33% 16.67%

New Entrants % 29.41% 7.84% 52.94% 9.80%

4.3.4 Reasons for Competition churn in Sangamner Reasons for Competition churn operator-wise are as follows.
Place Sangamner Previous operator A A Total I I Total R R Total V V Total Sangamner Total Grand Total Reasons for competition churn B = Dissatisfied with previous operator A = Better offer from existing operator B = Dissatisfied with previous operator B = Dissatisfied with previous operator Total 2 2 1 1 1 1 1 1 5 5

The quantum of each reason for Competitive churn is not a significant number. However, it can be seen that the only cause of Competitive churn for Idea in Sangamner is due to Reason A, i.e. Better offer from existing operator. There has been no competition churn in Idea in Sangamner due to reasons attributable to dissatisfactory service. 4.3.5 Category entrant users in Sangamner
Ahmednagar Vodafone (blank) 10%

Ahmednagar Airtel (blank) 29% Ahmednagar Airtel (blank) Ahmednagar BSNL (blank) Ahmednagar Idea (blank) Ahmednagar Vodafone (blank) Ahmednagar BSNL (blank) 8%

Ahmednagar Idea (blank) 53%

4.3.6

Overall satisfaction rating in Sangamner 32


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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Overall satisfaction rating given by users about their respective operators is as follows.
Zone Ahmednagar Place Sangamner Operator Airtel Rating Above Average =4 Excellent =5 Airtel Total Above Average =4 Excellent =5 BSNL Total Average=3 Above Average =4 Excellent =5 Total 14 7 21 2 2 4 2 22 8 32 5 5 62 62 % of Rating 66.67% 33.33% 50.00% 50.00% 6.25% 68.75% 25.00% 100.00%

BSNL

Idea

Idea Total Vodafone Excellent =5 Vodafone Total Sangamner Total Ahmednagar Total

Ahmednagar Idea 3 6% Ahmednagar Idea 5 25%

Ahmednagar Idea 3 Ahmednagar Idea 4 Ahmednagar Idea 5

Ahmednagar Idea 4 69%

100% of Idea users out of the Idea universe of 62 users of Sangamner rated it as providing better than Average satisfaction, out of which a healthy number of 66.67% respondents rated it as providing Excellent satisfaction. Thus Idea stands out as an operator providing very high satisfaction to its users in the Zone. This was also corroborated qualitatively by an extremely large number of Idea users who were its very strong advocators. Such a strong positive response was not forthcoming from respondents of any other operator.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.3.7

Qualitative findings

Some insights & experiences gained during the survey of Sangamner revealed the following. Sangamner Idea does not have a good coverage in Vadgaon & Landga, villages 15 Km. from Sangamner. Both Idea & Airtel do not have a good coverage in Kolwara, a village 20 Km. from Sangamner. Some Airtel users reported good coverage in Nanajdumala, but otherwise poor coverage in villages adjoining Sangamner. Airtel network is reportedly missing frequently in the evenings in Sangamner. An Idea user in Sangamner reported receiving lesser balance after a Top-up. Vodafone users reported bad network in Sangamner & Akola, apart from their customer care not being effective. There were quite a few instances of users exchanging/lending/selling their SIM cards to others. Some users in Sangamner reported Airtels customer care as an efficient one. A mobile antennae tower near ones residence often influences their decision to choose/switch to a particular operator.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.4

FINDINGS: CHANDRAPUR ZONE

A total of 90 respondents were interviewed in Chandrapur & their responses to the Questionnaire taken. 4.4.1 Operator Market Share

The survey brought out the following Market share of each operator in Chandrapur.
Zone Chandrapur Operator Airtel BSNL Idea Vodafone Total 12 44 27 7 90 90

Chandrapur Total Grand Total

M ARKET SHARE: CHANDRAPUR

Chandrapur Vodaf one 8%

Chandrapur Airtel 13%

Chandrapur Idea 30%

Chandrapur Airtel Chandrapur BSNL Chandrapur Idea Chandrapur Vodafone

Chandrapur BSNL 49%

Thus BSNL has the leadership in Market share in Chandrapur, leading the second-placed operator Idea by a huge margin of 19%.

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.4.2 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Chandrapur The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Chandrapur is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 1 16 5 2 24 Competitions churn % 8.33% 36.36% 18.52% 28.57% 26.67% Rotational churn 0 0 2 0 2 Rotational churn % 0.00% 0.00% 7.41% 0.00% 2.22% Additional Connection 0 2 0 1 3 Additional Connection % 0.00% 4.55% 0.00% 14.29% 3.33% New Entrants 11 26 20 4 61 New Entrants % 91.67% 59.09% 74.07% 57.14% 67.78% Total samples 12 44 27 7 90 Total samples 12 44 27 7 90

Operator Airtel BSNL Idea Vodafone All

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competitions churn % 4.17% 66.67% 20.83% 8.33% Rotational churn % 0.00% 0.00% 100.00% 0.00% Additional Connection % 0.00% 66.67% 0.00% 33.33% New Entrants % 18.03% 42.62% 32.79% 6.56%

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.4.3 Reasons for Ideas Competition churn in Chandrapur


Place Chandrapur Previous operator A Reasons for competition churn A A+B B F A+B B A A+B B C+F F A A+B B D B F Total 1 1 3 1 6 1 3 4 1 1 1 1 2 6 2 2 1 1 6 1 1 2 24 % of reasons 16.67% 16.67% 50.00% 16.67% 25% 25.00% 75.00% 16.67% 16.67% 16.67% 16.67% 16.67% 33.33% 25% 33.33% 33.33% 16.67% 16.67% 25% 50.00% 50.00% 8.33%

A Total B B Total I

I Total R

R Total V V Total Chandrapur Total

REASONS FOR COMPETITOR CHURN: CHANDRAPUR

Chandrapur I A 17% Chandrapur I F 32% Chandrapur I A Chandrapur I A+B 17% Chandrapur I A+B Chandrapur I B Chandrapur I C+F Chandrapur I F

Chandrapur I C+F 17%

Chandrapur I B 17%

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

4.4.4 Category entrant users in Chandrapur The % of Category entrant users operator-wise is as follows.
Zone Chandrapur Operator Airtel Airtel Total BSNL BSNL Total Idea Idea Total Vodafone Vodafone Total Chandrapur Total Previous operator (blank) (blank) (blank) (blank) Total 11 11 26 26 20 20 4 4 61

CATEGORY NEW ENTRANTS: CHANDRAPUR

Chandrapur Vodafone (blank) 7%

Chandrapur Airtel (blank) 18%

Chandrapur Idea (blank) 33%

Chandrapur Airtel (blank) Chandrapur BSNL (blank) Chandrapur Idea (blank) Chandrapur Vodafone (blank)

Chandrapur BSNL (blank) 42%

The total churn in the circle is 24 out of the total universe of 90 samples. This equals a churn % of 26.67%, which is well above the industry norm. Vodafone & BSNL have high acquisition % from other operators. Ideas Competition churn % is 25%, but the number is just 6 samples. But both do not have significant churn numbers. BSNL has the highest churn at 36.36%. Idea alone has Rotational churn, which is not significant at 2 samples. Chandrapur is not a saturated telecom market & Idea has an acquisition % of 74.07% Category new entrants. BSNL has acquisition % of 59.09% Category new entrants on the largest customer base of 44 samples. Airtel has the highest acquisition % of 91.67% Category new entrants but upon a customer base of just 12 samples.

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4.4.5

Overall satisfaction rating in Chandrapur


Rating 3 4 5 Airtel Total BSNL 2 3 4 5 BSNL Total Idea 3 4 5 Idea Total Vodafone 3 4 5 Vodafone Total Chandrapur Total Grand Total Operator Airtel Total 3 1 8 12 1 13 25 5 44 5 6 16 27 1 2 4 7 90 90 % of Rating 25.00% 8.33% 66.67% 2.27% 29.55% 56.82% 11.36% 18.52% 22.22% 59.26% 14.29% 28.57% 57.14%

Zone Chandrapur

Rating: Airtel Chandrapur


Chandrapur Chandrapur Airtel 3 25%

Chandrapur Chandrapur Airtel 5 67%

Chandrapur Chandrapur Airtel 4 8%

Chandrapur Chandrapur Airtel 3 Chandrapur Chandrapur Airtel 4 Chandrapur Chandrapur Airtel 5

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Pre-Paid Churn Analysis of Maharashtra & Goa Telecom Circle

Rating: BSNL Chandrapur


Chandrapur Chandrapur BSNL 2 2% Chandrapur Chandrapur BSNL 3 30% Chandrapur Chandrapur BSNL 2 Chandrapur Chandrapur BSNL 3 Chandrapur Chandrapur BSNL 4 Chandrapur Chandrapur BSNL 5

Chandrapur Chandrapur BSNL 5 11%

Chandrapur Chandrapur BSNL 4 57%

Rating: Idea Chandrapur

Chandrapur Chandrapur Idea 3 19%

Chandrapur Chandrapur Idea 5 59%

Chandrapur Chandrapur Idea 4 22%

Chandrapur Chandrapur Idea 3 Chandrapur Chandrapur Idea 4 Chandrapur Chandrapur Idea 5

Rating: Vodafone Chandrapur


Chandrapur Chandrapur Vodafone 3 14%

Chandrapur Chandrapur Vodafone 5 57%

Chandrapur Chandrapur Vodafone 4 29%

Chandrapur Chandrapur Vodafone 3 Chandrapur Chandrapur Vodafone 4 Chandrapur Chandrapur Vodafone 5

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71% of Idea users out of the Idea universe of 27 users of Chandrapur rated it as providing better than Average satisfaction, out of which 59% respondents rated it as providing Excellent satisfaction. 87% of BSNL users out of the BSNL universe of 44 users of Chandrapur rated it as providing better than Average satisfaction, out of which 57% respondents rated it as providing Excellent satisfaction. 4.4.6 Qualitative findings

Some insights & experiences gained during the survey of Chandrapur revealed the following. Chandrapur Although BSNL has the maximum clientele here, Idea is perceived to be the best service provider. BSNL has nil/poor coverage in Khutala (near Padoli), Saoner, Deoli near Wardha, between Sakhri, Nampur (near Dhule), Sainik School in Visapur & poor coverage in Deendayal Nagar area in the city. A user also reported experience of poor coverage while in Gondia. Most BSNL users cited instances of frequently not being able to reach their called subscriber in the first attempt. Inadequate coverage, poor voice clarity, one-way speech, cross-talk, weak network inside houses, delayed reception of SMSes & instances of finding the called BSNL party to be out of coverage area even if in proximity were also common problems experienced by most BSNL subscribers. A user reported nil Airtel coverage in Temburdi village near Jambh (60 km. from Nagpur). A Wardha resident & BSNL user cited poor network inside homes & no coverage inside A.S. Polytechnic in Pipri on Arvi Road. He claimed Idea to have the best coverage & popularity in Wardha. People prefer BSNL despite known service limitations due to it being a Govt. owned company. Initial perception had been that its coverage would be much larger than that provided by the private operators. People still perceive BSNL to have the best coverage in the rural areas. Others especially in business do not want to churn to any other operator fearing post-switching difficulties. BSNL has good coverage in the villages of Allapalli, Dhanora, Kurkheda & Mulcheda. These are forest regions with dense bamboo growth & hence raw material for the Paper mills in the region. Idea does not have network in these places. Reliance has a good network in Chandrapur. Idea does not have a good network in Gadchandur, Tadoba & Tadali. Users cited cases of people churning to Vodafone due to its perceived better network in these areas. An Idea user cited connectivity problems when moving out of circle to Mumbai. Many Idea users frequently face this problem. Airtel has poor network coverage in Urja Nagar near Chandrapur & in Plywood Factory in Visapur. A Yavatmal resident cited poor Airtel network inside houses there. A Vodafone user cited nil network in Chimur.

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4.5

FINDINGS: BULDANA ZONE

A total of 148 respondents were interviewed in Buldana & Shegaon & their responses to the Questionnaire taken. 4.5.1 Operator Market Share

The survey brought out the following Market share of each operator in Buldana.
Zone Buldana Place Buldana Operator BSNL Idea Vodafone Airtel BSNL Idea Vodafone Total 41 22 10 73 3 41 29 2 75 148 148

Buldana Total Shegaon

Shegaon Total Buldana Total Grand Total

MARKET SHARE: BULDANA

Buldana Vodafone 8%

Buldana Airtel 2%

Buldana Airtel Buldana Idea 34% Buldana BSNL 56% Buldana BSNL Buldana Idea Buldana Vodafone

Thus BSNL has the leadership in Market share in Buldana, leading the second-placed operator Idea by a huge margin of 22%.

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4.5.2

Acquisition % from other operators in Buldana

The survey brought out the following acquisition % by operators from other operators.
Zone Buldana Operator BSNL Previous operator A I R T R Reasons for competition churn A A D Total 1 11 1 1 14 2 1 3 1 4 5 22

BSNL Total Idea Idea Total Vodafone Vodafone Total Buldana Total

D F C B

A B

ACQUISITION OF OTHER OPERATORS:BSNL BULDANA

Buldana BSNL T 7% Buldana BSNL R D 7%

Buldana BSNL A A 7%

Buldana BSNL A A Buldana BSNL I A Buldana BSNL R D Buldana BSNL T

Buldana BSNL I A 79%

BSNL has maximum acquisitions (quantity 11 out of 14) from Idea. Idea needs to initiate steps to halt its Churn.

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4.5.3 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Buldana The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Buldana is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 0 15 12 5 32 Competitions churn % 0.00% 18.29% 23.53% 41.67% 21.62% Rotational churn 0 4 2 0 6 Rotational churn % 0.00% 4.88% 3.92% 0.00% 4.05% Additional Connection 0 5 1 0 6 Additional Connection % 0.00% 6.10% 1.96% 0.00% 4.05% New Entrants 3 58 36 7 104 New Entrants % 100.00% 70.73% 70.59% 58.33% 70.27% Total samples 3 82 51 12 148

Operator Airtel BSNL Idea Vodafone All

Total samples 3 82 51 12 148

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competitions churn % 0.00% 46.88% 37.50% 15.63% Rotational churn % 0.00% 66.67% 33.33% 0.00% Additional Connection % 0.00% 83.33% 16.67% 0.00% New Entrants % 2.88% 55.77% 34.62% 6.73%

The total churn in the circle is 32 out of the total universe of 148 samples. This equals a churn % of 21.62%, which is above the industry norm. Ideas acquisition due to Competitions churn % is 23.53%, based on 12 churns out of 51 samples. Both Airtel & Vodafone do not have significant acquisitions due to churn numbers & their customer bases are also small. Ideas Rotational churn is not significant at 2 samples. Buldana is not a saturated telecom market & Idea has an acquisition % of 70.59% Category new entrants. BSNL has acquisition % of 70.73% Category new entrants on the largest customer base of 44 samples.

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4.5.4 Reasons for Ideas Competition churn in Buldana


REASONS FOR COMPETITION CHURN Better offer from existing operator Dissatisfied with previous operator Previous connection lapsed SIM lost/stolen/damaged Additional connection Others CODE A B C D E F

Zone Buldana

Previous operator A A Total B

Reasons for competition churn A C B C D D F

B Total R R Total T T Total I I Total Buldana Total

Total 1 1 2 10 2 2 14 3 1 4

% of reasons 50% 50% 6.25% 71.43% 14.29% 14.29% 43.75% 75% 25% 12.5% 100% 3.12% 90.9% 9.09% 34.38%

C A A+B

1 1 10 1 11 21

Ideas competiton churn in Buldana is very high. All Churns of Idea in the survey are attributable to Better offer from BSNL. Idea needs to focus on reducing its churn. It was the first operator to start cellular service in Buldana, but all private operators have lost ground to BSNL there as it is widely preferred being a Govt. entity. Idea needs to change the perception people of Buldana have about it, that of being a costlier service provider because it is a private player. It also needs to improve its coverage in & around the towns & rural regions of Buldana.

4.5.5

Category entrant users in Buldana 45


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% OF CATEGORY ENTRANT USERS:OPERATOR-WISE

Buldana Vodafone (blank) 7%

Buldana Airtel (blank) 3%

Buldana Idea (blank) 35% Buldana BSNL (blank) 55%

Buldana Airtel (blank) Buldana BSNL (blank) Buldana Idea (blank) Buldana Vodafone (blank)

Although Category New entrants form the largest chunk of users of Ideas customer mix, Ideas share in the Category of New entrants is only 35% out of 104 samples, while BSNLs share is 55%. Thus there is ample scope for Idea to improve its share of Category New entrants. 4.5.6 Overall satisfaction rating in Buldana
Zone Buldana Operator Airtel Airtel Total BSNL 1 2 3 4 5 BSNL Total Idea 3 4 5 3 4 5 Rating 3 4 Total 2 1 3 1 2 48 27 4 82 1 16 34 51 1 9 2 12 148 % of Rating 66.67% 33.33% 1.22% 2.44% 58.54% 32.93% 4.88% 1.96% 31.37% 66.67% 8.33% 75.00% 16.67%

Idea Total Vodafone

Vodafone Total Buldana Total

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Rating: Airtel Buldana


Buldana Shegaon Airtel 4 33%

Buldana Shegaon Airtel 3 Buldana Shegaon Airtel 4

Buldana Shegaon Airtel 3 67%

Rating: Idea Buldana


Buldana Idea 3 2%

Buldana Idea 4 31%

Buldana Idea 3 Buldana Idea 4 Buldana Idea 5

Buldana Idea 5 67%

Rating: BSNL Buldana


BSNL RATING

1% 5% 2%

33%

Buldana BSNL 1 Buldana BSNL 2 Buldana BSNL 3 Buldana BSNL 4 Buldana BSNL 5 59%

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Rating: Vodafone Buldana

Buldana Vodafone 5 17%

Buldana Vodafone 3 8%

Buldana Vodafone 3 Buldana Vodafone 4 Buldana Vodafone 5

Buldana Vodafone 4 75%

98% of Idea users out of the Idea universe of 51 users of Buldana rated it as providing better than Average satisfaction, out of which 67% respondents rated it as providing Excellent satisfaction. Comparatively, only 38% of BSNL users out of the BSNL universe of 82 users of Buldana rated it as providing better than Average satisfaction, out of which only 5% respondents rated it as providing Excellent satisfaction. Thus although Idea does not have a huge customer base in Buldana, it has the highest number of satisfied users. Idea should focus on reducing its churn & market its USP of Zabardast Network by making it a reality in Buldana. 4.5.7 Qualitative findings

Some insights & experiences gained during the survey of Buldana revealed the following. Buldana Idea was the first mobile operator in Buldana. It is largely perceived to provide an overall good service here. BSNL has the maximum clientele here; with a large number of users having churned from Idea & others once BSNL started operation. People prefer it despite known service limitations due to it being a Govt. owned company. Initial perception had been that its coverage would be much larger than that provided by the private operators. Others especially in business do not want to churn to any other operator fearing post-switching difficulties. Most LIC agents & staff have BSNL connections with group calling. BSNL users reported network congestion problems in Buldana, Deuoulgaon Raja Taluka (population of about 40,000) & in Lonar, a village 100 Km. from Buldana. A discussion with the Sarpanch of Undri village (in Chikli Taluka) revealed BSNL coverage problems there. This village has a population of about 10,000. Most BSNL users cited instances of frequently not being able to reach their called subscriber in the first attempt. Inadequate coverage, poor voice clarity, one-way speech & instances of 48
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finding the called BSNL party to be out of coverage area even if in proximity were also common problems experienced by most BSNL subscribers. Tata has good network coverage here, while Vodafone does not have adequate coverage. Reliance has a good network here but not a significant customer base. Reliance does not have network coverage in Lonar & Dhamangaon. A Vodafone user cited its Customer Care centre to be mostly busy. He had also experienced poor coverage in Yedgaon village near Buldana.

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4.6

FINDINGS: SATARA ZONE

A total of 157 respondents were interviewed in Satara & Karad & their responses to the Questionnaire taken. 4.6.1 Operator Market Share

The survey brought out the following Market share of each operator in Satara.
Zone Satara Place Karad Operator Airtel BSNL Idea Vodafone Airtel BSNL Idea Vodafone Total 13 12 35 2 62 36 7 40 12 95 157

Karad Total Satara

Satara Total Satara Total

Satara V odaf one 9%

Satara A irtel 31%

Satara A irtel Satara BSNL Satara Idea Satara V odaf one Satara Idea 48% Satara BSNL 12%

Idea has the highest Market share of 48% in Satara.

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4.6.2 Breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Satara The breakdown of Competition & Rotational churn, Additional connections & Category new entrants in Satara is given below.
Operator Airtel BSNL Idea Vodafone All Competitions churn 7 0 11 3 21 Competitions churn % 14.29% 0.00% 14.67% 21.43% 13.38% Rotational churn 1 1 0 0 2 Rotational churn % 2.04% 5.26% 0.00% 0.00% 1.27% Additional Connection 2 0 3 2 7 Additional Connection % 4.08% 0.00% 4.00% 14.29% 4.46% New Entrants 39 18 61 9 127 New Entrants % 79.59% 94.74% 81.33% 64.29% 80.89% Total samples 49 19 75 14 157

Operator Airtel BSNL Idea Vodafone All

Total samples 49 19 75 14 157

The share of each operator in the above customer Mix is as follows.


Operator Airtel BSNL Idea Vodafone Competitions churn % 33.33% 0.00% 52.38% 14.29% Rotational churn % 50.00% 50.00% 0.00% 0.00% Additional Connection % 28.57% 0.00% 42.86% 28.57% New Entrants % 30.71% 14.17% 48.03% 7.09%

The total churn in the circle is 21 out of the total universe of 157 samples. This equals a churn of 13.38%, which is well within the industry norm. Ideas Acquisition due to Competitions churn % in the circle is 14.67%, with 12 churns out of 51 samples. Airtels acquisition due to Competitions churn numbers is 33.33%, much higher than Ideas. Idea needs to focus on increasing its acquisition due to churn. Ideas Rotational churn is not significant at 2 samples. Satara is not a saturated telecom market & Idea has an acquisition of 81.33% Category new entrants. BSNL has acquisition % of 70.73% Category new entrants on the largest customer base of 44 samples. Vodafone has a comparatively smaller % of Category New entrants at 64.29%.

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4.6.3

Acquisition % from other operators in Satara

The survey brought out the following acquisition % by operators from other operators.
Zone Satara Operator Airtel Previous operator B V I R B V R T Idea Total Vodafone A B I Vodafone Total Satara Total Zone Satara Previous operator A B V I R Reasons for competition churn A B A D A B A B C Total 1 9 1 1 1 1 2 1 1 3 21 A B A Reasons for competition churn B A B A B D B C Total 3 1 1 2 7 5 1 1 1 3 11 1 1 1 3 21

Airtel Total Idea

T Satara Total

Satara Idea T 27%

Satara Idea B B 46%

Satara Idea B B Satara Idea V D Satara Idea R B Satara Idea R C Satara Idea T

Satara Idea R C 9%

Satara Idea R B 9%

Satara Idea V D 9%

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4.6.4

Category New Entrants in Satara


CATEGORY NEW ENT RANT S : SAT ARA

Satara V odaf one (blank) 7%

Satara A irtel (blank) 31%

Satara A irte Satara BSN Satara Idea Satara V od Satara Idea (blank) 48%

Satara BSNL (blank) 14%

Reasons for Competition churn of Operators in Satara Idea has an insignificant number of competition churn in Satara. 4.6.5 Overall satisfaction rating in Satara
% of each rating 4.65% 6.98% 44.19% 44.19%

Zone Nasik

Operator Airtel

Rating 2 3 4 5

Total 2 3 19 19 43 1 12 9 22 3 4 33 38 78 10 6 16 159

Airtel Total BSNL

1 4 5

4.55% 54.55% 40.91%

BSNL Total Idea

2 3 4 5

3.85% 5.13% 42.31% 48.72% 6.29% 3.77%

Idea Total Vodafone

4 5 Vodafone Total Nasik Total

91% of Idea users rate it as a better than Average operator, with 38 samples indicating an Excellent rating out of 78. No user has rated Idea as Poor. 53
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Some insights & experiences gained during the survey of Satara revealed the following. Karad Reliance has a good network in Karad, but some users cited customer care issues. Due to quite a number of educational institutions in Karad, there is a significant number of non-local student population in Karad. Some students informed that North Indian students prefer Idea due to its lower STD rates, while local students prefer BSNL/Airtel. This experience of theirs was prior to the latest slashing of STD rates by all operators. Users doing a Competition churn in favour of Idea had a prior perception that Idea has a good coverage all over. BSNL users in Karad reported network problems in Sangli, Kodoli & Aastha villages near Kholapur and Vagheri near Karad. Some Airtel users cited poor coverage in Vita, a village 5 Km. from Sangli. Satara Airtel has network problems in some areas of Satara, while Idea has a generally good coverage in the city. But Idea has inadequate coverage in nearby villages. Vodafone users cited good coverage in Satara. Idea does not have coverage beyond Pattan, near Satara, while villages like Muneri, Tosheghar, Chalkewadi, Pratapgarh, Kolhapur ghat & Ambenadi ghat have no Idea coverage. There were voices in Satara of Idea customer Care putting users on hold for a long time.

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RECOMMENDATIONS

The following recommendations are made. 1. Idea has an undisputable leadership in Market Share, leading the No.2 brand by 17%. This leadership must be maintained by improving the acquisition rate from other operators, keeping the Competition churn to the minimum, & ever improving its share of category entrants. 2. Ideas churn has primarily been due to Better offer from competitors, viz. cheaper calling rates, like BSNLs 10 paise calling schemes, Airtels popular product Friends, perception of BSNL & Vodafone connections being cheaper than Ideas etc. Therefore Ideas My Gang product may be popularized to effectively compete with Airtels Friends. The students & trader community maybe specifically targeted like the way Reliance covers the travel agencies. Non-local students of all towns maybe targeted since they ought to find the new STD rates attractive. Idea STD rates & generally their calling rates are perceived costlier than those of other operators. This perception, especially regarding the STD rates, has improved since the introduction of the new flat STD rates. But the message needs to reach all. 3. Locations/Pockets where competitors do not have a strong network coverage vis--vis Ideas maybe specifically targeted to drive home the difference in quality of coverage in the minds of the consumer. For eg. BSNL has nearly nil coverage in Hinjewadi, an area with more than 20,000 highincome employees. Airtel has very inadequate network coverage in Daund & Baramati. Idea may exploit these chinks & promote its strong coverage capabilities to good effect in these places. Other areas as mentioned in the findings may also be targeted. Network coverage maybe improved in villages & urban pockets where Idea does not have a satisfactory coverage. 4. The Zabardast network is a reality & the message maybe driven home using TV advertisement. 5. There are a significant number of loyal Idea customers in the Circle with greater than 5 years of association, & lot many with 10 years of association. This loyal customer base was found to be much greater than those of other operators. Customer loyalty maybe rewarded & promoted. 6. People often move out of the Telecom circle on transfer. Feasibility maybe explored to retain such customers within the company. Subject to policy regulations, users beyond a certain age in the circle (say 1 year) & needing to move out of the circle permanently maybe offered a new Idea connection/the same number in the new circle immediately on crossing over. Such users will be required to contact Idea dealers & furnish their new address details say a fortnight in advance for verification. Users yet to decide their new address maybe given a weeks time after moving out of the circle to do so. There are many Lifetime Pre-paid users who would willingly continue with the company even after moving out of the Circle on transfer. Customer churn is therefore expected to reduce significantly by providing this service. 7. Idea may choose to tie-up with Corporates to offer Idea Pre-paid Top-up cards to corporate employees on the lines of Sodexho Meal passes. 55
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This questionnaire has been designed by a Student Manager of Symbiosis Institute of Management Studies, Pune. It is only meant for research purpose. Your co-operation in sparing your precious time to fill up this survey form will be greatly appreciated. Your information will be kept confidential.

QUESTIONNAIRE

1.

What type of connection do you hold?


Pre-paid Post-paid (Go to Q 12)

2.

Which mobile operators connection do you own?


Idea Airtel Vodafone BSNL Reliance Tata/Virgin

3.

How much validity did you opt for at the time of buying the connection?
30 days 6 months-1 year 1 month-3 months Lifetime 3-6 months

4.

What is your average monthly Recharge requirement?


< Rs.50 Rs.251 500 Rs.51 - 100 Rs.501 800 Rs.101 250 > Rs. 800

5.

When did you buy this connection?


< 1 week back 3 6 months back < 1 month back > 6 months back 1 3 months

6.

Is it the first connection, or were you using some other mobile number earlier?
Yes, it is my 1st connection No, I was using some other mobile number * (* If the no. is of the same operator, note operator name in Q7 & Go to Q11) (Go to Q12)

7.

Which was your previous connection?


Idea Airtel Vodafone BSNL Reliance Tata/Virgin

8.

When did you leave the previous connection?


< 1 month back 3 6 months back 1-3 months back > 6 months back

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9.

How long did you use the previous connection?


< 1 week 3 6 months 1 week-1 month > 6 months 1-3 months

10.

Why did you change your previous connection & buy this one?
I got a better offer from my existing service provider Pl specify ________________________________________________________________ I was very dissatisfied with my previous service provider Pl specify ________________________________________________________________ My previous connection lapsed due to non-recharge SIM lost/stolen/damaged Additional connection Others __________________________________________________________________ __________________________________________________________________

11.

Why did you take a new connection within the same service provider?
My previous connection lapsed due to non-recharge Retailer informed me of a good scheme for new customers & I churned I came to know of an offer for new customers only which was not available to me, so I decided to churn SIM lost/stolen/damaged Additional connection Others __________________________________________________________________ __________________________________________________________________

12.

How do you rate your satisfaction level provided by the existing connection on a scale of 5?
1-Poor 2-Below average 3-Average 4-Above Average 5-Excellent

Name ______________________________Sex ___Age___ Mob _____________ Occupation __________________________ Monthly income (Rs.)
< 5000 5001-15000

15001-50000

>50000

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REFERENCES

Voice & Data magazine BDA Report Jun 2007 www.coai.com www.trai.gov.in

Apr 2008

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GLOSSARY

GSM TRAI COAI DoT VAS SMS GPRS ARPU TSE TSM ASM ZBM SIM USP POP

Global system for Mobile Communication Telecom Regulatory Authority of India Cellular Operators Association of India Department of Telecommunication Value Added Services Short Messaging service General Packet Radio Service AverageRevenue Per User Territory Sales Executive Territory sales Manager Area Sales Manager Zonal Branch Manager Subscriber Identification Module Unique Selling Proposition Point Of Purchase

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