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Customers Preference and Satisfaction towards the various mobile service providers.




Acknowledgement Scope of the study Objective of study Research Methodology Literature Review Data analysis and interpretation Findings

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As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumers needs, but the marketers objectives. The scope of my study restricts itself to the analysis of customers preferences, perception of different mobile service providers.


The subject matter for this research Project is to study the customers preference towards the various mobile service providers. This project consists of different objectives. They are as follows: To know about the customers preference level associated with different mobile service providers. To find out the customers satisfaction towards the various service providers. To know which advertisement media puts more impact on the buying decision of customers.

Research design: Exploratory
The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience.

Research Period:
Research work is only carried for 2 to 3 weeks.

Research Instrument:
This work is carried out through self-administered questionnaires. The questions included were open ended, and offered multiple choices.

Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet and references from Library.

Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar graphs.

My research area is limited to one city of Gujarat (Surat) Possibility of bias Information collected by me through questionnaire, because respondents may be hesitant or don not take seriously to give appropriate answer for the questions in questionnaire Some of respondent were not able to give full support to answer the question or we can say non co-operative

Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. - Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. - Indias mobile phone subscriber base is growing at a rate of 82.2%. - China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India s share in Asia Pacific Mobile Phone market is 6.4%. Considering the fact that India and China have almost comparable populations, Indias low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in












Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. Classification of Telecommunication services 1. Basic services 2. Cellular services 3. Internet Service Provider (ISP)

Cellular Service


There are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment.


The Dot has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle.

Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.


The Key players in the Telecom Market in India

Cellular Service provider: 1. 2. 3. 4. 5. 6. Subscribers Wireless subscribers crosses 200 million mark Tele density reaches 21.20% BSNL Airtel Vodafone Reliance Tata indicom Idea

The total number of telephone subscribers has reached 241.02 million at the end of August 2007 as compared to 232.87 million in July 2007. The overall teledensity has increased to 21.20% in August 2007 as compared to 20.52% in July 2007. In the wireless segment, 8.31 million subscribers have been added in August 2007 while 8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM, CDMA & WLL (F)) base reaches 201.29 million at the end of August 2007. The wire line segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end of August 2007. Circle wise wire line subscriber base of service providers is given at following chart..


Market Share of the Telecom Company in India


Company Profile


Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and Fixed Network operators. With more than 60 million subscriptions as of 13th February 2008.[2] It offers its mobile services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone


Services (Fixed line, Internet Connectivity (DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications consulting for corporate). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network.[3] In August 2007, the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers.




The Late Dhirubhai Ambani dreamt of a digital India an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting.


Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life. Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company.[1]Reliance Infocomm is an Indian telecommunications company. It is the flagship company of the RelianceAnil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology

HISTORY Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002 Reliance Infocomm built 60,000 km of Fibre optic backbone in India. This network was commissioned on December 28, 2002. FOOTPRINT At present, Reliance Telecom's GSM cellular services are available in 340 towns within its eight-circle footprint. Reliance's CDMA services are available in 19 states and cover about 65% of the country, state wise. Reliance Infocomm also offered for the first time in India, mobile data services through its R-World mobile portal. This portal leverages the data capability of the CDMA 1X network.


BUSINESS REVIEW During the twelve months ended March 31, 2007, revenues of the Wireless business increased by 46% to Rs.10, 728crore (US$ 2,489 million) from Rs.7, 364crore (US$ 1,709 million). Wireless EBITDA increased to Rs.3, 984crore (US$ 924 million) from Rs.2, 250crore (US$ 522 million). Margins expanded to 37% from 31%. EBITDA of the Global business increased by 98% during the twelve months ended March 31, 2007 to Rs.1,271crore (US$ 295 million). EBITDA margins increased to 24% from 12% last year. In the same period, the Broadband business achieved revenue growth of 123% to Rs. 1,144crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs.519 crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months ended March 31, 2007, from 15% in the corresponding period in the previous year.


Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of India. The company forms part of the Tata Group's presence in the Telecommunication Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL. TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services in India, specifically in the state of Andhra Pradesh. In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd. which was renamed Tata Teleservices (Maharashtra) Limited. In September 2007, Tata Indicom launched the Talk World plan, an International Long Distance Plan. Tata is the direct competitor with Reliance, both CDMA operators in India. The company provides unified telecommunication solutions including mobile, fixed wireless, fixed line and broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL providing GSM based mobile telephony.


The company was first in India to provide free intra network calling within city limits. They launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed wireless for a one time charge.

Tata Teleservices is part of the INR Rs.119000Crore (US$ 29 billion) Tata Group, that has over 87 companies, over 250,000 employees and more than 2.8 million shareholders. With a committed investment of INR 36,000Crore (US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom value chain. Tata Teleservices spearheads the Groups presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle.

Starting with the major acquisition of Hughes (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. With the total Investment of Rs19, 924Crore, TataTeleservices has created a Pan India presence spread across 20 circles that include Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network.


The company, which heralded convergence technologies in the Indian telecom sector, is today 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 Wire line 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 redefined the existing prepaid mobile market in India, by unveiling their offering Tata Indicom Non Stop Mobile which allows customers to receive free incoming calls. Tata Teleservices today has Indias largest branded telecom retail chain and is the first service provider in the country to offer an online channel to offer postpaid mobile connections in the country. Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs. Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 21 million customers in over 4000 towns. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices offers world-class technology and user-friendly services in 20 circles.



Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector communications company in India. It is the India's largest telecommunication company with 25.14% market share as on December 31, 2007. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, and New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million Wire line, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10 % to public. 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. Within a span of five years it has 21











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 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 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 more than 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers. That means that almost every fourth mobile user in the country has a BSNL connection. 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, 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 Institute.

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).

BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs.733crores (US$ 16.67 million) in the next three years.

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.

The foundation of Telecom Network in India was laid by the British sometime in 19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for almost entire 20th century, the Telecom in India was operated as a Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of


Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms. Subsequently in 1990s the telecom sector was opened up by the Government for Private investment, therefore it became necessary to separate the Government's policy wing from Operations wing. The Government of India corporatised the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.


We were incorporated as Birla Communications Limited on March 14, 1995 and granted a certificate of commencement of business on August 11, 1995. Our registered office was in Mumbai, Maharashtra. Our name was changed to Birla AT&T Communications Limited on May 30, 1996following the execution of a joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited pursuant to which the Aditya Birla Group held 51% of our Equity Share capital and AWS Group held 49% of our Equity Share capital. Our registered office was transferred from Industry House, 1st Floor, 159 Church Gate Reclamation, Mumbai 400 020, Maharashtra to SumanTower, Plot No. 18, Sector 11, Gandhinagar 382011 Gujarat on October 22, 1996. With effect from January 1, 2001 following our merger with Tata Cellular Limited the joint venture agreement between AT&TCorporation and Grasim Industries Limited dated December 5, 1995 was replaced by a shareholders agreement dated December 15, 2000entered into between Grasim Industries Limited on behalf of theAditya Birla Group, Tata Industries Limited on behalf of the Tata Group and AT&T Wireless Services Inc. on behalf of the AWS Group following which our name was changed to Birla Tata AT&T Limited on November 6, 2001. Consequent to the introduction of the Idea brand, our name was changed to Idea Cellular Limited on May 1, 2002. The AWS Group exited from the Company on September 28, 2005 by selling371,780,740 Equity Shares of the Company, which constituted 50% of the holding of AT&T Cellular Private Limited in our equity share capital, to ABNL and by transferring the remaining 371,780,750 Equity Shares to Tata Industries Limited. The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when Tata Industries Limited and Apex Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular Private Limited) sold all their shares in the Company to the Aditya Birla Group.

On October 26, 2006, P5 Asia Investments (Mauritius) Limited (P5 Asia) acquired 14.60% of our Equity Share capital. Under a Governance and Exit Rights Agreement


dated October 23, 2006 between P5 Asia, ABNL and Birla TMT, so long as an initial public offering has not occurred and P5 Asia holds no less than 10% of our Equity Shares, ABNL and Birla TMT are required to procure that (a) our Company and its Subsidiaries shall not take or pursue any of the following actions without P5 Asias prior consent (such consent to be obtained in a board and/or shareholders resolution) including in respect of (i) any merger with, acquisition of, or amalgamation or consolidation with another company or business; (ii) assuming or permitting to exist any borrowings or indebtedness in the nature of borrowings if the amount of all such borrowings of our Company and its Subsidiaries would exceed Rs.6,800 million; (iii) entering into a new line of business; (iv) increasing our authorized or issued share capital; or (v) entering into a joint venture and (b) our Company makes available to P5 Asia certain financial information relating to our Company and its Subsidiaries such as monthly management accounts, quarterly unconsolidated balance sheet and profit and loss account and the accounts. P5 Asia also has a right to appoint one director to our Board so long as it holds at least 10% of our total issued and outstanding Equity Shares. Mr. Biswajit Subramanian has been appointed to our Board by P5 Asia pursuant to the exercise of the above right. In addition, any Asias written consent, and, further, in any such IPO, P5 Asia has the right to offer for sale such number of Equity Shares representing up to 10% of the total Equity Shares which are held by it. By its letters dated December 2, 2006 to ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and has confirmed that it does not intend to offer for sale any of the Equity Shares held by it in such Issue. We, either directly or through our Subsidiaries, provide mobile services in the Andhra Pradesh, Delhi, Gujarat, Haryana, Kerala, Madhiya Pradesh, Maharashtra and Uttar Pradesh (West) Circles, and have recently launched services and as such are in the process of fully rolling-out our network in the Uttar Pradesh (East), Rajasthan and Himachal Pradesh Circles pursuant to licenses issued by the DoT.


MAJOR EVENTS The chronology of key events of the Company from incorporation is set Out below: 1995: Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process 1996: Changed name to Birla AT&T Communications Limited following joint Venture between Grasim Industries and AT&T Corporation 1997: Commenced operations in the Gujarat and Maharashtra Circles

1999: Migrated to revenues share license fee regime under New Telecommunications Policy (NTP) 2000: Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle


2001: Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle Changed name to Birla 2001: Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSM license bidding process 2002: Changed name to Idea Cellular Limited and launched Idea brand name . Commenced commercial operations in Delhi Circle . Reached the one million subscriber mark 2003: Reached the two million subscriber mark 2004: Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) Reached the four million subscriber mark First operator in India to commercially launch EDGE services Tata AT&T Limited



Reached the five million subscriber mark Turned profit positive Won an award for the Bill Flash service at the GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards 2006: Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the AdityaBirla Telecommunications Limited (subsequently renamed Group Acquired Escorts as Idea Telecommunications

Limited) Restructuring of debt Launch of the New Circles Reached the 10 million subscriber mark Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle. Received Letter of Intent from the Dot for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million.


Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India Despite the official name being Vodafone Essar; its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence areas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India . Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence areas.

OWNERSHIP: Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion . The transaction closed on May 8, 2007. 30

PREVIOUS BRANDS: In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007. The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007. On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times. Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile transition being unveiled today. Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. There are plans to launch cobranded handsets sourced from global vendors as well. A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world into India." While there is no revealing the prices of the low-cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666, undercutting Reliance Communications' muchhyped 'Rang Barse' with cheap handsets beginning at Rs 777. Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset offers -- rather handset-bundled schemes for customers.


Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.

GROWTH OF HUTCHISON ESSAR (1992-2005): In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas. In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide. In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect


equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion. 1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition 2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai 2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal' 2005: Acquired BPL, another mobile service provider in India 2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle. 2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network. Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.





1. Sex ratio of the respondents

60 50 40 30 20 10 0 MALE FEMALE RESPONDANTS

INTERPRETATION: The graphical representation of the table shows that out of

100 respondents 40 were male and 60 were female.

1) Do you have any mobile Connection?

PARTICULARS Yes No NUMBER 100 0 %AGE 100% 0%


100 80 60 40 20 0 yes no

All the respondents had mobile connections.

2) How many mobile connections do you have?

particulars 1 2 3

No. of respondents 81 19 0 36


90 80 70 60 50 40 30 20 10 0 1 2 3 >3 East

out of 100 respondents 81 says that they had 1 connection while 19 were having 2 connections.

3) Which service are you using?

Particulars Prepaid postpaid No. of respondents 62 38


70 60 50 40 30 20 10 0 Prepaid Post paid

No ofRespondants

Out of 100 respondents 62 were using prepaid connections while 38 respondents were using postpaid connections.

4. Which Mobile connection are you currently using?




7 7 2 1

60 50 40 30 20 10 0 AIRTEL IDEA RESPONDANTS

Out of 100 respondents 51 were using airtel, 32 were using Vodafone, 7 were using BSNL and Idea, 2 were using reliance while 1 were using tata indicom.

5. Are you satisfied with the services?






80 70 60 50 40 30 20 10 0 YES NO

Out of 100 respondents 69 respondents were satisfied with the services of there particular service providers while only 21 were not satisfied.

6. Which facility attracts you most?

PARTICULARS COVERAGE No. of respondents 60



22 2 14 2


Out 100 respondents 60 respondents were attracted by the coverage facility, 22 by call charges, 2 by roaming charges, 14 by G.P.R.S while 2 were attracted by others.

7. Which advertisement media puts more impact on your buying decision?




30 4 21 29 16


Out of 100 respondents 30 gets aware of cellular services by T.V, 29 by internet,21 by news papers, 16 by others while 4 by magazines.

8. How much is your monthly expenses on mobile phones?



Less than 150 150-350 350-500 Above 500

29 52 12 7

60 50 40 30 20 10 0 LESS THAN 150 150-350 350-500 ABOVE 500 RESPONDANTS

Out of 100 respondents most of the respondents monthly expenses were 150-350, 29 had monthly expenses of less than 150, 12 had 350-500 while only 7 were having monthly expenses of above 500.

9. From how long you are availing the services of this particular service provider?


1 year 2 years 3 years More than 3 years

30 48 16 6

50 40 30 20 10 0 1YEAR 2YEARS 3YEARS MORE THAN 3

Out of 100 respondents 48 were availing the services of there particular service providers since 2 years, 30 since 1 year, 16 since 3 years while only 6 were availing the services from more than 3 years.

10. Would you like to change your current service provider in future?




80 60 40 20 0 YES NO


Out of 100 respondents 77 did not want to change there current service providers while only 23 respondents want to change there current service providers.

Few years back mobile connections were not common among the customers. But with the mobile revolution now we can find almost every customer with mobile phone. Most of the customers prefer prepaid connections than postpaid connections.


Most preferred cellular company amongst the customers is airtel and the least preferred company is reliance. Mostly the customers are satisfied with the services provided by the different cellular companies. Maximum numbers of respondents were attracted towards the coverage facility and the least like the roaming services. T.V. and internet are the best media advertisements that put more impact on the customers buying decisions The monthly expense of maximum customers was ranging from 150-300. Maximum number of customers are loyal to there particular service providers and they were using there connections since 2 years.

Research Methodology C.R Kothari Principles of Marketing Philip Kotler 46

Web Resources: p _nfpb=true&_pageLabel=IDEA_Page_AboutIdea




Name Contact no.Sexmale female

1. Do you have any mobile Connection? Yes 1

3 3. Which service are you using?

No 2

2. How many mobile connections do you have?

Prepaid Airtel BSNL Reliance 5. Are you satisfied with the services? Yes 6. Which facility attracts you most?

Postpaid Vodafone Idea Tata indicom No

4. Which Mobile connection are you currently using?


Coverage Roaming facility

Call charges G.P.R.S

Others Specify 7. Which advertisement media puts more impact on your buying decision? T.V Newspapers Others 8. How much is your monthly expenses on mobile phones? Less than 150 350-500 service provider? 1 year 3 years future? Yes No If yes then why 2 years More than 3 years 150-350 Above 500 Magazines Internet

9. From how long you are availing the services of this particular

10. Would you like to change your current service provider in