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Cellular Service Providers
Cellular Service Providers
Submitted in partial fulfilment Of the requirement for the award of degree of Master of Business Administration To Maharishi Dayanand University, Rohtak
(2007-09)
Supervised By:
Submitted by
DECLARATION
I richa, roll no. 40 class MBA IVth sem of Vaish College of Engg. Rohtak here by declare that the project entitled Users response & Acceptability of cellular service providers. (A case study of rohtak) submitted for the partial fulfillment for module of business research methodology. Degree is my original work and this project has not formed the basis for the award of any degree, discipline or an other similar title.
Countersigned
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ACKNOWLEDGEMENT
A project gains a lot of relevance as it is one time activity serving a definite object. Practical experience in undertaking a project teaches many things which would otherwise elude observations. I am very indebted and obliged to Mr. Tarun jain for their proper guidance and sustained interest in my project. I cannot forget the contribution of the respondents as I troubled them through my queries at every stage of their work and I really appreciate the patience with which they resolved my doubts amidst their busy schedule, I express my sincere thanks to all of them.
(richa )
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PREFACE
Research work is management parlance is extremely important for a given close view of the relatives of the real life business issues. For any management student who is striving to perform outstandingly, it is of paramount importance that apart from theoretical knowledge the most also gain some practical knowledge. Survey report deals specially with providing an opportunity to management students to have some exposure in real business world. My report is about Users response & acceptability of cellular service providers. The practical knowledge is an important suffix to the theoretical knowledge. One cannot rely merely upon theoretical knowledge. It has to be coupled with practical for it to be fruitful. Classroom lectures make the fundamentals concept of management clear but not their application in actual practice. Positive and correct results of classroom learning need realities of the practical situation. All the experience and knowledge that I gained during the survey are of great value to me The findings, analysis, conclusions and recommendations have been made and are shown on the report matures.
(richa)
CONTENTS
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S.No.
I II 1.
Title
ACKNOWLEDGEMENT PREFACE Introduction 1.1Telecom industry in India 1.2Present scenario &growth of telecom sector in India 1.3 major telecom bodies 1.4department of telecom(dot) 1.5 tele communication 1,6 tele communication system 1.7 impact of telcommunication 1.8 report of Significance on the growth of telecommunication industry
Page No.
I
2 3 4 5 6 7 8 9 10 11
Significance of study Objective Of The Study Focus of the study Research Methodology Data Analysis & Interpretation Limitations findings Recommendations Bibliography Annexure
INTRODUCTION pg. 5
The Indian telecommunications Network is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Intense competition between the four main private groups Bharti (AIRTEL), Vodafone (HUTCH), Idea, Tata and Reliance and with the State sector incumbentsBSNL and MTNL has brought about a significant drop in tariffs. The Government has played a key enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. My project is STUDY OF USER`S RESPONSE & ACCEPTABILITY TOWARDS TELECOM SERVICE PROVIDERS IN SMALL SECTORS in which with the help of questionnaire I tried to answer that to know the extent to which catchy plans affect buying decision of the consumer. Also, it was tried to found out that to what extent sales promotional tools alter existing prefere
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exchange line requires an investment of US$ 22 billion. 3. The cumulative investment up to the year 2007 to meet demand for cellular mobile and radio paging services is estimated at US$ 8 billion and US$ 1 billion respectively. 4. Investment in Value Added Services (VAS), up to 2007, is estimated at US$ 3. Billion. 5. VSAT services have not taken off in India. Demand for electronic mail, videoconferencing is not strong enough to justify investment. Besides, license fees to be paid to the Department of Telecommunications (DoT) are too high given the size of demand
6. The telecom sector has witnessed the presence of many leading foreign companies including US companies: AT&T, Motorola, Nynex, US West, Hughes, Harris, Qualcomm, Sprint, Telstra, NTT, Singapore Telecom, Philippine Telecom, Bezeq, Siemens, Ericsson, Nokia Fujitsu, Alcatel, and Bell Canada among others. 7. Provision of Internet services has been thrown open to domestic and foreign investors with effect from October 7, 1998. Transparent policies and better market conditions has helped in attracting foreign investment. The entry of new operators and introduction of novel services coupled with increasing importance of wireless communication are factors that have contributed to growth in number of subscriber in cellular segment. But along with this explosive growth, we have all been hearing the constant refrain that Voice would cease to be important in the telecom industry
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and data would be coronated in the near future . Well that has not really happened. Even in the developed telecom markets, voice still rules the roost and remains the cash cow. In terms of revenue, data's share is rising steadily and the advent of cutting edge data applications ensures a brisk growth rate. But voice remains the dominant application today. 'Minutes of usage' (MoU), the metric for gauging voice telephony has been rising exponentially with every passing year. The wide acceptance of Centrex facilities in the fixed line POTS (plain old telephone service) and CUG (closed user group) in cellular services all point to the fact that people want to talk more and more albeit at low / fixed cost. Today, most cellcos have CUGs for corporate and "friends and family" offers for individual customers aimed at creating sticky voice users. Take Indiatimes voice- based service, "helpline-infoline" as a case in point. Though its internet and SMS push service "8888" for mobile applications is hugely successful, it couldn't resist the lure of the profits of the voice market. One can have similar information or entertainment updates through this purely voice service. Going beyond empirical evidences and statistics, one should remember that voice satiates one of mankind's most basic and inherent needs -the need to talk. Whereas data fulfils a contrived need -the need for information and implied communication. Even today human behavior pointers favor voice over data. Be it ordering pizzas from Dominoes or goods from your neighborhood grocer, the most preferred way is calling up and placingan order through the voice route. Sustainability of any service and its proliferation depends on current usage patterns as well as new innovations that can be amenable to it. Looking for current cues of usage, one may analyze the mobile telecom industry.
The Department of Telecom (DoT) is a Government of India Department under the aegis of Ministry of Communications. It has its role in policy making, licensing and coordination matters relating to telegraphs, telephones, wireless, data, facsimile and telematic services and other like forms of communications. In addition, DoT is responsible for frequency management in the field of radio communication in close coordination with international bodies. It also enforces wireless regulatory measures for its wireless transmission by users in the country. DoT aims to provide the latest telecommunication technology and the best of services to its customers.
TELECOMMUNICATIONS pg. 9
During the ongoing era of economic reforms telecom sector reform has been a success story under a scenario of competitive growth shared by the public and private sectors, on the one hand, and the regulated environment on the other. The planners had realized that without a globally competent and efficient telecommunication system, the process of globalization of the economy would be incomplete, from an outdated and inefficient system, the telecom sector has emerged as state-ofthe-art of international standard within a decade. But the revolution has just begun.
TELECOMMUNICATION SYSTEMS:
Telecommunication is the technique of transmitting a message, from one point or place to another with the typical additional attribute of being bi- directional. In practice it also recognizes that something may be lost in the process; hence the term 'telecommunication covers all forms of distance communications, including radio, telegraphy, television, telephony, data communication and computer networking. The elements of a telecommunication systems are a transmitter, a medium (line) and possibly a channel imposed upon the medium (See baseband and broadband as well multiplexing) and receiver. The transmitter is a device that transforms or encodes the message into a physical phenomenon; the signal. The car passing by is an example of an important property of the channel called noice. Another important aspect of the channel is called the bandwidth; the difference between a limited bandwidth and broadband is similar to talking to a friend on a telephone or a walkie-talkie. Present communication system in India, particularly in the urban areas can compare to the best in the world. As compared to about one lakh telephones in the country in the year 1947, the number has now grown to well above 400 lakhs with the tele -density growing to about 4 per one hundred of population. Growth rate in this sector, particularly the cellular segment, has been outstanding. As per the Economic Survey for the year 2005-06 during April -December 2005 35 lakh new landline phones were added. But this decline because of advent of cellular technlogies.
pg. 10
Achievements in the telecom sector during the Eighth and the Ninth Plan have been substantial and qualify to be termed as revolution. The growth has been rapid in terms of quantity, as well as quality, with public and the private sectors growing simultaneously. Significant progress has been made through the 'telecommunication Regulatory Authority of India (TRAI) in easing out the procedures and cleaning up the regulatory hurdles. With the introduction of healthy competition between various categories of operators, the prices of long distance calls and mobiles services are on the decline. This is despite the fact the adequate user charges are levied. With about 25,000 exchanges functions in the country, in most of the urban areas the telephone is available on demand. Waiting time in rest of the areas gone down considerably, mainly due to the mobile revolution, under which the number of cellular users is growing with leaps and bounds. Over 90% percent users in the country, added after 1994, have access to STD facilities and there are more than 8 lakh PCOs in the country, out of which about 6 lakh are in the urban areas. Private companies like Bharti, Tata, Reliance and Connect have been granted the licences as basic service providers, providing healthy competition to BSNL and MTNL.
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month by 2008-09 and mobile tariffs for local and long distance to continue to drop, driven by a decline in regulatory costs and increase in competition.Gross ARPU of fixed service operators has fallen at an annual rate of 9.5 per cent to Rs 641 per month over the last four years, and "we expect it to fall to Rs 543 per month by 2008-09," he said.
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1. To ascertain the impression of Telecom Sector regarding their services 2. To know the reason behind the purchasing of services of a particular sector 3. To know the present and future trends of telecom 4. To know the factors that led a customer to select a plan 5. To analyze customer perceptions towards new plans 6. To find the best mode of advertisement attracting customers
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pg. 19
In this project the focus is on the problem that how different telecom sectors are dealing with their customers and what are the main strategies they are adoption to increase their market share as well as to retain the existing customers. Emphasis is also made to know the customers view regarding
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the telecom sector. As new and new plans are launched in the market, lucrative call rates, packages are offered by the competitors in the light of this main focus is also given on what is the most considered factor that allures a customer to go for a particular tele service provider.
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our body of knowledge by supporting some theories, contradicting others, and suggesting new theories to replace those that fail to gain support.
pg. 23
concerned with determining the frequency with which something occurs or how two variables vary together. For example an investigation of the trends in consumption of soft drinks with respect to socio-economic factors such as age, sex, occupation, family income etc. would be a descriptive study.
pg. 24
to yield the desired results than the ultimate resort, of course, is to collect primary data through various methods available for that purpose. Whatever secondary data concerning the project are available must be collected before gathering the primary data. In a broader sense we can say that two types of data are available to researcher. These are:
Primary data: Primary data are generated when the researcher employing mail
questionnaires, telephone surveys, personal interviews, observations & experiments investigates a particular problem at hand.
Secondary data: includes those data that are collected for some earlier research work &
are applicable or usable in the study the researcher has undertaken. The data used in this research work is of primary as well in secondary in nature. The method employed in this study is survey method. The research instrument to collect data, used in this study is structured questionnaire. Once a researcher has decided to use survey method for collecting primary data, he should make a decision in connection with the techniques of the survey to be employed, viz. personal correspondence, telephonic correspondence or through mail correspondence. The survey technique employed in this study is personal one. In this study a questionnaire is made to study the customer perception regarding the ULIP of ICICI PLC and HDFC Standard life. Secondary data is also collected from the offices of ICICI Prudential and HDFC Standard life office regarding the policies.
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Sample Design
Sampling has been widely used in every type of the study. Sampling may be defined as the selection of the some part of an aggregate or totality, on the basis of which judgment or inference about the aggregate or totality is made. In the other words, it is the process of obtaining information about entire population by, examining only a part of it. Sample should be true representative of the population.
Sample Frame: Sample Size: Sampling Technique: Sampling Unit: Method used
Survey conducted in Small Sectors 70 Convenient Sampling TELE USERS Questionnaire filling
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DATA ANALYSIS
1. Are you using mobile phones or land line? MOBILE PHONE LAND LINE BOTH Source survey data 35 21 14
Graph no.1
35 30 25 20 15 10 5 0 14 21 M OBILE PHONE LAND LINE BOTH 35
INTERPRETATION:
This data states the because of benefits of mobile phone s over the land line phones has made the customer to go more for mobile phone than to landlines. But still landline phones has their own significance and still prevalent in the market.
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2 Why
EASY CONNECTIVITY BUSINESS PURPOSE SMS FACILTIY ANY OTHER REASON Source survey data
28 35 4 3
Graph no. 2
4.3 5.7 SMS FACILTIY 40 50 EASY CONNECTIVITY BUSINESS PURPOSE ANY OTHER REASON
INTERPRETATION:
The prime reason of shifting of customer from land line to mobile phones is for business purpose and easy connectivity. Most of the business men, shop keepers now use mobile phones because it has increased their mobility.
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80% 20%
Graph no. 3
INTERPRETATION:
Prepaid plans and more used than post paid plans.
pg. 31
LOW CALL RATES SMS ROAMING NETWORK AREA COVERAGE Source survey data
7 7 21 7 28
Graph no. 4
30 25 20 15 10 5 0 Low call rates SMS facilites Roaming Net work Area coverage
INTERPRETATION:
While selecting a telecom service provider, customers mostly prefer roaming, area coverage i.e. the most use of mobile phones is in business class and roaming is most important.
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Graph no. 5
AIRTEL RELIANCE MTNL VODAFONE IDEA TATA 7 14 7 14 7 14 10% 20% 10% 20% 10% 20%
16 14 12 10 8 6 4 2 0
TC H TE L NC E BS N ID EA AI R HU TA TA L
Series1
RE LI A
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6. Since how much time you are using you tele service provider?
LESS THAN SIX MONTHS 25% BTWEEN SIX MONTHS AND ONE YEAR MORE THAN ONE YEAR SINCE STARTING 35% 30% 10%
Graph no. 6
35% 30%
LESS THAN SIX MONTHS BTWEEN SIX MONTHS AND ONE YEAR MORE THAN ONE YEAR SINCE STARTING
10%
INTERPRETATION:
This data reveals that because of new plans and new technologies 25% of the respondent keep shifting, this group is generally concerned with cost i.e. less call rates. As major portion belong to 6 months to 1 year states that once a person opt for a plan he possesses that plan. As 40% of the persons belong to more than 1 years group is basically business man whose objective is not only cost but the number that has been distributed in the market
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Graph no. 7
FULLY SATISFIED PARTLY SATISFIED NOT SATISFIED Source survey data 60% 20% 20%
20
60
20
INTERPRETATION:
Data reveals that 60% of the respondents feel satisfied and 20 % are not satisfied. While filling of questionnaire I come to notice the dissatisfaction level of the respondents is not because of the services of the companies but that is because of the new and new plans and more competitive plans of the companies. If today you have taken some plan, with in hours may be the competitor company will launch a new attractive plan. That leads to dissatisfaction of the customer.
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8.
Table no. 1
RANK 1 20 15 5 RANK 2 30 20 10 10 70 RANK 3 10 35 5 20 70 RANK 4 10 0 50 10 70 TOTAL 70 70 70 70 70
CALL RATES
RANK 1 2 3 4
NO OF RESPONDENTS 20 30 10 10
INTERPRETATION:
As 20 people out of 70 using mobile phones has given call rates as their first preference for choosing of a particular tele service provider reveals that call rate has great impact while choosing the plan and provider.
NO OF RESPONDENTS 15 20 35 0
INTERPRETATION:
This is the second most preferred consideration of customer. After roaming free plans people preference towards mobile phones has increased very much. And that is the prime reason of changing from landline to mobile phones.
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NO OF RESPONDENTS 5 10 5 50
INTERPRETATION:
In my study I mostly took service class and business man and their preference for SMS packages is not so much. This SMS package attracts students and youngsters but not the business class.
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NETWORK
Table no. 4
NO OF RESPONDENTS 30 10 20 10
INTERPRETATION: This is the first main consideration of the customers to select a particular tele service provider. As the reason for growth of mobile companies is that they provide mobile touch to the person. We can talk to any person at anytime. And there is network problem then the object of mobile phone and technology fails. Most of the respondents given first rank to network coverage while selecting a service provider.
9 Which type of Advertisement and Sale promotional activities attracts you more?
TELEVISION ADVERTISEMENT 35 PAPER ADVERTISEMENT 7 DOOR TO DOOR CAMPAIGNING HOARDING Source survey data 25 3
50 40 30 20 10 0
50 TELEVISION ADVERTISEM ENT PAPER ADVERTISEM ENT DOOR TO DOOR CAM PAIGNING 10 4.3 HOARDING
35.7
INTERPRETATION: Data collected reveals that advertisement in the television is the most important means of attracting and providing knowledge about the plans. Door to door campaigning gives personal touch is also an important way of marketing.
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SAMPLE DESIGN The sample size analyzed was limited which may not be fully representative of the universe. A large sample size could not be taken due to time and cost constraints. TIME CONSTRAINT I had a limited time for conducting this analysis report. So some shortfalls may be present. COST CONSTRAINT The money available with the researcher also imposed a limitation on the comprehensive of this research. The availability of limited funds was a constraint in the study. LACK OF EXPERIENCE The lack of experience may have caused some errors in administration of research. I have not undertaken any other project before. So, it was my first experience to do a project due to which I may have committed some mistakes while analyzing the data or in interpretations. BIASNESS ON THE PART OF RESPONDENTS Although all the attempts were made to make it an objective study, biasness on the part of respondents might have resulted in subjective ness.
RELUCTANCE OF RESPONDENTS
Some customers are not willing to give any information due to many reasons like lack of time or they do not want to disclose their opinion or thinking.
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FINDINGS
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1. From my research I found that people are more attracted towards mobile tele service providers than fixed landline tele service providers. And this is the main reason of increase in the customer base of mobile phones in Rohtak. 2. Most of the persons are aware about the tele service providers that reveal that these companies are spending a major chunk on the advertisements. 3. With the advent of mobile technology and more liberal policies of the government, new companies are entering in the market and the competition is increasing day by day. 4. In Rohtak Vodafone, Reliance is the main preferred telecom service providers. 5. Some plans like life time offer, group free schemes and free phone facility on a particular service provider are some of the plans that attracted the customers. 6. Mostly people prefer easy connectivity and business purpose. 7. The main effective media for the sale of telecom sectors services is television media. 8. Mostly people prefer prepaid than post paid. 9. Customer dissatisfaction level is because of launch of new competitive plans and disputes related to billing and customer care services.
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RECOMMENDATION
pg. 45
1. Roaming facilities should be made cheaper. As in one circle roaming is made free but still out of state or circle, roaming rates are heavy. So this is suggested to make these roaming charges less so that business man people will be more attracted and more customer base. 2. Still in villages there is no network so Net work should be made better. 3. Now a days people are not satisfied with the land line service, one reason for this is daily problems in wire, no service given. This is the prime reason of decrease in market share of MTNL. So effort should be made in this direction. 4. Conflicts between these sector companies should be removed so that its adverse effect on public could be removed. Although TRAI is being established but after that the disputes still exist. 5. There should be improvement in the post paid plans because people are less users of this facility. 6. There should be more promotional schemes, network coverage and value added services.
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BIBLIOGRAPHY
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1. Kothari, CR Research Methodology Methods and Techniques, New age Interpretational publishers, New Delhi, 2004 2. Kotler, Philip Marketing Management, Published by Pearson Education., 2006
3. www.bsnl.co.in
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QUESTIONAIRE
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a. mobile phone b. land line c. both mobile phone and land line 2. Why do you prefer mobile phone over land line? a easy connectivity b Business purpose c SMS facility d. any other reason 3. Which plan in mobile phone are you using? a Pre paid b Post paid 4. What do you prefer most in services? a Low call rates b SMS facilities c Roaming d Net work e. Area coverage
c BSNL
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d Vodafone e Idea
6. Since how much time you are using you tele service provider? a less than six months b between six and one year c more than one year d since starting 7. Are you satisfied with the services? a fully satisfied b partly satisfied c not satisfied
8. Which one is most important factor that you consider while buying a connection? Give Rank Call rates Roaming free SMS packages Net work area 9. Which type of Advertisement and Sale promotional activities attracts you more? a b c d Tele vision ads Paper advertisement Door to door campaigning Hoarding
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