CHAPTER-1 : INTRODUCTION TO THE COMPANY & INDUSTRY

COMPANY PROFILE

Galvin Manufacturing
Formerly
Corporation (1928-1930)
Former type Public
Industry Telecommunications
Divided into Motorola
Fate Mobility and Motorola
Solutions
Motorola Mobility
Motorola Solutions
NXP Semiconductors
Successor ON Semiconductor
Arris Group (General
Instrument)
Cambium Networks
September 25, 1928; 90
Founded
years ago
Founders Paul and Joseph Galvin
January 4, 2011; 8 years
Defunct
ago
1303 East Algonquin
Headquarters Road,
Schaumburg, Illinois
 ,
U.S.[1]
Area served Worldwide
Tablet computers
Mobile phones
Smartphones
Two-way radios
Networking systems
Products Cable television systems
Wireless broadband
networks
RFID systems
Mobile telephone
infrastructure
 US$ 11.851 billion
(2013)[2]
Total assets  US$ 12.679 billion
(2012)[2]

Number of
40,000 (2014)[3]
employees
Mobile Phone Devices
Connected Home
Divisions
Solutions
Network Home Solutions
Website www.motorola.com

Electronic communications pioneer Motorola, Inc. is a leading

designer and manufacturer of cellular phones, cordless phones, two-way
radios, pagers, cable modems, broadband set-top boxes, and other
communications products and systems. The company is the world's
number two maker of mobile phones (trailing Nokia Corporation), with a
market share of about 17 percent, and is number one worldwide in two-way
radios. Through its Semiconductor Products Sector, Motorola is also the
world's leading producer of embedded processors, with an emphasis on
such high-growth areas as wireless communications, transportation, and
Internet networking. Additionally, Motorola's Integrated Electronic Systems
Sector designs and manufactures a wide variety of electronic components
and systems for the automotive, computer, industrial, transportation,
navigation, energy, consumer, and lighting markets. Nearly 60 percent of
Motorola's sales are generated outside the United States. Motorola has
gained recognition over the years for its emphasis on quality, for which it
garnered the first annual malcolm baldrige national quality awardin 1988,
and for its innovative employee welfare and training programs.

HISTORY OF MOTOROLA

Motorola, Inc. (/ˌmoʊtəˈroʊlə/[4]) was an American multinational

telecommunications company founded on September 25, 1928, based in
Schaumburg, Illinois. After having lost $4.3 billion from 2007 to 2009, the
company was divided into two independent public companies, Motorola
Mobility and Motorola Solutions on January 4, 2011.[5] Motorola Solutions is
generally considered to be the direct successor to Motorola, as the
reorganization was structured with Motorola Mobility being spun off.[6]
Motorola Mobility was sold to Google in 2012, and acquired by Lenovo in
2014.[7]

Motorola designed and sold wireless network equipment such as cellular

transmission base stations and signal amplifiers. Motorola's home and
broadcast network products included set-top boxes, digital video recorders,
and network equipment used to enable video broadcasting, computer
telephony, and high-definition television. Its business and government
customers consisted mainly of wireless voice and broadband systems
(used to build private networks), and public safety communications systems
like Astro and Dimetra. These businesses (except for set-top boxes and
cable modems) are now part of Motorola Solutions. Google sold Motorola
Home (the former General Instrument cable businesses) to the Arris Group
in December 2012 for US$2.35 billion.[8]

Motorola's wireless telephone handset division was a pioneer in cellular

telephones. Also known as the Personal Communication Sector (PCS)
prior to 2004, it pioneered the "mobile phone" with DynaTAC, "flip phone"
with the MicroTAC, as well as the "clam phone" with the StarTAC in the
mid-1990s. It had staged a resurgence by the mid-2000s with the Razr, but
lost market share in the second half of that decade. Later it focused on
smartphones using Google's open-source Android mobile operating
system. The first phone to use the newest version of Google's open source
OS, Android 2.0, was released on November 2, 2009 as the Motorola Droid
(the GSM version launched a month later, in Europe, as the Motorola
Milestone).

The handset division (along with cable set-top boxes and cable modems
divisions, which would later be sold to Arris Group) was later spun off into
the independent Motorola Mobility. On May 22, 2012, Google CEO Larry
Page announced that Google had closed on its deal to acquire Motorola
Mobility.[9] On January 29, 2014, Page announced that, pending closure of
the deal, Motorola Mobility would be acquired by Chinese technology
company Lenovo for US$2.91 billion (subject to certain adjustments).[10] On
October 30, 2014, Lenovo finalized its purchase of Motorola Mobility from
Google.

Motorola started in Chicago, Illinois, as Galvin Manufacturing Corporation

(at 847 West Harrison Street)[12] in 1928 when brothers Paul V. and Joseph
E. Galvin[13][14] purchased the bankrupt Stewart Battery Company's battery-
eliminator plans and manufacturing equipment at auction for $750. Galvin
Manufacturing Corporation set up shop in a small section of a rented
building. The company had $565 in working capital and five employees.
The first week's payroll was $63.

The company's first products were the battery eliminators, devices that
enabled battery-powered radios to operate on household electricity. Due to
advances in radio technology, battery-eliminators soon became obsolete.
Paul Galvin learned that some radio technicians were installing sets in cars,
and challenged his engineers to design an inexpensive car radio that could
be installed in most vehicles. His team was successful, and Galvin was
able to demonstrate a working model of the radio at the June 1930 Radio
Manufacturers Association convention in Atlantic City, New Jersey. He
brought home enough orders to keep the company in business.

Paul Galvin wanted a brand name for Galvin Manufacturing Corporation's

new car radio, and created the name “Motorola” by linking "motor" (for
motorcar) with "ola" (from Victrola), which was also a popular ending for
many companies at the time, e.g. Moviola, Crayola.[15] The company sold
its first Motorola branded radio on June 23, 1930, to Herbert C. Wall of Fort
Wayne, Indiana, for $30. Wall went on to become one of the first Motorola
distributors in the country. The Motorola brand name became so well
known that Galvin Manufacturing Corporation later changed its name to
Motorola, Inc.[16]

Galvin Manufacturing Corporation began selling Motorola car-radio

receivers to police departments and municipalities in November 1930. The
company's first public safety customers (all in the U.S. state of Illinois)
included the Village of River Forest, Village of Bellwood Police
Department, City of Evanston Police, Illinois State Highway Police, and
Cook County (Chicago area) Police with a one-way radio
communication.[17] In the same year, the company built its research and
development program with Dan Noble, a pioneer in FM radio and
semiconductor technologies, who joined the company as director of
research. The company produced the hand-held AM SCR-536 radio during
World War II, which was vital to Allied communication. Motorola ranked
94th among United States corporations in the value of World War II military
production contracts.[18]

Motorola went public in 1943,[19] and became Motorola, Inc. in 1947. At that
time Motorola's main business was producing and selling televisions and
radios.

Post World War II

In October 1946 Motorola communications equipment carried the first calls

on Illinois Bell telephone company's new car radiotelephone service in
Chicago. The company began making televisions in 1947, with the model
VT-71 with 7-inch cathode ray tube. In 1952, Motorola opened its first
international subsidiary in Toronto, Ontario, Canada to produce radios and
televisions. In 1953, the company established the Motorola Foundation to
support leading universities in the United States.

In 1955, years after Motorola started its research and development

laboratory in Phoenix, Arizona, to research new solid-state technology,
Motorola introduced the world's first commercial high-power germanium-
based transistor. The present "batwing" logo was also introduced in 1955
(having been created by award-winning Chicago graphic designer Morton
Goldsholl in late 1954).
Beginning in 1958, with Explorer 1 Motorola provided radio equipment for
most NASA space-flights for decades, including the 1969 moon landing. A
year later it established a subsidiary to conduct licensing and
manufacturing for international markets. Motorola created numerous
products for use by the government, public safety officials, business
installments, and the general public.

In 1960, it introduced the world's first large-screen portable (19-inch),

transistorized, cordless television. According to the 1962 Illinois
Manufacturers Directory (50th-anniversary edition), Motorola had 14,000
employees worldwide of which at least 5,823 employees in 6 plants were
located in Illinois. The company headquarters were at 9401 West Grand
Avenue in Franklin Park and it listed TV receivers, Stereo-Hi Fi equipment
as the products at this plant made by 1,700 employees. The
Communications Division was in Chicago at 4545 West Augusta Blvd.
where 2,000 employees made electronic communications equipment. The
Military Electronics Division was at 1450 North Cicero Avenue, Chicago
where 923 employees made microwave and industrial equipment. Two
more Chicago locations were listed at 4900 West Flourney Street and at
650 North Pulaski but no employee count was listed for these. The last
plant was listed in Quincy, Illinois at 1400 North 30th Street where 1,200
employees made radio assemblies for both home and automobile.[20]

In 1963, it introduced the first rectangular color picture tube. In 1964, the
company opened its first Research and development branch outside of the
United States, in Israel, under the management of Moses Basin. The
modular Quasar brand was introduced in 1967.

In 1969, Neil Armstrong spoke the famous words "one small step for a
man, one giant leap for mankind" from the Moon on a Motorola
transceiver.[21]

In 1973, Motorola demonstrated the first hand-held portable

telephone.[22][23]

In 1974, Motorola introduced its first microprocessor, the 8-bit MC6800,

used in automotive, computing and video game applications.[24] That same
year, Motorola sold its television business to the Japan-based Matsushita,
the parent company of Panasonic.
In 1976, Motorola moved its headquarters to the Chicago suburb of
Schaumburg, Illinois.

In 1980, Motorola's next generation 32-bit microprocessor, the MC68000,

led the wave of technologies that spurred the computing revolution in 1984,
powering devices from companies such as Apple, Commodore, Atari, Sun,
and Hewlett Packard.[25]

Dr. Martin Cooper of Motorola made the first private handheld mobile
phone call on a larger prototype model in 1973. This is a reenactment in
2007.

In September 1983, the U.S. Federal Communications Commission (FCC)

approved the DynaTAC 8000X telephone, the world's first commercial
cellular device. By 1998, cell phones accounted for two-thirds of Motorola's
gross revenue.[26] The company was also strong in semiconductor
technology, including integrated circuits used in computers. In particular, it
is known for the 6800 family and 68000 family of microprocessors and
related peripheral ICs; the processors were used in Atari ST, Commodore
Amiga, Color Computer, and Apple Macintosh personal computers and in
the early HP laser printers, and some 6800-family peripheral devices were
used in the IBM PC series of personal computers.[27] The PowerPC family
was developed with IBM and in a partnership with Apple (known as the AIM
alliance). Motorola also has a diverse line of communication products,
including satellite systems, digital cable boxes and modems.

In 1986, Motorola invented the Six Sigma quality improvement process.

This became a global standard. In 1990 General Instrument Corporation,
which was later acquired by Motorola, proposed the first all-digital HDTV
standard. In the same year, the company introduced the Bravo numeric
pager which became the world's best-selling pager.

In 1991, Motorola demonstrated the world's first working-prototype digital

cellular system and phones using GSM standard in Hanover, Germany. In
1994, Motorola introduced the world's first commercial digital radio system
that combined paging, data and cellular communications and voice
dispatch in a single radio network and handset. In 1995, Motorola
introduced the world's first two-way pager which allowed users to receive
text messages and e-mail and reply with a standard response.

In 1997, to optimize cell phone production with room for future growth,
production was moved to the new giant factory in Harvard, Il. Later with
Motorola losing market share, phone assembly was moved to Fort Worth,
Tx. leaving the Harvard facility.

In 1998, Motorola was overtaken by Nokia as the world's biggest seller of

mobile phone handsets.[21]

On September 15, 1999, Motorola announced it would buy General

Instrument in an $11-billion stock swap. General Instrument had long been
the No. 1 cable TV equipment provider, supplying cable operators with end-
to-end hybrid fiber coax cable solutions. This meant that GI offers all cable
TV transmission network components from the head-end to the fiber optic
transmission nodes to the cable set-top boxes and cable modems, now at
the availability of Motorola. GI's acquisition created the Broadband
Communications Sector (BCS).

In 1999, Motorola separated a portion of its semiconductor business—the

Semiconductor Components Group (SCG)-- and formed ON
Semiconductor, whose headquarters are located in Phoenix, Arizona.[28]

In June 2000, Motorola and Cisco supplied the world's first commercial
GPRS cellular network to BT Cellnet in the United Kingdom. The world's
first GPRS cell phone was also developed by Motorola. In August 2000,
with recent acquisitions, Motorola reached its peak employment of 150,000
employees worldwide.[29] Two years later, employment would be at 93,000
due to layoffs and spinoffs.

In 2002, Motorola introduced the world's first wireless cable modem

gateway which combined a high-speed cable modem router with an
ethernet switch and wireless home gateway. In 2003, Motorola introduced
the world's first handset to combine a Linux operating system and Java
technology with "full PDA functionality". In 2004, Motorola divested its
whole semiconductor business to form Freescale Semiconductor.

The Motorola Razr became one of the most influential mobile phones of all
time, reaching 130 million sales
The Motorola RAZR line sold over 130 million units,[30] which brought the
company to the number two mobile phone slot in 2005.

In June 2005, Motorola overtook the intellectual property of Sendo for

$30,000 and paid £362,575 for the plant, machinery and equipment.[31]

In June 2006, Motorola acquired the software platform (AJAR) developed

by the British company TTP Communications plc.[32] Later in 2006, the firm
announced a music subscription service named iRadio. The technology
came after a break in a partnership with Apple Computer (which in 2005
had produced an iTunes compatible cell phone ROKR E1, and most
recently, mid-2007, its own iPhone). iRadio has many similarities with
existing satellite radio services (such as Sirius and XM Radio) by offering
live streams of commercial-free music content. Unlike satellite services,
however, iRadio content will be downloaded via a broadband internet
connection. As of 2008, iRadio has not been commercially released and no
further information is available.[33]

Motorola's mobile phones business failed to repeat the success of the

highly popular RAZR phone, leading to it becoming rapidly dwindled.[34] In
2006 the company's mobile phone market share was about 23% but by the
end of 2007 it dropped to 12%, falling to third place behind Samsung.[35] It
was further halved again, to 6%, by 2009,[36] by which time the market
share was overtaken by LG, and by 2010 was overtaken by Research In
Motion, Sony Ericsson and Apple.[37][38] The company's shares also more
than halved during the period[39] and caused large losses.[40] Motorola
managed to recover with the release of the Motorola Droid in late 2009 with
Verizon Wireless, which sold in good numbers and made the phone
division profitable again by late 2010.[41]

In 2007, Motorola acquired Symbol Technologies to provide products and

systems for enterprise mobility solutions, including rugged mobile
computing, advanced data capture, and radio frequency identification
(RFID).

In 2010, Motorola sold its cellular-infrastructure business to Nokia Siemens

Networks for $1.2 billion.

Finances
Motorola's handset division recorded a loss of US$1.2 billion in the fourth
quarter of 2007, while the company as a whole earned $100 million during
that quarter.[49] It lost several key executives to rivals,[50] and the web site
TrustedReviews called the company's products repetitive and
uninnovative.[51] Motorola laid off 3,500 workers in January 2008,[52]
followed by a further 4,000 job cuts in June[53] and another 20% cut of its
research division a few days later.[54] In July 2008, a large number of
executives left Motorola to work on Apple Inc.'s iPhone.[55] The company's
handset division was also put on offer for sale.[56] Also that month, analyst
Mark McKechnie from American Technology Research said that Motorola
"would be lucky to fetch $500 million" for selling its handset business.
Analyst Richard Windsor said that Motorola might have to pay someone to
take the division off the company's hands, and that Motorola may even exit
the handset market altogether.[57] Its global market share has been on the
decline; from 18.4% of the market in 2007 the company had a share of just
6.0% by Q1 2009, but at last Motorola scored a profit of $26 million in Q2
and showed an increase of 12% in stocks for the first time after losses in
many quarters. During the second quarter of 2010, the company reported a
profit of $162 million, which compared very favorably to the $26 million
earned for the same period the year before. Its Mobile Devices division
reported, for the first time in years, earnings of $87 million.

Motorola, post-split

In January 2011, Motorola split into two separate companies, each still
using the word Motorola as part of its name. One company, Motorola
Solutions (using a blue version of the Motorola logo), is based in the
Chicago suburb of Schaumburg, Illinois, and concentrates on police
technologies, radios, and commercial needs. The other company, Motorola
Mobility (using a red logo), is based in Chicago (formerly at 600 US-45,
Libertyville, Illinois), and is the mobile handset producer. The split was
structured so that Motorola Solutions was the legal successor of the
original Motorola, while Motorola Mobility was the spin-off.

On August 15, 2011, Google announced that it would purchase Motorola

Mobility for about $12.5 billion.[43] On November 17, 2011, Motorola Mobility
stockholders “voted overwhelmingly to approve the proposed merger with
Google Inc”.[44]
On May 22, 2012, Google announced that the acquisition of Motorola
Mobility Holdings, Inc. had closed, with Google acquiring MMI for $40.00
per share in cash. ($12.5 billion)[45]

On October 30, 2014, Google sold off Motorola Mobility to Lenovo. The
purchase price was approximately US$2.91 billion (subject to certain
adjustments), including US$1.41 billion paid at close: US $660 million in
cash and US$750 million in Lenovo ordinary shares (subject to a share
cap/floor). The remaining US$1.5 billion was paid in the form of a three-
year promissory note.[46] After the purchase, Google maintained ownership
of the vast majority of the Motorola Mobility patent portfolio, including
current patent applications and invention disclosures, while Lenovo
received a license to the portfolio of patents and other intellectual property.
Additionally, Lenovo received over 2,000 patent assets, as well as the
Motorola Mobility brand and trademark portfolio

SUBSIDIARY

Motorola Mobility LLC is a U.S.-based consumer electronics and

telecommunications company owned by Chinese technology firm Lenovo
Group Limited. The company primarily manufactures smartphones and
other mobile devices running the Android operating system developed by
Google.

Motorola Mobility was formed on January 4, 2011 after a split of Motorola

Inc. into two separate companies, with Motorola Mobility assuming the
company's consumer-oriented product lines (including its mobile phone
business, as well as its cable modems and pay television set-top boxes),
and Motorola Solutions assuming the company's enterprise-oriented
product lines.

In May 2012 Google acquired Motorola Mobility for US$12.5 billion; the
main intent of the purchase was to gain Motorola's patent portfolio, in order
to protect other Android vendors from litigation. Under Google, Motorola
increased its focus on the entry-level smartphone market, and under the
Google ATAP division, began development on Project Ara—a platform for
modular smartphones with interchangeable components. Shortly after the
purchase, Google sold Motorola Mobility's cable modem and set-top box
business to Arris Group.
Google's ownership of the company was short-lived. In January 2014,
Google announced that it would sell Motorola Mobility to Chinese consumer
electronics firm Lenovo for $2.91 billion. The sale, which excluded ATAP
and all but 2,000 of Motorola's patents, was completed on October 30,
2014.[2] Lenovo disclosed an intent to use Motorola Mobility as a way to
expand into the United States smartphone market. In August 2015,
Lenovo's existing smartphone division was subsumed by Motorola Mobility,
and in November 2016, Lenovo announced that it would discontinue its
existing, self-branded smartphone lines in favor of Motorola-branded
devices going forward.

MOTOROLA SWOT ANALYSIS

Strengths in the SWOT analysis of Motorola Inc :

Strengths are defined as what each business does best in its gamut
of operations which can give it an upper hand over its competitors. The
following are the strengths of Motorola:

 Product portfolio: The Company has a diverse product portfolio that

comprises of communication infrastructure, devices, accessories,
software, and services. These products can cater to a wide range of
clients such as government, public safety agencies, emergency
services, municipalities, and commercial and industrial customers who
need private communications networks and manage a huge workforce
who are high on mobility.
 Industry Standards Systems: All Motorola devices adhere to stringent
industry standards such as APCO P25, TETRA, and DMR.
 Global presence: The Company has a presence in over 180 countries
with over 12,500 systems with outstanding shelf life.
 A long-standing relationship with federal government: Motorola has a
long-standing relationship with the U.S. Federal government and has
executed numerous contracts with its various branches and agencies,
and the Home Office of the United Kingdom. The deals account for
around 9% and 8% of our consolidated net sales in 2016, respectively.
 Focus on long-term contracts: Since many of the clients of Motorola
are government clients their contracts are long terms which in turn
ensures consistent inflow of revenue.
  Focus on research and development: Motorola gives a lot of
importance to research and development and their R & D expenditure
was 553 million USD in the year 2016. Most of their research focuses
on technology trends to watch out for and related product
modifications.

Weaknesses in the SWOT analysis of Motorola Inc :

Weaknesses are used to refer to areas where the business or

the brand needsimprovement. Some of the key weaknesses of Motorola
are:

 Failure to accommodate 3G: When all its customers and competitors

went the 3 G way Motorola did not react fast enough. This turned out
to be a totally wrong decision.
 Too much of focus on Midwest values: Research indicates that while it
was important for the company to adapt to the Silicon Valley culture it
stood string in its midwest orientation which in turn resulted in a lot
of strategy mistakes.
 Exit from the right business at the wrong time: Motorola traded the
huge bandwidth it had with Nextel at a wrong time and when it got a
chance to buy Noki and Qualcomm it overlooked the decision. This
could have been a saver for the company in the US market.
 Slow paced attitude: The technology industry is in a state of fast-
paced movement and Motorola takes too much of time to respond to
which more new competition emerges.

Opportunities in the SWOT analysis of Motorola Inc :

Opportunities refer to those avenues in the environment that surrounds the

business on which it can capitalize to increase its returns. Some of the
opportunities include:

 Growing demand for feature phones: The next big thing in business is
going to be the increased focus on feature phones. It is expected that
feature phones will constitute more than half of the totals sales for
phones in the next few years to come.
 Focus on prepaid connections: Earlier the trend was more biased
towards postpaid but the research was undertaken recently reveals
 that there is a sharp increase in the number of prepaid connections.
This can mean that people are looking closely into their mobile phone
usage.
 The surge in the number of smartphone users in emerging
economies: Motorola’s prime focus has always been the US and the
UK. However, latest studies reveal that the growth has now shifted
to China and India and thus these markets should be explored by
Motorola.

Threats in the SWOT analysis of Motorola Inc :

Threats are those factors in the environment which can be detrimental to

the growth of the business. Some of the threats include:

 Competition: With lowered barriers to entry, the technology business

faces the serious threat of competition. Right from high-end
manufacturers like Apple. To companies like Google and Chinese
players like Redmi, there is stiff competition at all levels of the game.
 Growing concerns about health: Today there is negative imagery of
vibrations causing tumors and cancer and also the risk of radiation
through the excessive use of gadgets. Such issues lead to an
unnecessary lowering of sales.
 High investment: It is increasingly impossible to survive in the
technology landscape today without a high investment in research and
the cost of raw materials as well as labor is also surging. However, it is
a level playing field and revenues are no longer easy.

CHAPTER-2: INTRODUCTION TO THE TOPIC

HISTORY OF CELLULAR TELEPHONY IN INDIA

Cellular Telephony
The technology that gives a person the power to communicate anytime,
anywhere - has spawned an entire industry in mobile telecommunication.
 Mobile telephones have become an integral part of the growth, success
and efficiency of any business / economy.

The most prevalent wireless standard in the world today, is GSM. The
GSM Association (Global System for Mobile Communications) was
instituted in 1987 to promote and expedite the adoption, development and
deployment and evolution of the GSM standard for digital wireless
communications.

The GSM Association was formed as a result of a European Community

agreement on the need to adopt common standards suitable for cross
border European mobile communications. Starting off primarily as a
European standard, the Group Special Mobile as it was then called, soon
came to represent the Global System for Mobile Communications as it
achieved the status of a worldwide standard. GSM is today, the world's
leading digital standard accounting for 68.5% of the global digital wireless
market.

The Indian Government when considering the introduction of cellular

services into the country, made a landmark decision to introduce the GSM
standard, leapfrogging obsolescent technologies / standards.

Although cellular licenses were made technology neutral in September

2005, all the private operators are presently offering only GSM based
mobile services. The new licensees for the 4th cellular licenses that were
awarded in July 2001 too, have opted for GSM technology to offer their
mobile services.

Cellular Industry in India

India is currently the world’s second-largest telecommunications market
with a subscriber base of 1.17 billion and has registered strong growth in
the past decade and half. The Indian mobile economy is growing rapidly
and will contribute substantially to India’s Gross Domestic Product (GDP),
according to report prepared by GSM Association (GSMA) in collaboration
with the Boston Consulting Group (BCG). App downloads in the country
grew approximately 215 per cent between 2015 and 2017.
The liberal and reformist policies of the Government of India have been
instrumental along with strong consumer demand in the rapid growth in the
Indian telecom sector. The government has enabled easy market access to
telecom equipment and a fair and proactive regulatory framework that has
ensured availability of telecom services to consumer at affordable prices.
The deregulation of Foreign Direct Investment (FDI) norms has made the
sector one of the fastest growing and a top five employment opportunity
generator in the country.
Market Size

With 512.26 million internet subscribers, as of June 2018, India ranks as

the world’s second largest market in terms of total internet users.
Further, India is also the world’s second largest telecommunications market
with 1,191.40 million subscribers, as of September 2018.
Moreover, in 2017, India surpassed USA to become the second largest
market in terms of number of app downloads.
Over the next five years, rise in mobile-phone penetration and decline in
data costs will add 500 million new internet users in India, creating
opportunities for new businesses.

Investment/Major development
With daily increasing subscriber base, there have been a lot of investments
and developments in the sector. The industry has attracted FDI worth US$
31.75 billion during the period April 2000 to June 2018, according to the
data released by Department of Industrial Policy and Promotion (DIPP).

Government Initiatives
The government has fast-tracked reforms in the telecom sector and
continues to be proactive in providing room for growth for telecom
companies. Some of the other major initiatives taken by the government
are as follows:

 The Government of India is soon going to come out with a new

National Telecom Policy 2018 in lieu of rapid technological
advancement in the sector over the past few years. The policy has
envisaged attracting investments worth US$ 100 billion in the sector
by 2022.
 The Department of Information Technology intends to set up over 1
million internet-enabled common service centres across India as per
the National e-Governance Plan.
  FDI cap in the telecom sector has been increased to 100 per cent
from 74 per cent; out of 100 per cent, 49 per cent will be done
through automatic route and the rest will be done through the FIPB
approval route.
 FDI of up to 100 per cent is permitted for infrastructure providers
offering dark fibre, electronic mail and voice mail.
 The Government of India has introduced Digital India programme
under which all the sectors such as healthcare, retail, etc. will be
connected through internet

Achievements
Following are the achievements of the government in the past four years:

 Department of Telecommunication launched ‘Tarang Sanchar’ - a

web portal sharing information on mobile towers and EMF Emission
Compliances.
 Six-fold increase in Government spending on telecommunications
infrastructure and services in the country – from Rs 9,900 crores
(US$ 1.41 billion) during 2009-14 to Rs 60,000 crores (US$ 8.55
billion) (actual + planned) during 2014-19.
 Over 75 per cent increase in internet coverage – from 251 million
users to 446 million
 Country-wide Optical Fibre Cable (OFC) coverage doubled – from
700,000 km to 1.4 million kmFive-fold jump in FDI inflows in the
Telecom Sector – from US$ 1.3 Billion in 2015-16 to US$ 6.1 billion in
2017-18 (up to December 2017)

Road Ahead
Revenues from the telecom equipment sector are expected to grow to US$
26.38 billion by 2020. The number of internet subscribers in the country is
expected to double by 2021 to 829 million and overall IP traffic is expected
to grow 4-fold at a CAGR of 30 per cent by 2021. The Indian Government
is planning to develop 100 smart city projects, where IoT would play a vital
role in development of those cities. The National Digital Communications
Policy 2018 has envisaged attracting investments worth US$ 100 billion in
the telecommunications sector by 2022. The Indian Mobile Value-Added
Services (MVAS) industry is expected to grow at a CAGR of 18.3 per cent
during the forecast period 2015–2020 and reach US$ 23.8 billion by 2020.
App downloads in India are expected to increase to 18.11 billion in 2018F
and 37.21 billion in 2022F.
 MOBILE PHONES MARKET SHARE IN INDIA

CHAPTER-3: RESEARCH METHODOLOGY

Methodology

Sampling

When undertaking any survey, it is essential to gather data from people

regarding the products offered by the company so that we get a clear
picture of the company in the eyes of its customers. Sampling is a process
of selecting units from the population of interest with the motive to study the
samples and derive conclusions. 50 people from Rohini, Delhi were
surveyed in this study.

Sampling Techniques

A sampling technique is the name or other identification of the specific

process by which the entities of the sample have been selected.
Convenience Sampling: Also known as accidental sampling. It is a
nonprobability sampling technique in which the selection of units is based
on easy availability and accessibility. The samples are drawn from that part
of population which is close to hand. It may be through meeting the person
or including a person in the sample when one meets them or chosen by
finding them through technological means such as the internet or through
phone

Sampling Frame

There are two types of sampling frames i.e., probability sampling and non-
probability sampling. And this study is based on non-probability sampling.

Non-probability Sampling: It is a kind of sampling method where some

elements of the population have no chance of selection, or when the
probability of selection can’t be accurately determined.

Sampling Unit

A sampling unit is one of the units into which an aggregate is divided for
the purpose of sampling, each unit being regarded as individual when
selection is made. In this study HOUSEHOLD is chosen to be the
experimental unit (sampling unit).

Data collection techniques

Primary Data:

It refers to the collection of data that is done personally. Primary data is the
first-hand data that is collected specifically for a research work. The biggest
advantage of collecting primary data is that it is reliable. There are different
ways to collect primary data such as questionnaires, Interview, and
Surveys etc. Here we have used questionnaires as our tool for primary data
collection.

Questionnaires: A questionnaire was formulated which included all the

questions in accordance with the hypothesis and objectives of the project
and these were filled by different people. These questionnaires were then
studied thoroughly and conclusions were drawn on the basis of the
information provided in the questionnaires.

LIMITATIONS

 Since convenience sampling is used in the study and the samples

are not chosen at random, it may lead to bias decisions.
 Conclusions are derived keeping in mind a limited area.
 Possibility of sampling errors because only a specific group (a small
part of population) is studied.
Results cannot be generalized because the sample is not representative
enough on behalf of the entire population.

OBJECTIVES

The Primary Objective was to study the perception & buying behavior of
customers towards various mobile brands with special reference to
“MOTOROLA”.
The Secondary Objectives of this study were to identify:
• Factors that influence decision-making in purchasing a mobile
phone.
• Major features, which a customer looks for in a mobile before
making a purchase.
• Brand awareness of MOTOROLA mobile phones in the market.
• Factors, which help in increasing the sale of mobile phones.
• Various Sources from which mobiles are purchased.

Scope of the study

The scope of the research is based on the telecom industry and it throws light on the brand
preference of mobile phones with respect to Motorola.

Significance of the study:

 Significance to the industry –
My research will help the telecom industry to know the current scenario of customers with respect to
brand preference of mobile phones, with respect to Motorola.

Significance for the researcher –

➢ Wide exposure to the telecom industry.

➢ Studying about the brand preference of Motorola mobile phones through the respondents.