OBJECTIVES OF THE STUDY

 To study the level of customer satisfaction.

 To study the buying behavioural pattern .
 To study the extent of wireless connectivity.
 The emergence of duality concept in telecom industry.

1
Customer is not king in telecom 21 Apr 2007

NEW DELHI: Unhappy with the quality of services provided by your mobile

operator? You are not the only one. A nation-wide survey by telecom
regulator Trai has revealed that most customers are not satisfied with the quality of
services rendered by their operator.

As per the survey, only seven out of 129 licensees meet the customer satisfaction
benchmark of 95%. In other words, a mere 5.42% licensees meet this criteria.

For the purpose of this survey, every operator in a circles has been considered as an
individual licensee. In the metros, which are the biggest revenue earners for service
providers, only four operators — BPL, Bharti, Reliance Communications and Tata
Teleservices, all in Mumbai — have achieved the overall customer satisfaction
level. These operators have, however, failed to meet the customer satisfaction
benchmark in the other three metros. The lowest overall customer satisfaction level
has been achieved by Bharti, BSNL and Tata Teleservices in Kolkata.

The situation is no better in other parts of the country. For instance, in A category
telecom circles, only three operators in Andhra Pradesh, namely RCOM, Hutch-
Essar and Tatas, meet the 95% customer satisfaction benchmark. More importantly,
the survey also reveals that the services offered by all mobile operators in B and C
category circles are below the benchmark set by the regulator.

With regard to network performance, where the quality of service (QoS) parameter
is over 95%, only 20 of the 129 licensees, or a mere 15.5%, meet this benchmark.
In metro cities, only six out of 24 service providers meet this target. In other parts
of the country, 13 of the 30 service providers in A category circles, one operator in
B Circle (Bharti-Kerala) and no operator providing services in C circles, meets this
QoS parameter, Trai said.

In case of billing complaints per 100 bills issued (benchmark <0.1%), a

significantly higher percentage of billing complaints are observed in case of the
Tata Teleservices in Bihar (1.8%), Tamil Nadu (1.41%), UP (W) (1.19%) and
Chennai (1.00%) and for Bharti in Tamil Nadu (1.25%), Trai said.

The regulator also added that the performance of service providers with respect to
percentage of calls answered by operator within 60 seconds and percentage of calls

2
answered by operator within 90 seconds was a matter of concern as only 59.66%
and 45.76% of the operators were meeting the benchmark standards of these
parameters respectively. The survey was also conducted separately for post-paid
and pre-paid customers to find their satisfaction factor with their billing. The
requisite benchmark here is above 90%. In the case of post-paid segment, 48.76%
service providers and in the pre-paid segment, 81.40% operators meet the
benchmark, Trai said.

Mobile users unhappy with

customer care services: 4 Nov 2007
CHENNAI: Aircel, BPL Mobile and Hutch/ Vodafone were rated the top three

cellular service providers by a nation-wide survey, which also found that

users were not happy with the customer care services of various operators.

According to IDC India's third 'India Mobile Services Usage and Satisfaction
Study, 2007', the average waiting time to speak to a customer care executive was
5.7 minutes, the highest in the last three years.

Usersof all mobile networks saw an increase in their waiting time this year and this
was due to the large increase in subscriber addition.

Indian customers were also bothered by the "knowledge level and promptness" of
the customer care executive and the "final solution" provided by them.

However, the overall satisfaction among mobile users has increased by

approximately one percentage point to 92.6 per cent in 2007, compared to last year,
as networks continued to improve services and streamline processes.

Only three of 11 service providers covered -- Aircel, BPL Cellular and

Hutch/Vodafone -- were able to meet the 95 per cent satisfaction level set by TRAI.

IDC's survey of 4,760 mobile users across 18 major cities from a representative set

3
of A, B and C telecom circles also found that customers were quick to jump at a
better offer from a competing network.

This trend has grown in the last one year and is more pronounced in B and C
telecom circles. The number of 'disloyal and opportunist consumers' has risen from
18 per cent in 2006 to 20 per cent in 2007.

This might further increase when the long awaited number portability is introduced
in India, the survey added.

IDC India Senior Manager (Consumer Research) Shailendra Gupta said: "Mobile
service providers should not let go of their brand's inherent perceived strengths and
continue to devise innovative pricing schemes and offers. With the total number of
mobile subscribers in India set to double to 500 million by 2010, the pie will be big
enough for everyone."

Billing, which was an area of concern during last two years, saw an improvement
of almost 10 per cent from 85.5 in 2005 to 94.2 in 2007. Almost all service
providers found to have improved their billing processes, the survey said.

While MTNL achieved a customer satisfaction level higher than the industry
average at 92.8 per cent, Tata Telecom and Reliance Communications (both GSM
and CDMA) lagged behind.

Trai seeks comments in bid to improve service

quality
4 Jan 2007

NEW DELHI: The Telecom Regulatory Authority of India (Trai) on Wednesday

initiated the process of empowering subscribers with a proposal that

4
operators be mandated to adhere to quality of service (QoS) norms, which will be
prescribed by the authority.

It has asked all stakeholders to send their comments by January 23. Currently, the
guidelines on QoS regarding redressal of consumer grievances and consumer
protection in telecommunication forms part of the 20-point Common Charter for
Telecom Services laid down by Trai, but they are not enforceable as only
voluntarily compliance is required.

ET had reported last month that Trai was planning this move and would launch a
consultation paper to address the increasing number of incidences of consumer
grievances.

Justifying the move, Trai in a statement said, "The tremendous growth and
competition the telecom sector is witnessing, and the frequent introduction of new
tariff plans and value added/ premium rate services by operators, have brought
increasing number of incidences of consumer grievances leading to consumer
dissatisfaction."

It also pointed out that although the Department of Telecommunications has

mandated that service providers have to set up consumer grievances redressal
mechanisms, these were not effective enough to address the grievances of
customers.
Trai has therefore suggested that a system be put in place for resolution of
consumers grievances within the company.

It has also asked operators to define this structural framework of institutional

mechanism at the level of call centre, nodal officer and appellate authority. They
have also been asked to outline the processes and procedures and time limits for
redressal of grievances at these levels.

As per the proposal, consumers may contact their respective service provider’s call
centre. Those complaints pertaining to fault/ service disruption, shall be attended
within 3 days and all other complaints shall be attended by the call centre within 7
days, subject to time limits laid down in the regulations on QoS.

Consumer dissatisfied with the grievance redressal of the call centre may contact
the nodal officer, who will redress grievances regarding fault or service disruption
or repair/ restoration of fault within three days and other grievances within 10 days
of its registration.

5
In case the consumer is still not satisfied, he may appeal to the appellate authority
for redressal of his grievance and the appellate authority shall decide on the appeal
within 30 days.

Trai has also recommended that the service provider should publish a Manual of
Practice for handling consumer complaints outlining the various provisions, time
limits, benchmarks and procedures for seeking redressal of grievances including
information which affect consumers.

…eventually
the prices will have to come down
because we can’t cut down on gas and food, so
entertainment will get the hit. – customer
comment
http://wewantchoice.3cdn.net/90edde4603a1397474_7im6bn2
de.pdf

As a high-end customer, I am completely

uninterested
in bundling services. I want to purchase the best
service that meets my needs… – customer
comment

http://wewantchoice.3cdn.net/90edde4603a1397474_7im6bn2
de.pdf

Customers say:
Existing customers should be rewarded and appreciated.
Existing customers should be able to receive the same
“deals” as new customers. If you want to keep me, you
have to make it worth my while. – customer comment

…it would be nice to be rewarded for my years of loyal

service and paying my bill on time by having, let’s say,

6
 6 months of reduced rates. – customer comment

Customers say:
…offer one low/reasonable monthly rate rather than
offering specials for limited periods of time that you
have to keep requesting/signing up for. – customer
comment

When cable internet goes in and out during the day and
then we get a letter in the mail to raise rates is not cool.
Give good service THEN raise rates. I don’t get a raise at
work if I’m not performing my duties! – customer
comment

RESEARCH METHODOLOGY

Sample Size and Design:

A sample of 40 people is taken on the basis of convenience.

Research method:
Stratified sampling method

7
Research Instrument:
This work is carried out through self-administered questionnaires. The questions
included are open ended, dichotomous 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.

INTRODUCTION

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

8
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.
- India‘s 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, India’s low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

9
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 1999 and cellular services were also launched in

10
the same year.

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, Vodfone-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)

11
 Cellular Service

Overview

1. 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.
2. 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.

12
 The Key players in the Telecom Market in India

Cellular Service provider:

1. BSNL
2. Airtel
3. Vodafone
4. Reliance
5. Tata indicom

Subscribers

Wireless subscribers crosses 200 million mark

Tele density reaches 21.20%

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.

13
The wireline 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

14
 Company Profile

INTRODUCTION

“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

15
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 corporates).
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

16
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.

INTRODUCTION

A DREAM COME TRUE

17
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 India’s 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 kilometres of a pan-India fibre optic
backbone. This backbone was commissioned on 28 December 2002, the auspicious
occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on
6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless

and wireline) 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 revolutionising 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 Reliance-Anil Dhirubhai Ambani Group, comprising

18
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. 10,728 crore (US$ 2,489 million) from Rs. 7,364
crore (US$ 1,709 million).

Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250
crore (US$ 522 million). Margins expanded to 37% from 31%.

19
EBITDA of the Global business increased by 98% during the twelve months ended
March 31, 2007 to Rs. 1,271 crore (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. 1,144 crore (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

20
INTRODUCTION

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 prescence 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. 119000 Crore (US$ 29 billion) Tata Group,
that has over 87 companies, over 250,000 employees and more than 2.8 million

21
shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion)
in Telecom (FY 2006), the Group has a formidable presence across the telecom
value chain.

Tata Teleservices spearheads the Group’s presence in the telecom sector.

Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile
services in India with the Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company
swung into an expansion mode. With the total Investment of Rs 19,924 Crore, Tata
Teleservices has created a Pan India presence spread across 20 circles that includes
Andhra Pradesh, Chennai, Gujarat, 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 Wireline services. Other

22
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 India’s largest branded telecom
retail chain and is the first service provider in the country to offer an online channel
www.ichoose.in 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.

BSNL

23
INTRODUCTION

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, 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 Wireline, 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: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five
years it has become one of the largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on

24
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.

25
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 DataOne 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. 733 crores (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.

History

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

26
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.

27
 VODAFONE ESSAR

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.

28
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.

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 co-branded 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' much-hyped 'Rang Barse' with cheap handsets beginning at Rs
777.

29
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.

30
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.

31
 DATA ANALYSIS AND INTERPRETATION

DEMOGARPHIC FEATURES OF REPONDENTS

32
1. Do you have any mobile connections?

Mobileconnection
50
40
30
Mobile
20
connection
10
0
Yes No

INTERPRETATION:
All the respondents had mobile connections.

33
2. How many mobile connections do you have?

25
Noof Mobileconnection

20

15

10 No of Mobile
connection
5

0
1 2 3 >3

INTERPRETATION:
Out of 40 respondents 20 are having 1 mobile connection, 18 have 2 mobile
connections & 2 have 3 mobile connections.

34
3. Which service are you using?

Service
40

30

20
Service
10

0
Prepaid Postpaid

INTERPRETATION:
Out of 40 respondents 30 are using prepaid connections while 10 respondents are
using postpaid connections.

35
4. Which Mobile connection are you currently using?

MobileConnection
12
10
8
6
4 Mobile
2
Connection
0

INTERPRETATION:
Out of 40 respondents 11are using l AIRTEL, 1are using BSNL, 10 are using
RELIANCE, 11 are using VODAFONE and 5 are using IDEA while 5 are using
others.

36
5. Are you satisfied with the services?

Satisfaction
40
30
20
Satisfaction
10
0
Yes No

INTERPRETATION:
Out of 40 respondents 32 respondents are satisfied with the services of there
particular service providers while only 8 are not satisfied.

37
6. Which facility attracts you most?

AttractiveFacility
25
20
15
10
5 Attractive
0 Facility

INTERPRETATION:
Out 40 respondents 21 respondents are attracted by the coverage facility, 19 by call
charges, 5 by roaming charges, 3 by G.P.R.S.

38
7. Which advertisement media puts more impact on your
buying decision?

Media
30
25
20
15
10
5
0 Media

INTERPRETATION:
Out of 40 respondents 26 gets aware of cellular services by T.V, 3 by internet,8 by
news papers, 1 by others while 2 by magazines.

39
8. How much is your monthly expenses on mobile phones?

Monthlymobile expenses
15
10
5
0 Monthlymobile
expenses

INTERPRETATION:
Out of 40 respondents most of the respondents monthly expenses are 150-350 &
350-500, 6 have monthly expenses of less than 150, while 10 are having monthly
expenses of above 500.

40
9. From how long you are availing the services of this
particular service provider?

Time Periodof usages

20
15
10
5 Time Period of
0 usages
<1 2Yrs. 3Yrs. More
than 3
Yrs

INTERPRETATION:
Out of 40 respondents 10 are availing the services of their particular service
providers since 2 years, 9 since 1 year, 5 since 3 years while 15 were availing the
services from more than 3 years.

41
10. Would you like to change our current service provider
in future?

ChangeOf ServiceProvider
30
25
20
15 changeOf
10 Service
Provider
5
0
Yes No

INTERPRETATION:
Out of 40 respondents 28 do not want to change their current service providers
while only 12 respondents want to change their current service providers.

42
11. What are the value added services preferred by you?
14
12
10
8
6
4 Valueadded
2 Services
0
Column1
m

O
G

th
e
e
e
a

k
ric

rs
s
RG

t
S
.P

M
egR
in
to
m

V
s

S
eo
ic
M -Ce
o
rc
n
rtu
s C
le
a
le
rta
cM
is

INTERPRETATION:
Out of 40 respondents 11 preferred caller tunes
13 preferred miss call alerts & GPRS
09 preferred ringtones

43
 08 preferred cricket alerts
07 preferred games
03 preferred voice sms
05 preferred other services

CONCLUSION
• Few years back mobile connections were not common among everyone. But
with the mobile revolution now we can find almost every one with mobile
phone.
• Most of the people prefer prepaid connections than postpaid connections.
• Most preferred cellular company amongst the respondents is airtel and
Vodafone & the least preferred company is BSNL.
• Mostly the respondents are satisfied with the services provided by the
different cellular companies.
• Maximum number of respondents are attracted towards the call charges and
the least towards GPRS.
• T.V. and newspapers are the best media advertisements.
• The monthly expense of maximum respondents is ranging from 150-350 &
350-500
• Maximum number of respondents are loyal to their particular service
providers and they are using their connections since 3 years.

44
 SUGGESTIONS
• The network in villages have to be increased
• The coverage has to be increased in cities
• 3G services should come into existence very soon

BIBLIOGRAPHY

BOOKS:
• Marketing Research – G. C. Beri
• Research Methodology – C.R Kothari
• Principles of Marketing – Philip Kotler

WEBLIOGRAPHY:
• www.trai.gov.in
• http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
• http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_ho
me.jsp
• http://www.ideacellular.com/IDEA.portal?
_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
• http://www.bsnl.co.in/about.htm
• http://economictimes.indiatimes.com/articleshow/1984830.cms\

45
 • http://coai.com/statistics.php
• http://economictimes.indiatimes.com/Trai_seeks_comments_in_bid_to_imp
rove_service_quality/articleshow/1042993.cms
• http://www.telconews.com/category/telecom/\
• http://images.google.co.in/imgres?imgurl=http://www.streamline-
studios.com/images/stories/articles/economic-times-
tb.jpg&imgrefurl=http://www.streamline-studios.com/latest-
news/streamline-interviewed-by-economic-times-of-
india.html&usg=__f0QTjJOSkVLjbUYegovSjApbOqc=&h=89&w=178&s
z=4&hl=en&start=2&tbnid=VXh-
uGXy6z2kDM:&tbnh=51&tbnw=101&prev=/images%3Fq%3Deconomic
%2Btimes%2B%2Blogo%26gbv%3D2%26hl%3Den
• http://www.thehindubusinessline.com/
• http://moneycontrol.com/stocks/cptmarket/searchpage/search.php

QUESTIONNAIRE
We the students of Padmashree Dr.D Y Patil, Dept of Business
Management need a survey on Telecom users for our project.
The details provided by you will be confidential.

1. Do you have any mobile Connection?

Yes No

2. How many mobile connections do you have?

1 2
3 >3

46
3. Which service are you using?
Prepaid Postpaid

4. Which Mobile connection are you currently using?

Airtel Vodafone
BSNL Idea
Reliance
Others (specify) -------------------

5. What were the reasons for choosing this mobile connection?

Recommended by friends or relatives. Brand

image

Recommended by retailers.
Advertisement

Others(specify)

6. Are you satisfied with the services?

Yes, why? ----------------------------------
No, why? ----------------------------------------
7. Which facility attracts you most?
Coverage Call charges
Roaming facility G.P.

Others (Specify)……………………………………………

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

T.V Magazines

47
 Newspapers Internet
Others (specify)…………………………………………..

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

Less than 150 150-350
350-500 Above 500

10. From how long you are availing the services of this particular service
provider?
<1 year 2 years
3 years More than 3 years

11. Would you like to change your current service provider in future?
Yes No

If yes then why…………………………………………………

If No then why………………………………………………….

12. What are the Value Added Services preferred by you?

Caller tunes Games
Missed call alerts Ringtones
M-commerce Cricket alerts
G.P.R.S Voice SMS
Others (specify)
------------------------------------------

48
Name (Optional) :
Contact no (optional):
Sex- male female

Age: (a) 15-25 (b) 25-35

(c) 35-45 (d) Above 45

Occupation : Self Employed [ ]

Student [ ]

Others [ ]

Income per month : Less than Rs 5,000 [ ]

Rs 5001 to 10,000 [ ]

Rs 10,001 to Rs 20,000 [ ]

Above Rs 20,000 [ ]

49