Customer Satisfaction of Internet Services in Aircel - Owais Shaikh

A PROJECT REPORT ON
CUSTOMERSATISFACTION OFAIRCELINTERNET USERS

UNDERTAKEN AT
Project Report Submitted In Partial Fulfillment Of The Requirement For The Award Of Masters of Business Administration Submitted By:Shaikh Owais Ahmad Roll no: 348
The Business School University of Kashmir Srinagar- 190006
AIRCEL 2 Customer satisfaction of Aircel Internet users
In the name of ALLAH
DEDICATED
To all the students who have lost their precious lives during 23 years of armed conflict in the state of J&K. May Allah bless them with a place in paradise and give patience and courage to their parents to bear such an irreparable loss. For whom Allah has decreed:
So your Lord has decreed: Do not worship anyone but Him and be good to your parents. If one or both of them grow old in your presence, do not say fie to them, nor reprove them. But say gentle words to them, and look after them with kindness and love say O Lord, have mercy on them as they nourished me when I was small {Al Quran - Surah - 17: Verse - 23}.
The Business School, University of Kashmir
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Acknowledgement
In essence Man is incomplete. His resources are limited and his faculties are finite. Every big task he wants to accomplish inevitably involves many helping hands. No individual can ever claim to have carried out any work of paramount importance and magnitude without the support and patronage of others. From the core of my heart, I feel it obligatory to mention that credit in its entirety goes to Almighty Allah who gave us courage to take up this project and it were his blessings that the Project work was completed within the stipulated period. The writing of a project report may be a lonely and isolated experience, yet it is obviously not possible without the personnel and practical support of numerous people. Thus my sincere thanks go to Miss Sumaira Nissar (Faculty Guide) who endured to explain things clearly and made my project a rewarding experience for me. I would also like to thank Prof. (Dr.) S. Mufeed, Director Business School for his valuable suggestions and words of concern. I would also like to thank Mr. Sajad Ahmad Mir, HR Head, Aircel Srinagar who provided me access to the valuable documents of postal services existing policies and procedures. I would also like to extend my profound thanks to the faculty members of our Department and my colleagues and family members: Khalid Muzaffar, Mateen Yousuf, Shah Iqbal and Tabish Ashraf for their encouragement and sound advice. I shall be failing in my duty if I do not express my gratitude to my parents for their constant support and guidance. I thank Almighty Allah for giving me such a wonderful parents in them.
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DECLARATION
I hereby declare that research report entitled CustomersatisfactionofAircel
internetusersis my original work done on behalf of The Business School, University of

Kashmir under the guidance of Mr. Sajad Ahmad Mir (HR Head Aircel Srinagar)and Faculty Guide Miss Sumaira Nissar.
I have not submitted this research report to any other organization/institution for any type of materialistic goal/reward or incentive.
(Shaikh Owais Ahmad)
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Table of Contents
ABBREVIATIONS REVIEW OF LITERATURE RESEARCH GAP RESEARCH OBJECTIVES 7 8 10 11
SECTION 1: AN INTRODUCTION TO CONSUMER BEHAVIOR

IMPORTANCE OF STUDY OF CONSUMER BEHAVIOR APPLICATIONS OF CONSUMER BEHAVIOR CONSUMER BEHAVIOR THEORIES CONSUMER PERCEPTION CONSUMER BEHAVIOR TOWARDS INTERNET
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SECTION 2: INDUSTRY PROFILE

THE INTERNET(THE PAST, THE PRESENT, THE FUTURE)
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SECTION 3: COMPANY PROFILE HISTORY OF AIRCEL GOALS AND VALUES MISSION GEOGRAPHICAL DISTRIBUTION OF AIRCEL PRODUCTS AND SERVICES OFFERED STRATEGIC AND MARKETING ANALYSIS
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SECTION 4: RESEARCH METHODOLOGY METHODOLOGY RESEARCH DESIGN SOURCES OF DATA SAMPLING DATA COLLECTION TOOLS
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LIMITATIONS OF THE STUDY 61
SECTION 5: ANALYSIS AND INTERPRETATION INTERPRETATION OF QUESTIONS FINDINGS CONCLUSION & RECOMMENDATIONS SUGGESTIONS FOR VAS
APPENDIX: SURVEY QUESTIONNAIRE BIBLIOGRAPHY
73 75
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ABBREVIATIONS:
1. 2. 3. 4. 5. 6. TSM Territory Sales Manager ZSM Zonal Sales manager FoS Feet on Service P/S- Product & service P.O- Purchase order P.R- Purchase requisition
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Review of Literature
Although services are considered to be a major part of the economies of the industrialized countries (Bateson, 1989; Ginzberg &Vojta, 1981; Koepp, 1987; World Bank, 1991) this was not always the case. When discussing services, and their intangibility, Adam Smith described them as: unproductive of any value (Smith, 1977 [1776], p430). However Alfred Marshall (1890) challenged this view by stating that the production of services was equally capable of producing utility to the user of the service as the production of a tangible good and that without the services the tangible products may not exist. The definition of services has been the subject of much debate (Gronroos, 2000; Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996). Kotler and Armstrong (1991) define services as: an activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. (Kotler and Armstrong cited in Palmer, 1994, p1). However ZeithamlandBitner (1996) define services as: deeds, processes, and performances (p5). Gummerson 1987 defined services as: something which can be bought and sold but which you cannot drop on your feet. (Gummesson cited in Gronroos, 2000, p46). Gronroos (2000) defines services as: a process consisting of a series of more or less intangible activities that normally, but not necessarily always, take place in interactions between the customer and the service employees and/or physical resources or goods and/or systems of the service provider, which are provided as
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AIRCEL 9 Customer satisfaction of Aircel Internet users solutions to customer problems. (p46) An interesting point, identified by Zeithaml and Bitner (1996) and Gronroos (2000), is that services are not exclusively delivered by service only organisations such as banks, HSBC, Natwest, insurance companies, Norwich Union, lawyers, accountants, or dentists; they are part of the product offering by many manufactured-goods producers. Administrative activities such as invoicing and handling claims are part of the service according to Gr onroos (2000). Zeithaml and Bitner (1996) use examples such as car manufacturers offer of warranties and repair services or computer manufacturers offer of warranties, maintenance and training. Therefore when discussing services it is important to recognise that a wide range of industries can be included.Although these definitions have nuances, they all state that services are intangible. However since intangible services are not exclusive to pure service organisations, services and manufactured products tend to be placed somewhere along the tangibility spectrum, as shown below (figure 1), with manufactured goods being more tangible and services being more intangible (Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996). Therefore it is the intangible services that will be addressed in this research, as shown in the tangibility spectrum (figure 1) and for the purpose of this research Gronroos (2000) definition of services, as quoted above, will be used. Although intangibility is one of the main determinants of services it is not the only characteristic of services that differentiate them from manufactured goods (Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 19 96). Others include Inseparability, perishability, heterogeneity and lack of ownership (Gronroos, 2000; Hoffman & Bateson, 2002; Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996) Pure services have no tangible properties. They cannot be touched, seen or tasted.Goods can be touched, seen and tasted. Therefore services cannot be evaluated prior to purchase (Hoffman & Bateson, 2002; Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996). According to Palmer (1994) this means that consumers of services have less certainty about the outcome of services when choosing between them. The level of uncertainty needs to be reduced via branding and the incorporation of physical evidence (Palmer, 1994), such as HSBCs bank statement folder or Easyjetsinflight magazine. Zeithaml&Bitner (1996) state that intangibility means that services cannot be inventoried, creating difficulties in the management of demand fluctuations. For example during busy periods demand for Ryannaires flights will increase. To take advantage of this they may buy more planes. However when the demand falls, they may have excess capacity. Services can easily be copied and cannot The Business School, University of Kashmir Page 9
AIRCEL 10 Customer satisfaction of Aircel Internet users be patented (Zeithaml&Bitner, 1996). Ryannaire did this by coping Southwestern Airlines operation, to reduce their turnaround times. However Gronroos (2000), Zeithaml&Bitner (2000) and Lovelock (1991) present a different view of intangibility, stating that consumers do not always perceive manufactured goods as tangible. For example a kilo of apples could be perceived in an intangible way as they are going to be eaten the tangibility of the apple is lost and the consumer simply has satisfied the need to eat. Most of the customers preferred low call rate in their connection. Most of the Aircelcustomers are influenced by advertisement.(Khan). The disconnection of the call between callings creates a negative impact on the customers mind; most of customers are facing this problem(Abhishek). Many customers are not using the internet services of aircel because of low net speed as compared to other competitors in the market. So the company needs to maintain the good net speed as compared to other competitors to increase the users of internet.(Mahajan, 2009).Customers like the good services so if the services can be increased and that of the good quality then the customer will like to use the product.(Bhardwaj, 2011).
Research Gap:
No research has been conducted to measure the customer perception and satisfaction of Aircel services among the students of J&K especially Management, Engineering and other professional students. Therefore, in accordance with the data asked by the Marketing Department, Aircel, we segmented the students of Professional Courses in Undergraduate courses (BBA, B.E, and LLB) and Post-Graduate Courses (MBA, LLM, and MCA) and got their feedback via Structured Questionnaire. No academic research has been conducted to get the feedback and assess complaints regarding the service and customer care services.
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Research Objectives:
1. To study the satisfaction level of customers using the internet service by Aircel. 2. To study the satisfaction level of customers regarding the various networks offered by Aircel. 3. To study the satisfaction level of customers regarding the downloading and browsing speed of internet services. 4. To study the satisfaction level of customers against the price charged by the Aircel. 5. To study the customer care feedback and responsiveness.
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Section 1:
An Introduction to Consumer Behavior:Consumer Behavior is the study of who acquires, consumes and disposes of products (goods, services, ideas, images, brands) and where, when, how, and why they do so. Marketers must understand their consumers' behaviors before they develop marketing strategy (e.g., segmentation, targeting, positioning, and the marketing mix).
Consumer behavior referred to as the study of when, why, how, where and what people do or do not buy products. It blends elements from psychology, sociology, social psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrows possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak and strong Paretooptimality. No social choice The Business School, University of Kashmir Page 12
AIRCEL 13 Customer satisfaction of Aircel Internet users function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.
IMPORTANCE OF STUDY OF CONSUMER BEHAVIOR

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).
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AIRCEL 14 Customer satisfaction of Aircel Internet users Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.
APPLICATIONS OF CONSUMER BEHAVIOR

There are four main applications of consumer behavior: The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially 15 adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that o Companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success. It is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.
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AIRCEL 15 Customer satisfaction of Aircel Internet users Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.
CONSUMER BEHAVIOR THEORIES

Consumer perception and consumer behavior:-
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AIRCEL 16 Customer satisfaction of Aircel Internet users According to Rice (1993), perception is the initiator of behavior. It can also be seen as a process of information extraction. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture(Kotler, 2000). Different people tend to perceive quite differently even when they are exposed to the same reality. A set of factors, e.g. individual responses, determine an individuals perception process and lead to individual differences. The most important is that peoples perceptions are often more important than the reality in marketing (Kotler,2000). The study of customer behavior provides a sound basis for identifying and understanding the factors that influence consumers purchase on line. Schiffman and Kanuk state that the behavior that consumers display in searching, purchasing, and evaluating products/services is those that they expect to fulfill their needs. Although perception and behavior are typically treated as two completely separate phenomena, i.e. the input and output respectively, it has been suggested that perception and behavior are in fact two sides of the same phenomenon and are closely related to each other (Rice,1993). In order to understand what customer perceive and how they act to affect their perceptions, study of perception and behavior should be treated as one integral part.
Consumer decision process:At present, the consumer decision process model has been well accepted. This model of purchase as decision process is explained in more detail by Thorelli et al. (1975). Thorellis decision model illustrates the type and shows there are a series of semi-discrete steps which take place over time for the buyers and purchasers.
Predispositions (Before Purchase):

According to Thorelli et al (1975), the prospective buyer possesses a certain stock of cognitive content, including his own personality or self-concept, attitudes and opinions both in general and on specific products, and stored information and past experience. This stock has been formed as a result of his interaction with his environment over time, and it will help determine the
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AIRCEL 17 Customer satisfaction of Aircel Internet users environment in which he places himself in the future as well as influence his perceptions of that environment.
Product Need:
As a result of either cognitive activity or some environmental stimulus, the buyer recognizes a need which is capable of being satisfied by a product or service. In other words, the need is often triggered by internal or external stimuli. Some authors also take this need recognition stage as the entry point. Chaston (2001) argues that the potential consumer will not implement any of the other steps in the buying process until need recognition has happened.
External Search:
Thorelli et al (1975) describe that this stage represents all search of the external environment for alternative solutions as well as for information helpful in evaluating these alternatives. The search for information occurs on an internal and external basis (Gilbert, 1999). The internal search for information from previous experience might be relevant to the present purchase situation. The extent and nature of external search for information likely in any given purchase has been the subject of a great deal of research. When searching for information in the external environment (e.g., friends and family), consumers focus on those relevant attributes that are available and are diagnostic (Dick etal., 1990).
Evaluation of Alternatives:
This stage consists of the physical and cognitive activities involved in comparing alternatives on the basis of information gathered from external search above. According to Kotler (2000), the consumer arrives at attitudes toward the various brands through an attribute evaluation procedure and most buyers consider several attributes in their purchase decision. These attributes used by consumers for evaluation are also called choice criteria. Jobber (2001) has made a good summary of these choice criteria. In fact, consumers attempt to optimize the trade-off between product benefits, product costs, the desired personal utilities and other variables.
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Purchase Activity:
Purchase activity involves the actual final decision and physical activities involved in making (or not making) the purchase. This stage includes the actual transaction. However, as suggested by Kotler (2000), perceived risks of a consumer can heavily influence his decision to modify, postpone, or avoid a purchase decision. Therefore it is necessary for marketers to understand factors that might provoke perceived risk in consumers and work out solutions to reduce that.
Post Purchase Behavior:

This step is concerned primarily with the buyers use of the product purchased. After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction which will influence a consumers subsequent behaviour. Dissatisfied consumers may abandon or return the product, they may even complain to the other group (Kotler, 2000). It is clear that satisfactions and dissatisfactions created by product performance will be important determinants of attitudes and information stored as inputs to future purchase decisions.
Predispositions (After Purchase and Use):

This stage suggests that following the purchase process, the buyer (or non-buyer) is left with cognitive content which may be quite different from that which was present at the beginning of the process. Buyers may change their attitudes, information and experience due to reasons of time and events. All of these may serve to change substantially the nature of the decision process for future purchases of the same type.
CONSUMER PERCEPTION Introduction

The Business School, University of Kashmir Page 18
AIRCEL 19 Customer satisfaction of Aircel Internet users Our perception is an approximation of reality. Our brain attempts to make sense out of the stimuli to which we are exposed. This works well, for example, when we see a friend three hundred feet away at his or her correct height; however, our perception is sometimes offfor example, certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume.
Factors in perception
Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. For example, we are exposed to numerous commercial messages while driving on the freeway: bill boards, radio advertisements, bumper stickers on cars, and signs and banners placed at shopping malls that we pass. Most of this exposure is randomwe dont plan to seek it out. However, if we are shopping for a car, we may deliberately seek out advertisements and tune in when dealer advertisements come on the TV Exposure is not enough to significantly impact the individualat least not based on a single trial (certain advertisements, or commercial exposures such as the Reliance communication logo, are based on extensive repetition rather than much conscious attention). In order for stimuli to be consciously processed, attention is needed. Attention is actually a matter of degreeour attention may be quite high when we read directions for getting an income tax refund, but low when commercials come on during a television program. Note, however, that even when attention is low, it may be instantly escalatedfor example, if an advertisement for a product in which we are interested comes on. Webers Law suggests that consumers ability to detect changes in stimulus intensity appear to be strongly related to the intensity of that stimulus to begin with. Several factors influence the extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when they have a choice, are also more likely to attend to pleasant stimuli (but when the consumer cant escape, very unpleasant stimuli are also likely to get attentionthus, many very irritating advertisements are remarkably effective). One of the most important factors, however, is repetition. Consumers often do not give much attention to a stimuliparticularly a low priority one such as an advertisementat any one time, but if it is seen over and over again, the cumulative impact will be greater. Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more attention to something unknown that may require action. A greater contrast (difference between the stimulus and its surroundings) The Business School, University of Kashmir Page 19
AIRCEL 20 Customer satisfaction of Aircel Internet users as well as greater prominence (e.g., greater size, center placement) also tend to increase likelihood of processing. Subliminal stimuli back in the 1960s, it was reported that on selected evenings, movie goers in a theater had been exposed to isolated frames with the words Drink Coca Cola and Eat Popcorn imbedded into the movie. These frames went by so fast that people did not consciously notice them, but it was reported that on nights with frames present, Coke and popcorn sales were significantly higher than on days they were left off. This led Congress to ban the use of subliminal advertising. First of all, there is a question as to whether this experiment ever took place or whether this information was simply made up. Secondly, no one has been able to replicate these findings. There is research to show that people will start to giggle with embarrassment when they are briefly exposed to dirty words in an experimental machine. Here, again, the exposure is so brief that the subjects are not aware of the actual words they saw, but it is evident that something has been recognized by the embarrassment displayed
CONSUMER BEHAVIOR TOWARDS INTERNET

When consumer purchase internet connection, they still perform a similar sequence of tasks: searching for information about different products, evaluating these alternatives, and transacting the chosen alternative. However, the family and friends has great impact on these activities.
Problem recognition:
The starting point is feeling the need or recognition of a problem. The need for accessing internet at anywhere can trigger the recognition of a need or problem and can have significant impact by encouraging customers to begin the information search process.
Information Search:
Once customers identify the need they may seek information about retailers or products to help them satisfy. Customer search regarding internet connection could be limited because its a
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AIRCEL 21 Customer satisfaction of Aircel Internet users specialty product. Our analysis has shown that in terms of internet connection , customer mostly refer to family and friend as reference group. These reference groups affect buying decision offering information like price, tariff plan availability and so forth. Providing rewards for specific purchasing behaviors for instance friends could appreciate that you could access internet at anywhere if you are carrying a laptop. By identifying and affiliating with reference groups, consumers create, enhance, and maintain their self-image. Customers who want to create an image of mobile, technologically updated person as well as want to be seen as members of a higher social class might buy internet connection from Aircel communication or other competitors products.
Product Evaluation:
During this stage, consumers process different product information and make a final value judgment. The multi attribute model provides a useful way for summarizing how customers use the information they have about alternative brands of internet connection. From our consumer behavior analysis we have found out that on this stage customer evaluate internet connection on its several attributes like price, net speed, tariff plan which come along with, looks etc and they also decide which attributes are most important for them. The multi attribute model shows that how a consumer gives weights of importance to the various attributes of a internet connection.
Purchase Activity:
Its not necessary that customer will always purchase a brand or internet connection with evaluation. The internet connection offering benefits (having the highest evaluation) may not be available in the store, or the customer may feel that the risks outweigh the potential. During purchasing customer also may feel that their internet connection might not be able to meet their expectations. Therefore retailer should ensure that their sales persons are knowledgeable enough and they are also skilled presenter of their product, otherwise it could raise confusion in
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AIRCEL 22 Customer satisfaction of Aircel Internet users customers mind during purchasing of internet connection . Reducing the actual and perceived time of purchasing.
Post Purchase Activities:

As we know buying process doesnt end when a customer purchase a product. From focus group interviews we have come to know that after making a purchase of internet connection, customer evaluate their experience on the basis of net speed, signal strength amount of money they have spent. Customers often feel that service providers do not deliver what they promise. They feel players should present the terms and conditions and tariff plans/schemes in clear terms. Mentioning every small detail regarding the tariff plans must be included in the bill. For example, if a company intends to collect an advanced monthly rental from customers, then it has to mention that in its tariff plan, so that customers are not shocked when they see a bill that includes monthly advance rentals as well. This kind of practice might keep customers away from going for a particular brand.
SECTION2:
INDUSTRYPROFILE:
India's telecommunication network is the second largest in the world based on the total number of telephone users (both fixed and mobile phone). It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper-competition among them. It has the world's third-largest Internet user-base with over 137 million as of June 2012. Major sectors of the Indian telecommunication industry are telephony, internet and television broadcasting. The Business School, University of Kashmir Page 22
AIRCEL 23 Customer satisfaction of Aircel Internet users Telephone Industry in the country which is in an ongoing process of transforming into next generation network, employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching centers, media gateways and signaling gateways at the core, interconnected by a wide variety of transmission systems using fiber-optics or Microwave radio relay networks. The access network, which connects the subscriber to the core, is highly diversified with different copper-pair, optic-fiber and wireless technologies. DTH, a relatively new broadcasting technology has attained significant popularity in the Television segment. The introduction of private FM has given a fillip to the radio broadcasting in India. Telecommunication in India has greatly been supported by the INSAT system of the country, one of the largest domestic satellite systems in the world. India possesses a diversified communications system, which links all parts of the country by telephone, Internet, radio, television and satellite. Indian telecom industry underwent a high pace of market liberalization and growth since 1990s and now has become the world's most competitive and one of the fastest growing telecom markets. The Industry has grown over twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 846 million subscribers in the year 2011.India has the world's second-largest mobile phone user base with over 929.37 million users as of May 2012. It has the world's third-largest Internet user-base with over 137 million as of June 2012. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$ 52 billion) for 201011 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$ 21billion).
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310000 300000 290000 280000 270000 260000 250000 240000 Revenue 2011-2012 2010-2011 2009-2010 2009-2010 2010-2011 2011-2012
Figure showing growth of Indian telecom industry
Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent. It also has helped to increase the transparency of governance with the introduction of e-governance in India. The government has pragmatically used modern telecommunication facilities to deliver mass education programs for the rural folk of India.
ThePast,thePresent,theFuture:
The history of Indian telecom can be started with the introduction of telegraph. The Indian postal and telecom sectors are one of the worlds oldest. In 1850, the first experimental electric
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AIRCEL 25 Customer satisfaction of Aircel Internet users telegraph line was started between Calcutta and Diamond Harbor. In 1851, it was opened for the use of the British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department at that time. Subsequently, the construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (then Calcutta) and Peshawar in the north along with Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then Madras) in the south, as well as Ootacamund and Bangalore was started in November 1853. William O'Shaughnessy, who pioneered the telegraph and telephone in India, belonged to the Public Works Department, and worked towards the development of telecom throughout this period. A separate department was opened in 1854 when telegraph facilities were opened to the public. In 1890, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. In 1881, the Government later reversed its earlier decision and a license was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Calcutta, Bombay, Madras and Ahmadabad and the first formal telephone service was established in the country. On 28 January 1882, Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange" had a total of 93 subscribers in its early stage. Later that year, Bombay also witnessed the opening of a telephone exchange.
Further developments and milestones

Pre-1902 Cable telegraph 1902 First wireless telegraph station established between Sagar Island and Sandhead. 1907 First Central Battery of telephones introduced in Kanpur. 19131914 First Automatic Exchange installed in Shimla. 1927 Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging greetings with King George V.
1933 Radiotelephone system inaugurated between the UK and India.
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1953 12 channel carrier system introduced. 1960 First subscriber trunk dialling route commissioned between Lucknow and Kanpur. 1975 First PCM system commissioned between Mumbai City and Andheri telephone exchanges.
1976 First digital microwave junction. 1979 First optical fibre system for local junction commissioned at Pune. 1980 First satellite earth station for domestic communications established at Sikandarabad, U.P..
1983 First analogue Stored Programme Control exchange for trunk lines commissioned at Mumbai.
1984 C-DOT established for indigenous development and production of digital exchanges.
1995 First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi.
1995 Internet Introduced in India starting with Mumbai, Delhi, Calcutta, Chennai and Pune on 15 August 1995
Development of Broadcasting:
Radio broadcasting was initiated in 1927 but became state responsibility only in 1930. In 1937 it was given the name All India Radio and since 1957 it has been called Akashvani. Limited duration of television programming began in 1959, and complete broadcasting followed in 1965. The Ministry of Information and Broadcasting owned and maintained the audio-visual apparatusincluding the television channel Doordarshanin the country prior to the economic reforms of 1991. In 1997, an autonomous body was established in the name of Prasar Bharti to take care of the public service broadcasting under the Prasar Bharti Act. All India Radio and Doordarshan, which earlier were working as media units under the Ministry of I&B became constituents of the body.
Pre-liberalization statistics: While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948 numbered only The Business School, University of Kashmir Page 26
AIRCEL 27 Customer satisfaction of Aircel Internet users around 80,000. Post independence, growth remained slow because the telephone was seen more as a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country. Liberalization and privatization Liberalization of Indian telecommunication industry started in 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political opposition. Attempts to liberalize the telecommunication industry were continued by the following government under the prime-minister-ship of Rajiv Gandhi. He invited Sam Pitroda, a US based Non-resident Indian NRI and a former Rockwell International executive to set up a Centre for Development of Telematics(C-DOT) which manufactured electronic telephone exchanges in India for the first time. Sam Pitroda had a significant role as a consultant and adviser in the development of telecommunication in India. In 1985, the Department of Telecom(DoT) was separated from Indian Post &
Telecommunication Department. DoT was responsible for telecom services in entire country until 1986 when Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were carved out of DoT to run the telecom services of metro cities(Delhi and Mumbai) and international long distance operations respectively. The demand for telephones was ever increasing and in 1990s Indian government was under increasing pressure to open up the telecom sector for private investment as a part of Liberalisation-Privatisation-Globalisation policies that the government had to accept to overcome the severe fiscal crisis and resultant balance of payments issue in 1991. Consequently, private investment in the sector of Value Added Services (VAS) was allowed and cellular telecom sector were opened up for competition from private investments. It was during this period that the Narsimha Rao-led government introduced the National Telecommunications policy (NTP) in 1994 which brought changes in the following areas: ownership, service and regulation of telecommunications infrastructure. The policy introduced the concept of telecommunication for all and its vision was to expand the telecommunication facilities to all the villages in India. Liberalization in the basic telecom sector was also envisaged in this policy. They were also successful in establishing joint ventures between state owned telecom companies
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AIRCEL 28 Customer satisfaction of Aircel Internet users and international players. Foreign firms were eligible to 49% of the total stake. The multinationals were just involved in technology transfer, and not policy making. During this period, the World Bank and ITU had advised the Indian Government to liberalise long distance services to release the monopoly of the state owned DoT and VSNL and to enable competition in the long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalised the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years license was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labour unions, but they managed to keep away from all the hurdles. In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of Government in deciding tariffs and policy making. The political powers changed in 1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalisation policies. In 2000, the Vajpayee government constituted the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) through an amendment of the TRAI Act, 1997. The primary objective of TDSAT's establishment was to release TRAI from adjudicatory and dispute settlement functions in order to strengthen the regulatory framework. Any dispute involving parties like licensor, licensee, service provider and consumers are resolved by TDSAT. Moreover, any direction, order or decision of TRAI can be challenged by appealing in TDSAT. The government corporatized the operations wing of DoT on 1 October 2000 and named it as Department of Telecommunication Services (DTS) which was later named as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political parties and leftist thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL.
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AIRCEL 29 Customer satisfaction of Aircel Internet users This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000, the government became more liberal in making policies and issuing licences to private operators. The government further reduced license fees for cellular service providers and increased the allowable stake to 74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common middleclass family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. Many private operators, such as Reliance Communications, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom market. In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year. As the unbranded Chinese cell phones which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security risk to the country, Mobile network operators therefore suspended the usage of around 30 million mobile phones (about 8% of all mobiles in the country) by 30 April. Phones without valid IMEI cannot be connected to cellular operators. 56 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number of proactive initiatives taken by regulators and licensors, the total number of mobile subscribers has increased rapidly to over 929 million subscribers as of May 2012. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connexion can be activated with a monthly commitment of US$0.15 only. In 2005 alone additions increased to around 2 million per month in 200304 and 200405. Sectors Major sectors of telecommunication industry in India are telephony, internet and broadcasting. Telephony
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Wireline network
1% 4% 10% 4% BSNL MTNL 11% Bharti Tata Reliance 70% Others
Market share of major operators in India as on 29 February 2012
wireless Network
3% 4% 7% 9% 19% Bharti Relaince Vodafone Idea BSNL 11% 17% Tata Aircel 12% Uninor 16% others
The telephony segment is dominated by private-sector and two state-run businesses. Most companies were formed by a recent revolution and restructuring launched within a decade, directed by Ministry of Communications and IT, Department of Telecommunications and The Business School, University of Kashmir Page 30
AIRCEL 31 Customer satisfaction of Aircel Internet users Minister of Finance. Since then, most companies gained 2G, 3G and 4G licenses and engaged fixed-line, mobile and internet business in India. On landlines, intra-circle calls are considered local calls while inter-circle are considered long distance calls. Foreign Direct Investment policy which increased the foreign ownership cap from 49% to 74%. Currently Government is working to integrate the whole country in one telecom circle. For long distance calls, the area code prefixed with a zero is dialed first which is then followed by the number (i.e. To call Delhi, 011 would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed by the country code, area code and local phone number. The country code for India is 91. Several international fiber-optic links include those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major telecom operators in India include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance Communications, TATA Teleservices, Infotel, MTS, Uninor, TATA DoCoMo, Videocon, Augere, and Tikona Digital.
Fixed Telephony Until the New Telecom Policy was announced in 1999, only the Government-owned BSNL and MTNL were allowed to provide land-line phone services through copper wire in India with MTNL operating in Delhi and Mumbai and BSNL servicing all other areas of the country. Due to the rapid growth of the cellular phone industry in India, landlines are facing stiff competition from cellular operators. This has forced land-line service providers to become more efficient and improve their quality of service. Land-line connections are now also available on demand, even in high density urban areas. India has over 31 million main line customers. Mobile Telephony AIR Radio Tower In August 1995, Chief Minister of West Bengal, Shri Jyoti Basu ushered in the cellphone revolution in India by making the first call to Union Telecom Minister Sukhram. Sixteen years later 4th generation services were launched in Kolkata. With a subscriber base of more than 929 million, the Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. GSM was comfortably maintaining its position as the dominant mobile technology with 80% of the mobile subscriber market, but CDMA seemed to have stabilized its market share at 20% for the
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AIRCEL 32 Customer satisfaction of Aircel Internet users time being. By May 2012 the country had 929 million mobile subscribers, up from 350 million just 40 months earlier. The mobile market was continuing to expand at an annual rate in excess of 40% coming into 2010. According to data provided by Minister of State for Communications and IT Milind Deora, as of 30 November 2012, India has 7,36,654 base transceiver stations. Of those, 96,212 base transceiver stations provide 3G mobile and data services. Out of India's 640 districts, 610 districts are covered by 3G services as of 30 November 2012. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. In September 2004, the number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wire line segment by a ratio of around 20:1. The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 929 million subscribers as of May 2012. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocom, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers. The government allowed Mobile number portability (MNP) which enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another. India is divided into 22 telecom circles:
Wireline Telecom circle subscriber base in million(May 2012) Andhra Pradesh 2.33 Assam Bihar 0.20 & 0.56
Wireless subscriber base in million(May Teledensity (May 2012) 2012) 66.6 14.6 62.97 80.46 47.7 48.37
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AIRCEL 33 Customer satisfaction of Aircel Internet users Wireline Telecom circle subscriber base in million(May 2012) Jharkhand Delhi Gujarat Daman & Diu Haryana Himachal Pradesh Jammu Kashmir Karnataka Kerala Lakshadweep Kolkata Madhya Pradesh & Chhattisgarh Maharashtra Goa & 71.00 96.71 * & and & 2.9 1.82 0.59 0.30 42.95 54.32 23.00 7.41 239.91 92.56 90.86 112.29
Wireless subscriber base in million(May Teledensity (May 2012) 2012)
0.20 2.48 3.18 1.18 1.13
6.57 56.63 34.51 25.25 53.30
56.92 98.22 107.85 Not available* 55.38
(excluding 2.64
Mumbai ) Mumbai* North East ^** Orissa Punjab Rajastan Tamil Nadu(including 3.0 0.25 0.40 1.44 1.14 3.16 35.93 8.76 26.27 31.17 49.52 78.96 Not available * 64.74 64.73 110.22 73.26 118.29
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AIRCEL 34 Customer satisfaction of Aircel Internet users Wireline Telecom circle subscriber base in million(May 2012) Chennai 2005)] Uttar Pradesh(East) Uttar Pradesh(West) & 0.79 Uttarakhand West Bengal(excluding 0.62 Kolkata)*** ^* Population statistics are available state-wise only. ^** North east circle includes Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, & Tripura ^*** West Bengal circle includes Andaman-Nicobar and Sikkim 46.79 80.56 * 55.12 62.65(Combined)* 1.20 77.74 62.65(Combined)* since
Wireless subscriber base in million(May Teledensity (May 2012) 2012)
Internet:
The history of the Internet in India started with launch of services by VSNL on 15 August 1995. They were able to add about 10,000 Internet users within 6 months. However, for the next 10 years the Internet experience in the country remained less attractive with narrow-band connections having speeds less than 56 kbit/s (dial-up). In 2004, the government formulated its broadband policy which defined broadband as "an always-on Internet connection with download speed of 256 kbit/s or above." From 2005 onward the growth of the broadband sector in the country accelerated, but remained below the growth estimates of the government and related agencies due to resource issues in last-mile access which were predominantly wired-line technologies. This bottleneck was removed in 2010 when the government auctioned 3G
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AIRCEL 35 Customer satisfaction of Aircel Internet users spectrum followed by an equally high profile auction of 4G spectrum that set the scene for a competitive and invigorated wireless broadband market. Now Internet access in India is provided by both public and private companies using a variety of technologies and media including dialup (PSTN), xDSL, coaxial cable, Ethernet, FTTH, ISDN, HSDPA (3G), Wi-Fi, WiMAX, etc. at a wide range of speeds and costs. The country has the world's third largest number of Internet users with over 121 million users (59% of whom only access the Internet via mobile devices) in December 2011.As of December 2011, total Internet connections stood at 22.39 million. with estimated users exceeding 121 million. The number of broadband users as of July 2012 was 14.68 million. Cumulative Annual Growth rate (CAGR) of broadband during the five-year period between 2005 and 2010 was about 117 per cent. DSL, while holding slightly more than 75% of the local broadband market, was steadily losing market share to other non-DSL broadband platforms, especially to wireless broadband. There were 155 Internet Service Providers (ISPs) offering broadband services in India as of February 2012. The public sector companies BSNL and MTNL dominate with market shares of 64.8 and 7.6 percent respectively, while in the private sector Bharti leads with a share of 10 percent. Cyber cafes remain the major source of Internet access. In 2009, about 37 per cent of the users access the Internet from cyber cafes, 30 per cent from an office, and 23 per cent from home. However, the number of mobile Internet users increased rapidly from 2009 on and there were about 274 million mobile users at the end of September 2010, with a majority using 2G mobile networks. Mobile Internet subscriptions as reported by the Telecom Regulatory Authority of India (TRAI) in March 2011 increased to 381 million. One of the major issues facing the Internet segment in India is the lower average bandwidth of broadband connections compared to that of developed countries. According to 2007 statistics, the average download speed in India hovered at about 40 KB per second (256 kbit/s), the minimum speed set by TRAI, whereas the international average was 5.6 Mbit/s during the same period. In order to attend this infrastructure issue the government declared 2007 as "the year of broadband". To compete with international standards of defining broadband speed the Indian Government has taken the aggressive step of proposing a $13 billion national broadband network to connect all cities, towns and villages with a population of more than 500 in two phases targeted for completion by 2012 and 2013. The network was supposed to provide speeds up to 10 Mbit/s in 63 metropolitan areas and 4 Mbit/s in an additional 352 cities. Also, the Internet penetration rate
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AIRCEL 36 Customer satisfaction of Aircel Internet users in India is one of the lowest in the world and only accounts for 8.4% of the population compared to the rate in OECD counties, where the average is over 50%. Another issue is the digital divide where growth is biased in favor of urban areas; according to 2010 statistics, more than 75 per cent of the broadband connections in the country are in the top 30 cities. Regulators have tried to boost the growth of broadband in rural areas by promoting higher investment in rural infrastructure and establishing subsidized tariffs for rural subscribers under the Universal service obligation scheme of the Indian government.
Wireless Internet 2nd Generation Internet is the most prevalent in India. Wireless ISPs in India use both CDMA and Edge technologies for 2G.
Broadcasting Television broadcasting began in India in 1959 by Doordarshan, a state run medium of communication, and had slow expansion for more than two decades. The policy reforms of the government in 1990s attracted private initiatives in this sector, and since then, satellite television has increasingly shaped popular culture and Indian society. However, still, only the government owned Doordarshan has the license for terrestrial television broadcast. Private companies reach the public using satellite channels; both cable television as well as DTH has obtained a wide subscriber base in India. In 2012, India had about 148 million TV homes of which 126 million has access to cable and satellite services. Following the economic reforms in 1990s, satellite television channels from around the world BBC, CNN, CNBC, and other private television channels gained a foothold in the country. There are no regulations to control the ownership of satellite dish antennas and also for operating cable television systems in India, which in turn has helped for an impressive growth in the viewership. The growth in the number of satellite channels was triggered by corporate business houses such as Star TV group and Zee TV. Initially restricted to music and entertainment channels, viewership grew, giving rise to several channels in regional languages, especially Hindi. The main news channels available were CNN and BBC World. In the late 1990s, many current affairs and news channels sprouted, becoming immensely popular because of the alternative viewpoint they offered compared to Doordarshan. Some of the notable ones are Aaj Tak (run by the India
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AIRCEL 37 Customer satisfaction of Aircel Internet users Today group) and STAR News, CNN-IBN, Times Now, initially run by the NDTV group and their lead anchor, Prannoy Roy (NDTV now has its own channels, NDTV 24x7, NDTV Profit and NDTV India). Over the years, Doordarshan services also have grown from a single national channel to six national and eleven regional channels. Nonetheless, it has lost the leadership in market, though it underwent many phases of modernization in order to contain tough competition from private channels. Today, television is the most penetrative media in India with industry estimates indicating that there are over 554 million TV consumers, 462 million with satellite connections, compared to other forms of mass media such as radio or internet. Government of India has used the popularity of TV and radio among rural people for the implementation of many socialprogrammes including that of mass-education. On 16 November 2006, the Government of India released the community radio policy which allowed agricultural centers, educational institutions and civil society organizations to apply for community based FM broadcasting license. Community Radio is allowed 100 Watt Effective Radiated Power (ERP) with a maximum tower height of 30 meters. The license is valid for five years and one organization can only get one license, which is non-transferable and to be used for community development purposes.
Next-generation networks (NGN)

Historically, the role of telecommunication has evolved from that of plain information exchange to a multi-service field, with Value Added Services (VAS) integrated with various discrete networks like PSTN, PLMN, Internet Backbone etc. However, with decreasing ARPU and increasing demand for VAS has become a compelling reason for the service providers to think of the convergence of these parallel networks into a single core network with service layers separated from network layer. Next-generation networking is such a convergence concept which according to ITU-T is: A next-generation network (NGN) is a packet-based network which can provide services including Telecommunication Services and able to make use of multiple broadband, quality of Service-enabled transport technologies and in which service-related functions are independent from underlying transport-related technologies. It offers unrestricted access by users to different
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AIRCEL 38 Customer satisfaction of Aircel Internet users service providers. It supports generalized mobility which will allow consistent and ubiquitous provision of services to users. Access network: The user can connect to the IP-core of NGN in various ways, most of which use the standard Internet Protocol (IP). User terminals such as mobile phones, personal digital assistants (PDAs) and computers can register directly on NGN-core, even when they are roaming in another network or country. The only requirement is that they can use IP and Session Initiation Protocol (SIP). Fixed access (e.g., Digital Subscriber Line (DSL), cable modems, Ethernet), mobile access (e.g. W-CDMA, CDMA2000, GSM, GPRS) and wireless access (e.g.WLAN, WiMAX) are all supported. Other phone systems like plain old telephone service and non-compatible VoIP systems, are supported through gateways. With the deployment of the NGN, users may subscribe to many simultaneous access-providers providing telephony, internet or entertainment services. This may provide end-users with virtually unlimited options to choose between service providers for these services in NGN environment. The hyper-competition in telecom market, which was effectively caused by the introduction of Universal Access Service (UAS) license in 2003 became much tougher after 3G and 4G competitive auction. About 670,000 route-kilometer (419,000 mile) of optical fibers has been laid in India by the major operators, including in the financially nonviable rural areas and the process continues Keeping in mind the viability of providing services in rural areas, the government of India also took a proactive role to promote the NGN implementation in the country; an expert committee called NGN eCO was constituted in order to deliberate on the licensing, interconnection and Quality of Service (QoS) issues related to NGN and it submitted its report on 24 August 2007. Telecom operators found the NGN model advantageous, but huge investment requirements have prompted them to adopt a multi-phase migration and they have already started the migration process to NGN with the implementation of IP-based core-network.
Recent government policies and growth targets

All villages shall receive telecom facilities by the end of 2002. A Communication Convergence Bill introduced in the Parliament on 31 August 2001 is presently before the Standing Committee of Parliament on Telecom and IT.] National Long Distance Service (NLD) is opened for unrestricted entry.] The International Long Distance Services (ILDS) have been opened to competition.] Page 38

The basic services are open to competition. In addition to the existing three, a fourth cellular operator, one each in four metros and thirteen circles, has been permitted. Cellular operators have been permitted to provide all types of mobile services including voice and non-voice messages, data services and PCOs utilizing any type of network equipment, including circuit and/or package
switches that meet certain required standards.
Policies allowing private participation have been announced as per the New Telecom Policy (NTP), 1999 in several new services, which include Global Mobile Personal Communication by Satellite (GMPCS) Service, digital Public Mobile Radio Trunked Service (PMRTS) and Voice Mail/ Audiotex/ Unified Messaging Services.
Wireless Local Loop (WLL) has been introduced to provide telephone connections in urban, semi-urban and rural areas promptly.
Two telecom PSUs, VSNL and HTL have been disinvested. Steps are being taken to fulfill Universal Service Obligation (USO), funding, and administration.
A decision to permit Community Phone Service has been announced. Multiple Fixed Service Providers (FSPs) licensing guidelines were announced. Internet Service Providers (ISPs) have been allowed to set up International Internet Gateways, both Satellite and Landing stations for submarine optical fibre cables.
Two categories of infrastructure providers have been allowed to provide end-to-end bandwidth and dark fiber, right of way, towers, duct space etc.
Guidelines have been issued by the Government to open up Internet telephony (IP). National Optical Fiber Network (NOFN), a project aimed to ensure broadband connectivity to over two lakh (200,000) gram panchayats of India by 2016.
Regulatory environment Asias Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders' perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii)
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AIRCEL 40 Customer satisfaction of Aircel Internet users access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors. The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles with 45 mobile service providers. The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the policy objective of 9 million at the end of 2007 clearly indicates that the regulatory environment is not very conducive.
Revenue and growth The total revenue in the telecom service sector was 86,720 crore (US$15.9 billion) in 200506 as against 71,674 crore (US$13.1 billion) in 20042005, registering a growth of 21% with 835 crore (US$150 million). The total investment in the 200,660 crore (US$36.7 billion) in 200506, up from
estimated revenue of FY'2011 of telecom services sector reached
178,831 crore (US$32.7 billion) in the previous fiscal. Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to more than a 121 million in 2011. Out of this 11.47 million were broadband connections. More than a billion people use the Internet globally. Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country. It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 up from 2.3 million in December 2004. The Total Revenue of Indian Telecom Services company is likely to exceed 200,000 crore
(US$37 billion) ( US$ 44 Bn approx) for FY 1112 based on FY 1011 nos and latest quarterly results. These are consolidated numbers including foreign operation of Bharti Airtel. The major contributions to this revenue are as follows:
Airtel 65,060 (US$1,200)
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Reliance Communications 31,468 (US$580) Idea 16,936 (US$310) Tata Communications 11,931 (US$220) MTNL 4,380 (US$80) TTML 2,248 (US$41) BSNL 32,045 (US$590) Vodafone India 18,376 (US$340) Tata Teleservice 9,200 (US$170) Aircel 7,968 (US$150) SSTL 600 (US$11) Uninor 660 (US$12) Loop 560 (US$10) Stel 60 (US$1.10) HFCL 204 (US$3.70) Videocon Telecom 254 (US$4.60) DB Etisalat/ Allianz 47 (86 US) Grand Total 201,997 crore (US$37 billion)
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SECTION3:
COMPANYPROFILE:
Aircel is Indias fifth largest and fastest growing GSM mobile service provider with a subscriber base of 65.1 million. Aircel is a pan India operator with a presence across 23 circles. The company offers voice & data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband Wireless Access (BWA), Long Term Evolution (LTE) to Value-AddedServices (VAS). In addition to providing premium internet access solutions to facilitate data intensive live streaming applications, the company has also paved the way to be amongst the first to offer 3G and 4G LTE services to customers. Aircel successfully bid for 3G licenses/ spectrum in 13 states, (Andhra Pradesh, Karnataka, Tamil Nadu, Kolkata, Kerala, Punjab, Uttar Pradesh (East), West Bengal, Jammu & Kashmir, Bihar, Orissa, Assam and North East), with BWA licenses/ spectrum also obtained in 8 of these states. Aircels 3G rollout has been the fastest roll out ever in the Indian Telecom Space. Aircel Is optimistic about the data bundling in its key markets. Tamil Nadu, being the strongest circle with spectrum in 900MHz, 3G and BWA and in incumbent circles where the company is strong in voice, will now start adding data bundles. In 2006, Aircel was acquired by Malaysias biggest integrated communications service provider Maxis (Maxis Communication Berhard) and is a joint venture with Sindya Securities & Investments Pvt Ltd - Maxis holds 74% equity in the company. Aircel has positioned itself as a data led telecom player with a focus on young Indians and has addressed the multi-functionality of a mobile phone in many innovative ways which are Industry firsts, be it the Aircel Pocket Internet, the first social networking mobile INQ on Aircel, Aircel Apollo Mobile Health Care, Blyk on Aircel, an enriching engagement for the Youth and very recently the first telecom player to introduce Facebook Voice Updates on Aircel.
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AIRCEL 43 Customer satisfaction of Aircel Internet users The vision of preparing for the future has led to Aircel being recognized as the leading player in providing overall mobile satisfaction as well as the leading regional mobile operator by institutions such as Voice and Data, IDC and tele.net. Aircel was also adjudged the Best Employers by Aon Hewitt in 2011. The companys continuous focus is on acquiring, nurturing and retaining highly talented people by providing them with an inclusive and dynamic working environment. It has also set up the Aircel Academy, a 25,000 square foot facility in Gurgaon (HQ) to provide learning and specialized development for employees. Being a caring and responsible corporate, Aircel is involved in initiatives like Save Our Tigers, an effort to save and grow the dwindling population of tigers in India. The Save Our Tigers campaign made India wake up to the alarming fact that there were only 1411 tigers left in India through its 360 degree awareness program. Another initiative by Aircel is the a+, initiative which aims to bridge the digital divide. Through Aircel a+; Aircel provides underprivileged youth from rural areas access to computers and internet for educational and developmental purposes.
About Maxis Communications Berhad

Maxis Communications Berhad, which started operations in the year 1995, is Malaysia's biggest integrated communications service provider Maxis' vision is to bring the future to our customers lives and business, in a manner that is simple, personalized and enriching, by efficiently and creatively harnessing leading-edge technology and delivering a brand of service experience that is reliable and enchanting. Aircel today has a presence that spreads across almost the entire length and breadth of India. Operations commenced in south India, where Aircel established its leadership and from there extended itself to the pan India operator. Aircel today is operating in 23 telecomm circles and is all geared for dynamic expansion plan in the near future. Andhra Pradesh
HistoryofAircel
Aircel started as a regional player in Tamil Nadu in 1999.Soon, it became the leading operator in Tamil Nadu. At one time, Aircel was the fastest growing operator in India. Because of this, it attracted foreign investments and Malaysian operator Maxis Communications bought a 74 percent stake in the company in 2005 from its Indian owner Chinnakannan Sivasankaran. In 2010, the company bought 3G and wireless broadband (BWA) spectrum in 13 and 8 circles respectively in the auction. It paid US$ 1.44 billion ( 79.1 billion) for the 3G spectrum and US$ 0.76 billion ( 49.76 billion) for BWA. Of this, the company raised $0.88 billion ( 48.3 billion) from Deutsche Bank, Standard Chartered Bank, HSBC and Barclays. It also took a $0.44 billion ( 24.2 billion) one-year bridge loan from HSBC, Punjab National Bank and Axis Bank. The company, as of November 2012, has around 1 million 3G customers. It is yet to launch its LTE network, although it is conducting trials at its center in Hyderabad. Aircel expects to launch it in the first quarter of 2013.
GoalsandValues
Customers: Our customers are our most valued assets. We will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. People:Our people are our greatest resources. we will attract, train and retain the best. we will challenge them to develop their full potential in the context of our company goals.
Integrity: We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises.
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Respect: We will treat with respect & dignity all people we deal with. Excellence: We are committed to excellence in all what we do. There will be no place for mediocrity. Work: We will promote a work environment that embraces creativity, promotes empowerment, and encourages team work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm. Quality: The hallmark of our internal and external outputs and processes will be quality. this will pervade every aspect of our functioning.
Mission:
We are conditionally committed to exceeding our customers expectations. We will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. We will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders.
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GeographicalDistributionofAircel
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1. Assam 2. Bihar 3. Chennai 4. Delhi 5. Gujarat 6. Haryana 7. Himachal Pradesh 8. Jammu Kashmir 9. Karnataka 10. Kerala 11. Kolkata 12. Madhya Pradesh 13. Maharashtra 14. Mumbai 15. North East 16. Orissa 17. Punjab 18. Rajasthan 19. Tamil Nadu 20. UP East 21. UP West 22. West Bengal The Aircel Group is a result of alliance between Maxis Communications Berhad of Malaysia (74% equity) and Sindya Securities & Investments Private Limited (26% equity).
The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast subscriber base in India. Aircel has a vision of delighting its customers by giving them the
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AIRCEL 48 Customer satisfaction of Aircel Internet users respect they deserve. Our goal is to provide our customers with exemplary service and persistently look for new ways to surpass their expectations.
Aircel commenced operations in 1999. In our first decade of operations, we concentrated on building our foundations in the southern part of the country, and soon emerged as the regional market leaders. We worked hard and achieved that success by remaining focused on growth opportunities. Soon after our company began with its expansion in 2005 and has now set its sight on becoming a pan India operator. Our project pipeline is robust, allowing for sustainable longterm growth.
In addition to our leadership position in Tamil Nadu, Aircel met with extraordinary success in the Eastern frontier circles. We pride ourselves on customer satisfaction and managed to emerge as the market leaders in Assam and North Eastern states within 18 months of operations. During this period, our company gained a strong foothold in 10 circles, to provide better access to our customers. The company is present in all 23 telecom circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East), Maharashtra & Goa , Mumbai, Haryana , Madhya Pradesh, Punjab, Gujarat and Rajasthan.
Aircel provides 3G service in Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai, Jammu & Kashmir, Karnataka, Kerala, Kolkata, North East, Orissa, Punjab, Tamil Nadu, UP East and West Bengal.
Aircel offers its customers, services and products that are easy to understand and use. All offerings are stimulating and at the same time extremely unique as Aircel continues to re-invent itself constantly to deliver the best and most up-to-date services. The brand instils a felling of pride, confidence and reliance among all stakeholders by anticipating their desires and fulfilling the same efficiently.
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AIRCEL 49 Customer satisfaction of Aircel Internet users With our foundations deeply set on our brand vales of simplicity, creativity, trust and excitement, we will continue to deliver superior services to our customers and will do our best to live up to their high expectations.
ProductsandServicesOffered
Aircel mainly deal in its core business of cellular connection. it provides variety of products such as.
-Postpaid mobile connections -Prepaid mobile connections -Recharge vouchers -Value added services -Broadband connections
with the help of these products company operate its business in the market & company launches other products but they can be depend on either the competition or customer preferences.
Products and services offered by Aircel in Jammu and Kashmir

Top up Rs. 44 TT 50 Data/2G Rs129(30day) Unlimited Data(2G)+ 6000 SMS* Rs135(30day) Talk time* of Rs.150+150MB 2G Data Rs 11 (1 day) Talk time* of Rs 11+ 1MB Data Rs125(15Day) 3G Rs 8(2Days) 60MB; upto 3.6 Mbps Local Rs.59(7Days) 250 local onnetminnutes Rs.97(15Days) 220 local/STD min STd Rs.97(15Das) 220local/STD min. Rs.122(15Days) 15000 local/STD min. Rs.179(15Days) 500 local/STD min Rs.352(30Days)
Rs. 69 TT 69
Rs17(3 Days) 100MB; 3.6 Mbps
Rs. 75 TT 75 Rs. 80
Rs37(10Days) 200 MB; 3.6 Mbps Rs67(15Days)
Rs.122(15Days) 15000 local/STD min Rs.179(15Days)
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AIRCEL 50 Customer satisfaction of Aircel Internet users TT 80 Rs. 84 TT 100 Talk time* of Rs 135+1MB Data Rs 25(3 Days) Talk time* of Rs 135+ 1MB data Rs 65 (7Days) Talk time* of Rs 70 in DA account & 1MB Data Rs 75 (90Days) Talk time of Rs 75+ 1 MB Data 250MB 3G+500MB 2G; 3.6 Mbps Rs128(28Days) 500MB; 3.6 Mbps 500local/STD min Rs.352(30Days) 60000local/STD min 60000 local/STD seconds Rs.501(28Days) 100000 Local/STD seconds. Rs. 5 (1 Day) All local STD and SMS at 50 paisa/min. Rs.12 (28Days) All STD calls @ 45p/min.
Rs. 119 TT 119
Rs198(30Days) 1GB; 3.6 Mbps
Rs.501(28Days) 100,000 local/STD days Rs.148(90Days) Local A2A @10p/min, A2L@1.65p/sed. All Std @ 2p/sec. Rs. 5(1Day) All local, STD SMS at 50p/min
Rs. 220 TT 220
Rs399(30Days) 2GB; 3.6Mbps
Rs.250 TT 250
Rs119(90Days) Talk time of 119+ 1 MB Data
Rs697(30Days) 5GB; upto 7.2 Mbps
Rs. 500 TT 550
Rs997(30Days) 10GB;upto 7.2Mbps
Rs. 21 (2Days) Local 121 A2A min.
Rs.1000 TT 1150
Rs. 33 (28Days) Local offnet 1.65p/2sec. Rs.39(30Days) Night calling on local Aircel@Re. 1 for 30 min. Rs.105(30Day) Free A2A calls 11p.m to 6a.m. Rs.3 (2Days) Local A2A calls @ 0.20p/min for 1 Day. Rs.159(30Day) Unlimited Data(3G+2G)+6000S MS.
Rs. 38(28Days) All STD calls at Re. 1.20/3min and others @50p/min. Rs.349(28Days) Free local A2A till 250000sec,thereaf ter @ 10p/min Rs.3 (2Days) Local A2A calls @ 0.20p/min for 1 Day.
Rs. 10 TT 9
Rs. 20 TT 18 Rs. 25 TT 22 Rs. 30 TT 27
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3GPRODUCTSANDSERVICESOFFERED:
Pocket Internet With Aircel Pocket Internet you can access on-demand music, video, and other Aircel services such as apps, games, chat, social networking, news, sports and a lot more. We've kept your individual tastes in mind too ... it also offers you access to exclusive regional content in your own language. What's more, you can also like and share multi-media content on Facebook with your friends, right from your mobile Video Calling Video Calling with 3G On Aircel takes full advantage of 3G technology, allowing you to see the person you are talking to. With Video Calling, both you and your caller can see a video of each other while you talk.It simply means that the next time you talk to a loved one, you can actually see them smile Pocket Finder Going to an unfamiliar part of town? Aircel Pocket Finder is a service that lets you know your location so you always know exactly where you are. You can also find the nearest restaurants, coffee shops etc. Not only that, it also Pocket Learning Aircel Pocket Learning is your go-to resource when preparing for exams. Be it school or competitive, we provide plenty of relevant content, personalized study options, assessments and alerts on important areas. Aircel Pocket Learning is a first of its kind product. It is divided into two broad sections: Campus and Library. Campus: The Campus section helps you prepare for the examinations for admissions ranging from Class 10 and 12 Boards (ICSE, CBSE. Regional Boards will be added in 2 months) to Engineering (IIT-JEE, AIEEE) MBA (CAT, XAT) and more. You can also review tips on exams, view past Question Banks, take Multiple Choice Question Tests (MCQ Test) and mock prepare for exams My Buddies With Aircel myBuddies you can see the feeds from your favorite social networking sites, such as Facebook, Orkut, LinkedIn and Twitter, on a single page. What's more, myBuddies even lets you merge your phonebook contacts with your myBuddies contacts, to create a single, comprehensive, unified contact book.
3G devices: The Business School, University of Kashmir Page 51
3G Enabled USB Stick
The 3G USB Dongle is available in the following postpaid plans: Monthly Rental (Rs) 198 Free 3G Data* Unlimited Speed (Mbps) 3.6 Fair Usage (Threshold) 1GB
Plan Name 3G Dongle 198 3G Dongle 399 3G Dongle 697 3G Dongle 997
399
Unlimited
3.6
2GB
697
Unlimited
7.2
5GB
997
Unlimited
7.2
10GB
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Micromax MMX 352G The world of 3G now on your computer
7.2 Mbps Download 5.76 Mbps Upload Flash memory card support up to 16 GB

ZTE MF 190A: 7.2Mbps Download - Quick online upgrades for softwares - Flash Memory Card upto 32 GB 3G Dongles INQ Nokia Samsung sony Wynncom G-Fone G-Fone Alcatel
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StrategicandMarketingAnalysis
ANSOFF MATRIX
AIRCEL LAUNCH
Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a
foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal.
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AIRCEL 55 Customer satisfaction of Aircel Internet users To gain grounds in telecom market it followed low pricing market penetration strategy. It was the first company of india to make incoming calls free. It kept the cost of sim cards low and waived of the monthly rental. These steps ensured that it became market leader in these markets in no time and achieve economies of scale. By keeping its airtime charges low it was able to tap the bottom of pyramid. Today it boasts of having 800minutes of usage per user and huge net profits year after year.
AIRCEL EXPANSION TO NEW MARKETS

The Company has gaining momentum in the telecom space in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Today it is present in 18 circles out of 23 circles of India and has licenses for the remaining 5 circle. By the end of 2010 aircel plans to become a pan India telecom player.
AIRCEL NEW PRODUCTS DEVELOPMENT

Aircel has positioned itself on the future of telephony - data play. Its services are loaded with value-added applications, as would be apparent from its campaign. It wants to offer services that the youth craves for. It has moved beyond voice services and explore the VAS space.It is working a lot with content aggregators such as Yahoo and Makemytrip. It is looking to rope in more partners to help us position itself better in the VAS space. Aircel, wants to offer a platform for innovation. So is encouraging new and out-of-the-box ideas. New technology like 3G would further give an impetus to its brand positioning.
AIRCEL DIVERSIFICATION
AIRCEL sees a lot of potential remaining in India and is focusing on its Indian operation. It has no intention to start operation in overseas markets.
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AIRCEL LIFECYCLE
1. INTRODUCTION STAGE Aircel met with unprecedented success in the Southern and Eastern circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal.
2. GROWTH STAGE The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size
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AIRCEL 57 Customer satisfaction of Aircel Internet users utility company in Business worlds List of Best Mid-Size Companies in 2007. Additionally,Tele.net recognized Aircel as the best regional operator in 2008. 3. MATURITY STAGE Telecom market in urban India is reaching maturity stage. Tele density in cities is close to 100 percentage. Tough competition is putting a dent on the balance sheet of various telecom companies. Call rates in cities have already crashed. Pay per second plan intiated by Docomo was soon adopted by everyone and revenues of telecom companies further reduced. 4. DECLINE / ALTERNATIVE GROWTH STRATEGY Telecom Industry is reaching out for new options to maintain its growth trajectory. Some of the many option with telecom industry are :-Rural Markets -Telecom companies are reaching to rural India to maintain their growth rate. Teledensity in Indian villages is close to 50% and has high growth potential. With call rates dropping cell phone will soon will be a part of every Indian household.3G and BWA spectrum - Aircel has won 3G spectrum across 13 circles and BWA spectrum in 8 circles in recently spectrum auction .Aircel holds one of the highest amount of next generation spectrum amongst all telecom operators in India. It wants to ramp up operations in india in a big way. Broadband will be the new driver for growth of Indian Telecom Industry. Operations Restructuring Aircel has sold its towers to GTL infrastructure. It plans to focus on its telecom services while using towers from GTL . Its IT infrastructure is outsourced to Wipro. They are also helping us transform our IT backhaul to the new generation technology. Our network is of the latest technology and we have installed state-of-the-art EDGE technology. We are ready for the 3G as our networks can easily be upgraded as per the requirements of new generation technology.
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SECTION4 RESEARCHMETHODOLOGY:
Marketing research is the systematic and objective identification, collection analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problem. During the course of conducting the study the information were gathered mainly through the primary source.
Conducting field survey by taking to the respondents (students) who were using Aircel Services on the methodology used in the survey was personal observation and interview with respondents with the help of questionnaire.
RESEARCHDESIGN
Research design is a framework of blueprint for conducting the marketing research project. It deals the procedure necessary for obtaining the information needed to structure and / or solve the marketing research problem. The two types of research we conducted are:-
1. Exploratory 2. Conclusive
The objective of our exploratory research is to provide insight, into and understanding of the problem conforming us. The objective of our conclusive research is to test specific hypothesis and examine specific relationship.
SOURCESOFDATA:
AIRCEL 59 Customer satisfaction of Aircel Internet users Data requires for the research work can be making available from different sources, they could be classified in two groups:-
a) Primary source:-Data acquired through a structured questionnaire among the students of

Kashmir University, Islamic University of Science and Technology, Islamia College of Science and Commerce, NIT Hazratbal, SSM College of Engineering and Technology and South Campus, University of Kashmir.
b) Secondary data: -Includes already collected data whether published or unpublished,

such as officially data base, magazines, journals, Aircel website and Projects done on Aircel by students.
SAMPLING
The sample of the population was chosen with the aim of getting closest to the real population. The sample thus researched upon consisted of Selected Number of students from Professional, Graduate and Undergraduate Students across colleges and universities.
DATACOLLECTIONTOOLS
The collection of data is through a (A). Questionnaire (B). Observation
Questionnaire:It is a piece of paper with a set of questions related to the purpose Research, which is presented to the respondent. The questionnaire used in my survey had close-end questions.
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Observation Methods:When we look at the phenomenon with some objective it is called Observation. It is the important technique for data collection. This Method was also accompanying survey, to know the exact position or Responses of the respondents.
LIMITATIONOFTHESTUDY
The scope of the study has been kept restricted to the students of higher education only. Some question regarding the other company depends on the mood of the respondent and at the time during which they were interviewed. The biased view of the respondents. Some of the respondents were not aware about the facts. Though every possible attempt was made to ensure correct results but there may be changed of sampling error. There is a chance of human error. The result is true for the given time period and it may vary with time.

SECTION5:
ANALYSISANDINTERPRETATIONOFDATA:
Q1. Study of users who prefer to use wireless internet over other internet service options like wired line Table showing respondents who prefer to use wireless internet over other services Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 10 9 8 29 37 10.75269 9.677419 8.602151 31.1828 39.78495
Q1
Strongly Disagree 11%
Disagree 10% Neither agree nor disagree 8%
Strongly agree 40% Agree 31%
Analysis and interpretation : from the above table it is clear that majority of the people from the respondents like to use the wireless internet services over the other wired services because of the portability of the device the users prefer to use this type of service which is mainly available in the form of the mobile internet and in the form of the wireless devices used for the Study of respondents whether they like to use the internet services provided by Aircel The Business School, University of Kashmir Page 61
From the above table and graph it is clear that most of the people are aware about the internet services provided by Aircel, and most of the people like to use the services offered by the Aircel Q3 Study of the respondents whether they are satisfied with the diversity of networks offered by the Aircel Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 8 8.602151 21 22.58065 23 24.73118 35 37.63441 6 6.451613
Strongly agree 6%
Q3
Strongly Disagree 9% Disagree 22%
Agree 38%
Neither agree nor disagree 25%
It is obvious from the data in the table and the figure that most of the people satisfied with the diversity of the networks offered by the Aircel however in the study conducted the fact which also came into the light was in rural areas there is a problem of network during night as 44% of the customers are satisfied with the network however most of the users from the rural areas are facing problems with the network and one the problems facing in most of the rural areas is the rural areas is lack of 3g coverage Q4 Study of the respondents whether they are satisfied with the quality of network Table showing percentage of satisfaction level of customers The Business School, University of Kashmir Page 62
AIRCEL 63 Customer satisfaction of Aircel Internet users Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 7 13 15 49 9 7.526882 13.97849 16.12903 52.68817 9.677419
Figure showing the percentage of the satisfaction level of customers
Q4
Strongly agree 10%
Strongly Disagree Disagree 7% 14%
Agree 53%
In the above pie chart it is clearly visible that the majority of the respondents are satisfied with the network provided by the Aircel and it is because of the fact the Aircel has large pool of towers scattered over the area Aircel has highest number of towers after Airtel which is its main competitor however in the inner areas of the most of the districts the network coverage is not upto the mark mainly in the survey conducted mostly in the parts of budgam like gerund,batapora,utligam most of the people were not satisfied with the network provided by the Aircel which is affecting the business and most of the people were demanding the 3g coverage to be implemented soon. Q5. To study the satisfaction level of the customers whether they are satisfied with customer care feedback Q5 Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 13 13.97849 14 15.05376 36 38.70968 26 27.95699 4 4.301075
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Strongly agree 4%
Q5
Agree 28%
In the above table and figure the respondents statement regarding the satisfaction level of the customer care feedback by Aircel was average
Q6.To study the customers satisfaction level regarding browsing and downloading speed of the Aircel
Q6
Strongly agree 9% Agree 17% Neither agree nor disagree 29% Disagree 32% Strongly Disagree 13%
In the above table and pie chart it is visible that percentage level of customers who are satisfied with the browsing and downloading speed of the Aircel is 46% the company needs to improve in this sphere because the downloading speed plays an important role in the usage level of the
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AIRCEL 65 Customer satisfaction of Aircel Internet users service more in many of the cases it was depicted that most of the people are not properly communicated regarding the usage level and speed. Q7 To study the satisfaction level of the respondents regarding the plans and customer schemes. Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 4 4.301075 18 19.35484 20 21.50538 43 46.23656 8 8.602151
Strongly Q7 Disagree Strongly agree 9% 4%
Disagree 19% Agree 46% Neither agree nor disagree 22%
In the above table it is shown that most of the percentage Is satisfied with customer care plans and schemes offered by Aircel as 46% of respondents believe that the customer plans and schemes offerd by Aircel are good but one of the important thing here is that most of the people get the general schemes however the schemes should be segemented into class like business ,student and others Q8.To study if respondents were willing to recommend the internet services to others Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 11 11.82796 22 23.65591 33 35.48387 21 22.58065 6 6.451613
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Q8
Strongly agree 6% Agree 23% Strongly Disagree 12% Disagree 24% Neither agree nor disagree 35%
In the above table it is clearly visible that most of the respondents have average agreement level to this aspect but this could be increased by giving segmented schemes to each of the group Q9.To study the customers satisfaction level regarding the complaint redressel system
Q9
Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree
12 12.90323 24 25.80645 34 36.55914 16 17.2043 7 7.526882
Strongly agree 7% Agree 17%
Q9
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AIRCEL 67 Customer satisfaction of Aircel Internet users From the above pie chart and graph it is clearly seen that most of the people have average satisfaction level of the complaint redressal system however it is important for the company to improve to improve the customer satisfaction level in this aspect as to increase the business scope it from the pie 37% of the people fall in average category that is the major portion and the agree portion is also on the weaker side the company has to focus on the complaint redressal system so as to increase the customer satisfaction level ,if not timely focused could led to arbitrage process of customers and could decrease the customer base Q10 To study the satisfaction level regarding the price charged by Aircel Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 7 7.526882 18 19.35484 20 21.50538 40 43.01075 8 8.602151
Strongly agree 9%
Q10
Agree 43%
In the above table and pie most of the customers believe that the price charged by the Aircel is competitively better than others but in the observational survey part most of the customers were not aware of the other efficient schemes available hence it can said that the communication regarding the price is not conveyed to them so there is a potential of increasing the customer base in this aspect of the service feature they should classify the prices or plans into student offers so that they can have a chance to explore more from it
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Q11.To study the respondents satisfaction level regarding the Aircel internet outlets Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 0 0 12 12.90323 7 7.526882 64 68.8172 10 10.75269
Q11
Strongly agree 11%
Agree 69%
In the survey conducted and the data analysed large pool of customers are satisfied with the availibilty of the service providers and the Aircel outlets which also comes in the tangibility dimension of the service quality however in the observational data it was conclude that Aircel should make internet services possible to the remote areas as well mostly the need for the 3g service was recorded in most of the districts and the availibilty of the potentional customers is also on the higher side
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AIRCEL 69 Customer satisfaction of Aircel Internet users Q12 To study the communication dimension regarding the plans and schemes offered by Aircel Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 7 7.526882 9 9.677419 20 21.50538 44 47.31183 13 13.97849
Q12
Strongly agree 14%
Disagree 10%
Agree 47%
In the study conducted 47% of the customers agreed 14% strongly agreed 21% was average 10% disagreed and 8% strongly disagreed with the statement the fact the study was conducted among the professional students but still there is a major portion which shows that most people are not communicated properly it was also suggested by users that their should be social networking page where schemes and plans should be communicated to them
Q13 To study the satisfaction level of services against customers expectations. Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 11 11.82796 16 17.2043 28 30.10753 30 32.25806 8 8.602151
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Q13
Strongly agree 9% Strongly Disagree 12% Disagree 17% Neither agree nor disagree 30%
Agree 32%
From the above table and figure 32% of the customers are with agree statement 9% with strongly agree , 17% disagree,12%strongly disagree, 30% have average satisfaction level However Aircel should focus on this mix response statements and to build strategies which could create equity between expection and satisfaction, it also reveals that the Aircel is not enjoying monopoly but is headed with the strong competition
RECOMMENDATIONS:
On the basis of conclusions drawn & enumerated in previous pages, an attempt has been made to suggest the following recommendations. 3G should be activated as soon as possible as there is lot of demand in market. The reason for less customers using pocket internet is related to cost factor. 10
paisa/10KB i.e. 10Rs /1MB and 10,000 Rs /1GB. The charges were very high in comparison to competitors like BSNL that provides unlimited browsing @200 Rs/month and Vodafone 5 paisa/10kb. The company should introduce some new tariff plans so that customers can use the aircel internet services at cheaper rates. The company should introduce plans like BSNL such as unlimited browsing at some fixed amount.
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AIRCEL 71 Customer satisfaction of Aircel Internet users On introduction of internet @98 Rs the customers were in confusion that whether there would be additional down load charges or not. The aircel website has not been up dated till this date to give right information. Websites should have been updated well in advance to avoid confusions. Settings for internet usage on mobile brands such as fly, asus, Chinese sets and intex were not delivered and Customers with such brands were not able to usepocket internet. We need to include support for mobile brands like fly, intex so that aircel net can work on these mobile sets. Many customers who opted for internet@ 98 Rs were unable to run it even on phone. Call center executives need to be trained in a better way because at present customers complaint that they are not able to help them properly. Many customers were receiving repeated SMS congratulating them for activation of net but net was not working at all. Employees at Aircel outlet were also not trained to handle those problems. Many retailers of aircel are not much aware about the plans of pocket internet. In the survey there were very less respondents who know about pocket internet through retailer. So the company should focus on motivate the retailer to sell the pocket internet by giving some gift items Many customers are not using the internet services of Aircel because of low net speed as compared to other competitors in the market. So the company needs to maintain the good net speed as compared to other competitors to increase the users of internet. One customer who himself was running computer shop managed to run aircel net and was very satisfied with the speed. We need to maintain this speed even when more people buy and run aircel internet @ 98. Majority of the respondents are using the GPRS enabled handset. But still majority of respondents are not using the pocket internet. This is due to reasons that some of them have never used internet nor they are willing to use it as they are not to comfortable with technology, some are not educated enough to use internet, some are not aware of internet. So the company should try to aware that people about the pocket internet by making calls through call centers executives and try to motivate them for the use of internet.
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SUGGESTIONSFORVALUEADDEDSERVICES:
I did not find a single customer knowing about value added services like doctor on-call, subscription services, voice station. There are boards in various Aircel outlets advertising about calling plans but not a single board advertising VAS like doctor-oncall, subscription services, and voice station. Therefore people do not even know such services exist. We need to advertise these VAS, so people may come to know about them and use them. Few people do know about vas live astrology and internet but these should also be advertised to educate more people about them. Many customers use dialer tones but most of them want more variety of songs. So to get the profit in this competitive scenario there is need to more focus on services (value added services) more than product. 3g should be launched as most of the customers mainly from other districts insisted on launching of SOMEOTHERIMPORTANTSUGGESTIONSFORAIRCELCOMMUNICATION: Aircel should make wifi zones near the educational institutes. Aircel should make plans which particularly focused on students Itemized bills should be provided to customers on demand. Repeated alerts to recharge when balance is low annoy many customers Disconnection on slight delay on bill payment really disappoints customers and something should be done so that they get more time to clear bill before disconnection. Customers want some discount for family using more than four aircel Sim cards. So there is need to give some offer/discounts to these kinds of customers to motivate them. Verification delays and activation delays presently in some cases extend more than month such delays should be reduced or eliminated. More billing centers need to be raised to decrease the time gap for amount received from the customers and convert it into cash for the company. Billing system in case of post paid need to be made more customers friendly Billing system in case of post paid need to be made more customers friendly.
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APPENDIX:
Questionnaire
Name: . Occupation: . . Qualification: Age:
1
1 2 3 4 5 6 7 8 9 10 Do You prefer to use wireless internet over other services Do you like to use internet services provided by Aircel Youre satisfied with the diversity of networks offered by Aircel. Quality of network provided by Aircel good. Customer care services provided by Aircel are good. You are satisfied with the customer care feedback provided by Aircel. You are satisfied with the browsing and downloading speed of Aircel You are satisfied with the plans and customer schemes offered by Aircel. Would you like to recommend internet services offered by Aircel to others? Do you think your complaints are redressedtimely?
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AIRCEL 74 Customer satisfaction of Aircel Internet users 11 12 13 14 Do you think price charged by Aircel are comparatively better than other service providers. Do you think Aircel internet service providers are readily available Aircel schemes and plans are communicated to you properly Aircel provides service according to your expectations.
15. Do you have any internet connection other than Aircel? If yes, please mention.
Suggestions:
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BIBLIOGRAPHY
Abhishek. (n.d.). Value Added Srevices Penetration. Arnau, B. (1998). Short Time Series Analysis: C Statistic versus Edgington Model. Quality and Quantity. 63-75. . Atkinson, S. H. (2001). Opening the mail. A Postal system for the new century. Bhardwaj, S. (2011). Seminar Report on Aircel. Bitran, H. (1990). The Humanization of S ervice: Respect at the Moment ofTruth. Sloan Management Review, 89-96. Corby, M. (1979). The Postal Business 1969-79: A study in Public Sector. Heskett, S. (1990). Service Breakthroughs: Changing the Rules of theGame. New York. Khan, M. (n.d.). SWOT Analysis and Marketing Audit of Aircel. L. Schlesinger, J. H. (1991). The Service-Driven Service Company. HarvardBusiness Review, 71-81. M. Crew, P. K. (2000). Current directions in Postal reform. M. Crew, P. K. (2001). Future directions in postal reform. Mahajan, V. (2009). CONSUMER BUYING BEHAVIOR WITH A FOCUS ON PERCEPTION TOWARDS POCKET INTERNET IN DISHNET WIRELESS LIMITED, JAMMU (J&K). V. Zeithaml, A. P. (1984, August). A Conceptual Model of Service Quality and Its Implications for Future Research. Zeithaml, P. (1990). Delivering Quality Service: Balancing CustomerPerceptions and Expectations. The Free Press Division of Macmillan, Inc.
www.aircel.com www.wikipedia.com www.scribd.com www.managementparadise.com www.managementresearch.com www.slideshare.com

www.doaj.com www.academia.com
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Customer Satisfaction of Internet Services in Aircel - Owais Shaikh

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A PROJECT REPORT ON

CUSTOMERSATISFACTION OFAIRCELINTERNET USERS

The Business School University of Kashmir Srinagar- 190006

AIRCEL 2 Customer satisfaction of Aircel Internet users

In the name of ALLAH

The Business School, University of Kashmir

AIRCEL 3 Customer satisfaction of Aircel Internet users

The Business School, University of Kashmir

AIRCEL 4 Customer satisfaction of Aircel Internet users

I hereby declare that research report entitled CustomersatisfactionofAircel

internetusersis my original work done on behalf of The Business School, University of

(Shaikh Owais Ahmad)

The Business School, University of Kashmir

AIRCEL 5 Customer satisfaction of Aircel Internet users

SECTION 1: AN INTRODUCTION TO CONSUMER BEHAVIOR

SECTION 2: INDUSTRY PROFILE

The Business School, University of Kashmir

AIRCEL 6 Customer satisfaction of Aircel Internet users

APPENDIX: SURVEY QUESTIONNAIRE BIBLIOGRAPHY

The Business School, University of Kashmir

AIRCEL 7 Customer satisfaction of Aircel Internet users

The Business School, University of Kashmir

AIRCEL 8 Customer satisfaction of Aircel Internet users

The Business School, University of Kashmir

The Business School, University of Kashmir

AIRCEL 11 Customer satisfaction of Aircel Internet users

The Business School, University of Kashmir

AIRCEL 12 Customer satisfaction of Aircel Internet users

IMPORTANCE OF STUDY OF CONSUMER BEHAVIOR

The Business School, University of Kashmir

APPLICATIONS OF CONSUMER BEHAVIOR

The Business School, University of Kashmir

CONSUMER BEHAVIOR THEORIES

The Business School, University of Kashmir

Predispositions (Before Purchase):

The Business School, University of Kashmir

The Business School, University of Kashmir

AIRCEL 18 Customer satisfaction of Aircel Internet users

Post Purchase Behavior:

Predispositions (After Purchase and Use):

CONSUMER PERCEPTION Introduction

CONSUMER BEHAVIOR TOWARDS INTERNET

The Business School, University of Kashmir

The Business School, University of Kashmir

Post Purchase Activities:

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AIRCEL 24 Customer satisfaction of Aircel Internet users

Figure showing growth of Indian telecom industry

The Business School, University of Kashmir

Further developments and milestones

1933 Radiotelephone system inaugurated between the UK and India.

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AIRCEL 26 Customer satisfaction of Aircel Internet users

The Business School, University of Kashmir

The Business School, University of Kashmir

The Business School, University of Kashmir

AIRCEL 30 Customer satisfaction of Aircel Internet users

Market share of major operators in India as on 29 February 2012

The Business School, University of Kashmir

The Business School, University of Kashmir

Wireless subscriber base in million(May Teledensity (May 2012) 2012)

0.20 2.48 3.18 1.18 1.13

6.57 56.63 34.51 25.25 53.30

56.92 98.22 107.85 Not available* 55.38