1

PREFACE

The research termed as A COMPARATIVE STUDY OF CUSTOMER

PREFERENCES FOR GSM AND CDMA MOBILE SERVICES IN BAREILLY
The preparation of this project report provides us great pleasure in realizing our work
and market experience in few pages which shows over all result and experienced
knowledge and the practical approach about the life style of the professional and things
which we found affecting to our marketing and product image.

ACKNOWLEDGEMENT
I am neither a research expert nor a trend spotter. I am a management student
with foundations of management principles and theories, who is curious about various
sectors and its latest happenings.
I am highly obliged to Miss. Sheetal Gangwar Management Department for her
invaluable support; guidance and knowledge that she shared with me there by aiding me
in making this project a successful research.
Definitely, I cant ignore the technology, with Internet as the backbone and those
search engines which helped me in building up this research project.
Lastly, I would like to thank the ALMIGHTY and my parents for their moral and
financial support and my colleagues with whom I shared my day-to-day experience and
received lots off suggestions that improved my work quality.

ANUBHA
SINGH

TABLE OF CONTENT

Introduction & objective

INTRODUCTION

(4-5)
(6-49)

Telecom India

(7-9)

What are CDMA and GSM ?

(10-20)

GSM & CDMA comparison

(21-22)

Indias telecom growth

(23-37)

Value Added Services of cellular mobiles

(38-49)

RESEARCH METHODOLOGY

(50-53)

DATA PRESENTATION

(54-71)

CONCLUSIONS

(72-73)

SUGGESTIONS

(74-75)

LIMITATIONS

(76-77)

BIBLIOGRAPHY

(78-79)

ANNEXURE

(80-83)

INTRODUCTION
The two technologies namely GSM and CDMA have immense scope in
Indian Mobile Handset market as telecom operators in India come up with
innovative plans to attract the Customers.
India is the most competitive market in the world and boom in telecom has
completely changed the Tele industry scenario in India.
Both technologies have been quite successful in increasing the mobile usage
in the country and will likely to continue so in the near future.
The mobile industry of India believes the market still offers lot of
Opportunity for both GSM and CDMA techniques while the service providers have been
launching various plans to customers.
Cellular operators are also providing many exciting features to
increase there customers base like hello tunes, ring tones ,mms, GPRS, call
forwarding , call waiting ,voice mail missed call in formations, call conferencing
contents free offers recharge voucher discounts, life time validity double voucher
validity, favorites numbers, right talk.
It is still a big question as to which of to the technologies will lead eventually.

OBJECTIVE

The study has been conducted to fulfill following objectives:

To determine the market share of various GSM and CDMA users in Bareilly.

To compare customer preference for GSM and CDMA mobile services in Bareilly.

To compare customer preference of various value added Services produced by

GSM and CDMA operators in Bareilly.

INTRODUCTION

INTRODUCTION
Telecom India

This was less than five years after the invention of the
commissioning of a 50-line manual telephone exchange in
1882 in Kolkata. This was less than five years after the invention of the
telephone by Alexander Graham Bell. India had approx. 82,000 telephone
connections at the time of independence (1947) and by 1984 the number of
connections had slowly risen to 3.05 million. India's telecom network was
notoriously unreliable and only available to a small section of households
along with the corporate sector. The telecom sector was a government
monopoly until 1994 when liberalization gradually took place. Cellular
service was launched in November 1995 in Kolkata.

History of Cellular Telephony in India

1992
Telecommunication sector in India liberalized to bridge the
gap through government spending & to provide additional
resources for the nations telecom target. Private sector
1993

allowed participating
The telecom industry gets an annual foreign investment Rs

1994

20.6 million
License for providing cellular mobile services granted by
the government of India for the Metropolitan cites of Delhi,
Mumbai, Kolkata & Chennai. Cellular mobile service to be
duopoly (i.e. not more than two cellular mobile operators
could be licensed in each telecom circle), under a fixed

1995

license fee regime for 10 years.

19 more telecom circles get mobile licenses

1995(August) Kolkata became the first metro to have a cellular network

1997

Telecom Regulatory Authority of India is set up

1998

Annual foreign investment in telecom stands at Rs 17,756.4

1999

million.
FDI inflow into telecom sector falls by almost 90% to Rs.
2126.7 million

1999

Tariff rebalancing exercise gets initiated

1999(March) National Telecom Policy is announced.

2000(June)

FDI inflow drops further down to Rs 918 million coming

2000

Amendment of TRAI Act.

(January)

10

CDMA
Code Division Multiple Access (CDMA) is a digital cellular spreadspectrum modulation technique that implements distributed voice and data
networks.
CDMA works by converting speech into digital information, which is then transmitted
as a radio signal over a wireless network. CDMA does not assign a specific frequency to
each user, but the full available spectrum. Each signal is encoded differently using a
unique code. This way CDMA enables a large number of users to share the same
frequency band at the same time, without interference.
The receiving device is instructed to use the code to extract the data out of the received
signal.

Applications
Digital cellular applications based on CDMA were developed with the
collaboration of several carrier and equipment manufacturers, such as
Motorola, P.C.S., NOKIA.
Among the services available to CDMA users are:
web browsing, m-commerce (paying bills, purchasing), MMS (multimedia messaging
services), entertainment (streaming video, games) and enterprise solutions (email, file
download, video conferencing).
CDMA was first used in the military, during World War 2.
Since the transmission is over a wide bandwidth of frequencies, the enemy cant identify

11
the signal easily.

BACKGROUND
The first generation of cellular systems, which include the AMPS (Advanced Mobile
Phone Systems), was introduced in the early 1980s. These systems used analog
frequency modulation (FM) and have a frequency division multiple access (FDMA)
based media access control (MAC) architecture.
Within a few years, market demands and capacity requirements began to grow hitting
the practical limitations. These limitations motivated the development of the second
generation cellular systems, which improved compatibility and accommodated higher
capacity than the first generation systems. These systems use digital modulation and
processing techniques.
TDMA (Time Division Multiple Access), GSM (Global System for Mobile
Communication) and (narrowband) CDMA belong to the second generation systems.
CDMA was introduced in 1994, by Qualcomm, Inc. Using direct sequence code division
multiple access, it claimed to provide 10 times more capacity than analog systems far
more than TDMA or GSM.
Today, CDMA is the basis to the third generation market in the United States and other
places in the world.

12

GSM
In 1982, the European Conference of Postal and Telecommunications Administrations
(CEPT) created the Group Special Mobile (GSM) to develop a standard for a mobile
telephone system that could be used across Europe. In 1987, a memorandum of
understanding was signed by 13 countries to develop a common cellular telephone
system across Europe.
In 1989, GSM responsibility was transferred to the European Telecommunications
Standards Institute (ETSI) and phase I of the GSM specifications were published in
1990. The first GSM network was launched in 1991 by Radio linja in Finland with joint
technical infrastructure maintenance from Ericsson. By the end of 1993, over a million
subscribers were using GSM phone networks being operated by 70 carriers across 48
countries.

Technical details
GSM is a cellular network, which means that mobile phones connect to it by searching
for cells in the immediate vicinity. GSM networks operate in four different frequency
ranges. Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some
countries in the Americas (including Canada and the United States) use the 850 MHz
and 1900 MHz bands because the 900 and 1800 MHz frequency bands were already
allocated.

13
The rarer 400 and 450 MHz frequency bands are assigned in some countries, notably
Scandinavia, where these frequencies were previously used for first-generation systems.
In the 900 MHz band the uplink frequency band is 890915 MHz, and the downlink
frequency band is 935960 MHz. This 25 MHz bandwidth is subdivided into 124 carrier
frequency channels, each spaced 200 kHz apart. Time division multiplexing is used to
allow eight full-rate or sixteen half-rate speech channels per radio frequency channel.
There are eight radio timeslots (giving eight burst periods) grouped into what is called a
TDMA frame. Half rate channels use alternate frames in the same timeslot. The channel
data rate is 270.833 kbit/s, and the frame duration is 4.615 ms.
The transmission power in the handset is limited to a maximum of 2 watts in
GSM850/900 and 1 watt in GSM1800/1900.
GSM has used a variety of voice codecs to squeeze 3.1 kHz audio into between 5.6 and
13 kbit/s. Originally, two codecs, named after the types of data channel they were
allocated, were used, called Half Rate (5.6 kbit/s) and Full Rate (13 kbit/s). These used a
system based upon linear predictive coding (LPC). In addition to being efficient with
bitrates, these codecs also made it easier to identify more important parts of the audio,
allowing the air interface layer to prioritize and better protect these parts of the signal.
GSM was further enhanced in 1997[10] with the Enhanced Full Rate (EFR) codec, a
12.2 kbit/s codec that uses a full rate channel. Finally, with the development of UMTS,
EFR was refactored into a variable-rate codec called AMR-Narrowband, which is high
quality and robust against interference when used on full rate channels, and less robust
but still relatively high quality when used in good radio conditions on half-rate channels.
There are four different cell sizes in a GSM networkmacro, micro, pico and umbrella
cells. The coverage area of each cell varies according to the implementation
environment. Macro cells can be regarded as cells where the base station antenna is
installed on a mast or a building above average roof top level. Micro cells are cells

14
whose antenna height is under average roof top level; they are typically used in urban
areas. Picocells are small cells whose coverage diameter is a few dozen meters; they are
mainly used indoors. Umbrella cells are used to cover shadowed regions of smaller cells
and fill in gaps in coverage between those cells.
Cell horizontal radius varies depending on antenna height, antenna gain and propagation
conditions from a couple of hundred meters to several tens of kilometers. The longest
distance the GSM specification supports in practical use is 35 kilometres (22 mi). There
are also several implementations of the concept of an extended cell, where the cell radius
could be double or even more, depending on the antenna system, the type of terrain and
the timing advance.
Indoor coverage is also supported by GSM and may be achieved by using an indoor
picocell base station, or an indoor repeater with distributed indoor antennas fed through
power splitters, to deliver the radio signals from an antenna outdoors to the separate
indoor distributed antenna system. These are typically deployed when a lot of call
capacity is needed indoors, for example in shopping centers or airports. However, this is
not a prerequisite, since indoor coverage is also provided by in-building penetration of
the radio signals from nearby cells.
The modulation used in GSM is Gaussian minimum-shift keying (GMSK), a kind of
continuous-phase frequency shift keying. In GMSK, the signal to be modulated onto the
carrier is first smoothed with a Gaussian low-pass filter prior to being fed to a frequency
modulator, which greatly reduces the interference to neighboring channels (adjacent
channel interference).

Interference with audio devices

This is a form of RFI, and could be mitigated or eliminated by use of

15
additional shielding and/or bypass capacitors in these audio devices.[citation needed]
However, the increased cost of doing so is difficult for a designer to justify.
It is a common occurrence for a nearby GSM handset to induce a "dit, dit di-dit, dit didit, dit di-dit" output on PA's, wireless microphones, home stereo systems, televisions,
computers, cordless phones, and personal music devices. When these audio devices are
in the near field of the GSM handset, the radio signal is strong enough that the solid state
amplifiers in the audio chain act as a detector. The clicking noise itself represents the
power bursts that carry the TDMA signal. These signals have been known to interfere
with other electronic devices, such as car stereos and portable audio players.

Network structure
The network behind the GSM system seen by the customer is large and complicated in
order to provide all of the services which are required. It is divided into a number of
sections and these are each covered in separate articles.
The Base Station Subsystem (the base stations and their controllers).
The Network and Switching Subsystem (the part of the network most similar to a fixed
network). This is sometimes also just called the core network.
The GPRS Core Network (the optional part which allows packet based Internet
connections).
All of the elements in the system combine to produce many GSM services such as voice
calls and SMS.

16

The structure of a GSM network

17

Subscriber identity module

A SIM for Bell Mobility (Canada) one of the key features of GSM is the Subscriber
Identity Module (SIM), commonly known as a SIM card. The SIM is a detachable smart
card containing the user's subscription information and phonebook. This allows the user
to retain his or her information after switching handsets. Alternatively, the user can also
change operators while retaining the handset simply by changing the SIM. Some
operators will block this by allowing the phone to use only a single SIM, or only a SIM
issued by them; this practice is known as SIM locking, and is illegal in some countries.
In Australia, Canada, Europe and the United States many operators lock the mobiles they
sell. This is done because the price of the mobile phone is typically subsidized with
revenue from subscriptions, and operators want to try to avoid subsidizing competitor's
mobiles. A subscriber can usually contact the provider to remove the lock for a fee,
utilize private services to remove the lock, or make use of ample software and websites
available on the Internet to unlock the handset themselves. While most web sites offer
the unlocking for a fee, some do it for free. The locking applies to the handset, identified
by its International Mobile Equipment Identity (IMEI) number, not to the account
(which is identified by the SIM card). It is always possible to switch to another (nonlocked) handset if such a handset is available.
Some providers will unlock the phone for free if the customer has held an account for a
certain time period. Third party unlocking services exist that are often quicker and lower
cost than that of the operator. In most countries, removing the lock is legal. United
States-based T-Mobile provides free unlocking services to their customers after 3
months of subscription.

18
In countries like Belgium, India, Indonesia, Pakistan, Singapore etc., all phones are sold
unlocked. However, in Belgium, it is unlawful for operators there to offer any form of
subsidy on the phone's price. This was also the case in Finland until April 1, 2006, when
selling subsidized combinations of handsets and accounts became legal, though
operators have to unlock phones free of charge after a certain period (at most 24
months).

GSM SECURITY
GSM was designed with a moderate level of security. The system was designed to
authenticate the subscriber using a pre-shared key and challenge-response.
Communications between the subscriber and the base station can be encrypted. The
development of UMTS introduces an optional USIM, that uses a longer authentication
key to give greater security, as well as mutually authenticating the network and the user whereas GSM only authenticated the user to the network (and not vice versa). The
security model therefore offers confidentiality and authentication, but limited
authorization capabilities, and no non-repudiation.
GSM uses several cryptographic algorithms for security. The A5/1 and A5/2 stream
ciphers are used for ensuring over-the-air voice privacy. A5/1 was developed first and is
a stronger algorithm used within Europe and the United States; A5/2 is weaker and used
in other countries. A large security advantage of GSM over earlier systems is that the
cryptographic key stored on the SIM card is never sent over the wireless interface.
Serious weaknesses have been found in both algorithms, however, and it is possible to
break A5/2 in real-time in a cipher text-only attack. The system supports multiple
algorithms so operators may replace that cipher with a stronger one.

Present scenario of GSM technology

19
The year 2006 was unique for the Indian GSM Industry as it witnessed what has not
been witnessed in the last seven or eight years. The subscriber additions for the entire
calendar year ending December 2006 were far higher at 47 million as compared to just
21 million additions for year ending December 2005 which is a jump of 124% in
subscriber additions. The population coverage of GSM service in India in the last twelve
to eighteen months doubled from 30% to 60% and the geographical coverage increased
three fold from 13% to 39%. This has been a remarkable achievement in light of the
fact that over the earlier five years, from 2000 to year 2005, there was very limited
growth in population and geographic coverage. India has now also joined the super-elite
club of countries having more than 100 million GSM subscribers. In terms of the GSM
subscriber base, India is now placed third after China and Russia. The overall Indian
Cellular industry crossed the 100 million cellular subscriber mark in the middle of the
year. Delhi too, in October 2006, entered the exclusive group of cities having
more than 10 million mobile subscribers.
Coverage of GSM service in India in the last twelve to eighteen months doubled from
30% to 60% and the geographical coverage increased three fold from 13% to 39%. This
has been a remarkable achievement in light of the fact that over the earlier five years,
from 2000 to year 2005, there was very limited growth in population and geographic
coverage. India has now also joined the super-elite club of countries having more than
100 million GSM subscribers. In terms of the GSM subscriber base, India is now placed
third after China and Russia.
The overall Indian Cellular industry crossed the 100 million cellular subscriber mark in
the middle of the year. Delhi too, in October 2006, entered the exclusive group of cities
having more than 10 million mobile subscribers.
As is evident from the above milestones, subscriber additions displayed a strong
accelerating trend in 2006. In August, the industry added more than 6 million
subscribers, for the first time exceeded the growth in China and topped the global table
in subscriber additions. This trend is continuing since then as each month we are

20
exceeding previous months performance. A report by Wireless Intelligence shows that
India powered ahead with quarterly net additions having quadrupled from 4.2 million to
16.4 million over the last 18 months. India was the second highest in net adds over the
four quarters to the end of September 2006 (starting Oct 05 to end of Sept 06) and it is
expected

that

it

will

take

over

the

top

spot,

adding

80

million

connections by the end of 2007.

The Indian Cellular Industry has made an indelible mark in the global telecom arena, as
it delivered far beyond all expectations on its promise and potential. A large factor in
achieving this growth has been the industry confidence arising from the forward looking
policies of the Government, enabling regulation and fair play for all the players.

21

GSM & CDMA COMPARISON

GSM and CDMA are two different modulation standards. GSM is used
primarily in Europe and CDMA in the US. GSM uses a system called
TDMA to differentiate between different mobile calls, TDMA means Time
Division Multiple Access. CDMA is a much more complex system which
uses digital codes to differentiate between the different mobile calls. CDMA
stands for Code Divison Multiple Access. Mobiles designed for CDMA and
mobiles designed for GSM look very similar, even the construction looks the
same, infact most modern mobiles can operate using either system so that
they can be used around the world.

22

The world of wireless communication has opened up new vistas of technology and a
number of dedicated attempts to enhance the existent systems. Each system is unique in
its approach and the competition simply lies in the accessibility and facilities enabled.
The sphere of mobile communication is synonymous with the GSM and CDMA
communication systems, worldwide. The services are not contained or restricted and are
accessible any where.
To understand the main difference between GSM and CDMA communication systems, it
is essential to understand that while the former is a universal concept, the latter has
emerged out of a proprietary effort. GSM or the Global System for Mobile
communication is an international organization established in 1987, to develop and
enhance wireless communication, worldwide. CDMA or Code Division Multiple Access
is relatively new in the industry and a design of Qualcomm, a company based
in the United States of America.

The CDMA or Code Division Multiple Access was initiated as an alternative to GSM
or the Global System for Mobile communication. The difference lies in the speed made
available for data transfer, which is traditionally considered faster with CDMA.
Nevertheless, just as diverse as the scope of wireless mobile communication is, so is the
scope for both these industry giants to outdo one another in the global market.

23

INDIAS TELECOM GROWTH

The stage seems set for another big battle in the country's mobile telephony market. In
the fray are the GSM-based (Global System for Mobile) cellular services and the
CDMA (Code Division Multiple Access) service providers. It all began with the
Telecom Regulatory Authority of India (Trai) talking of bringing out its
recommendations on spectrum-related issues in December 2004. Six months later, its
142-page recommendations are finally out. And the GSM and CDMA lobbies have
started to raise the pitch.
Last time, the two-year court battle between the two sides ended with the introduction of
CDMA-based mobile services. This time round, the stakes are much bigger. That is

24
because, in the interregnum, the mobile subscriber base has shot up from a mere 15.5
million in May 2003 to 53 million now. That is where having adequate spectrum is
critical. It can make or break the launch of 3G (third generation) services in the country.
With 3G, operators can offer a bouquet of services like video streaming, mobile
television, video calling and visual radio to subscribers.
At first sight, the recommendations look quite equitable. There is no one-time spectrum
charge for existing operators. Trai has reduced the ceiling on annual spectrum charges
from the current 6 per cent to 4 per cent of annual gross revenues. It has also suggested a
dramatic hike in spectrum allocations - 20 MHz for GSM and 14 MHz for CDMA
operators. That will put spectrum availability in India in line with global norms. It is far
higher than what the GSM operators (6.2 MHz-10 Mhz) and the CDMA operators (2.5
Mhz-5 Mhz) currently have. Trai chairman Pradeep Baijal points out that in 1995, no
one thought that the sector would grow so fast. Today, with adequate spectrum, one can
envisage a 200-million mobile subscriber base.

PRESENTATION OF CDMA TECHNOLOGY

Why is spectrum so critical today?

Spectrum is all the more important now because telecpanies are looking to launch 3G
services. But as communications minister Dayanidhi Maran points out, what we need is
to ensure that people in rural areas get access to basic mobile communications.

25
Today we can envisage a 200-million mobile subscription base, says Pradip
Baijal, chairman, Trai
The problems start with some of the Trai recommendations. It has suggested providing
additional spectrum to CDMA operators in the 800 MHz band within a month of the
recommendations being approved. However, the spectrum in the 1800 MHz band will be
available to GSM operators in a time-bound manner, not later than December 2006.
Currently, CDMA networks are in no way congested. The Trai paper itself mentions that
out of the 20 networks that need additional spectrum immediately, 18 belong to GSM
operators. CDMA operator Reliance Infocomm needs extra spectrum only in Uttar
Pradesh (west) and Madhya Pradesh. However, the 900 MHz band (used by GSM
operators) is already packed, while the 1800 MHz band is also crowded.
Says T.V. Ramachandran, director general, Cellular Operators Association of India
(COAI): " The additional spectrum will allow CDMA operators to roll out 3G services.
They will have a first- mover advantage." However, S.C. Khanna, secretary general,
Association of Unified Service Providers of India (Auspi), argues that the advantage
does not exist since there is no equipment in CDMA that is compatible with both the 800
MHz and the IMT 2000 bands.
But congestion of networks is limited to just 30-odd cities. The other issue is that the
area under mobile networks cover only 20 per cent of the population, as opposed to the
77 per cent global average.

Mobile Network Statistics

India's Largest Cellular Operators as at Jan 31 2008
Operator

Subscriber
(millions)

Base

26

57.4

Bharti Airtel
Reliance
Infocomm Ltd.

42.6

Vodafone Essar 41.1

Bharat Sanchar
Nigam Ltd.

33.7

Tata
Teleservices

22.5

Ltd.
Idea
Ltd.

Cellular

22.0

INTRODUCTION TO THE INDIAN MOBILE

SERVICES SECTOR
Indian Telecommunications Industry has entered the age of deregulated market
competition from one of regulated monopoly enjoyed by the Department of
Telecommunications (DoT). The attractiveness of the Indian market due to its low teledensity, high latent demand and burgeoning middle class, brought in some of the largest
global telecom players, foreign institutional investors and major Indian industrial houses
to invest in telecom, especially in the Indian cellular industry.

Growth of the Mobile Industry in India

27

Until about a few years ago, India had one of the most backward and stagnant telecom
infrastructure facilities ridden with ineffective government regulations, inadequate
financial resources and unaffordability for the common man. But this sector has seen
trailblazing growth from the year 2001. In fact, the increase in wireless subscribers
between 1998 and 2003 was approximately 100%. In the beginning of 2005, there were
50.7 million mobile users in India - including both GSM and CDMA users - and this
number is expected to grow by 20 million in the year 2005-06

Developments in Mobile Technology in India

At present there are two mobile technologies in use in India; Global System for Mobile
Communication (GSM) technology, a type of Time Division Multiple Access (TDMA)
cellular network, and Code Division Multiple Access (CDMA) 2000 1X technology.
However, GSM technology has limitations in offering a range of broadband services,
which CDMA 2000 1X technology that powers WLL can provide. The head start, which
cellular companies had got in wireless, got dissipated once WLL limited mobility from
the service providers like Reliance and Tata Indicom became fully operational.
There has been an evolutionary change in mobile communication systems
every decade. The first-generation (1G) in the 1980s and second-generation (2G) cellular
systems in the 1990s have been used mainly for voice transmission and to support
circuit-switched services. 1G systems were based on analog technologies; however, 2G
systems are digital systems such as the GSM, CDMA One and PDC.
These systems operate nationwide or internationally, and are todays mainstream
systems. Initiatives such as SMS, WAP, Wi-Fi, Bluetooth, i-Mode, etc., based on 2G
have exploited the data capability of wireless networks to deliver value-added services to
customers. Now third generation (3G) systems have emerged on the scene and the

28
central theme of these technologies is the convergence of communication and
computing. Other than voice, 3G supports video telephony, video games, multimedia,
net-browsing, network games, email and downloading, all at a very high data-transfer
rate. The migration from 3G to fourth generation (4G) technology will be a revolution
both from technological and user perspectives. 4G today is only an evolving concept and
there is no real definition of what it will be. The concept of convergence has already
begun with 3G, and 4G will bring about convergence of communication, computing,
broadcasting etc., (Pallab Dutta, Zen of Mobile Communication,

Government Rules and Regulations

With the advent of GSM in the 90s two mobile licenses were issued per circle. The
licenses were however dogged by ineffective government regulations, resulting in high
consumer pricing (Rabo Com, 2004(1)). In 2001 the deregulation of mobile, fixed-line
and long distance sectors spurred growth and allowed many new players to enter the
market. The regulatory norms introduced by TRAI had a significant impact on the prices
of long distance call charges, reducing them by as much as 80% in just one
year. It reduced the disparity between tariffs of wire line and wireless services from a
factor of 15 to 3. However, the single most important catalyst that transformed the
Indian telecom industry was the WLL controversy which began in November, 2000
when TRAI proposed that Basic Service Operators (BSOs) should be allowed to use
cellular technology. Mobile calling on the WLL licenses was restricted to relevant short
distance calling areas (SDCAs). However, the BSOs exploited a loophole in the license
and offered full mobility services by using call forwarding and multiple number
registrations. As a result, the GSM
based operators who had paid a significant license fee (2.5 billion dollars)
contested this decision. This legal battle continued for 3 years and was finally resolved
when the government introduced Unified Licensing making cellular services technology
neutral and allowing WLL players to provide full mobility after payment of an entry fee

29
equal to what the GSM operators had paid (RaboCom. 2004(2)). Unified Licensing
reduced the regulatory uncertainty prevailing in the Indian Telecom industry and
provided a level playing field for all the major mobile service providers

Emergence of Strategic Alliances

The telecom industry in India started out with many small and big players.
However, with falling tariffs and greater demands by consumers, it became
difficult for smaller players to survive. This led to a consolidation in the industry and as
of now, there are only a few major players left in the field. A series of strategic alliances,
both formal and informal, have already been entered into in the Indian Telecom Sector
by companies who are either constrained by a shortage of resources, do not have an
adequate presence in all geographical markets or driven by such needs as acquiring
know-how, minimizing risks, gaining critical mass or having access to brand names. For
example, Reliance Infocomm has entered into a technology agreement with Samsung of
South Korea to manufacture CDMA handsets in-house.

entered into an equity

arrangement and have further plans to join hands with

Bharti. Under this arrangement, the three-company combine will operate in
Contiguous and complementary circles with full internal co-ordination, thus
creating in the process, a third front in wire line business, capable of taking on the
incumbent public sector BSNL and MTNL (the first front) and Reliance Infocomm (the
second front). In the cellular segment, a three-company alliance called "Idea Cellular"
has come up. It has a large footprint (especially in the South) and consists of the cellular
businesses of the Tatas, Birlas and AT&T

Key Players in the Indian Telecom Industry

30

Bharati Group
It is the largest integrated private sector telecommunications service provider in India
today and has a presence over the entire country. It was the first private sector company
to offer basic services, national and international long distance telephony in India. It
started offering its services in the mid 90s.

Hutchison Group
It is Indias third largest GSM operator and is part of the $55 billion Hong Kong based
Hutchison Whampoa Group. It initially began operations in one circle, Mumbai, and has
gradually expanded across the country to cover telecom circles throughout India.

Reliance Infocomm Ltd

It is promoted by Reliance Industries Limited and offers mobile telephony
Services on the CDMA platform on a nation wide optical fibre cable network capable of
supporting broadband services. Its strategy has been to acquire a large subscriber base on
the back of low tariffs and then promote calls within its network to enable yet lower
tariffs for its subscribers.

Tata Teleservices Ltd.

Owned by the Tata Group, it provides basic and wireless services on the CDMA
platform. As compared to its peers, the company has not been aggressive in expanding in
the wireless space.

Bharat Sanchar Nigam Ltd.

BSNL is a public sector organization, wholly owned by Department of
Tele-communication (DOT). It is Indias principal provider of local and domestic long
distance telephony. It offers basic services nation wide, except for Mumbai and Delhi,
where MTNL is the state-run telephony service provider. On the back of its established
and well spread infrastructure of telephone exchanges, it has been able to roll out its

31
network at a rapid pace. Factors were decided on the basis of in-depth interviews. The
constituent attributes of the three factors are as follows:
Call Charges
SMS Rates
Talk Time
Economy
Roaming Charges
Network Coverage
Voice (Transmission) Clarity
Timely SMS Delivery
Performance
Customer Care
Free Number / SMS Offers
Ring-tones & Downloads
News / Sports Updates
Value Added Services
As an outcome of this initial study, three main factors were obtained that
are used by students for forming an opinion about a mobile service provider.
These are:
1._ Economy
2._ Performance
3._ Value Added Services

In all, a total of four focus group discussions, with six students each, and
thirty in-depth interviews were conducted in this phase. Subsequent to this phase, a
survey of students was carried out during the Conclusive Study Phase, wherein the
importance of the different parameters and their constituents was ascertained.

32

Conclusive Study Phase

In this phase, a questionnaire was designed using the preliminary data collected from the
Exploratory Phase (APPENDIX A). The questionnaire was administered to respondents,
who were graduate and post-graduate students from different

Major Players
There are three types of players in telecom services:
-State owned companies (BSNL and MTNL)
-Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
-Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,)

BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL
is now Indias leading tele-communications company and the largest public sector
undertaking. It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections. The state-controlled BSNL operates basic, cellular (GSM
and CDMA) mobile, Internet and long distance services throughout India (except Delhi
and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year
Plan (1992-97). The aim is to provide a telephone density of 9.9 per hundred by March
2007. BSNL, which became the third operator of GSM mobile services in most circles,
is now planning to overtake Bharti to become the largest GSM operator in the country.
BSNL is also the largest operator in the Internet market, with a share of 21 per cent of
the entire subscriber base.

Salient feature of bsnl service

India's fastest growing cellular service , along with postpaid and prepaid services brings
cellular telephony to the masses, through innovative technology and strategic pricing.
This ambitious service uses state-of-the-art GSM technology to attain global excellence

33
and leadership in business. Our entry into this sector has brought GSM cellular service at
an affordable cost to the common man. All serving a single objective, to provide better
communication to millions across India.
Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh
Cellular customers within ten months of launch of Cellular service, an unprecedented
mark in Indian Cellular Market.

Why should you choose BSNL Mobile?

For the first time in the country, all major towns and cities are covered through
our network

All major national and state highways are covered

National and International SMS facility

International roaming available for more than 300 networks across the world

The facility of one number roaming across the country

Appropriate and reasonable tariff packages to suit every pocket

Absolute transparency in billing.

All regular features of cellular telephony, such as SMS as well as advanced

features like MMS are available.

24 Hour helpline all across the country.

The only Mobile service available through out the country including Jammu and
Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram
etc.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality
of telecom services, expand the telecom network, introduce new services and to raise
revenue for telecom development needs of Indias key metros Delhi, the political

34
capital, and Mumbai, the business capital. In the past 17 years, the company has taken
rapid strides to emerge as Indias leading and one of Asias largest telecom operating
companies. The company has also been in the forefront of technology induction by
converting 100% of its telephone exchange network into the state-of-the-art digital
mode. The Govt. of India currently holds 56.25% stake in the
company. In the year 2003-04, the company's focus would be not only consolidating the
gains but also to focus on new areas of enterprise such as joint ventures for projects
outside India, entering into national long distance operation, widening the cellular and
CDMA-based WLL customer base, setting up internet and allied services on an all India
basis.
MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market
for fixed wireline phones is stagnating, MTNL faces intense competition from the
private playersBharti, Hutchison and Idea Cellular, Reliance Infocommin mobile
services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a
decline of 5.8 per cent over the previous years annual turnover of Rs.63.92 billion.

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country, first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India. Bharti TeleVentures Limited was incorporated on July 7,1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India.
Bhartis operations are broadly handled by two companies: the
Mobility group, which handles the mobile services in 16 circles out of a total 23 circles
across the country; and the Infotel group, which handles the NLD, ILD, fixed line,
broadband, data, and satellite-based services. Together they have so far deployed around

35
23,000 km of optical fiber cables across the country, coupled with approximately 1,500
nodes, and presence in around 200 locations. The group has a total customer base of 6.45
million, of which 5.86 million are mobile and 588,000 fixed line customers, as of
January 31, 2004. In mobile, Bhartis footprint extends across 15 circles.
Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities the
company believes are available in the Indian telecommunications market and consolidate
its position to be the leading integrated telecommunications services provider in key
markets in India, with a focus on providing mobile services.

RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles. It is
also an integrated telecom service provider with licenses for mobile, fixed, domestic
long distance and international services. Reliance Infocomm offers a complete range of
telecom services, covering mobile and fixed line telephony including broadband,
national and international long distance services, data services and a wide range of value
added services and applications. Reliance India Mobile, the first of Info comm's
initiatives was launched on December 28, 2002. This marked the beginning of Reliance's
vision of ushering in a digital revolution in India by becoming a major catalyst in
improving quality of life and changing the face of India. Reliance Infocomm plans to
extend its efforts beyond the traditional value chain to develop and deploy telecom
solutions for India's farmers, businesses, hospitals, government and public sector
organizations.
Until recently, Reliance was permitted to provide only limited mobility services
through its basic services license. However, it has now acquired a unified access license
for 18 circles that permits it to provide the full range of mobile services. It has rolled out
its CDMA mobile network and enrolled more than 6 million subscribers in one year to
become the countrys largest mobile operator. It now wants to increase its market share
and has recently launched pre-paid services. Having captured the voice market, it intends
to attack the broadband market.

36

TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles:
Maharashtra (including Mumbai),
New Delhi,
Andhra Pradesh,
Tamil Nadu,
Gujarat,
Karnataka.
It has over 800,000 subscribers. It has now migrated to unified access licenses, by
paying a Rs. 5.45 billion ($120 million) fee, which enables it to
provide fully mobile services as well. The company is also expanding its footprint, and
has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime. The new licenses, coupled with the six circles in
which it already operates,
virtually gives the CDMA mobile operator a national footprint that is almost on par with
BSNL and Reliance Infocomm. The company hopes to start off services in these 11 new
circles by August 2004. These circles include Bihar, Haryana, Himachal Pradesh,
Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West
Bengal.

VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network of

37
earth stations, switches, submarine cable systems, and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees. VSNL's main gateway centers are located at Mumbai, New
Delhi, Kolkata and Chennai. The international telecommunication circuits are derived
via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g.

IDEA
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan
that it intends to fund through an IPO, according to parent company Aditya Birla Group .

CellOne provides a number of Value Added Services. These services helps BSNL serve
you better & enhance the ease & quality of communication thus bringing global
connectivity at your doorstep.
Voice Mail Service
Value Added Services SIM Based service SMS based Services
Short Message Service (SMS)
Group Messaging
National & International roaming
Call forwarding
Corporate Virtual Private Network
Call conferencing

38
Friend and Family Talk
Call waiting and Call holding facility
Unified Messaging Services: This provides Voice mail, FAX, email,

text

to

voice

services on your mobile phone. So stay in touch with your nears

and

dears
means

you

by
like

the

most.

Wireless Application Protocol (WAP): Surf WAP enabled

websites

on

Internet

using

this service.

VALUE ADDED SERVICES

Value-added services (VAS) are unlike core services. They have unique characteristics
and they relate to other services in a completely
benefits

that

core

services

Value-added Service Characteristics:All VAS share the same characteristics:

can

different way. They also provide

not

provide

you.

39
1. Not a form of basic service but rather adds value total service offering
2. Stands alone in terms of profitability and/or stimulates incremental demand for
core service(s)
3. Can sometimes stand alone operationally
4. Does not cannibalize basic service unless clearly favorable
5. Can be an add-on to basic service, and as such, may be sold at a premium price
6. May provide operational and/or administrative synergy between or among other
services not merely for diversification
Every VAS will demonstrate one or more of the above characteristics. Furthermore, a
value-added service will never stand in stark contrast to any of the above characteristics.
VAS also have a certain time dimension associated with them. Subjectively speaking, a
value-added service today becomes a basic service when it becomes sufficiently
common place and widely deployed to no longer provide substantive differentiation on a
relative basis.

Relationship to other Services

There are two types of VAS. The first service type are those value-added services that
stand alone from an operational perspective. These types of services need not be coupled
with other services, but they can be. Many non-voice services fall into this category.
They are often provided as an optional service along with voice services, but they could
be offered and used by themselves without the voice service. For example, SMS could
be offered and used as a service without voice calling.
The second, and arguably more numerous and important type of VAS, are those services
that do not stand-alone. Instead, this category adds value to existing services. While it

40
seems implicit in the definition of value-added, this is an important principle that makes
value-added services stand apart from other services.

Value-added Services Examples

There are many services that could be considered "value-added". For discussion
purposes,

we

will

few

of

these

services

below.

Push-to-Talk
Push-to-Talk (PTT) is a VAS because it:

Drives additional revenue to the wireless carrier, but doe not cannibalize existing
revenues

Provides differentiated service offerings

May be packaged with various other VAS such as MIM to provide even greater
value

Call Management Services

This type of service can not stand alone as a service. Instead, it adds value to a core
service by allowing the subscriber to manage incoming and/or outgoing calls. For
example, value-added service interactions occur when the subscriber receives a call.
Many call management services allow the subscriber to establish when, where, and
under what circumstances they may be reached by calling parties. This provides value to
the core service - voice communications - by way of increased control and flexibility.
Depending on the specific commercial situation, this value-added service could be
offered as either a premium service (at a premium price) or be bundled with other the

41
core service offering. The benefit of bundling would be to provide a differentiated core
service and/or to increase the use of the core service
.

Location Sensitive Billing

This is another example of a service that can not stand-alone. Instead, location sensitive
billing (LSB) adds value to the core service by location enabling the core service.
Location sensitive billing can be used in conjunction with post-paid, prepaid, and/or
VPN based mobile communications services to establish zones for which differentiated
billing treatment may be applied. For example, a "home zone", "work zone", and
"premium price zone" could be established to allow an operator to offer differentiated
service to its customers.
This is viewed as a value-added service to both the customer and the mobile operator.
The customer benefits from LSB through his ability to use the mobile phone at preferred
rates based on location. The wireless carrier benefits from incremental revenues derived
from additional usage and from premium charge zones where there is already high
demand and perhaps overly taxed system capacity. While the issue of potential
cannibalization of existing service arises, customer behavior and studies indicate a net
benefit derived from overall increased usage and revenues.
Taken together, call management services and LSB also depict characteristic number six,
operational synergy. Call management services add value in terms of providing the user
options depending on location. For example, the user may want to receive certain calls at
the home zone, but not at work, and perhaps receive only urgent calls when traveling or
on vacation. LSB provides the additional synergistic benefit of location based billing
when the user is in those various locations.

Mobile Data Services

42
This is an example of a value-added service that does stand-alone. Mobile data services
are considered value-added because they depict many of the characteristics discussed
earlier.

Does not cannibalize existing services

Can be offered at a premium price

Provides differentiation

Can provide synergy with basic service

Largely due to the current state of mobile communications evolution, many non-voice
services can be considered to be value-added. However, the extent to which additional
value-added services can be layered on top of mobile data services will determine the
limit of their value. For example, many non-voice services will have even greater value
through personalization. Two of the most significant ways to personalize wireless
services are through location enabling them and making them personal profile driven.
Mobile data services are utilized to obtain information, content, and to perform
transactions. All of these activities are more meaningful if they are tailored to the
individual. Location based services add value by way of putting the data into a location
context for the user. Personal profiles further enhance the value through Personalization

Idea as glance
New Delhi: Minister of Communications, Information
Technology and Parliamentary Affairs Pramod Mahajan
has launched the services of Idea Cellular in Delhi.

43
Idea Cellular, Indias fastest-growing mobile telephony services operator, redefines the
mobile telephony standards in the capital by offering the following distinct

advantages:

Indias first 3G compatible, EDGE upgradeable network that enables Idea

Cellular to launch high-speed data services, offer multimedia services and
operates superior quality of voice telephony network

Over 925 cells from day one for seamless coverage in Delhi and NCR and
6,00,000 simultaneous call handling capacity (BHCA) at any given time much
higher than any other network

Delhis only GPRS (general packet radio services) enabled network that enables
to experience wireless Internet on the mobile and computer at blistering speeds

First time in India a full-capacity multimedia messaging service (MMS) on both

prepaid and postpaid, and can add life to text messages by attaching coloured
photographs and voice clips

Multiple tariff plans on prepaid; for the first time the pre-paid customer gets to
choose a tariff plan that suits his needs and Idea philosophy (pay less for more)
rewards him for higher usage

Five value-rich tariff plans that enable Idea subscribers to choose a plan that suits
their talk needs

M-coupon, a first-ever innovative value-added service from Idea, enables to avail

of discounts at the flash of the mobile

For the first time Delhi subscribers get full roaming on prepaid (in Mumbai and
six more circles). Idea subscribers also get automatic national roaming for
incoming.

Says Idea Cellular CEO Graham Burke: As the fastest-growing cellular service
provider in India, we have set standards in service delivery for others to follow. The fact
that we were voted No 1 in customer satisfaction in a nationwide survey conducted by
NFO-MBL speaks volumes for our service levels. We are also the only non-metro player

44
to cross the 1-million subscriber mark owing to our range of superior products and
services.
We now bring all of these standards and many more
value-added services for enhancing the productivity of
mobile phone users in Delhi. Idea is committed to
remain the most customer-focused mobile service
provider in India, by continuously innovating so as to
liberate our customers from the shackles of time and
space.
Says Idea Cellular COO Himanshu Kapania: To offer a truly revolutionary experience
to its subscribers, Idea Cellular has not only set up a world-class network that enables us
to offer a host of value-added services and innovative tariff plans, but we have also set
up a full capacity 24x7 call centre that will offer personalised assistance to the Idea
subscribers, within a response time of three rings. This is minutes ahead of current
practice as voiced by the consumer research.
Idea Cellular, formerly Birla Tata AT&T, is Indias premier and fastest-growing cellular
company, promoted by the countrys largest business houses the Aditya Birla group and
the Tata group, and the worlds largest telecom giant AT&T Wireless, USA.
Having its footprints in the six states of Andhra Pradesh, Chattisgarh, Goa, Gujarat,
Madhya Pradesh and Maharashtra (excluding Mumbai) the company has now launched
its services as the fourth operator in its flagship circle Delhi.

Reliance at a glance
The latest episode in the Indian mobile rate war started when Reliance Infocomm pulled
the trigger a few weeks back with a massive 60% cut in tariffs for prepaid Reliance India
Mobile (RIM) cell users across its network. Reliance prepaid call costs came down to 99
paise as against Rs 2.49 before. The Reliance move rattled the entire cell spectrum.

45
The first one to take on the Reliance juggernaut was Bharti Televentures (which owns
Airtel and Airtel Magic), which unleashed its own reduced tariffs. The GSM major
kicked up dust, and others followed suit. Airtel announced Airtel One 150 plan, where a
call to any GSM cellular network is charged at Rs 2 per minute under post-paid
category. Under the pre-paid category of Airtel One 150 plan, a call to any cell or WLL
or fixed line is charged at Rs 2.25 per minute.
Reliance had announced a tariff of Rs 1.79-per-minute for a call to any cell under the
pre-paid category and Re 1 per minute to any cell under the post-paid category.
The next one to jump into the fray was the state-owned
telecom behemoth Bharat Sanchar Nigam Ltd (BSNL), which
operates CellOne cellular services across the country except in
Delhi and Mumbai, apart from land lines and a host of other
value-added services. The new BSNL rates undercut Reliance
and the discounts were for cell and land phone users as well.
Aggression personified, the PSU giant went straight for the
jugular, with a reduction in domestic long distance rates as well. Hutch (which operates
Orange and Hutch brands) and BPL Mobile followed suit and before one knew it, the
rates had crashed to levels unheard of even in the global telephony market.
The next to don battle paint was MTNL, another PSU blue-chip and BSNL's city cousin.
MTNL operates telecom networks in Delhi and Mumbai under its brand Dolphin and
prepaid brand Trump. MTNL slashed cell-to-cell rates by about 37% in the postpaid
segment and about 28% in the prepaid segment. It also slashed STD rates for both
cellular and landline services by up to 50% in the over 500 km slab to Rs 2.40 a minute.
Also, for local calls to mobile networks, the pulse duration was revised from 60 to 90
seconds, effectively halving the tariff. In Delhi and Mumbai, we are the cheapest,
preened MTNL chairman and managing director RSP Sinha.
Continuing the tariff war, Tata Indicom followed by cutting its prices by 33 per cent for
calls in both intra and inter-circle calls. The company has reduced intra-circle call rates

46
to Rs 1.20 with a 60-second pulse rate, compared to the earlier rate of Rs 1.80. The new
rates are applicable for Tata Indicom fixed wireless, wireline and public telephone booth
tariffs. Tata Indicom is the telecom umbrella brand of Tata group companies, which
provides CDMA based wireless services apart from broadband services. The call rates
for inter-circle calls have been slashed to Rs 2.40 per minute to any number above 50 km
from the prevailing Rs 3.60. At the time of uploading this article, almost all Indian
cellular and landline operators have undertaken massive rate cuts.
It's literally talk time for us consumers, but is the cut-throat rate war good or bad?
Memories of 1997 come to mind, when Reliance Infocomm was yet to be born, when the
Mumbai cellular market was dominated by only two players who had comfortably
carved out the market between themselves. Users from those days recollect how the rate
changes of both Hutch and BPL were almost identical so that customers had little to
choose from. If you are unsatisfied with BPL, you go to Hutch which offered identical
tariffs. The cellular market was an oligarchy.
The scene changed with the grand entry of MTNL and AirTel. MTNL sported cheaper
cell tariffs, but trailed others in terms of customer service and coverage. Besides, other
cell operators in the country ostracised MTNL for not being with the Cellular Operators
Association of India (COAI). Those days were the days when the GSM-CDMA battle
was picking up momentum. MTNL tried to ride both the horses with Garuda CDMA in
one hand and Dolphin in the other. Consequently, when other GSM operators sewed up
roaming tie-ups with other operators, the Dolphin user could swim only in Delhi and
Mumbai pools.
Even as the GSM-CDMA battle unfolded in the
background, it was happening days in the cellular services
industry. As more and more operators came in, the
oligarchies collapsed and the rates started declining.
Mobile phone usage was no longer and expensive affair.
With the installation of the Calling Party Pays (CPP)

47
system, the last hurdle to mobile expansion disappeared. Now, telecom operators
realized the potential size of the market and dived in.
The battle was taken to the next level with the birth of Reliance Infocomm, which
undercut all existing players with rates unheard so far. The company's aggressive sales
and marketing made it one of the country's biggest wireless operators almost overnight.
Cellular operators cried foul, saying Reliance was using license for land telephony to
provide wireless services. The battle went to the Telecom Regulatory Authority of India,
the Telecom Dispute Settlement Appellate Tribunal and finally, the Supreme Court,
where Reliance won the battle. Forking out a license fee of Rs 10,000 crore, Reliance
migrated to the newly-installed Unified License regime.
All through the battle, cell phone tariffs declined steadily. The deep cuts started
bleeding the small fry. It was time for consolidation in the cellular space. The Birla-TataAT&T consortium, which was a loose entity, coalesced into Idea Cellular. Escotel,
which had limited operations in Kerala and Punjab joined the Idea embrace and merged
into it. BPL bought out AT&T's stake in its JV BPL Cellular. Sky cell in Tamil Nadu
was taken over by Bharti and renamed AirTel. AirCel, a Sivasankaran-promoted cell
operator in Tamil Nadu, in December 2003 bought RPG Cellular. Later in June 2004,
AirCel was in turned acquired by Hutch in one of biggest acquisitions in Indian telecom
history estimated at Rs 1,600 crore. In another deal, Singapore Technologies Telemedia
Pte and Telekom Malaysia Bhd jointly bought a one-third stake in Idea.
Analysts say cell tariff cuts are necessary as operators roll out networks in new markets.
Meanwhile, the smaller players, even the efficient ones, get pushed outside, since they
can't match the scale and synergies of the big boys on the scene. In the short to medium
term, expect more price cuts. The Dhirubhai Ambani Plan (remember STD at 40
paisa/minute?) and other marketing pushes are believed to have brought Reliance
Infocomm to dire financial straits, but the company sure has lots of sleeves up its sleeve.
Expect BSNL to match, if not better, Reliance rates at every stage. If push comes to
shove, BSNL & MTNL can unleash a no-profit blitzkrieg and drive Reliance and others
out of the market. Profit is not their primary concern. Once the BSNL-MTNL merger

48
becomes a reality -- which seems quite real now -- the nationwide scale
and synergies will enable the combined entity to take a quantum leap.
Expect fewer, smarter, mobile players in the future offering schemes
that more people can make sense of.
Quaint are the ways of the market, isn't it? From the oligarchy of early
cellular days, competition threw up a dozen operators, many of which are now merging
into the bigger players. Telecom experts believe that the number of cell players in India
will come down to a lean mean set of about 4-5 from about a dozen now. But don't fear a
1997 rewind. Competition has come home to stay. And it's not going to go -- the rentals
have crashed, you see!

Tata indicom cdma cellular service at glance

Value Added Services

PIN-less dialing helps you to save time by remembering your 12 digit PIN for you. All
you need to do is to register your phone number from which you intend to use the card.
So the next time just dial the access number , dial 1 for English or 2 for Hindi and then
directly

dial

the

destination

number

you

would

like

to

call.

You can register a maximum of 5 phones using this facility

Speed Dialing Speed dialing enables you to store up to three of your most frequently
called numbers on your calling card. All you need to do is register your frequently dialed
numbers. So the next time you just need to dial the access number, punch in your PIN ,
dial 1 for English or 2 for Hindi and then hit the speed dial code to directly reach your
destination number. If you have already configured for PIN-less Dialing, just dial the
access number , dial 1 for English or 2 for Hindi and then directly punch in your speed

49
dial

numbers.

You can configure a maximum of 3 speed dial numbers. The three speed dial numbers
that can be configured are #2, #3 and #4.
Itemized Billing the other Calling Cards, we also offer you the option of viewing your
call details on the internet, thus ensuring that every rupee of your prepaid calling card is
accounted for. You can avail of this unique feature by registering your card.

Other Value Added Services

Follow on call Follow on call helps you to make more than one call in the same attempt.
When the called party has disconnected the call, you can simply dial the next number you
would like to call. This helps you to save the trouble of dialing the access number and the
PIN again.
Redial When the called party has disconnected the call, and you need to call them again,
you can hit 2 in order to redial the previously dialed number. This helps you to save the
trouble of dialing the access number, PIN, and the destination number again.
Balance on demand The Tata Indicom Global Calling Card empowers you to know the
available balance on your calling card whenever you want it by following three simple
steps:
1.

Dial

2.

the

access

Press

3.

number

for

Dial

of

the

English

your

country

you

or

12

are
for

digit

calling

from.

Hindi
PIN

4. Hit 8 to know available balance on your card

Recharge your card The Tata Indicom Global Calling Card enables you to recharge your
calling
1.Dial
2.
3.

card
the

by

access

Press
Dial

following

number
for
your

of

three

the

country

English
12

or

simple
you
2
digit

are

steps:
calling

for

from.

Hindi
PIN

4. Then hit 1 to recharge your card. Than dial the 14 digit PIN. Enter your 14 digit PIN

50
now to recharge your card.

51

RESEARCH
METHODOLOGY

SAMPLING PLAN
The Sampling plan was designed as follows:

52
Sampling Unit: Sampling Units are those people who are above the age of 18
years, they may be the students, house wife or the working people having some knowledge
about GSM and CDMA mobiles and services provided by the operators.
Sample Size: The sample size of my data is 50. People who are belonging to the
different areas of Bareilly city.

COLLECTION OF DATA
The task of data collection begins after a research problem has been defined. While
deciding about the method of data collection to be used for the study; the researchers
should keep in mind two types of data i.e. Primary and Secondary data.

PRIMARY DATA:The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. The data used for the present research is primary data.
The different methods that are used for collecting primary data are as follows:

A) Contact Method:
The 'contact method ' considering the short coming was selected to personal interview.

53

B) Observation Method:
The present investigation was done on the basis of making note of behavior and gestures
of the target customers.

C) Questionnaire Method:
The method of data collection is quite popular and is being adopted by researchers, private
individuals and organization.

D) Schedule Method:
The method of data collection is very much like the collection of data through
questionnaire, with little difference which lies in the fact that schedules are being filled in
by the enumerates who are specially appointed for the purpose, these enumerators go to
the respondents along with the schedule and put up the question. Inferences are drawn on
the answers given by them.

SECONDRY DATA :

Data already collected by any person or institution is called secondary data.

54

These data are often used by the investigators and other people having its need.

The advantages of the secondary data can be It is economical, both in terms of

money and time spent.

The researcher of the report also did the same and collected secondary data from
various internet sites.

The researcher of the report also visited various libraries for collection of the
introduction part.

The sources of secondary data are Books, journals etc.

55

DATA
PRESENTATION

56

QUESTIONARE
Age :-

10-20
3%

21-31
41%

31-41
49%

Above 45
5%

AGE

ABOVE 41
YRS 10-20YRS
3%
5%
21-31YRS
42%
31-41YRS
50%

10-20YRS

21-31YRS

31-41YRS

ABOVE 41 YRS

57

Gender :-

Male
63%

Female
37%

GENDER

FEMALE
37%
MALE
63%

MALE

FEMALE

58

Education :-

Intermediate

Graduate

16%

P graduate

29%

others

33%

22%

EDUCATION

OTHERS
22%

P. GRADUATE
33%

INTERMEDIATE

GRADUATE

INTERMEDIAT
E
16%

GRADUATE
29%

P. GRADUATE

OTHERS

59
Q1. Which Mobile service do you use?

GSM
76%

CDMA
24%

CDMA
24%

GSM
76%

GSM

CDMA

Q2. Which operator/service you prefer in GSM?

60

BSNL
26%

VODAFONE AIRTEL
16%
26%

IDEA
21%

OTHERS
11%

BSNL
26%

IDEA
21%

VODAFONE
16%

AIRTEL
26%

BSNL

VODAFONE

OTHERS
11%

AIRTEL

IDEA

Q3. Which operator/service do you prefer in CDMA?

OTHERS

61

RELIANCE
50%

TATA INDICOM
33%

OTHERS
17%

OTHERS
17%
RELIANCE
50%

TATA
INDICOM
33%

RELIANCE

TATA INDICOM

Q4. How long you are using CDMA service?

OTHERS

62
6 MONTHS
50%

1 YEAR
32%

2 YEARS
18%

2 YEARS
18%
6 MONTHS
50%

1 YEAR
32%

6 MONTHS

1 YEAR

2 YEARS

Q5. How long you are using GSM service?

6 MONTHS

1 YEARS

3 YEARS

5 YEARS

63
16%

16%

32%

36%

6 MONTHS
16%

5 YEARS
36%

1 YEAR
16%

2 YEARS
32%

6 MONTHS

1 YEAR

2 YEARS

5 YEARS

Q6. Which facility more suits to you in CDMA?

NETWORK

ROAMING

VOICE

FACILITY

FACILITY

FREQUENCY

RINGTONES

64
34%

43%

19%

VOICE
RINGTONES
FREQUENCY
4%
19%

4%

NETWORK
FACILITY
34%

ROAMING
FACILITY
43%

NETWORK FACILITY

ROAMING FACILITY

VOICE FREQUENCY

RINGTONES

Q7. Are you satisfied with the billing system of CDMA?

YES

NO

65
20%

80%

YES
20%

NO
80%

YES

NO

Q8. Are you satisfied with the billing system of GSM POSTPAID?

YES

NO

66
28%

72%

YES
28%

NO
72%

YES

NO

Q9. Are you interested in internet facility provided by mobile operators?

YES
48%

NO
52%

67

YES
48%
NO
52%

YES

NO

Q10.Are you satisfied with the network of your phone?

YES
28%

NO
72%

68

YES
28%

NO
72%

YES

NO

Q11. Do you use the life time facility?

YES
70%

NO
30%

69

NO
30%

YES
70%

YES

NO

Q12.Are you satisfied with the customer care services?

YES
32%

NO
68%

70

YES
32%

NO
68%

YES

NO

Q13. Are you satisfied with tariff rate of recharge voucher of your mobile phone
service?

YES
40%

NO
60%

71

YES
40%
NO
60%

YES

Q14. Are you satisfied with

NO

the new schemes provided to you by your mobile

phone operator?

YES
44%

NO
56%

72

YES
44%
NO
56%

YES

NO

73

CONCLUSION

On the basis of research analysis following conclusions are drawn:

We come to know that GSM is more preferred than CDMA mobile

Services.

AIRTEL is more bigger player in this industry and obliviously in the

Bareilly region after that BSNL is there and now a days IDEA is also in
growth of telecommunication.
Most of people are not satisfied with the customer care services.

74

People are not satisfied with the billing system of postpaid mobiles
Some people are using CDMA sets for roaming facility.
Many people use internet through mobile.
Lifetime facility is good and customers use this facility.
Reliance is preferred by most of the customers because of its new schemes
which are much more in favour of customers .

75

SUGGESTIONS

SUGGESTIONS
Suggestions are valuable which play a vital role in any area of Business. They not only
help to develop the product but also enable it to stay in Tune with the changing tastes
and preferences of customers.
Call drop frequency should be checked for better service.
There must be local Service Point.
The Complaints must be attained with the period of 24 hours in BSNL
specifically

76
Airtel services should to give more emphasis on internet and voice quality and
other facility also.
The employee should make better relation with customer.
The

company

should

conduct

seminar

and

awareness

program

of

telecommunication services.
Emphasis on better advertising by services.
Take feedback with customer time to time for improving their services.
Improving there services and makes better relation with customer.
Communicate with customer for knowing the problem of customer in respect
with services.
Improve services by the customer care.

77

LIMITATIONS

LIMITAION

Since the feedback of the customers was done through Questionnaire major
limitation was unavailability of customers thus leading to highly low success
rate.

78
Most of the customers were so furious that they refused to part with any
information.
Employees of company were so irritated that they dont interested in giving any
information about broadband.
Time factor is also a part of limitation.
Since many of the people were not showing their interest so they might not have
given the correct information, but as we were less aware of it we can not ignore
their response.

79

BIBLIOGRAPHY

BIBLIOGRAPHY
www.Bsnl.co.in
www.ideacellular .com

80

www.tataindicom.com
www.relianceinfo.com
Research Metholodgy C.R.Kothari

81

ANNEXURE

QUESTIONNAIRE

AGE-..
GENDER-..

82
OCCUPATION. - ..
EDUCATION-..

Q1. Which Mobile service do you use?

(a)

CDMA

(b)

GSM

Q2. Which operation/service you prefer in GSM?

a)

BSNL

(b)

IDEA

(c)

AIRTEL

(d)

VODAFONE

(e)

OTHERS

Q3. Which operator/service do you prefer in CDMA?

(a)

RELIANCE

(c)

OTHERS

(b)

TATA

Q4. How long you are using CDMA service?

(a)

6 MONTHS

(b)

1 YEARS

(c)

3 YEARS

(d)

5 YEARS

Q5. How long you are using GSM service?

(a)

6 MONTHS

(b)

1 YEARS

(c)

3 YEARS

(d)

5 YEARS

Q6. Which facility more suits to you most in CDMA?

83
(a)

NETWORK FACILITY

(b)

ROAMING FACILITY

(c)

VOICE FACILITY

(d)

RING TONE

Q7. Are you satisfied with the billing system of CDMA?

(a)

YES

(b)

NO

Q8. Are you satisfied with the billing system of GSM POSTPAID?
(a)

YES

(b)

NO

Q9. Are you interested in internet facility provided by mobile operators?

(a)

YES

(b)

NO

Q10. Are you satisfied with network of your phone?

(a)

YES

(b)

NO

(b)

NO

Q11. DO you use the life time facility?

(a)

YES

Q12. Are you satisfied with customer care services?

(a)

YES

(b)

NO

Q13. Are you satisfied with tariff rate of recharge voucher of your mobile phone
service?
(a)

YES

(b)

NO

84

Q14. Are you satisfied with the new schemes provided to you by your mobile phone
operator?
(a)

YES

(b)

NO