Professional Documents
Culture Documents
PROJECT REPORT
On
SUBMITTED BY
Group No. 2
Section I
MEMBERS:
Abhay Singh
Amyn Sayani
Anirban Das
Jasmeet Kaur
Jnana Ranjan Pati
Pratibha Sharma
Vikash Verma
SUBMITTED TO
Dr. ANJALI MALIK
ACKNOWLEDGEMENT
This Project has been made possible through the direct and
indirect Co-operation of various persons, who have inspired us at
every step of our work. It is a matter of pride for us to
acknowledge our profound gratitude to our respected teacher Dr.
Anjali Malik who always facilitates us in gaining practical
knowledge.
And above all, we all beholden to each of our group members for
their blessing and encouragement in completing this task.
Group No. 2
PREFACE
The Study was undertaken as a part of the course curriculum of MBA Full
Time Program of IILM GUGRAON
GROUP NO: 2
SECTION-I
CONTENTS
CHAPTERS
CHAPTER-1
• INTRODUCTION
• OBJECTIVES OF THE STUDY
CHAPTER-2
CHAPTER-3
• RESEARCH METHODOLOGY
• RESEARCH DESIGN
• SAMPLE DESIGN
• LIMITATIONS OF THE STUDY
CHATPER-4
CHAPTER-5
BIBLOGRAPHY
ANNEXURE
CHAPTER-1
INTRODUCTION
There are certainly methods far more common than others in comparative
studies, however. Quantitative analysis is much more frequently perused
than qualitative, and this is seen in the majority of comparative studies can be
use quantitative data.
The general method of comparing things is the same for comparative research
as it is in our everyday practice of comparisons. Like cases are treated alike,
and cases are treated differently; the extent of difference determines how
differently cases are treated. The point here is that if one is able to sufficiently
distinguish two cases, comparative research conclusions will not be very
helpful.
In line with how a lot of theorizing has gone in the last century, comparative
research does not tend to investigate ‘grand theories’ such as Marxism. It
instead occupies itself with middle-range theories – theories that do not
purport to describe our social system in its entirely, but a subset of it. A good
example of this is the common research programs that looks for differences
between two or more social systems, then look at these differences in relation
to some other variable coexisting in those societies to see if it is related. The
classic cases of this is Esping-Anderson’s research on social welfare
systems, and compared them based on there levels of deco modification of
social welfare goods. He found that he was able to class welfare states in four types,
based on their deco modification. She further theorized from this that deco modification
was based on a combination of class collisions and mobilization, and regime legacy.
Here Esping-Anderson is using comparative research: he takes many western
countries and compared their level of deco modification, then develops a
theory of the divergence based on his findings.
Started in 1851 when the first operational land lines were laid by the
government near Calcutta (seat of British power). Telephone services were
introduced in India in 1881. In 1883 telephone services were merged with
the postal system. Indian Radio Telegraph Company (IRT) was formed in
1923. After independence in 1947, all the foreign telecommunication
companies were nationalized to form the Posts, Telephone and Telegraph
(PTT), a monopoly run by the government's Ministry of Communications.
Telecom sector was considered as a strategic service and the government
considered it best to bring under state's control.
Cellular services can be further divided into two categories: Global System
for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular,
while the CDMA sector is dominated by Reliance and Tata Indicom. Opening
up of international and domestic long distance telephony services are the
major growth drivers for cellular industry. Cellular operators get substantial
revenue from these services, and compensate them for reduction in tariffs on
airtime, which along with rental was the main source of revenue. The
reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.
Cellular Service
Overview
1. There are five private service operators in each area, and an
incumbent state operator. Almost 80% of the cellular subscriber
base belongs to the pre-paid segment.
2. The DoT has allowed cellular companies to buy rivals within the
same operating circle provided their combined market share did not
exceed 67 per cent. Previously, they were only allowed to buy
companies outside their circle.
Growth Drivers
Subscribers
The wire line segment subscriber base stood at 39.73 million with a decrease
of 0.16 million at the end of August 2008. Circle wise wire line subscriber
base of service providers is given at following chart..
Company Profile
INTRODUCTION
INTRODUCTION
As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to
operate in 11 circles. With a customer base of over 17 million, IDEA Cellular
has operations in Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya
Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and
Kerala. IDEA Cellular's footprint currently covers approximately 45% of
India's population and over 50% of the potential telecom-market.
Holding
Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in
the company. But following AT&T Wireless' merger with Cingular Wireless in
2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought
by both the Tatas and Birlas at 16.45% each.
Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a
CDMA-based mobile provider, cropped differences between the Tatas and the
Birlas. This dual holding by the Tatas also became a major reason for the
delay in Idea being granted a license to operate in Mumbai. This was
because as per Department of Telecom (DOT) license norms, one promoter
could not have more than 10% stake in two companies operating in the same
circle and Tata Indicom was already operating in Mumbai when Idea filed for
its license.
The Birlas thus approached the DOT and sought its intervention, and the
Tatas replied by saying that they would exit Idea but only for a good price.
On April 10, 2006, the Aditya Birla Group announced its acquisition of the
48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06
billion. While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a
company in-charge of the Birlas' new business initiatives, the remaining
stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family
owned company.Currently, Birla Group holds 98.3% of the total shares of the
company.
Idea has successfully launched 3 more new circles (states) in India viz.
Rajasthan, Himachal Pradesh and UP (East) to make itself a pan-India player.
Recently, Idea got licenses to operate in Mumbai & Bihar. They are awaiting
the spectrum from DoT.
INTRODUCTION
HISTORY
FOOTPRINT
At present, Reliance Telecom's GSM cellular services are available in 340
towns within its eight-circle footprint. Reliance's CDMA services are available
in 19 states and cover about 65% of the country, state wise. Reliance
Infocomm also offered for the first time in India, mobile data services through
its R-World mobile portal. This portal leverages the data capability of the
CDMA 1X network.
BUSINESS REVIEW
During the twelve months ended March 31, 2008, revenues of the Wireless
business increased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs.
7,364 crore (US$ 1,709 million).
Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs.
2,250 crore (US$ 522 million). Margins expanded to 37% from 31%.
EBITDA of the Global business increased by 98% during the twelve months
ended March 31, 2008 to Rs. 1,271 crore (US$ 295 million). EBITDA margins
increased to 24% from 12% last year.
TATA TELESERVICES
INTRODUCTION
TTSL was incorporated in 1995 and was the first company to offer CDMA
Mobile services in India, specifically in the state of Andhra Pradesh.
Tata is the direct competitor with Reliance, both CDMA operators in India.
The company provides unified telecommunication solutions including mobile,
fixed wireless, fixed line and broadband. Other competitors are Vodafone,
Airtel, Aircel, Idea, MTNL, BSNL providing GSM based mobile telephony.
The company was first in India to provide free intra network calling within
city limits. They launched a unique scheme providing lifetime rental free
connectivity on its mobile and fixed wireless for a one time charge.
Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29 billion) Tata
Group, that has over 87 companies, over 250,000 employees and more than
2.8 million shareholders. With a committed investment of INR 36,000 Crore
(US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence
across the telecom value chain.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the
company swung into an expansion mode. With the total Investment of Rs
19,924 Crore, Tata Teleservices has created a Pan India presence spread
across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, Karnataka,
Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,
Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,
Kolkata, Madhya Pradesh and West Bengal.
Having pioneered the CDMA 3G1x technology platform in India, Tata
Teleservices has established a robust and reliable 3G ready telecom
infrastructure that ensures quality in its services. It has partnered with
Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable,
technologically advanced network.
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom
services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband,
Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a
span of five years it has become one of the largest public sector unit in India.
BSNL has installed Quality Telecom Network in the country and now focusing
on improving it, expanding the network, introducing new telecom services
with ICT applications in villages and wining customer's confidence. Today, it
has about 47.3 million line basic telephone capacity, 4 million WLL
capacity, 20.1 Million GSM Capacity, more than 37382 fixed
exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC
Cable, 63730 Rkm of Microwave Network connecting 602 Districts,
7330 cities/towns and 5.5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned
initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is
no telecom operator in the country to beat its reach with its wide network
giving services in every nook & corner of country and operates across India
except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier
and North-eastern region of the country. BSNL serves its customers with its
wide bouquet of telecom services.
BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariff schemes designed to
suite every customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular customers,
garnering 24 percent of all mobile users as its subscribers. That means that
almost every fourth mobile user in the country has a BSNL connection. In
basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic
Phone subscribers i.e. 85 per cent share of the subscriber base and 92
percent share in revenue terms.
BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet
Customers who access Internet through various modes viz. Dial-up, Leased
Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the
NUMBER ONE ISP in the country.
BSNL plans to expand its customer base from present 47 millions lines to 125
million lines by December 2007 and infrastructure investment plan to the
tune of Rs. 733 crores (US$ 16.67 million) in the next three years.
History
The foundation of Telecom Network in India was laid by the British
sometime in 19th century. The history of BSNL is linked with the beginning of
Telecom in India. In 19th century and for almost entire 20th century, the
Telecom in India was operated as a Government of India wing. Earlier it was
part of erstwhile Post & Telegraph Department (P&T). In 1975 the
Department of Telecom (DoT) was separated from P&T. DoT was responsible
for running of Telecom services in entire country until 1985 when Mahanagar
Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom
services of Delhi and Mumbai. It is a well known fact that BSNL was carved
out of Department of Telecom to provide level playing field to private
telecoms.Subsequently in 1990s the telecom sector was opened up by the
Government for Private investment, therefore it became necessary to
separate the Government's policy wing from Operations wing. The
Government of India corporatised the operations wing of DoT on October 01,
2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates
as a public sector.
What is prepaid mobile service?
Prepaid cellular services are getting very popular these days. Many people
now prefer prepaid services since they offer a variety of advantages related
to lifestyle and cost control that simply are not available through post-paid
contract based services.
* no contracts
* no credit checks
* no deposits
* no monthly bills
* no activation or early termination fees
You will be safer and more secure when you own a prepaid cell phone
without paying hefty monthly fees.
Lifetime prepaid means that your cell-phone connection remains valid for
life. You also get a minimal talktime, ranging from Rs 10 to Rs 100 .The good
part is that all subsequent recharges give you full talk time. There will be no
processing charges, something that is a big turn-off for prepaid customers.
For instance, out of the Rs 335 an Airtel prepaid customer in Delhi pays to
recharge his connection for 30 days, Rs 150 go into processing fees. Another
Rs. 31 goes to the government as tax and he gets airtime worth only Rs 154.
If he takes the lifetime validity offer, the same Rs 335 recharge will give him
talk time worth Rs 302 — and that’s for life. By saving on the Rs 150
processing fee, he will recover the one-time charge for lifetime validity in a
few months.
Lifetime plans allow pre-paid subscribers to have lifetime validity for a
one-time payment. The user can then continue to receive calls without
having to recharge.
Life time plans of the cellular
companies
The Life Time Plan of Airtel
Slashes local outgoing call rate by 50% for Rs. 295/- Lifetime Prepaid users
Local outgoing tariff reduced to Re. 1/- for life to all networks (mobile &
landline) from Rs. 1.99/- for Rs. 295/- Lifetime Prepaid customers.
· All existing customers of Rs. 295/- Lifetime Prepaid to be migrated to Re. 1/-
call rates, without any extra charges.
Bharti Airtel, India’s leading telecom service provider, today announced the
Rs. 495/- Lifetime Prepaid offer for its customers in Delhi & NCR circle and
slashed all local outgoing calls (mobile and landline) to Re. 1/- from the
existing Rs. 1.99/- per minute call rate.
Bharti Airtel, which was also the first service provider to introduce the
Lifetime Prepaid in India, announced this revolutionary tariff cut for
customers that was earlier applicable to only the Rs. 999/- Lifetime
customers. With effect from february 15, 2008, all Rs. 295/- Lifetime Prepaid
customers will be able to make local outgoing calls (Mobile & Landline) at Re.
1/- per minute and all existing customers will be migrated to the revised tariff
plan without any extra charges. Customers will have to recharge with a
minimum amount of Rs. 200/- at least once in every 180 days to enjoy the
lifetime validity and tariff benefits.
Airtel ka Super Lifetime Validity
Pulse Rate 60 sec
Price of Pack (Rs.) 295
Free Airtime on Pack (Rs.) 150
Incoming Calls (Rs.) -
Airtel GSM / Landline /
CDMA WLL
(10 Digit)
LOCAL RATES (Rs./min) 1 (night tariff 1 1
from 11pm to
7 am @ 10
paise)
STD RATES (Rs./min) 2.65 2.65 2.65
ISD (Rs./min)
USA, Canada, Europe (Fixed 6.40
Line), Australia, Singapore,
Hong Kong, Thailand,
Malaysia, Indonesia, New
Zealand.
Gulf, Europe (Mobile), 9.20
SAARC countries, Africa &
Rest of the world
Cuba, Sao Tome & Principe, 40
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands,
Tuvalu, Tokelau, Norfolk
Island, Sakhalin
SMS (Rs.)
Local 1
National 2
International 5
Other Details
PF on subsequent talktime recharges to be as per bands specified i.e. Rs 1-100: 25%, Rs
101-199: 15%, Rs 200 & above: NIL. This is waived for the first 90 days from 25th Feb
08. Min recharge condition of Rs 200/- in 180 running day
Idea - Lifelong Validity Recharge Voucher
Promotional Offer All new customers taking 195 rs recharge on the date of activation, will
For New get Full TT in all recharges of Rs. 125/-(Till 30th April,2008.) Total TT-
Activations* 111.25. Online TT-86.25, Offline TT-25 Rs. (within 48 hrs.)
For making outgoing calls, the standard local tariff will be 99 paise per
minute. Various other calling tariff options will also be available to the users,
depending on the trend of one’s usage.
RCom’s move looks like a replay of 2006, when mobile telephony players
were intensely competing with each other over lifetime pre-paid schemes.
Spectrum war, however, kept the operators busy all through 2007, and one
didn’t hear about lifetime plans at all.
Rcom’s “SATH ZINDAGI BHAR KA” plan
Pulse Rate 60 sec
Price of Pack (Rs.) 195 (sim charges exclude)
Free Airtime on Pack (Rs.) 5
Incoming Calls (Rs.) - free for lifelong
Rel. GSM / Landline /
CDMA WLL
(10 Digit)
LOCAL RATES (Rs./min) 0.99 0.99 0.99
STD RATES (Rs./min) 2.75 2.75 2.75
ISD (Rs./min)
USA, Canada, Europe (Fixed Rs.6
Line), Australia, Singapore,
Hong Kong, Thailand,
Malaysia, Indonesia, New
Zealand. }17
Gulf, Europe (Mobile),
SAARC countries, Africa &
Rest of the world
Cuba, Sao Tome & Principe,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands,
Tuvalu, Tokelau, Norfolk
Island, Sakhalin
SMS (Rs.)
Local 1
National 2
International 5
CHAPTER-3
RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know. It is a
systematic and a replicable process, which identifies and defines problems,
within specified boundaries. It employs well-designed method to collect the
data and analyses the results. It disseminates the findings to contribute to
generalize able knowledge. The characteristics of research presented below
will be examined in greater details later are:
Sample size
For carrying out any research or study on any subject it is very difficult to
cover even 10% of the total population. Therefore the sample size has to be
decided for a meaningful conclusion. For designing the sample size, it was
thought proper to cover a very small percentage of population in various age
groups.
The method used for sample technique was non probability convenience
sampling method. This method is used because it is known previously as to
whether a particular person will be asked to fill the questionnaire.
Convenient sampling is used because only those people will be asked to fill
the questionnaires who were easily accessible and available to the
researcher.
Thus, this, conclusive descriptive statistical study is the best study for this
purpose as it provides the necessary information which is utilize to arrive at a
concrete decision.
TOOLS USED
Mobile 55
Landline 5
Both 40
Q2. Which cellular service do you use?
Airtel 34
idea 28
Reliance 17
BSNL 16
Tata indicom 5
Q3. Which service you r using?
Prepaid 95
Postpaid 5
Lifetime 73
General 27
Q5. Are you satisfied with the call rates of the Lifetime plan?
Yes 64
No 36
0%0%
No
36%
Yes
64%
Call rates 15
Massage Tariff 1
Night Tariff 1
Validity 83
Q7 Are you satisfied with the lifetime plan which you are using?
Yes 78
No 22
No
22% 0%0%
YES
78%
Q8. Rate of the satisfaction level with the services of your present lifetime
plan?
Fully satisfied 14
Satisfied 47
Average 27
Dissatisfied 8
Highly dissatisfied 2
Yes 24
No 76
CHAPTER-5
55% of the people use only mobile, and 40% of respondents use both
the services & only 5% people use the telephone service. It shows the
popularity of cellular phone services.
34% of respondents are using the Airtel services, which is the highest
percentage of users of cellular phone. Idea takes 2nd place in Gurgaon
with 28% of users. Then comes reliance and BSNL, and tata indicom
having least customers in the Gurgaon.
64% of respondents are satisfied with the call rates of the lifetime
plans, it is because telecom companies have slashed their call rates
few months ago. Still in this situation 36% of respondents did not
satisfy with the call rates which service they are using.
When it was asked to the respondents that did they know about the
license of the cellular company, then most of the people replied NO. it
means people are not aware about the license related bound of the
cellular companies which is implemented by TRAI, that cellular
companies can deliver their services until their license have validity,
they have to renew it for providing further service.
CONCLUSIONS
In Gurgaon it is found that Airtel is the market leader in the lifetime plan
segment. People like the lifetime plans provided by the companies. And Idea
having 2nd highest customers in Gurgaon.
TATA indicom having least customers in Gurgaon, where Reliance and BSNL
having almost equal percent of customer
But they are not aware about the bound of cellular companies with TRAI, that
cellular companies can deliver their services till their license have validity,
they have to renew it for providing further service.
SUGGESTIONS
In the lifetime plans, cellular companies should reduce the call rates.
They should provide other facilities like massage and minimum call
rates in the same network.
They should make aware the customers that they have limited license
period.
Books:
• Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New
Dehli.
Web Resources:
www.trai.gov.in
http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp
http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
http://www.bsnl.co.in/about.htm
http://www.bsnl.co.in/service/tariff_excel_pre.htm
http://210.212.144.243/utility/tariff.htm
http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf
www.airtel.in
www.totalnetwork.co.in .
http://www.rcom.co.in/webapp/Communications/rcom/index.jsp
ANNEXURE
Questionnaire
Name -
Age - 1)18-40 □ 2)41-70 □ 3)70 above
□
Q5. Are you satisfied with the call rates of the Lifetime plan?
a) Yes □ b) No □
Q7 Are you satisfied with the lifetime plan which you are using?
a) Yes □ b) No
Q8. Rate of the satisfaction level with the services of your lifetime plan?
a) Fully satisfied □ b) Satisfied □ c) Average □
d) Dissatisfied □ e) Highly dissatisfied □