Satisfaction Derived by the Users of

Different Telecom Operators in the

Muktsar District
PROJECT REPORT SUBMITTED TO THE MALOUT INSTITUTE OF MANAGEMENT &
INFORMATION TECHNOLOGY IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

BY
BHAJAN KAMBOJ
ROLL NO: 809

UNDER THE GUIDANCE OF

MR. SUKHDEEP SINGH
LECTURER IN FINANCE
MIMIT, MALOUT 152107 (PUNJAB)

MAY, 2008
 2

Chapter I
 3

Introduction

INTRODUCTION

With the coming of information technology as a major chalange of globlisation process, the life
has been totally change. Information technology has change the wage of working and hance over
life style. It has played and imported role in the telecom sector also. Where the emerging of new
compititores the old once here facing number of challenge the survive in the market. Since a
inception of first telecom service company full owned by Govt. of India BSNL has been facing
challenges. One major challenge is the compition faced by it from the liberlisation and globlised
envoiorment. Which has started as early as 1992 when place was set by introduction of economic
Reforms. The freedom has been given to the private telocom opreters under these reforms. Hence
with the comong of private owners, with attractive faclity, every company is stragling to campair
as maximum share of the growing market different stratgic were being formulating to ensure the
growth in custmer base. Every company is conscious of this fact and hence induce marketing as a
 4
major management function. Allthough to BSNL was a role provider of telecome services, but
now it is facing acompitition from the other operaters to survive in the market.

In this consurent it is important to firstly study to profile of every company under study
as it will help to highlight to changes that every operater has under gone tile date.

PROFILE OF TELOCOM OPERATORS

Bharat Sanchar Nigam Limited

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
 5
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.

Introduction
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation
Limited) is a fully Govt. owned public sector communications company in India. It is the India's
largest telecommunication company with 25.14% market share as on December 31, 2007. Its
headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has
the status of Mini-ratna - a status assigned to reputed Public Sector companies in India.
BSNL provides almost every telecom service. BSNL is dominant operator in fixed line. As on
December 31, 2007, BSNL had 81% marketshare of fixed lines.
Board of Directors
Corporate structure of BSNL Board consists of CMD & Five full time Directors Human
Resource Development (HRD), Planning & New Services, Operations, Finance and Commercial &
Marketing, who manages the entire gamut of BSNL operations. There are five other Directors in the
full Board of BSNL.
Present & Future
Since its corporatisation in October 2000, BSNL has been actively providing connections in
both Urban and Rural areas and the efficiency of the company has drastically improved from the days
when one had to wait for years to get a phone connection to now when one can get a connection in
even hours. Pre-activated Mobile connections are available at many places across India. BSNL has
also unveiled very cost-effective Broadband internet access plans targeted at homes and small
businesses. At present BSNL enjoy's around 45% of market share of ISP services. BSNL is pioneer of
Rural Telephony in India. BSNL has recently bagged 80% of US$ 580 m (INR 2,500 crores) Rural
Telephony project of Government of India.

During Financial Year 2006-2007 (From April 01, 2006 to March 31, 2007) BSNL has added 9.6
million new customers in various telephone services taking its customer base to 64.8 million. BSNL's
nearest competitor Bharti Airtel is standing at a customer base of 39 million. However, despite
impressive growth shown by BSNL in recent times, the Fixed line customer base of BSNL is
declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling
 6
rate under OneIndia plan, however, the success of the scheme is not known. However, BSNL faces
bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD BSNL.

Financial Pattern
Currently BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has
footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are
managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million
Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for
the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR
78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector
Undertaking with estimated market value of $ 100 Billion. The company is planning an IPO with in 6
months to offload 10 % to public. BSNL has capital of Rs.1, 25,000 lakes with total business of Rs.9,
373,773 lakh at the end of March 2007. BSNL has got net fixed assets valuing more than Rs.57934
Crores (US $ 13.29 billion), which are in the form of Land, Buildings Cables, Apparatus & Plants etc.
as on 31.03.2007. It has Earnings Per Share of Rs.14.03 as on 31.03.2007.
 7

Bharti Airtel Ltd.

History
Bharti Airtel, Indias leading private integrated telecom company, has been at the forefront
of the telecom revolution and has transformed the telecom sector with its world-class services
built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and
today enjoys a strong nationwide presence. Sunil founded Bharti, with a modest capital, in the
year 1976 having head quarter at New delhi since October 2001. Today, at 49 he heads a
successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40
billion and employing over 30,000 people.

Bharti has grown successfully in partnership with various leading companies of the world - Singapore
Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. Bharti has recently entered
into a JV with Wal-Mart for setting up supply chain, logistics and cash and carry to support the
burgeoning retail market in India. Sunil has been conferred one of the highest civilian award
Padma Bhushan.

Introduction
Bharti Airtel, one of India's leading telecom service provider joined hands with Google to offer
mobile search in India. The alliance is expected to set new standards in mobile search. Under the
agreement, Airtel will incoporate Google Search on its Airtel Live mobile

Manoj Kohli, President, Bharti Airtel Ltd said, "In India, mobile is fast outgrowing the growth of %s.
Mobile users outnumber % users in India by a factor of six. The first computing experience for the
majority of Indians in the next few years will be on a mobile phone. Airtel is delighted to partner
with Google, a company that literally reinvented the Internet, to bring its cutting edge technology
to our customers.
 8
Bharti Airtel Ltd is one of the largest mobile telecom providers in India (26.5% market share). In
August 2006 the company awarded Ericsson an extension to the existing contract of US$1bn to
upgrade and develop its GSM/GPRS network.

This technology will eventually give way to an all-IP network. Then, Bharti Airtel will be able to
reduce its operational costs and introduce new services in a cost-efficient manner.

Board of Directors

Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. It has skilled
and experienced staff for the quality work.

India adds 5 million mobile subscribers per month across the board and one quarter of these become
Bharti subscribers. Bharti's mobile subscriber base is now just shy of 25 million. The carrier added
1.26 million mobile subscribers in July 2006 alone, bringing the total to 24.34 million. As a whole the
Indian mobile market is growing by 5% per year.

In October 2006 Bharti Airtel also signed a $400m network expansion contract with Nokia to expand
its managed GSM/GPRS/EDGE networks in eight regions not covered by Ericsson. The eight-telecom
regions include Mumbai, Maharashtra and Goa, Gujarat, Bihar (including Jharkhand), Orissa, Kolkata,
West Bengal and Madhya Pradesh (including Chattisgarh).

Financial Pattern

Bharti Airtel is one of India's leading private sector providers of telecommunications services
based on an aggregate of 61,914,666 customers as on February 29, 2008, consisting of 59,670,174
GSM mobile and 2,244,492 broadband & telephone customers.
The businesses at Bharti Airtel have been structured into three individual strategic business units
Mobile services, telemedia services (ATS) & enterprise services. The mobile services group provides
GSM mobile services across India in 23 telecom circles, while the ATS business group provides
broadband & telephone services in 94 cities. The enterprise services group has two sub-units - carriers
(long distance services) and services to corporates. All these services are provided under the Airtel
brand.
It has Rs.1895.93 lakhs equity share capital and total business of Rs.16751.95 lakh at the end of march
2007. Bharti Airtel have earned gross profit of Rs.6954.67 lakh and EPS is Rs.21.27 as 31march 2007.
 9

Spice Communication Limited

Introduction

Spice telecommunication limited is a public sector communications company in India.

Spice communication the pioneering brand of spice telecommunication in India. Spice
telecommunication is subsidiary company of the Malaysia telekom.spice telecommunication is the
emerging leader in India communication. Spice amongst top 5private GSM operators in India. Its tie-
ups with over 448 international operators across 208 countries. As on December 31 2007 spice
 10
commanded a customer base more than 2.4 million. Telekom Malaysia has 46.89% stake in spice
telecommunication limited. Its headquarter at Mohali in India. It has foot prints TM international-
BANGLADESH, smart-hello-combodia, multinet-pakistan, mobile one limited-Singapore, dialog-in
Sri Lanka.spice telecom, the brand name of spice communication limited is presently operating
cellular phone services in the states of Punjab and Karnataka. Considered as on of the best service
providers of mobile telephony in India, spice communications limited has been promoted by Modi
Well vest private limited Mr. Modi.

History

Spice Telecom, the brand name of Spice Communications Limited is presently operating
Cellular Phone Services in the states of Punjab and Karnataka. Considered as one of the best service
providers of mobile telephony in India. Spice telecommunication is emerging company in
telecommunication in India. It founded in 1997 in India. Spice telecommunication is currently
operating in states of Punjab and Karnataka i.e. in 2 circles of 23 circles of India. Spice telecomm
nation limited was promoted by Dilip Modi of Modi well vet limited, which own 40.80%of the
company. Mr.Dilip and super infosys promote mod. Telekom Malaysia Bernard owns 39.29% through
TMI India limited, Mauritius TMI India is a wholly owned subsidiary of TM international investment
holding company TM international Sdn Bhd (TMI). Spice telecom is a flagship company of M corp.
Global a cellular mobile telephone services provider in India.

In 1972, Nagel and Pederson release SPICE1 (Simulation Program with IC Emphasis)
into the public domain.

Type Public, Listed on BSE

Founded 1997
Headquarters Mohali, India
Key people Dilip Modi
Industry Telecom
Products Mobile operator
Revenue INR 1,473,884,000,000.00 [1]
Website Spice Telecom
 11

Operator Name: Spice Communications Limited

Network Name: Spice Telecom Punjab

Technology: GSM 900

Network Status: Live May 1997

Strategic Benefits Of A Win-Win Relationship

1. Fusion of Telekom Malaysia's operational experience and Spice Telecom's management

expertise

2. Pooling technological skills to create innovative new products and services to delight a young,
tech-savvy market
3. Leveraging group synergies for global competitive advantage in procurement and resource
allocation
4. Creating additional revenue streams by cross-selling products and service offerings, resulting
in wider product range
5. Cost benefit to Spice as combined volume will help achieve lower capital expenditure per unit
on network and infrastructure
6. Ensuring seamless connectivity across Asia through extensive network coverage
7. Co-location facilities. No duplication of infrastructure and resources in setting up global nodes
8. Opening exciting new possibilities of cross-cultural enrichment of content
9. Twin advantages of strengthening present operation and spearheading new growth strategy

Spice Telecom
Spice amongst top 6 private GSM operators in India. GPRS enabled network
Tie-ups with over 448 international operators across 208 countries
First to introduce unique VAS services
Customer base more than 3.0 million at present.

Market Development

Creating a national presence by consolidating our existing markets and expanding capacity and
coverage to become an all-India player. We intend to catch-up with our competitors in Punjab and
Karnataka by expanding our geographic coverage in these states to match those of our leading
competitors. To achieve this objective, we plan to cover 613 new towns in Punjab by fiscal 2008 and
750 new towns in Karnataka by fiscal 2009. We also plan to expand our operations nationally to cover
 12
all 22 circles in India. We have also applied for NLD and ILD licenses to facilitate cost savings for
outgoing calls once we receive these licenses. Also in the meantime, we will focus on enhancing age
on network of new customers through quality management.

Communication Strategy

Strengthen our brand recognition to make Spice a national brand. In line with our strategy to
become a national player, we will focus on horizontal and vertical branding to make Spice more
prominent in our existing markets as well as provide it with a national presence. We will also create a
very robust brand track to keep track of the health of the brand, with post evaluation of campaigns.
Brand track gives us an insight into the effect of advertising on share of voice and share of market.

Capitalize on our relationship with Telekom Malaysia

We believe that we can create additional revenue streams, cross-sell products and services and
achieve lower capital expenditures per unit on network and infrastructure, by working together with
our strategic investor, Telekom Malaysia and its affiliates. Telekom Malaysia is a consortium member
of all submarine cable systems that land in Malaysia and has access to capacity in other submarine
cable systems globally. Also, Telekom Malaysia has co-location facilities at major data centers and
tele-houses. Due to our relationship with Telekom Malaysia, we can access these cable systems and
facilities to have a better coverage globally at a low cost. Also, we will be able to benefit from lower
cost per unit of calls due to the volume commitments Telekom Malaysia has in the Asia-Pacific region
 13

Vodafone Essar Limited

History

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal
Telecom Limited, approximately 20% of the company's capital was offered to the public in October
1988. It was fully demerged from Racal Electronics Plc and became an independent company in
September 1991, at which time it changed its name to Vodafone Group Plc.Communications, Inc.
(AirTouch), the company changed its name to Vodafone AirTouch Plc on 29 June 1999 and,
following approval by the shareholders in General Meeting, reverted to its former name, Vodafone
Group Plc, on 28 July 2000.

Board of Directors
Sir John Bond became Chairman of Vodafone Group Plc on 25 July 2006 having previously served
as a Non-Executive Director. The Deputy Chairman, John Buchanan, is the nominated senior
independent director The Company considers all its present non-executive directors to be fully
independent. 18 chief executive officers of its subsidiary operations worldwide are working with their
quality skill and experience.

Merger of Hutch with Vodafone

Mumbai, September 19, 2007: Vodafone, the worlds leading international mobile
communications company, has fully arrived in India. Vodafone Essar announced today that the
Vodafone brand will be launched in India from 21st September onwards. The popular and endearing
brand, Hutch, will be transitioned to Vodafone across India. This marks a significant chapter in the
evolution of Vodafone as a dynamic and ever-growing brand.

Vodafone, the worlds leading mobile telecommunication company, completed the acquisition of
Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007.
Asim Ghosh, Managing Director, Vodafone Essar, said "Weve had a great innings as Hutch in India
 14
and today marks a new beginning for us. Not as a departure from the fundamentals that created Hutch,
but an acceleration into the future with Vodafone's global expertise. It is even larger than our own
previous brand transitions as it touches over 35 million customers, across 400,000 shops and
thousands of our own and our business associates' employees."

The Vodafone mission is to be the communications leader in an increasingly connected world

enriching customers lives, helping individuals, businesses and communities be more connected by
delivering their total communication needs.

Vodafone Essar Limited

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in
1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone
Essar now has operations in 16 circles covering 86% of Indias mobile customer base, with over 34.1
million customers. But it has show losts of Rs.21,821 lakh and negative earning per shaire of Rs.35.01
at the end of 31 march 2006.

Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom
Company', the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective
Advertiser of the Year'. Vodafone is the world's leading international mobile communications
company. It now has operations in 25 countries across 5 continents and 40 partner networks with over
200 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint
venture partner for the Indian market.

The Essar Group is a diversified business corporation with interests spanning the manufacturing and
service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and Construction.
The Group has an asset base of over Rs.400 billion (US$ 10 billion) and employs over 20,000 people.

Comparative View of Thease Four Telecom Operators

Presently there is an intense competition in Indian Telecom sector and various Telcos are
rolling out attractive schemes and are providing good customer services. However, BSNL being legacy
operator and its conversion from a Government Department, earns lot of criticism for its poor
customer service. Although in recent past there have been tremendous improvement in working of
 15
BSNL, still it is below the Industry's expectations. Other private operators are providing much
competition for the BSNL.

All of the three main players in the Indian mobile communications market Bharti, Reliance and
Bharat Sanchar Nigam Ltd are targeting the rural areas of the Indian subcontinent. Over two thirds of
India's population live in rural surroundings and in these telecoms have not really made their presence
felt to any real extent. With three companies driving technology into this sector of the market the effect
is likely to be a boom in telecoms demand. It is probable in these rural areas that cheap call rates will
link with state-of-the-art technology to boost teledensity and offer more freedom.

According to industry insiders in the month of march, 2007 the year the subscriber figures usually go
up quite dramatically because companies want to meet targets. The BSNL growth in March displayed
that trend, they added. As of end of March. 2007, total number of mobile subscribers (GSM & CDMA)
were 166.05 million. The total phone subscribers base was at 206.83 million including fined the users.

Table 1.1 market share in GSM mobile subscribers of different telecom operators

(March 2007)

Telecom Operator Market Share (%)

BSNL 22.53

Airtel 30.63

Vodafone 21.77

Spice Less than 10

It is evident from this table that Airtel has the highest market share in GMS mobile subscribers
followed by BSNL. Vodafone has market share just exultant to the BSNL WHERE AS spice has even
less than 10 % market share. Hence it is clear that Airtel and Vodafone has created a challenge for
BSNL to survive in the market.
 16
In this light, present study is an attempt to compare these telecom operators on the basis of customer
satisfaction level derived by the users of their services in the Muktser district. The study is based on
primary data collected throw the questioners , which will help the concern people to improve their
quality of services in case of any discrepancy in the views of users.

Chapter 2

Objectives and Research Methodology

 17

OBJECTIVES OF THE STUDY

1. To compare and analyses the satisfaction level derived by the usurers of different telecom
operators on their occupation basis.
2. To study the factors influencing the satisfaction derived by the users.
3. To suggest constructive suggestions for improving the users satisfaction.

RESEARCH METHODLOGY

The present study is mainly concerned with the comparative analyses of the satisfaction
derived by the users of different telecom operators. For this analyses four telecom operators have been
chosen which are BSNL, Airtel, Vodafone (hutch), and Spice whereas others have been ignored.

The sample size of 100 users of only these four telecom operators has been taken into
consideration. For this purpose, a well-structured questioner is prepared. Survey is connected in the
Muktsar district random sampling have been used the total sample of 100 is divided into four category
of occupation where 25 responded of each category that is student, service men, business men,
agriculturist were asked a variety of questions regarding their opinions about satisfaction derived by
the users from their telecom operators services. Only those respondents of each category were
selected who are availing the services of any of the four selected telecom operators.
The survey is conducted in the month of April 2008.
The primary data is analyses an interpreted by calculation percentage of respondents in regard to every
asked of the questioner.
 18

LIMITATIONS OF THE STUDY

The researcher is dependent on the responses given by the user to draw conclusions. Thus, the
degree of reliability cannot be taken to be always correct because there are certain constrain:
1. The study is limited to the Muktsar Dist. only.
2. The period of study is limited.
3. One more limitation would be that the sample size is two small to come to any conclusion.
4. Telecom operators include only BSNL, Airtel, Vodafone, Spice while others are not taken into
consideration in this study.
 19

Chapter III

A comparative Study of Satisfaction Derived by the Users of Different

Telecom Operators

RESULTS AND DISCUSSION

 20
In this competitive era, every company has to compete with the objective to survive in the
market. Survival of the company is based on the satisfaction level derived by their customer. In this
concern, this survey is an attempt to study the satisfaction level of users of selected four telecom
operators, which well help to compare these companies and to find the company, which is the most
preferred one among the users.

Table 1: depicts the present age of the respondents on the basic of occupation from the sample
of 25 students 88 % students are under the age of 25 years whereas only 12 % are between the age of
25 and 40 years. If we checked the service class, it is found that 52 % are between the age of 25 and 40
years and remaining 48 % are of the age above 40 % years. Whereas among the agriculturist only 20
% are above 40 years while 80 % are below 40 % years from Business class, 48 % are between the age
of 25 and 40 years, 36 % are below 25 years whereas 16 % are above 40 %. Over all, it is evident from
this table that maturity of the respondents are youngest whereas 38 % are between the age of 25 and 40
years and 21 % are above 40 years. Hence it is clear that maturity is hold by below 40 years in the
study.

Table 1: Demographical Factors

Occupation
Students Service class Agriculturists Business Class Total
->
No. of No. of No. of No. of No. of
Age Level %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
15 25 22 88 0 0 10 40 9 36 41 41
25 40 3 12 13 52 10 40 12 48 38 38
40 and Above 0 0 12 48 5 20 4 16 21 21

Table 2: In this competitive environment, all the telecom operators are competing with each
other to service in the market table 2 shows that which telecom operators is preferred by the maturity
respondents occupation wise analyses shows that among the students BSNL and Airtel companies are
more prefer as compare to Vodafone and spice. Where BSNL has the highest percentage of
respondents that is 36 % who are preferring BSNL in comparison to others followed by Airtel having
32 % respondents in its fever whereas Vodafone and Spice both have 16 % respondents in their fever
individually among the service class maturity of the respondents (40%)are preferring BSNL followed
by Airtel having 28 favorable respondents whereas only 16 % respondents favoring Vodafone and
 21
Spice each. In case of agriculturists, again BSNL is preferred over the others followed by Spice with
24 % respondents whereas Vodafone has 16 % favorable respondents but Airtel is the least preferred
witnessed by lowest percentage of respondents that is 12 %. Among the Business class maturity
respondents that are 52 % again prefer BSNL and Airtel is following with 24 % favorable responses
but Vodafone and Spice are fevered by 12 % respondents each. Over all BSNL is the most preferred
telecom operators among all the occupation based respondents whereas Airtel is the second most
preferred company but Vodafone and spice are in succession.

Table 2:Usage of Telecom Operators

Occupation -> Students Service class Agriculturists Business Class Total

Telecom No. of No. of No. of No. of No. of
%age %age %age %age %age
Operator Respdt. Respdt. Respdt. Respdt. Respdt.
BSNL 9 36 10 40 12 48 13 52 44 44
Airtel 8 32 7 28 3 12 6 24 24 24
Vodafone 4 16 4 16 4 16 3 12 15 15
Spice 4 16 4 16 6 24 3 12 17 17

Table 3: In response to the views regarding reasons for preferring a particular telecom
operators, among the student who are using BSNL at the most are in the view that it is cheap as 56 %
student are favoring this reason and secondly they are in the view that it is providing fast service as 24
% respondents are favoring this reason why some are preferring due to good customer care services
similarly among the service class maturity of the respondents (4.4%) are preferring their services
provider due to their cheap services and 32 % a preferring to due to good customer care service and
among the agriculture 68 % respondents are preferring due to fast service and new facilities among
whereas business class preferring its telecom operator due to cheap and fast service over all it is
concluded that 60 % of the total respondents a preferring a particular telecom operator due to its
cheap services and 22 % are preferring due to fast services whereas 12 % are preferring due to good
customer care service whereas brand image is totally ignored by all the respondents in this survey.
That means cheap and fast services are the most dominating factor for influencing the satisfaction
level of the user.

Table 3:Reasons for Preferring Particular Telecom Operators

 22

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
Reasons %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
Good customer
care 4 16 8 32 0 0 0 0 12 12
service
Cheap service
14 56 11 44 17 68 18 72 60 60
charges
Fast service 6 24 5 50 4 16 7 28 22 22
More & new
1 4 1 4 4 16 0 0 6 6
facilities
Brand image 0 0 0 0 0 0 0 0 0 0

Table 4: The depicts that the prepaid services are to most prefer services among all the
occupation based respondents i.e. 93 % whereas only 7 % are using postpaid services. 100 %
students and agriculturist are using prepaid services whereas among the services and business
class only 3 to 4 customer are using postpaid services. While others are using prepaid services.

Table 4:Uses of Service Types

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
Service Types %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
Prepaid 25 100 22 88 25 100 21 84 93 93
Postpaid 0 0 3 12 0 0 4 16 7 7

Table 5: It is known that every body is motivated by some sources to uses the services of
particular telecom operator. In this connation, table 5 shows that among the student maturity of the
respondents that is 60 % are motivated by the friends/ relatives and 24 % throw the advisement among
the services class 52 % respondents are motivated by the advisement and 54 % by the friends/relatives.
Majority of the agriculturist that is 64 % are motivated throw the advisement whereas friends/relatives
are the second prefer motivation source. Among the business class 64 % are motivated from
friends/relatives and others throw advertisement. Over all, it is concluded that friends/relatives are the
most influencing motivational sources whereas advertisement is the second one for referring particular
 23
telecom operators. Whereas newspaper also play a role on motivating customers but internet and
placard have not any influence to motivate the costumers

Table 5:Motivational Source for Preferring a Particular Telecom Operators

Occupation -> Students Service class Agriculturists Business Class Total

Motivated No. of No. of No. of No. of No. of
%age %age %age %age %age
Factor Respdt. Respdt. Respdt. Respdt. Respdt.
Friends 15 60 11 44 8 32 16 64 50 50
Advertisemen
6 24 13 52 16 64 8 32 43 43
t
Internet 1 4 0 0 0 0 0 0 1 1
Newspaper 3 12 1 4 1 4 1 4 6 6
Placards 0 0 0 0 0 0 0 0 0 0

Table 6: Table 6 show that 65 % of the total respond are aware about the services provided by
their telecom operators. Where student have the highest % that is 84 %. Who are aware about the
services fallowed by services class showing 76 % responded award about the services 56 % of
business class are award 44 % are not award here it is important to note that of the agriculturist that is
56 % are not award about the services but in student / services class below 25 % are unaware. Since it
is concluded that awareness about services is more among the student class whereas unawareness is
more among the agriculturist.

Table 6:awareness About Service Providers By Telecom Operators

Occupation -> Students Service class Agriculturists

No. of No. of No. of No. of No. of
%age %age %age %age %age
Awareness Respdt. Respdt. Respdt. Respdt. Respdt.
Yes 21 84 19 76 11 44 14 56 65 65
No 4 16 6 24 14 56 11 44 35 35

Table 7: It is evaded from table 7 that most of the responded that is 68 % uses 2 to 3 services
whereas 21 % uses 4 to 5 services and only 10 % are those who are availing only single services.
Among the student 80 % are availing 2 to 3 services and 20 % are availing 4 to 5 % services among
 24
those internet services, entertainment, easy recharge and roaming facility are to most preferred uses.
Among the services class also 72 % availing 2 to 3 services and 16 % are 4 to 5 services where easy
recharge is to most preferred wanes along with along with internet services, roaming and number free
facility. Whereas 12 % are availing only single services that is easy recharge. Among to agriculturist
64 % are availing 2 to 3 services and only 12 % are availing 4 to 5 services are easy recharge,
entertainment emergency call in case negative balance and number free facility. The most preferred
ones whereas 24 % are availing only single services i.e. easy recharge and number free facility. Among
the business class also 56 % are using 2 to 3 services and 36 % are 4 to 5 % services as internet
services, easy recharge, number free facility and roaming facility are to most preferred once where as 4
% are availing a single services that is easy recharge and 4 % are very more than 5 services. It is
important to note that only a single businessman is availing more than 5 services among the whole
survey. Over all it is calculated maturity of the responded are availing 2 to 3 services where only few
are availing single services where easy recharge, roaming and number free facility and entertainment
are to most preferred services where is ticket booking, current news and banking services are not
availed of the study.

Table 7:Responses Regarding Number of Services Availed By the Users

Occupation -> Students Service class Agriculturists Business Class Total

Number of No. of No. of No. of No. of No. of
%age %age %age %age %age
Service Respdt. Respdt. Respdt. Respdt. Respdt.
Single service 0 0 3 12 6 24 1 4 10 10
23 20 80 18 72 16 64 14 56 68 68
45 5 20 4 16 3 12 9 36 21 21
More than 5
0 0 0 0 0 0 1 4 1 1
Services

Table 8: There are number of problems which create frustration and make them dissatisfied for
using the services of particular telecom operator here table 8 show that poor network is the most
dominating problems among the maturity of the respondents that is 62 % it is so because most of the
respondents in this study are BSNL users and network of BSNL services of is still not improved up to
the desire level 8 % user are in the views that the services charge are not reasonable and 5 % are not
satisfied from customer care services whereas other problems have negligible affect on the
satisfaction level of the customer. Occupation wise, agriculturist show to maturity (84%) in the views
that they are this satisfied from to network and 60 % business class and 56 % student are dissatisfied
 25
from the network of their telecom operator. In regard to unreasonable services, services charge,
services class hold the maturity with 16 % respondents who are this satisfied where as 12 % student
also not satisfied from the services charge. In case of Internet services student are fully satisfied but
business class show 8 % respondents who are not satisfied. Others problems like poor costumer care
services no innovation, not recharge immediately, not prompt request, disconnect at delay in payment
are creating little bit dissatisfaction and the services class and student. Here it is important to not that
20 % of the services class and 20 % of business class do not have any problems followed by students
and agriculturist with 16 % responded. Hence it is concluded that poor network is creating are not
major problem and unreasonable services poor customer care services are the other that are decreasing
the satisfaction level of the users.

Table 8:Problem For By The Users

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
%age %age %age %age %age
Problems Respdt. Respdt. Respdt. Respdt. Respdt.
Poor network 14 56 12 48 21 84 15 60 62 62
Unreasonable
3 12 4 16 0 0 1 4 8 8
service charges
Poor internet
0 0 1 4 0 0 2 8 3 3
services
Poor customer
3 12 0 0 0 0 2 8 5 5
care
No innovation 1 4 1 4 0 0 0 0 2 2
Not recharge
0 0 1 4 0 0 0 0 1 1
immediately
Not take prompt
0 0 0 0 0 0 0 0 0 0
action at request
Disconnect at
delay in bill 0 0 1 4 0 0 0 0 1 1
payment
No problem at
4 16 5 20 4 16 5 20 18 18
all

Table 9: Table 9 shows the users habits to complaint regarding the problems mentioned in the
last table. Occupation wise, business class shows the maturity with 60 % respondents who have
complain regarding any of the problem faced by them. Students and services are following with 56 %
and 52 % respondents respectably but in case of agriculturist maturity is hold by those responded that
is 52 % who have never complain regarding any problem. Over all it is concluded that 54 % responded
 26
have complaint but 46 % have never complain regarding any problem they faced. Hence we can say
that most of the people more, particularly agricultures are still not ready to user their right to complaint
regarding their problem the face because they hesitate either due to unawareness or lack of time.

Table 9:Complaints Regarding Users Problems

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
Complaints %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
Yes 14 56 13 52 12 48 15 60 54 54
No 11 44 12 48 13 52 10 40 46 46

Table 10: Table 10 shows the responses regarding action taken by a telecom operator to solve
their problem immediately. In this case maturity of the responded i.e. 75 % are not satisfied that means
their problem was not solved when they complained. Occupation wise, agriculturist have shown the
highest percent that is 84 % followed by students i.e. 76 % who are in the view that their problems
where not solved 72 % business class and 78 % of services class are not satisfied but on the other side
less than 53 % respondents in each category are listened by their telecom operator. It is concluded that
only 25 % respondents are satisfied with their remedial measures with shows that telecom operators
are still not taking the costumer searsialy.

Table 10:Status of Remedial Measures

Occupation -> Students Service class Agriculturists Business Class Total

Remedial. No. of No. of No. of No. of No. of
%age %age %age %age %age
Measures Respdt. Respdt. Respdt. Respdt. Respdt.
Yes 6 24 8 32 4 16 7 28 25 25
No 19 76 17 68 21 84 18 72 75 75

Table 11: Table 11 shoes that maturity of the respondents in each category at occupation i.e. 72
% student and services class each, 68 % agriculturalists and 64 % business class are not ready to shift
that means they are satisfied from are their services. On the other hand 31 % of the respondents want
to shift from their current telecom operator where 36 % of the business class, 32 % agriculturist and 28
% student and services men each want to change their telecom operator. Hence it is concluded that 69
% responded are satisfied whereas 31 % are not satisfied from the service of telecom operator.
 27
Table 11:Responses Regarding Shifting of Users to Other Telecom Operators

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
Shift Status %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
Yes 7 28 7 28 8 32 9 39 31 31
No 18 72 18 72 17 68 16 64 69 69

Table 12: Table 12 shows the respondents regarding selection of telecom operators by the user
who want to shift from their current telecom operator. It is evident from the data that Aritel is most
preferred over the others among all the categories of occupation where busyness class shows the
highest percentage i.e. 24 % followed by services class and agriculturist with 16 % response is fever of
Airtel companys students shows 12 % fever able responses regarding Aritel. 12 % agricultures want
to choose BSNL and 8 % services class. Whereas students and business class are not in fever of
BSNL. Spice is also preferred by some of the respondents in each category whereas services class and
agriculturist dont want to choose Vodafone. Over all it is concluded that Aritel is the most prefer
company over the other whereas Spice is at the second place only 5 % responded are in fever of BSNL
whereas 3 % want to choose Vodafone.

Table12: Responses Regarding Preference of Other Telecom Operators

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of
Telecom No. of %ag No. of
Respd %age Respd %age Respd %age %age
Operators Respdt. e Respdt.
t. t. t.
BSNL 0 0 2 8 3 12 0 0 5 5
Airtel 3 12 4 16 4 16 6 24 17 17
Vodafone 2 8 0 0 0 0 1 4 3 3
Spice 2 8 2 8 2 8 1 4 7 7
Table13: Table 13 shows the responded regarding suggestion the improve the customer service
among the students 56 % are in the view the improve network whereas 20 % suggested to make the
customer care service fast among the service class also 48 %, 68 % agriculturist and 60 % business
class are in the view to improve network whereas 32 % of business class and 20 % of service class
suggest to make customer care service fast. 16 % of service class and 12 % of business class are in the
view to provide better service at low rates similarly 16 % agriculturist and 12 % students are in the
view to launch attractive services suitable according to customer needs over all 55 % respondents have
suggested to improve network which is a major problem. 19 % suggested to make customer care
 28
service fast and 10 % have said to launch service suitable to the customer needs. Hence all the
suggestions are effective to improve customer service in the view of respondents of the study.

Table 13:Suggestion Regarding Improve in Service of Telecom Operators

Occupation -> Students Service class Agriculturists Business Class Total

No. of No. of No. of No. of No. of
Suggestion %age %age %age %age %age
Respdt. Respdt. Respdt. Respdt. Respdt.
Make customer
care service 5 20 5 20 1 4 8 32 19 19
fast
Improve network 14 56 12 48 17 68 12 60 55 55
Aware the
2 8 1 4 1 4 0 0 4 4
customers
Quick recharge
facility in rural 0 0 2 8 2 8 0 0 4 4
areas
Cheap & better
1 4 1 16 0 0 3 12 8 8
services
Launch customer
friendly &
3 12 1 4 4 16 2 8 10 10
attractive
services

Chapter IV
 29

Summary of Conclusions and Suggestions

Summary of Conclusions and Suggestions

BSNL is the only fully Govt. owned telecom operators which is serving the public from last
many decodes but the private telecom operators like Airtel, Vodafone, Spice etc have created ripples in
the market. Telecom service industry in the company grew by 16 % at the end of 2004 05 as BSNL
has 22.53 % at market share in GSM mobile subscribes at the end of march 2007, but Vodafone is at
per it with having 21.77 % market share whereas Airtel has the highest market share that is 30.63 %. It
means BSNL is facing a cutthroat competition from the private telecom operators. This study has
shows that BSNL is the most preferred one by the maturity respondents mainly because of cheap
services but there are not satisfied from its network which has influence the customer to shift toward
Airtel because their providing fast service there is not problem of network. As it is avoided from the
study that most of the customer are not satisfied from the services of their telecom operators. In this
 30
regard we have suggested some majors to improve the customer service to make the telecom operators
in the market.

First best option:- BSNL prepaid, at present best saving prepaid option available for the mobile users
is available in the form of BSNL prepaid. The major features of this prepaid card are 10 paise/minute
call to two BSNL numbers, 10 paise/SMS, 50 paise/minute call to other GSM mobiles and attractive
recharge schemes with full value and maximum validity. Moreover BSNL prepaid also does not charge
monthly fees for the activation of various schemes. At present this is the most economical prepaid
option available for the people as compared to the other options and offer maximum benefits to the
customers. The major drawbacks are high congestion in the peak hours.

Second best option:- Airtel prepaid, Airtel is presently the most expensive prepaid connection.
However the benefits on the other hands are good quality, fast service and internet facility.

Third best option:- Spice prepaid, this is the second best prepaid option for the mobile users of
Punjab. The major features of this service are free talk times, full value on recharge and good validity.

Forth best option:- Hutch prepaid, Remaining at the top position for more than two years, Hutch
prepaid is slowly losing its ground in Punjab circle. The major reason behind it is removal of various
promotional schemes offered by it. Also lots of hidden charges are putting many inconveniences in
front of people.
 31

ANNEXURE

Questionnaire
Dear Respondent
I request to seek your opinion regarding some aspects of the mobile connection you are using.
Please respond to all these questions according to the given instructions. The information provided by
you will be kept strictly confidential. Please co-operate

1. Personal biodata
a.Present age (years)
15 to 25 -- 25 to 40 --
41 and above --
b. Occupation
Student -- Service class --
Agriculturist -- Business class --
2. You are using a connection of which telecom operator? If more than one then please give
preference in numbers 1, 2 on the basis of usability?
(a) BSNL -- (b) Airtel --
(c) Vodafone (Hutch) -- (d) Spice --

3. Pease tick, why you are preferring a particular service provider? If more than one then please give
preference in numbers 1, 2 ?
(a) Good customer care service --
(b) Cheap (less) service charges --
 32
(c) Fast services --
(d) More and new facilities --
(e) Brand image --
(f) Other, please specify --

4. Which type of service you are using?

(a) Prepaid -- (b) Postpaid --

5. Which source has motivated you to prefer this telecom operator?

(a) Friends/Relatives --
(b) Advertisements --
(c) Internet --
(d) Newspaper --
(e) Placards/Sign boards --
(f) Other, please specify --

6. Do you aware about all the services provided by your telecom operator?
(a) Yes -- (b) No --

7. Please specify which service(s) is provided by your telecom operator?

(a) Internet --
(b) Banking services --
(c) Ticket booking --
(d) Current news and other information --
(e) Entertainment (tuens,music, games) --
(f) Emergency call facility in case of negative balance --
(g) Easy recharge --
(h) Easy billing system --
(i) International calls --
(j) Roaming facility --
(k) Number free facility --
8. Which of the following problems you are facing while using the services? If more than one then
please rank in numbers 1, 2 on the basis of occurrence?
(a) Poor network --
 33
(b) Unreasonable service charges --
(c) Poor internet services --
(d) Poor customer care --
(e) No innovation/New services --
(f) Not recharge immediately --
(g) Not take prompt action at request --
(h) Disconnect at delay in bill payment --
(i) No problem at all --
9. Have you complaint regarding any of these problems?
(a) Yes -- (b) No --

10. If yes, have they solved your problem immediately?

(a) Yes -- (b) No --

11. Do you want to shift to another telecom operator?

(a) Yes -- (b) No --

12. Then, which telecom operator will you prefer?

(a) BSNL -- (b) Airtel --
(c) Vodafone (Hutch) -- (d) Spice --

13. What you will suggest to improve customer services of telecom operator? Rank as 1, 2, . on the
basis of effectiveness.
(a) Make customer care service fast --
(b) Improve network --
(c) Aware the customers about new services to cover wider area --
(d) Make the recharge facility quick in rural areas also --
(e) Provide better service at lower rates --
(f) Launch attractive services suitable according to customer needs --

Thanks
REFERENCES
 34

Chawla, A.S. Singh Labh (2007), Customer Retention in BSNL:A Challenge Ahead, Consumer

Protection Through Mass Awareness-New Challenges and Opportunities, (Ed.) Dr.R.K.Uppal

and Rimpi Kaur, pp. 139-153

Saxena Neeraj (2004), True wireless future not far: ITU September 08,

http://infotech.indiatimes.com

Banerjee, Andy (2002) Future of Telecom in India, December 01, https://ssl.cpsr.org

Gupta,S.P. (2007), Statistical Methods, Sultan Chand & Sons, New Delhi, pp. 177 267

www.bsnl.com.in

www.vodafone.com

www.google.com

www.spicetele.com

www.mcorglobal.com